America’s largest full-service family restaurant chain, Denny’s Corporation recently reported first quarter 2011 adjusted earnings of 6 cents per share, which missed the Zacks Consensus Estimate by a penny. Lower-than-expected results were due to a slump in revenue.
On a GAAP basis, the company reported net income of $4.1 million or 4 cents per share below the prior-year quarter earnings of $4.6 million or 5 cents per share.
Total revenue dipped 1.3% year over year to $135.8 million and was also below the Zacks Consensus Estimate of $136.0 million.
Performance Highlights
During the quarter, sales at company-operated restaurants plunged 3.0% from the year-earlier quarter to $104.6 million mainly due to the sale of some company-owned restaurants to franchisees under the Franchise Growth Initiative (FGI) program and sluggish same-store sales. Read more.