Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Brian Hunt - Wachovia Capital Markets
Brian Hunt - Wachovia Capital Markets
I was wondering if you could talk about the financing environment in detail. Have you had any franchisees delay openings because of lack of financing or have you had a potential franchisee back away from a transaction because of lack of financing?
Mark Wolfinger
On the financing side I think I’ll start with the franchise growth initiatives, FGI as we call it, we have not seen anything, I think you used the term back away yet. We haven’t seen that type of reaction yet in the marketplace. But at the same time clearly it is getting tougher. I think the credit standards across the board on third party financing really has started to increase about 12 to 15 months ago we clearly saw that. The requirements as far as the percentage of cash or equity down payment, those things had already started to increase about a year ago. Clearly there is more pressure out there but we haven’t seen that at this point impact our activity and again if you look at the 21 stores we sold in the first quarter, and I think our guidance for the year was 75 to 100 as far as refranchises.
The other part of your question was on new stores builds, and again we have not seen any kind of material impact there. At this point we know those pressures are out there in the marketplace and clearly the pressure that we reference is more the pressure on the consumer and what is going on across the country in the economy. But yes, it’s certainly more challenging on the financing side but it hasn’t had a material impact on our go-forward progress at this point.
Brian Hunt - Wachovia Capital Markets
I know you have put a lot of energy into new products, to-go options as well as the express format, could you talk about maybe the successes and the challenges you’ve had so far. I know you were testing six to-go options you talked about last quarter and as well as premium coffees and rolls and wraps at the express format, could you just talk about those in detail, how those efforts are progressing.
Nelson Marchioli
Well two things, one on the six carry-out items; we really didn’t have the demand in the 32 locations where we tested them that we expected. The fact of the matter is people came in more for our full breakfasts versus a portable product. I don’t think people realized that we can be and are a great place for a portable offering. The reality is they continue to come in for full breakfasts for carry-out and in fact in I believe its June 10th, we roll with a nation-wide carry-out program including national media for the first time for Denny’s.
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