Denny's Corporation
(
DENN
) recently unveiled its first franchised outlet in the Dominican
Republic in association with one of its most recent international
partners Grupo Nahas. With this opening at the Food Court of Las
Americas International Airport in Santo Domingo, Denny's made its
debut internationally in an airport site.
Denny's has been eyeing both conventional and non-conventional
locations. Apart from airports, university campuses across the
country are also the top choices for Denny's. During 2011, it
unveiled five licensed units on university campuses.
Santo Domingo is considered one of the most dynamic economies in
the Caribbean catering to both business and leisure travelers.
Hence, the opening at Las Americas airport is strategically deemed
apt.
The development partner Grupo Nahas boasts of significant local
market knowledge and has a proven track of operating a few leading
hotels in that market, including
Intercontinental Hotels Group plc
(
IHG
). The franchisee Grupo Nahas also seems excited about working with
one of America's largest full-service family restaurant chains.
Presently operating 1,680 franchised, licensed, and
company-owned eateries globally, Denny's remains in an expansion
mode both on domestic and international fronts. Apart from the
recent entry into Dominican Republic, Denny's has its presence in
other south and Latin American countries like Costa Rica, Mexico,
Honduras, Curaçao and Puerto Rico. According to the company, the
brand has so far been well-accepted abroad and intends to
capitalize the opportunity fully by expanding in new as well as
existing markets.
During its first quarter of 2012, Denny's closed 11 system-wide
units and opened 6 franchised and licensed units, including two
international units in Puerto Rico and Canada. At the end of the
quarter, the company had 197 company-owned and 1,483 franchised and
licensed restaurants. For full fiscal 2012, Denny's plans to open
40-50 new restaurants, with 1 company-owned unit and the rest
franchised.
Denny's, which competes with the likes of
Kona Grill Inc.
(
KONA
) currently, retains a Zacks #2 Rank that translates into a
short-term 'Buy' rating. We are maintaining our long-term "Neutral"
recommendation on the stock.
DENNY'S CORP (DENN): Free Stock Analysis Report
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