Spartanburg-based family-dining chain Denny’s Corp. said its earnings decreased more than 24 percent during the second quarter.
The company reported Tuesday its net income for the quarter ended June 28 was about $8.75 million, compared with more than $11.5 during the same quarter of 2016.
Denny’s said its net income for the first half of the year was more than $17.1 million, a nearly tenfold increase compared with about $1.6 million during the same period of the previous year.
“Despite challenges within the full-service dining environment, we achieved positive system same-store sales and continued to outperform key industry benchmarks during the second quarter,” said Denny’s President and CEO John Miller, in a statement. “Our highly franchised business model, coupled with our efforts to further differentiate Denny’s as a relevant and compelling brand, continues to generate strong cash flows which support ongoing investments in Denny’s brand revitalization and company restaurants, and the return of capital to our shareholders.”
Denny’s said its second quarter system-wide same-store sales, or sales at restaurants open during the same quarter of the prior year, increased 2.6 percent. Year-to-date, its same-store sales have increased about eight-tenths of a percent.
The company said it opened eight restaurants during the year, including seven franchise-owned stores and one company-owned location. It said 52 of its franchise stores were remodeled in 2016.
“As we continue to successfully execute our brand revitalization strategy, we remain committed to further elevating the guest experience, consistently growing same-store sales, and expanding our global reach, leading to value creation for all franchisees and shareholders,” Miller added.
The company said it generated $12.7 million of adjusted free cash flow during the quarter, a more than 31 percent decrease compared with about $18.5 million during the second quarter of the past year.
Denny’s reported its total debt grew to nearly $265 million during the quarter, which was about an 8 percent increase compared with almost $246 million at the end of the second quarter of 2016.
As of the end of the quarter, the company said it had 1,724 franchised, licensed, and company restaurants in the U.S., Canada, Puerto Rico, Mexico, New Zealand, Honduras, Costa Rica, Dominican Republic, the United Arab Emirates, the Philippines, Guam, Curaçao, and El Salvador.
For more information, visit: www.investor.dennys.com.