Denny's Revenue Drops, Comps Positive
Full-service restaurant operator Denny's served up another quarter of positive same-store sales growth, its ninth out of the last 10, despite reporting third-quarter results after the markets closed yesterday showing revenues of $117.3 million, a 3% drop from the $120.9 million in the same period the previous year, though pretty much in-line with the $117.9 million Capital IQ consensus estimate. However, adjusted net income was flat at $7 million, or $0.08 per share, from Q3 2012's $7 million, or $0.07 per share, which was also in-line with CapIQ estimates.
With a net reduction of one restaurant from the year-ago period, and down four stores sequentially, the restaurant operator felt pressure from occupancy revenue and initial fees from franchisees. For the third quarter, franchise and license revenue was $33.9 million compared with $34.4 million in Q3 last year.
Denny's anticipates comps for the full year will be flat to 1% higher from 2012 with net restaurant growth of zero to five new stores, and adjusted EBITDA at the lower end of its initial guidance range of $76 million to $80 million.
The article Denny's Revenue Drops, Comps Positive originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.