Denny’s, which late last year announced plans to become almost entirely franchisee operated, released preliminary fourth-quarter earnings Jan. 14 that show modest gains among its franchised units.
The Spartanburg, S.C.-based family dining chain saw a systemwide same-store sales increase of 1.4% for the quarter ending Dec. 26, 2018, which includes a 2.1% increase at company-owned units and a 1.2% jump at franchised ones.
For the fiscal year, comps rose 0.8%, including a 1.8% increase at company-owned restaurants and 0.6% growth at franchised units.
Denny’s sold eight company-owned restaurants during the fourth quarter—the first transaction of its refranchising strategy. In all, it plans to franchise more than 100 units in the coming year, bringing it from being 90% franchise-owned to 95% to 97% franchised.
As part of the move, Denny’s will decrease its market footprint from 21 states to eight states.
During the year, Denny’s closed 56 restaurants and opened 30, bringing its total unit count to 1,709.
The company is slated to make its official earnings announcement on Feb. 12.
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