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Dec 25, 2019
Denny's Q4 2019 Earnings Report
Denny's reported an increase in net income and domestic system-wide same-store sales growth.
Key Takeaways
Denny's Corporation reported its Q4 2019 results, featuring a ninth consecutive year of domestic system-wide same-store sales growth and the substantial completion of its refranchising strategy. The company sold nine company restaurants to franchisees and repurchased $45.4 million of common stock. Total Operating Revenue was $113.8 million, and Net Income was $18.6 million, or $0.31 per diluted share.
Total Operating Revenue was $113.8 million.
Domestic system-wide same-store sales grew 1.7%.
Net Income was $18.6 million, or $0.31 per diluted share.
The company repurchased $45.4 million of common stock.
Revenue by Segment
Forward Guidance
Denny's provided estimates for the full year 2020, anticipating domestic system-wide same-store sales growth between 0% and 2% and total operating revenue between $453 and $459 million. The company also expects Adjusted EBITDA between $97 and $100 million and Adjusted Free Cash Flow between $39 and $42 million.
Positive Outlook
- Domestic system-wide same-store sales growth between 0% and 2%.
- 30 to 40 new restaurant openings, with a net system change of between (5) and 5 restaurants.
- Total operating revenue between $453 and $459 million, including franchise and license revenue between $260 and $263 million.
- Franchise Operating Margin between 48.0% and 49.0% and Company Restaurant Operating Margin between 18.0% and 19.0%.
- Adjusted EBITDA between $97 and $100 million.
Challenges Ahead
- Total general and administrative expenses between $66 and $69 million, including approximately $10 million related to share-based compensation expense.
- Net interest expense between $17 and $19 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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