By Dhirendra Tripathi
Investing.com – Denny’s stock (NASDAQ:DENN) slipped to $13.33 after the company’s fourth-quarter numbers disappointed.
The stock recouped some losses later, and at 11:25 AM ET was down 3.8%, at $16.
Adding to the somber commentary was the company saying “the current economic environment will not change materially" in the ongoing quarter.
Domestic system-wide same-store sales in the most recent quarter were just about higher than the 2019 levels, and the company is now projecting a slower growth in the current quarter after they jumped 49% year-on-year in the three months through Dec. 29. Those sales are seen rising by 27% at the center of the company’s guidance range.
Share-based compensation is also expected to continue weighing on the earnings. According to the company, this expense will be around $4 million in the current quarter, compared to $3.4 million in the three months ended Dec. 29.
Denny’s operates of one of America's largest franchised full-service restaurant chains, owning brands like The Burger Den and The Meltdown.
Total operating revenue in the fourth quarter rose over 34%, to near $108 million. The company swung back to a profit compared to a loss on adjusted basis a year ago, but at 16 cents per share, it fell short of estimates.