Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SPARTANBURG, SC-Denny’s Corp. is continuing its plan to increase its percentage of franchise-owned units, which should result in new-restaurant growth, executives said at the company’s first quarter conference call.

During the quarter, the company opened 11 new restaurants (10 franchised and one company-owned), and sold 30 units to franchisees. Overall, the company has sold 239 restaurants to franchisees since the 2007 launch of its Franchise Growth Initiative. The high-margin income generated as a franchisor now exceeds the income contribution of company-owned restaurants, noted Nelson Marchioli, president and chief executive officer.

“We expect the mix to continue to a more heavily franchised system,” said F. Mark Wolfinger, executive vice president, chief administrative officer and CFO. These franchisees then open additional restaurants, he noted.

Denny’s ended the quarter with a system mix of 82% franchised and licensed restaurants and 18% company restaurants, compared with 66% franchised and licensed restaurants and 34% company restaurants before the FGI program.

For the first quarter of 2009, Denny’s reported total operating revenue, including company restaurant sales and franchise revenue, of $165.8 million compared with $196 million in the prior year quarter. Same-store sales decreased 1.4% at franchised units and increased 0.3% at company units. The company reported earnings of $4.3 million up from $4.1 million in the prior year quarter.

Denny’s consists of 286 company-owned units and 1,260 franchised and licensed units in the United States, Canada, Costa Rica, Guam, Mexico, New Zealand and Puerto Rico.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.