South Carolina-based Denny's Corporation (DENN) recently announced preliminary results of domestic same-store sales and restaurant openings and closings for the fourth quarter and full-year 2014.
In the fourth quarter, Denny’s’ domestic system-wide comps grew 4.7%, aided by 4.6% comps growth at domestic franchised restaurants and 5.8% at company restaurants. This is the 14th time in the last 15 quarters that the company has posted comps growth. This is the 14th time in the last 15 quarters, the company has posted comps growth. Apart from this, Denny's has achieved the fourth consecutive year of positive system-wide comps growth and highest annual system-wide same-store sales growth since 2006.
In the fourth quarter of 2014, the company opened 22 restaurants. For full-year 2014, Denny's opened 38 outlets, bringing the total to 1,702. This reflects the 6th consecutive year of positive system growth.
Based on the preliminary results, Denny's is increasing the full-year 2014 guidance ranges for adjusted EBITDA and free cash flow. Adjusted EBITDA is expected to range between $80 million and $82 million, up from the prior guidance of $79 to $81 million. Further, free cash flow is expected to range between $47 million and $49 million, up from the prior guidance of $46 million to $48 million.
We are optimistic about Denny's’ prospects ever since it posted strong third-quarter 2014 results, and the preliminary 2014 results reflect that the restaurateur is on its way to report another solid quarter. Brand revitalization and menu innovation helped the company boost sales. The reopening of the profitable Las Vegas restaurant was another positive for Denny's.
Other Stocks to Consider
Denny's currently carries a Zacks Rank #2 (Buy). Other stocks in the same sector which are attractive at current levels include Brinker International, Inc. (EAT), Domino's Pizza, Inc. (DPZ) and Papa John's International Inc. (PZZA). All these stocks carry a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment