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Denny’s profit jumps 18 percent

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Brand revitalization efforts at Denny’s Corp. helped spur sales and customer traffic in the second quarter, the company said, leading to a 17.7 percent year over year increase in net income.

Same-store sales at Denny’s grew 7.3 percent compared to the same period last year, and customer traffic increased for the third consecutive quarter, company executives said on an earnings call Monday.

“We are benefiting from the investments we have made in our brand revitalization strategy to enhance our food, service and atmosphere,” Denny’s CEO John Miller said. “Our success in driving profitable guest traffic growth and increasing guest satisfaction scores confirm that the improvements we have made are resonating with our guests, franchisees and employees.”

Denny’s during Q2 introduced an updated core menu in an effort to enhance product quality and improve check averages and margins, Miller said. Emphasis was also placed on reducing its number of LTOs to focus on a more select group of workhorse promotional offerings.

As part of its revitalization strategy, the company continues to roll out its Heritage design remodel introduced in 2013, planning for all company-owned units to be remodeled by the end of 2016. Fifty percent of franchised units will be remodeled between 2016 and 2018, Miller said.

“We expect this program to continue to be a sales and traffic growth driver for our brand, allowing our menu, service and media improvements to all work together,” he added. “Our commitment continues as we execute our brand revitalization strategies enabling us to unlock the full potential of the Denny's brand.”
 

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