Denny’s Expects Sales Drop

Denny’s Corp. said that revenues in 2009 will fall from 2008 levels, and that same-store sales will be negative, despite massive marketing efforts and the free breakfast recently offered.

Citing the “unprecedented economic uncertainties” impacting its family-dining chain, Denny’s said 2009 revenues would total between $605 million and $623 million, compared with $760.3 million recorded in 2008. Also hurting its top line performance is Denny’s on-going transition to a more franchised business model, which reduces corporate sales.

The parent to more than 1,500 restaurants also predicted that 2009 same-store sales would fall between 3 percent and 5 percent at franchised units and between 1 percent and 3 percent at corporate restaurants.

“We are encouraged by the reception to our new marketing programs and our new product offerings but cannot yet predict a change in our sales trends,” said Mark Wolfinger, chief financial officer, “particularly against an industry outlook that projects considerable sales weakness in 2009.”  [via NRN]

Denny's is trying in trying times.