Denny's cancels some expansion plans in China
Denny's cancels plans to franchise 50 sites in Southern China
SPARTANBURG, S.C. (AP) -- Denny's Corp. has canceled plans with a franchise partner to develop 50 restaurants in southern China.
Great China International Group and Denny's announced in July that they planned to work together to open the sites over the next 15 years.
Denny's said Monday that Great China International Group had a need to focus on other projects but gave no further detail on why the plans were dissolved.
John Miller, Denny's president and CEO, said that the company continues to believe that it has great potential in the Pacific Rim in general and China in particular. It is actively seeking development partners who "share that vision," he said.
The company reiterated its expectation for adding 40 to 45 new restaurants during its 2013 fiscal year.
Denny's currently has 1,590 restaurants in the United States and 98 restaurants in Canada, Costa Rica, Mexico, Honduras, Guam, Curacao, Puerto Rico, Dominican Republic and New Zealand. The company franchises the majority of its restaurants, only 164 are company owned.
Shares of the Spartanburg, S.C.-based company fell 7 cents to $5.74 in afternoon trading. Its stock has traded between $3.79 and $5.85 during the past 52 weeks.
