(DENN) - Denny’s Corp - educed its outstanding debt in 2006 by $100 million, or 18%

The stock has been performing very well on hopes that the company's turnaround will gain steam. DENN is barely off of its 52-week high of $5.50. Over the past month, 2007 earnings estimates have increased over 6% to 17 cents per share. The company's average broker recommendation has improved to 1.75 from 2.33 over the past month as well. Full Analysis Denny’s Corporation (DENN), through its subsidiaries, engages in the ownership and operation of restaurants primarily in the United States. Its restaurants offer traditional American-style food, such as breakfast items, appetizers, sandwiches, dinner entrees, and desserts. As of December 28, 2005, Denny’s Corporation operated 1,578 restaurants under the brand name Denny's. For all of last year, the company's same-store sales increased by 2.5%, thanks to a 4.4% increase in customer checks, which was partially offset by a 1.8% drop in customer traffic, the company said. Denny's also reduced its outstanding debt in 2006 by $100 million, or 18%, the company said, thanks to the proceeds from asset sales and operating cash flow. The company said it swung to a profit in the third-quarter, helped by better-than-expected revenue, real estate sales and income tax gains. Quarterly income totaled $25.5 million, or 26 cents per share, versus a loss of $3.4 million, or 4 cents per share during the year-ago period. Results include gains from asset sales and income taxes. Excluding these benefits, net income was $100,000. Revenue climbed 4% to $258.2 million, up 3.8% from $248.7 million last year. "During the third quarter, we made significant progress towards our goal of reducing long-term debt. Through the sale of non-core real estate we reduced our debt by $80 million. Denny's is stronger financially than at any time in the past 15 years, carrying less debt and lower interest costs. As a result, Denny's is better positioned to reinvest in this great brand and to focus its efforts on new unit development in the coming years," Marchioli concluded. The stock has been performing very well on hopes that the company's turnaround will gain steam. DENN is barely off of its 52-week high of $5.50. Over the past month, 2007 earnings estimates have increased over 6% to 17 cents per share. The company's average broker recommendation has improved to 1.75 from 2.33 over the past month as well. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home