Denny's Growing Strong

Date: MAY 8th, 2013

Topic: Franchise News

Denny's Corporation, the operator of one of the largest full-service restaurant chains in the United States, released its full year results earlier this year. The overall figures from the report indicate stability and growth throughout the entire franchise operation, with an increase in store units and overall sales reported. Going forward, the company is aiming to increase its global presence while securing itself in its home market of the United States.

Some highlights of the full year report include an increase of 1.3 percent in existing store sales and the opening of forty new locations, six of which were international sites. Adjusted income, before taxes, grew to a total of $47 million, an increase of 26 percent from last year's figure.

As part of the report, Denny's Corporation released its business outlook, detailing future plans for the business. The chain will continue to reinvent its image as America's diner while establishing itself in other markets, such as the Canadian franchise field. Denny's Corporation aims to increase its profit levels by using a franchise-based business model that balances both debt repayment and payment to shareholders.

Part of Denny's Corporation's expansion plans include a longer international reach and in late 2012, the company signed an agreement with the Musiet Group to develop 10 new Denny's locations in Chile over the next 15 years. The Musiet Group is a family business with strong franchising roots and is currently the master franchisee for the Ruby Tuesday's Restaurant Group. According to John Miller, President of Denny's Corporation, this agreement is the chain's first significant expansion into the South American market.

Denny's Corporation also announced specific estimations for its performance in 2013 as part of its full year report. These estimates include a sales growth across current locations of up to 2 percent, the opening of up to 45 new franchise locations and cash flow of up to $49 million within the company.

In January of this year, Denny's Corporation announced the addition of Mr. Joss M. Gutiirrez to its Board of Directors. Mr. Gutiirrez previously worked in senior positions for telemarketing giant, AT&T and brings more than twenty years of experience in the advertising and telecommunications industry to Denny's Corporation.

Over the last year, Denny's has engaged in promotional campaigns designed to increase traffic in its restaurants. One particularly successful promotion was the offering of discount meals to members of the American Association of Retired Persons, a non-profit organization dedicated to protecting the interests of senior citizens in the United States.

The campaign was launched in 2010 and Denny's Corporation announced in late 2012 that over 15 million AARP members had taken part in the promotion. Currently, senior citizens account for nearly half of Denny's customer base and the campaign aimed to keep these customers and expand its base to include younger diners, such as the grandchildren of the AARP members. Denny's now has a dedicated menu for diners over the age of 55 and provides "FitFare" options, such as egg whites, at no extra cost to customers.