Denny's Corp (DENN) Misses Q2 EPS by 1c, Comps Up 7.3%, Raises FY Guidance
Denny's Corp (NASDAQ: DENN) reported Q2 EPS of $0.11, $0.01 worse than the analyst estimate of $0.12. Revenue for the quarter came in at $123.3 million versus the consensus estimate of $120.28 million. Comps increased 7.3%
Business Outlook
Mark Wolfinger, Denny's Executive Vice President, Chief Administrative Officer and Chief Financial Officer, commented, “Our second quarter same-store sales growth and operations execution helped drive another quarter of margin expansion at our company operated restaurants leading to 21% growth in Adjusted Net Income per Share*. We are focused on driving long-term shareholder value through our highly franchised business while balancing our Free Cash Flow* allocation between reinvesting in our brand and company restaurants and returning value to our shareholders through our share repurchase program.”
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.
| Component | Full Year 2015 Guidance | |||
| Previous** | Current | |||
| Domestic Franchise Same-Store Sales | 2.5% to 3.5% | 5.0% to 6.0% | ||
| Company Same-Store Sales | 3.5% to 4.5% | 5.5% to 6.5% | ||
| New Restaurant Openings | 35 - 45 (All Franchised) | 40 - 45 (All Franchised) | ||
| Net Restaurant Growth | Single Digit | No Change | ||
| Total General and Administrative Expenses (includes Share-Based Compensation) | $61M to $64M | $64M to $67M | ||
| Adjusted EBITDA* | $85M to $87M | $86M to $88M | ||
| Cash Capital Expenditures | $24M to $26M | $26M to $28M | ||
| Depreciation and Amortization Expense | $20M to $21M | No Change | ||
| Interest Expense, net | $8.5M to $9.5M | No Change | ||
| Effective Income Tax Rate(Cash Taxes) | 36% to 38%($6M to $8M) | 35% to 37%(No Change) | ||
| Free Cash Flow* | $45M to $47M | $44M to $46M | ||
For earnings history and earnings-related data on Denny's Corp (DENN) click here.