In an April 29 story about Denny's Corp.'s first-quarter earnings, The Associated Press erroneously reported the company earned $2 million per share. Denny's earned a total of $2 million in adjusted profits.
A correct version follows.
SPARTANBURG, S.C. (AP) _ Denny's Corp.'s first-quarter earnings more than doubled on higher franchise fees and the sale of some restaurants, the company said Tuesday.
Denny's also said it is reviewing its accounting for goodwill associated with the sale of restaurants as franchises and expects to take related charges of up to $6 million.
In the quarter ended March 26, net income jumped to $5 million, or 5 cents per share, from $1.2 million, or 1 cent per share, in the year-ago period.
Analysts expected profit of 4 cents per share, according to Thomson Financial.
Adjusted to exclude restructuring costs and other items, earnings came in at $2 million, compared with a loss of $100,000 a year earlier.
Revenue from company-operated restaurants and franchise fees fell to $196 million from $236.8 million, but surpassed the $190 million expected by Wall Street.
Denny's said the accounting review is for 2007 and the first quarter of 2008. It said net income before taxes could be reduced by $3 million to $4.5 million in 2007, and by $500,000 to $1.5 million in the first quarter of 2008.
The company expects to have the review done by the time it files its first-quarter results with regulators, planned for in early May.
In aftermarket trading, Denny's shares rose 3 cents to $3.20.
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