Denny's Tops Q1 Views

reported better-than-expected results for the first quarter on Monday. The Spartanburg, South Carolina-based company reported quarterly net income of $8.5 million, or $0.10 per share, up from $6.4 million, or $0.07 per share, in the year-ago period. Its adjusted EPS rose 41.2 percent to $0.10. Its total operating revenue rose 7.4 percent year-over-year to $120.2 million. However, analysts were expecting earnings of $0.09 per share on revenue of $116.84 million. The average estimate among 3 Estimize users was for earnings of $0.10 per share on revenue of $117.46 million. Franchise and license revenue gained 4.8 percent to $34.2 million, while company restaurant sales rose 8.4 percent to $86.0 million. Domestic system-wide same-store sales climbed 7.2 percent in the quarter. Its adjusted EBITDA rose 14.8 percent to $18.8 million. Total general and administrative expenses increased to $16.9 million from $14.1 million. During the quarter, Denny's repurchased 450,000 shares for $5.1 million. John Miller, President and Chief Executive Officer, stated, "We are very pleased to start the year with the strongest quarter of same-store sales in more than a decade, including growth in guest traffic. We are benefiting from solid execution of our brand revitalization strategy focused on elevating our food, service and atmosphere, which is resonating with our guests. Although we have made remarkable progress to date due to our dedicated franchisees, employees and partners, we believe we are still in the early stages of our strategy with key initiatives like our Heritage remodel program penetrating less than 20% of our system. Going forward, we remain committed to driving long-term shareholder value by consistently growing the profitability of our highly franchised business primarily through consistent, sustainable same-store sales and traffic growth." Denny's projects 2015 same-store sales to rise 3.5 percent to 4.5 percent. Denny's shares gained 0.73 percent to $11.00 in the after-hours trading session.