Tags: US | Earns | Dennys | Corp

Denny's Net Income Falls by Half as Revenue Slides

Wednesday, 04 Aug 2010 02:24 PM

Denny's Corp. said Tuesday its net income dropped by nearly half in the second quarter as revenue fell at its company-owned and franchise restaurants.

For the three months ended June 30, the company earned $5.5 million, or 5 cents per share. That compared with $9.3 million, or 9 cents per share in the year-ago quarter.

Total operating revenue fell to $135.1 million, from $155.8 million in the year-ago period.

On average, analysts polled by Thomson Reuters expected a profit of 7 cents per share on revenue of $140.2 million.

Same-store sales fell 6.2 percent at company-owned restaurants, and 5.9 percent at franchised units. The drop in sales at company-owned stores was driven primarily because Denny's sold 37 stores this year.

The company also incurred $1.5 million in costs to defend against an attempt by investors to unseat three board members.

Denny's noted that it also began the process of converting the restaurant portions of Flying J Travel Centers to the Denny's brand. The company was selected in March by Pilot Travel Centers LLC to provide the restaurant sections of its travel centers.

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Denny's Corp. said Tuesday its net income dropped by nearly half in the second quarter as revenue fell at its company-owned and franchise restaurants.For the three months ended June 30, the company earned $5.5 million, or 5 cents per share. That compared with $9.3 million,...
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2010-24-04
Wednesday, 04 Aug 2010 02:24 PM
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