2021 Preliminary Results
Domestic System-Wide Same-Store Sales** Compared to 2019 Fiscal Periods | ||||||||||||
Fiscal Year 2021 1: (5%) | ||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec 1 | |
System | (31%) | (25%) | (9%) | (2%) | (3%) | 1% | 3% | (2%) | (1%) | 1% | 4% | (2%) |
24/7 Units | (20%) | (16%) | 2% | 11% | 11% | 14% | 15% | 9% | 9% | 10% | 13% | 7% |
Limited Hour Units | (38%) | (32%) | (16%) | (11%) | (12%) | (8%) | (7%) | (10%) | (10%) | (9%) | (6%) | (11%) |
1. December results are preliminary. |
Domestic Units Hours of Operations | ||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec 1 | |
24/7 | 35% | 35% | 38% | 38% | 37% | 38% | 39% | 40% | 42% | 45% | 46% | 48% |
18 - 23 Hours | 10% | 12% | 14% | 14% | 16% | 16% | 17% | 18% | 20% | 26% | 24% | 24% |
< than 18 Hours | 55% | 53% | 48% | 48% | 47% | 46% | 44% | 42% | 38% | 29% | 30% | 28% |
1. December results are preliminary. |
In 2021, Denny’s opened 20 restaurants, including 8 international locations, and closed 30 restaurants, bringing the year-end total restaurant count to 1,640. In addition, nine remodels were completed during the fiscal year, including four at company restaurants.
In the fourth quarter, the Company allocated
Real Estate Transactions
In
Transformational Brand Initiatives
As previously disclosed during the third quarter earnings call, the Company is progressing on its rollout of a new restaurant technology platform and starting a new kitchen modernization initiative across the domestic system.
Today, the Company is also announcing three additional brand initiatives: a Heritage 2.0 remodel restart program, a new partnership with REEF, and a new cash development incentive program for domestic franchisees.
The Heritage 2.0 remodel restart program was developed collaboratively with franchisees. With approximately two years of delayed remodels, the Company recognizes that it must balance capital requirements within the franchise system with updating the brand image. Therefore, the Company has extended the remodel cycle from seven years to eight years and has worked with franchisees who have multiple remodels due to map out a more normalized capital spending expectation.
The Company has entered into a new delivery partnership with REEF that should enable Denny's to penetrate markets in which the brand is currently underrepresented, especially dense metropolitan locations.
The Company is also creating additional opportunities for franchisees to capitalize on market rationalization opportunities with a new cash development incentive program. The program will offer between
Business Outlook
Based on preliminary results, Denny’s is reiterating its full year 2021 guidance expectations provided with the Company’s third quarter 2021 results, which were announced on
- Total general and administrative expenses between
$67 million and$69 million , including approximately$13.5 million related to share-based compensation. - Adjusted EBITDA* between
$84 and$86 million .
Denny’s expects to release financial and operating results for its fourth quarter and fiscal year ended
Preliminary Results | ||||||||||||
(Unaudited) | ||||||||||||
Changes in Same-Store Sales** vs. 2019 | Quarter Ended | Fiscal Year Ended | ||||||||||
(Increase (decrease)) | ||||||||||||
5.1 | % | (3.5 | )% | |||||||||
0.4 | % | (4.8 | )% | |||||||||
0.7 | % | (4.7 | )% | |||||||||
Changes in Same-Store Sales** vs. Prior Year | Quarter Ended | Fiscal Year Ended | ||||||||||
(Increase (decrease)) | ||||||||||||
58.6 | % | (34.9 | )% | 55.3 | % | (36.7 | )% | |||||
48.3 | % | (32.8 | )% | 40.1 | % | (30.9 | )% | |||||
49.0 | % | (32.9 | )% | 41.1 | % | (31.4 | )% | |||||
Franchised | ||||||||||||
Restaurant Unit Activity | Company | & Licensed | Total | |||||||||
Ending Units | 65 | 1,582 | 1,647 | |||||||||
Units Opened | — | 7 | 7 | |||||||||
Units Closed | — | (14 | ) | (14 | ) | |||||||
Net Change | — | (7 | ) | (7 | ) | |||||||
Ending Units | 65 | 1,575 | 1,640 | |||||||||
Franchised | ||||||||||||
Restaurant Unit Activity | Company | & Licensed | Total | |||||||||
Ending Units | 65 | 1,585 | 1,650 | |||||||||
Units Opened | — | 20 | 20 | |||||||||
Units Closed | — | (30 | ) | (30 | ) | |||||||
Net Change | — | (10 | ) | (10 | ) | |||||||
Ending Units | 65 | 1,575 | 1,640 | |||||||||
*The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most directly comparable GAAP estimates without unreasonable efforts because it is unable to predict, forecast or determine the probable significance of the items impacting these estimates, including gains, losses and other charges, with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP estimates are not provided.
**Same-store sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open the same period in the prior year. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-store sales and domestic system-wide same-store sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP.
Upcoming Investor Conference Presentation
Denny's will be participating virtually in the 2022 Annual
About Denny’s Corporation
Cautionary Language Regarding Forward-Looking Statements
The Company urges caution in considering its current trends and any outlook on earnings disclosed in this press release. In addition, certain matters discussed in this release may constitute forward-looking statements. These forward-looking statements, which reflect management's best judgment based on factors currently known, are intended to speak only as of the date such statements are made and involve risks, uncertainties, and other factors that may cause the actual performance of Denny’s Corporation, its subsidiaries, and underlying restaurants to be materially different from the performance indicated or implied by such statements. Words such as “expect”, “anticipate”, “believe”, “intend”, “plan”, “hope”, "will", and variations of such words and similar expressions are intended to identify such forward-looking statements. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Factors that could cause actual performance to differ materially from the performance indicated by these forward-looking statements include, among others: the rapidly evolving COVID-19 pandemic and related containment measures, including the potential for further operational disruption from government mandates affecting restaurants; economic, public health, social and political conditions that impact consumer confidence and spending with respect to social unrest and the COVID-19 pandemic; competitive pressures from within the restaurant industry; the level of success of the Company’s operating initiatives and advertising and promotional efforts; adverse publicity; health concerns arising from food-related pandemics, outbreaks of flu viruses or other diseases; changes in business strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general economy (including with regard to energy costs), particularly at the retail level; political environment (including acts of war and terrorism); and other factors from time to time set forth in the Company’s
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Investor Contact:Curt Nichols 877-784-7167 Media Contact:Hadas Streit , Allison+Partners 646-428-0629
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