A New COO for Denny's - Analyst Blog - Cooper Companies (NASDAQ:COO), Denny's (NASDAQ:DENN)

Denny’s Corporation (DENN) recently announced the appointment of Robert Rodriguez as the chief operating officer (COO), effective by September 13, 2010. He will be responsible for Denny’s operations in all franchise and company-operated units. Denny’s current management expects Mr. Rodriguez’s vast industry experience, both on operational as well as leadership fronts, to benefit Denny’s over the long term.

Since 2008, Rodriguez served as President and COO at Pick Up Stix, a multi-divisional franchise company in the Asian quick casual segment, owned by Carlson Restaurants Worldwide. Under Mr. Rodriguez’ leadership, Pick Up Stix saw the successful execution of a turnaround strategy that resulted in improvements in the company’s operational efficiencies and transaction counts.

Prior to joining Pick Up Stix, Rodriguez was President at Dunkin’ Donuts since 2004 where he was in charge of 5,700 units across the U.S. and over 1,500 franchisees. Under this responsibility, Rodriguez spearheaded a brand-building effort through a national advertising campaign and accomplished several objectives including unit and revenue expansion. During his time at Dunkin’ Donuts, Rodriguez also served as Brand Officer for Togo’s.

Rodriguez had previously worked as executive with Mrs. Field’s Famous Brands, Gloria Jean’s Gourmet Coffee, McDonald’s Corp. (MCD) and Pepsico Inc. (PEP). He started his career at Taco Bell, owned by PepsiCo Inc.

Denny’s witnessed a weak second quarter with earnings of 5 cents per share, which was below the Zacks Consensus Estimate of 7 cents and the prior-year quarter’s earnings of 9 cents. Total revenue also declined 13.3% year over year to $135.1 million reflecting a 16.1% plunge in sales at company-operated restaurants. Under the current scenario, we anticipate that the able guidance of Rodriguez will boost the company’s revenues and earnings.

For fiscal 2010, Denny’s plans to open 11 new company units compared to the previous guidance of 6 units while new franchise units are expected to rise to 100 (includes 10 Flying J sites and 4 university sites) from the earlier projection of 35. Management believes that Rodriguez will likely provide strong support to Denny’s franchise-driven growth model through his vast know-how in dealing with franchise concepts.

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A New COO for Denny's - Analyst Blog

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