DB:DE8

Stock Analysis Report

Executive Summary

Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand.


Snowflake Analysis

Good value with proven track record.


Similar Companies

Share Price & News

How has Denny's's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DE8's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-23.5%

DE8

5.2%

DE Hospitality

2.2%

DE Market


1 Year Return

-55.6%

DE8

-43.9%

DE Hospitality

-17.2%

DE Market

Return vs Industry: DE8 underperformed the German Hospitality industry which returned -42.9% over the past year.

Return vs Market: DE8 underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

DE8IndustryMarket
7 Day-23.5%5.2%2.2%
30 Day-53.9%-31.2%-15.7%
90 Day-59.8%-55.2%-24.0%
1 Year-55.6%-55.6%-41.4%-43.9%-14.9%-17.2%
3 Year-36.9%-36.9%-53.6%-60.0%-16.4%-23.3%
5 Year-32.0%-32.0%-59.3%-67.9%-16.5%-27.8%

Price Volatility Vs. Market

How volatile is Denny's's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Denny's undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DE8 (€7.3) is trading below our estimate of fair value (€16.73)

Significantly Below Fair Value: DE8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DE8 is good value based on its PE Ratio (4x) compared to the Hospitality industry average (21.4x).

PE vs Market: DE8 is good value based on its PE Ratio (4x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: DE8's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DE8 has negative assets, so we can't compare its PB Ratio to the DE Hospitality industry average.


Next Steps

Future Growth

How is Denny's forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-52.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DE8's earnings are forecast to decline over the next 3 years (-52.3% per year).

Earnings vs Market: DE8's earnings are forecast to decline over the next 3 years (-52.3% per year).

High Growth Earnings: DE8's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DE8's revenue is expected to decline over the next 3 years (-9.6% per year).

High Growth Revenue: DE8's revenue is forecast to decline over the next 3 years (-9.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DE8's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Denny's performed over the past 5 years?

26.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DE8 has a high level of non-cash earnings.

Growing Profit Margin: DE8's current net profit margins (21.7%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: DE8's earnings have grown significantly by 26.4% per year over the past 5 years.

Accelerating Growth: DE8's earnings growth over the past year (168.6%) exceeds its 5-year average (26.4% per year).

Earnings vs Industry: DE8 earnings growth over the past year (168.6%) exceeded the Hospitality industry -36.8%.


Return on Equity

High ROE: DE8's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Denny's's financial position?


Financial Position Analysis

Short Term Liabilities: DE8 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: DE8 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: DE8 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: DE8's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: DE8's debt is not well covered by operating cash flow (15.2%).

Interest Coverage: DE8's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Inventory Level: DE8 has a high level of physical assets or inventory.

Debt Coverage by Assets: DE8 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Denny's's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DE8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DE8's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DE8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DE8's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DE8's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

John Miller (64yo)

9.08s

Tenure

US$4,002,249

Compensation

Mr. John C. Miller serves as Chief Executive Officer and President at DFO, LLC. Mr. Miller has been the Chief Executive Officer of Denny's Corporation since February 2011 and served as its President since  ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD4.00M) is above average for companies of similar size in the German market ($USD1.12M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Miller
CEO & Director9.08yrsUS$4.00m1.1% $4.3m
F. Wolfinger
President & Director9.17yrsUS$1.60m1.43% $5.6m
Christopher Bode
Senior VP & COO5.42yrsUS$974.94k0.041% $160.5k
Stephen Dunn
Senior VP & Chief Global Development Officer4.67yrsUS$917.67k0.086% $337.3k
John Dillon
Executive VP & Chief Brand Officer1.25yrsUS$928.58k0.14% $535.6k
Robert Verostek
CFO & Senior VP0.083yrno data0.041% $159.6k
Jay Gilmore
VP, Chief Accounting Officer & Corporate Controllerno datano data0.16% $607.9k
Michael Furlow
Senior VP & Chief Information Officer2.92yrsUS$1.03m0.024% $92.4k
Curt Nichols
Senior Director of Investor Relations & Financial Analysisno datano datano data
Jill Van Pelt
Senior VP & Chief People Officer5.42yrsno data0.20% $776.9k

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: DE8's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Miller
CEO & Director9.08yrsUS$4.00m1.1% $4.3m
F. Wolfinger
President & Director9.17yrsUS$1.60m1.43% $5.6m
Gregg Dedrick
Independent Director10.17yrsUS$190.00k0.14% $540.0k
Brenda Lauderback
Chair of the Board of Directorsno dataUS$290.00kno data
Robert Marks
Independent Director22.17yrsUS$190.01k0.18% $709.7k
Donald Robinson
Independent Director2.17yrsUS$190.00kno data
Jose Gutierrez
Independent Director7.17yrsUS$190.00kno data
Laysha Ward
Independent Director10.17yrsUS$175.00k0.032% $125.0k
Bernadette Aulestia
Independent Director1.83yrsUS$148.42kno data

9.1yrs

Average Tenure

64yo

Average Age

Experienced Board: DE8's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DE8 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Denny's Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Denny's Corporation
  • Ticker: DE8
  • Exchange: DB
  • Founded: 1953
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$430.236m
  • Listing Market Cap: US$391.515m
  • Shares outstanding: 56.02m
  • Website: https://www.dennys.com

Number of Employees


Location

  • Denny's Corporation
  • 203 East Main Street
  • Spartanburg
  • South Carolina
  • 29319-9966
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DENNNasdaqCM (Nasdaq Capital Market)YesCommon Stock Par Value 0.01USUSDJan 1998
DE8DB (Deutsche Boerse AG)YesCommon Stock Par Value 0.01DEEURJan 1998

Biography

Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand. As of December 25, 2019, it operated 1,703 franchised, licensed, and company restaurants, including 1,559 restaurants in the United States; and 144 in Aruba, Canada, Costa Rica, El Salvador, Guam, Guatemala, Honduras, Indonesia, Mexico, New Zealand, the Philippines, Puerto Rico, the United Arab Emirates, and the United Kingdom. The company was formerly known as Advantica Restaurant Group, Inc. and changed its name to Denny's Corporation in 2002. Denny's Corporation was founded in 1953 and is headquartered in Spartanburg, South Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 00:46
End of Day Share Price2020/03/31 00:00
Earnings2019/12/25
Annual Earnings2019/12/25


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.