By Christiana Sciaudone
Investing.com -- Better-than-expected results couldn't stop Denny's (NASDAQ:DENN) from getting slammed.
Shares dropped 13% as the company said domestic same-store sales for 2020 are expected to reach no more than 75% of last year's results. Adjusted earnings before interest, taxes, depreciation and amortization is estimated at at least $28 million.
Earnings per share of one penny beats the expected loss per share of 4 cents on sales of $71.6 million, higher than the estimated figure of $67.3 million. That compares to $124 million a year earlier. Denny's, like all restaurants, is getting hit as states and cities mandate shut downs to prevent the spread of Covid-19. More shutdowns may be on the horizon as infections tick higher.
While sales have recovered from a 76% dip in April, they were still down 28% in September compared to a year earlier. Same-store sales in the U.S. fell 34% for the third quarter.
"I am encouraged by our sequential sales improvement over the course of the third quarter, despite the continued disproportionate impact of the COVID-19 pandemic on the full-service restaurant industry," said Chief Executive Officer John Miller in a statement. "I am confident that Denny's is well-positioned to effectively navigate through the pandemic while preparing for future growth."
Despite the rough year, Denny's has three buy ratings and one hold, according to data compiled by Investing.com.