Industry Economic And Ratings Outlook: Rating Trends For U.S. Retail And Restaurant Companies Remain Slightly Negative Aug 12
- Language: English
- Published: August 2012
- Region: United States
Relatively well-known brand name; and Established market position. Participation in the highly competitive restaurant industry; Erratic sales performance; Weak cash flow protection measures; and Significant debt burden. The ratings on Denny's Corp. reflect Standard & Poor's Ratings Services' expectation that its credit metrics will remain adequate for the current rating as the company continues to pay down debt and benefits from its refranchising program. We assess the company's financial risk profile as aggressive, though it continues to strengthen its balance sheet, having repaid about $20 million of debt during the first two quarters of fiscal 2011. However, we anticipate that a difficult operating environment, still-high unemployment, and increasing commodity costs will weigh on profitability for the remainder of 2011. As...
Companies mentioned in this report are: Denny's Corp.
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