Denny's 3Q Profit Dips As Consumers Eat In More

SPARTANBURG, S.C. (AP) — Denny's Corp. said its third-quarter profit slipped as consumers continued to eat at home more often amid the recession.

Consumers also often spend less when they eat out as they try to conserve cash.

President and CEO Nelson Marchioli said in a statement that the restaurant operator will try to boost its sales by creating new products at affordable prices.

Denny's said late Thursday that its earnings dropped 6 percent to $10 million, or 10 cents per share, compared with $10.6 million, or 11 cents per share, a year ago.

The performance managed to top the 7 cents-per-share estimate of analysts surveyed by Thomson Reuters. Analysts' estimates typically exclude one-time items.

While Denny's profit was better than expected, its sales came up short.

Operating revenue for the period ended Sept. 30 fell 23 percent to $146.1 million from $189.3 million on a decline in company restaurant sales.