Denny's Corp (DENN) Reports In-Line Q4 EPS; SSS up 4.7%

Denny's Corp (NASDAQ: DENN) reported Q4 EPS of $0.11, in-line with the analyst estimate of $0.11. Revenue for the quarter came in at $128.73 million versus the consensus estimate of $124.33 million.

Domestic system-wide same-store sales growth of 4.7%, comprised of a 5.8% increase at company restaurants and 4.6% increase at domestic franchised restaurants.

Business Outlook

Mark Wolfinger, Denny's Executive Vice President, Chief Administrative Officer and Chief Financial Officer, commented, "We are pleased with our ability to grow our earnings and Free Cash Flow* in 2014, as we overcame the planned temporary closure of our highest volume restaurant. Our same-store sales growth and highly franchised business enabled us to grow our Adjusted Net Income per Share* by 18% in 2014, while generating $48.5 million of Free Cash Flow* after remodeling 44 company restaurants."

"Our annual guidance for 2015 anticipates growing same-store sales at company and franchised restaurants in addition to continuing to accelerate remodels in our company restaurants. We are looking forward to growing our Adjusted EBITDA* despite having one less operating week. The use of Free Cash Flow* will continue to be allocated towards supporting reinvestment in company restaurants and returning value to our shareholders," Mr. Wolfinger concluded.

The following full year 2015 estimates are based on management's expectations at this time. A key consideration impacting the Company's outlook for 2015 is having 52 operating weeks in the year compared to 53 operating weeks in 2014.

• Company same-store sales growth between 2.5% and 4.0% and domestic franchised same-store sales growth between 1.5% and 3.0%.
• 35 to 45 new franchised restaurant openings with single digit net restaurant growth.
• Total G&A expenses, including share-based compensation, between $58 million and $61 million.
• Adjusted EBITDA* between $84 million and $86 million.
• Cash capital expenditures between $23 million and $25 million, including 45 to 50 Heritage remodels at company restaurants.
• Depreciation and amortization expense between $20 million and $21 million.
• Net interest expense between $9.5 million and $10.5 million.
• Effective income tax rate between 36% and 38%.
• Free Cash Flow* between $45 million and $47 million.

For earnings history and earnings-related data on Denny's Corp (DENN) click here.

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