Denny's Corp. (DENN) Tops Q3 EPS by 1c, Offers Guidance
Denny's Corp. (NASDAQ: DENN) reported Q3 EPS of $0.10, $0.01 better than the analyst estimate of $0.09. Revenue for the quarter came in at $117 million versus the consensus estimate of $115.4 million.
Business Outlook
Mark Wolfinger, Executive Vice President, Chief Administrative Officer and Chief Financial Officer, commented, "We are pleased with our ability to grow our earnings per share as we overcame the temporary closing of our highest volume restaurant. The revitalization of our highly franchised business has enabled us to grow profitability while generating significant Free Cash Flow* to support reinvestment in the brand and our company restaurants, as well as return value to our shareholders. The Company has repurchased 20.7 million shares since initiating its share repurchase strategy in November 2010. We look forward to continuing to accelerate remodels in our company restaurants as well as reopening our highest volume restaurant on the Las Vegas Strip. Due to our strong performance, we are raising our annual guidance again for company same-store sales and Adjusted EBITDA. "
Key considerations impacting the Company's outlook for 2014 include:
Based on year-to-date results and management's expectations at this time, Denny's is updating the Company's financial guidance for full year 2014, including increasing expectations for Company Same-Store Sales and Adjusted EBITDA*, in addition to updating expectations for other selected components.
| Component | Full Year 2014 Guidance | |
| Previous** | Current | |
| Domestic Franchise Same-Store Sales | 1.0% to 2.0% | 1.5% to 2.0% |
| Company Same-Store Sales | 2.5% to 3.5% | 3.5% to 4.0% |
| New Restaurant Openings | 40 - 45 (All Franchised) | Low End of Range |
| Net Restaurant Growth | 5 - 15 | Low End of Range |
| Total General and Administrative Expenses (includes Share-Based Compensation) | $56M to $58M | No Change |
| Adjusted EBITDA* | $78M to $80M | $79M to $81M |
| Cash Capital Expenditures | $20M to $22M | $21M to $22M |
| Depreciation and Amortization Expense | $20.5M to $21.5M | No Change |
| Interest Expense, net | $9.0M to $9.5M | No Change |
| Effective Income Tax Rate | 34% to 38% | 34% to 36% |
| (Cash Taxes) | ($3.5M to $4.5M) | ($3.5M to $4.5M) |
| Free Cash Flow* | $45M to $48M | $46M to $48M |
| * Please refer to the historical reconciliation of Net Income to Adjusted Net Income, Adjusted Net Income per Share, Adjusted EBITDA and Free Cash Flow included in the following tables. | ||
For earnings history and earnings-related data on Denny's Corp. (DENN) click here.