Denny’s (DENN) Stock Up in After-Hours Trading on Earnings Beat

NEW YORK (TheStreet) -- Shares of Denny's Corp. (DENN) are higher by 1.10% to $11.03 in after-hours trading on Monday, following the restaurant chain's 2015 first quarter earnings results, which improved year-over-year and exceeded analysts' expectations for the period.

Denny's, which franchises and operates full service restaurant chains, said its adjusted net income was $8.7 million, or 10 cents per share for the most recent quarter. The company's adjusted results improved by 36% and 41.2%, respectively, in the quarter ended March 2015.

The company's total operating revenue grew by 7.4% to $120.2 million, which was the result of an increase in both company restaurant sales along with franchise and licensing sales, Denny's said.

Analysts were expecting Denny's to post earnings of 9 cents per share on revenue of $116.84 million for the 2015 first quarter.

"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," Denny's CEO John Miller said in the company's earnings release.

"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," Miller continued.

For more on Denny's click here.

For Jim Cramer's thoughts on the company's earnings prior to the release click here.

Separately, TheStreet Ratings team rates DENNYS CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DENNYS CORP (DENN) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."

You can view the full analysis from the report here: DENN Ratings Report

DENN Chart DENN data by YCharts

If you liked this article you might like

Denny's: Cramer's Top Takeaways

Denny's: Cramer's Top Takeaways

Market's Animal Spirits Roar: Cramer's 'Mad Money' Recap (Thursday 1/11/18)

Market's Animal Spirits Roar: Cramer's 'Mad Money' Recap (Thursday 1/11/18)

Stock Pickers Need More CEOs Like Domino's Pizza CEO Patrick Doyle

Stock Pickers Need More CEOs Like Domino's Pizza CEO Patrick Doyle

Cramer: Lessons From the Market and ICR

Cramer: Lessons From the Market and ICR

3 More Restaurant Names Worth Chewing Over

3 More Restaurant Names Worth Chewing Over