2020 Preliminary Results
Domestic System-Wide Same-Store Sales** for 2020 Fiscal Periods:
Fiscal Year 2020: (31%)1 | |||||||||||
Q1: (6%) | Q2: (57%) | Q3: (34%) | Q4: (33%)1 | ||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec1 |
3% | 2% | (19%) | (76%) | (65%) | (41%) | (39%) | (35%) | (28%) | (26%) | (27%) | (41%) |
1. Preliminary results
Domestic Same-Store Sales** and Domestic Average Units for 2020 Fiscal Periods
(Open Dining Rooms vs Closed Dining Rooms):
Q2 | Q3 | Q4 | |||||||
Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec1 | |
Open Dining Rooms | (74%) | (47%) | (33%) | (36%) | (29%) | (24%) | (24%) | (23%) | (26%) |
2 | 222 | 1,087 | 1,244 | 1,044 | 1,127 | 1,289 | 1,239 | 891 | |
Closed Dining Rooms | (76%) | (69%) | (68%) | (55%) | (47%) | (39%) | (33%) | (42%) | (61%) |
1,060 | 938 | 327 | 237 | 444 | 369 | 207 | 256 | 586 | |
Temporary Closures | 480 | 378 | 120 | 47 | 35 | 22 | 19 | 20 | 31 |
1. Preliminary results
Domestic Capacity Restrictions as of
Number of Units | % of Domestic System | |
75% Capacity or Social Distancing | 435 | 57% |
50% - 66% Capacity | 346 | |
25% - 33% Capacity | 78 | |
Off-Premise Only | 587 | 39% |
No Restrictions | 15 | 1% |
Temporarily Closed | 43 | 3% |
Total | 1,504 | 100% |
1. Preliminary results
In 2020, Denny’s opened 20 restaurants, including 8 international locations, and closed 73 restaurants, bringing the year-end total restaurant count to 1,650. In addition, 22 remodels were completed during fiscal 2020, including two at company restaurants.
During the fourth quarter, the Company paid down
As a result of the recent rise in COVID-19 cases and related dining room closures and capacity restrictions, the Company now anticipates Adjusted EBITDA* for 2020 of between
The Company previously provided full year guidance of between
The Company’s previous guidance for Adjusted Free Cash Flow* of at least
Denny’s expects to release financial and operating results for its fourth quarter and fiscal year ended
Denny’s two planned virtual concepts will focus on burgers and melts, respectively. Both concepts have shown promising results in testing and each is expected to be launched in the first half of fiscal 2021 in over half of Denny’s domestic restaurants.
Preliminary Results | |||||||||||
(Unaudited) | |||||||||||
Changes in Same-Store Sales** | Quarter Ended | Fiscal Year Ended | |||||||||
(increase (decrease) vs. prior year) | |||||||||||
(34.9 | )% | 0.5 | % | (36.7 | )% | 1.9 | % | ||||
(32.8 | )% | 1.8 | % | (30.9 | )% | 2.0 | % | ||||
(32.9 | )% | 1.7 | % | (31.4 | )% | 2.0 | % | ||||
Franchised | |||||||||||
Restaurant Unit Activity | Company | & Licensed | Total | ||||||||
Ending Units | 66 | 1,598 | 1,664 | ||||||||
Units Opened | — | 4 | 4 | ||||||||
Units Closed | (1 | ) | (17 | ) | (18 | ) | |||||
Net Change | (1 | ) | (13 | ) | (14 | ) | |||||
Ending Units | 65 | 1,585 | 1,650 | ||||||||
Franchised | |||||||||||
Restaurant Unit Activity | Company | & Licensed | Total | ||||||||
Ending Units | 68 | 1,635 | 1,703 | ||||||||
Units Opened | — | 20 | 20 | ||||||||
Units Closed | (3 | ) | (70 | ) | (73 | ) | |||||
Net Change | (3 | ) | (50 | ) | (53 | ) | |||||
Ending Units | 65 | 1,585 | 1,650 |
*The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most directly comparable GAAP estimates without unreasonable efforts because it is unable to predict, forecast or determine the probable significance of the items impacting these estimates, including gains, losses and other charges, with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP estimates are not provided.
**Same-store sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open the same period in the prior year. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-store sales and domestic system-wide same-store sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP.
Upcoming Investor Conference Presentation
Denny's will be participating virtually in the 23rd Annual
About Denny’s Corporation
Cautionary Language Regarding Forward-Looking Statements
The Company urges caution in considering its current trends and any outlook on earnings disclosed in this press release. In addition, certain matters discussed in this release may constitute forward-looking statements. These forward-looking statements, which reflect management's best judgment based on factors currently known, are intended to speak only as of the date such statements are made and involve risks, uncertainties, and other factors that may cause the actual performance of Denny’s Corporation, its subsidiaries, and underlying restaurants to be materially different from the performance indicated or implied by such statements. Words such as “expect”, “anticipate”, “believe”, “intend”, “plan”, “hope”, "will", and variations of such words and similar expressions are intended to identify such forward-looking statements. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Factors that could cause actual performance to differ materially from the performance indicated by these forward-looking statements include, among others: the rapidly evolving COVID-19 pandemic and related containment measures, including the potential for further operational disruption from government mandates affecting restaurants; economic, public health, social and political conditions that impact consumer confidence and spending with respect to social unrest and the COVID-19 pandemic; competitive pressures from within the restaurant industry; the level of success of the Company’s operating initiatives and advertising and promotional efforts; adverse publicity; health concerns arising from food-related pandemics, outbreaks of flu viruses or other diseases; changes in business strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general economy (including with regard to energy costs), particularly at the retail level; political environment (including acts of war and terrorism); and other factors from time to time set forth in the Company’s
Investor Contact:Curt Nichols 877-784-7167 Media Contact:Hadas Streit , Allison+Partners 646-428-0629
Source:
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