Denny's Mulls Reorganization
Spartanburg, South Carolina-Denny's Corp. continues its struggle to find a niche and is considering reorganization after the company posted poor 2003 financial results. Denny's reported a loss of $31.5 million, representing 77 cents per share, as it fought declining sales and customer counts and higher costs for food, utilities, payroll and benefits.
Nelson J. Marchioli, president and chief executive, said the company began to see improving trends late in the year, but officials are now exploring other ways to improve long-term liquidity and capital structure. Those options could include a reorganization or bankruptcy filing.
Marchioli said he is optimistic because of Denny's five straight months of improved same-store sales and four straight months of improved traffic. Denny's announced it would look to grow in 2004 by adding company-owned and franchised restaurants. -Knight Ridder/Tribune Business News