Denny's Corporation announced its fourth-quarter U.S. system-wide same-store sales increased 0.9%, based on a 0.8% increase at domestic franchised restaurants and a 1.5% increase at company restaurants.
The company reports it has achieved positive system-wide same-store sales in 10 of the past 11 quarters, in addition to achieving its third consecutive year of positive system-wide same-store sales.
In fourth-quarter 2013, Denny's opened 19 franchised restaurants and closed five system-wide restaurants, including one company restaurant.
Denny's opened 46 new restaurants in 2013, including five international locations, and closed a total of 34 restaurants, bringing its total restaurant count to 1,700. The growth in the number of the restaurants represents the fifth consecutive year of positive net system growth for the brand, reports the company.
Notable developments include a partnership with Army & Air Force Exchange Service, the restaurant operator for military installations in the U.S., five U.S. territories, and more than 30 countries. Denny’s Fresh Express opened at Nellis Air Force Base in Las Vegas, Nevada in November, marking the opening of the first non-traditional military base restaurant.
Additionally, Denny’s recently signed a franchise agreement with Advance Investment, an affiliated entity of Food Quest Restaurant Management, for the development of 30 new Denny's restaurants in nine countries in the Middle East over the next 10 years.
Based on its preliminary results, Denny's is tightening its expected results for calendar year 2013, with adjusted earnings before taxes, depreciation, and amortization (EBITDA), to settle in between $76 million and $78 million and free cash flow to be between $43 million and $45 million.
Denny’s plans to announce financial and operating results for its fourth quarter and full year ended December 25, 2013 after the market closes on Wednesday, February 19, 2014.
By Joann Whitcher