Business Outlook

Mark Wolfinger, Executive Vice President, Chief Administrative Officer and Chief Financial Officer, stated, “Our franchised-focused business model has enabled us to deliver another solid quarter of financial performance as demonstrated by our year-over-year increases in same-store sales, profitability, and cash flow. Our total debt ratio is now below 2.5x which lowers the interest rate on our term loan by 25 bps. to around 3.0%, based on current rates. Our business model provides financial stability and flexibility while enabling us to continue to return value to shareholders through debt repayment and share repurchases.”

Based on year-to-date results and management’s expectations at this time, Denny’s is reiterating the Company’s financial guidance for full year 2012.
Component           Full Year 2012 Guidance
Previous **               Current      
Franchise Same-Store Sales 1.0% to 3.0% No Change
Company Same-Store Sales 0.0% to 2.0% No Change
New System Units 45 – 50 No Change
(includes 1 company-owned unit)
Adjusted EBITDA* ($M) $80 to $84 No Change
Adjusted Income Before Taxes* ($M) $45 to $49 No Change
$12.5 to $13.5
Interest Expense, net ($M) (includes $10.5 to $11.5 of net No Change
cash interest expense)
Cash Capital Expenditure ($M) $15 to $16 No Change
Cash Taxes ($M) $3 to $4 No Change
Free Cash Flow* ($M) $51 to $55 No Change


Please refer to the historical reconciliation of net income to Adjusted Income Before Taxes, Adjusted EBITDA, and Free Cash Flow included in the tables below.
** As announced in First Quarter 2012 Earnings Release on April 30, 2012.

Further Information

Denny’s will provide further commentary on the results for the second quarter of 2012 on its quarterly investor conference call today, Tuesday, July 31, 2012 at 5:00 p.m. ET. Interested parties are invited to listen to a live broadcast of the conference call accessible through the investor relations section of Denny’s website at A replay of the call may be accessed at the same location later in the day and will remain available for 30 days.

Denny's is the franchisor and operator of one of America's largest full-service restaurant chains, based on number of units. As of June 27, 2012, Denny’s had 1,684 franchised, licensed, and company-owned restaurants across the United States, Canada, Costa Rica, Mexico, Honduras, Guam, Curaçao, Puerto Rico, Dominican Republic and New Zealand. For further information on Denny's, including news releases, links to SEC filings and other financial information, please visit the Denny's investor relations website.

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