NasdaqCM:DENN

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

Fundamentals

Proven track record with imperfect balance sheet.


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


Market Performance


7 Day Return

-0.05%

DENN

1.6%

US Hospitality

1.8%

US Market


1 Year Return

51.6%

DENN

3.9%

US Hospitality

7.3%

US Market

Return vs Industry: DENN exceeded the US Hospitality industry which returned 3.9% over the past year.

Return vs Market: DENN exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

DENNIndustryMarket
7 Day-0.05%1.6%1.8%
30 Day-3.1%-4.8%-0.7%
90 Day1.4%-4.0%0.06%
1 Year51.6%51.6%6.4%3.9%9.7%7.3%
3 Year109.6%109.6%41.7%32.4%46.3%36.9%
5 Year180.5%180.5%41.3%25.7%64.5%46.5%

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

Valuation

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

18.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: DENN ($21.88) is trading above our estimate of fair value ($14.91)

Significantly Undervalued: DENN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DENN is good value based on its PE Ratio (18.8x) compared to the Hospitality industry average (22.3x).

PE vs Market: DENN is poor value based on its PE Ratio (18.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DENN has negative assets, so we can't compare its PB Ratio to the US 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?

-16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DENN's earnings are forecast to decline over the next 3 years (-16.5% per year).

Earnings vs Market: DENN's earnings are forecast to decline over the next 3 years (-16.5% per year).

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

Revenue vs Market: DENN's revenue is expected to decline over the next 3 years (-12.6% per year).

High Growth Revenue: DENN's revenue is forecast to decline over the next 3 years (-12.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if DENN'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?

13.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DENN's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: DENN's earnings growth over the past year (64.4%) exceeds its 5-year average (13.8% per year).

Earnings vs Industry: DENN earnings growth over the past year (64.4%) exceeded the Hospitality industry -13.9%.


Return on Equity

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


Return on Assets

ROA vs Industry: DENN has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: DENN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Denny's's financial position?


Financial Position Analysis

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

Long Term Liabilities: DENN 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: DENN has negative shareholder equity, which is a more serious situation than a high debt level.

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

Debt Coverage: DENN's debt is well covered by operating cash flow (23.7%).

Interest Coverage: DENN's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: DENN 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

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if DENN'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 DENN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Denny's's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

John Miller (64yo)

8.7yrs

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 and President of Denny's Corporation since February 2011. Mr. Miller served a ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD4.00M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

5.0yrs

Average Tenure

56yo

Average Age

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


Board Age and Tenure

8.7yrs

Average Tenure

64yo

Average Age

Experienced Board: DENN's board of directors are considered experienced (8.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,161,03416 Sep 19
Timothy Flemming
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares50,873
Max PriceUS$22.82
SellUS$397,31910 Sep 19
John Dillon
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Brand Officer
Shares16,980
Max PriceUS$23.53
SellUS$120,71206 Sep 19
Robert Verostek
EntityIndividual
Shares5,120
Max PriceUS$23.62
SellUS$308,75005 Sep 19
Jay Gilmore
EntityIndividual
Role
Chief Accounting Officer
VP, Chief Accounting Officer & Corporate Controller
Shares13,000
Max PriceUS$23.75
SellUS$1,187,96303 Sep 19
Christopher Bode
EntityIndividual
Role
Chief Operating Officer
Senior VP & COO
Shares50,488
Max PriceUS$23.53
SellUS$126,12517 May 19
Donald Robinson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,431
Max PriceUS$19.61
SellUS$191,72016 May 19
Brenda Lauderback
EntityIndividual
Role
Chairman of the Board
Chair of the Board of Directors
Shares9,968
Max PriceUS$19.23
SellUS$199,36415 May 19
John Dillon
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Brand Officer
Shares10,360
Max PriceUS$19.24
SellUS$99,24627 Mar 19
Robert Verostek
EntityIndividual
Shares5,474
Max PriceUS$18.13
SellUS$212,20822 Mar 19
Stephen Dunn
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Global Development Officer
Shares12,000
Max PriceUS$17.68
SellUS$2,257,65325 Feb 19
John Miller
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares125,794
Max PriceUS$18.25

Ownership Breakdown


Management Team

  • F. Wolfinger (64yo)

    Executive VP

    • Tenure: 8.8yrs
    • Compensation: US$1.60m
  • John Miller (64yo)

    CEO, President & Director

    • Tenure: 8.7yrs
    • Compensation: US$4.00m
  • John Dillon (47yo)

    Senior VP & Chief Brand Officer

    • Tenure: 0.8yrs
    • Compensation: US$928.58k
  • Jay Gilmore (50yo)

    VP, Chief Accounting Officer & Corporate Controller

    • Tenure: 0yrs
  • Timothy Flemming (58yo)

    Senior VP

    • Tenure: 10.6yrs
    • Compensation: US$915.52k
  • Jill Van Pelt (50yo)

    Senior VP & Chief People Officer

    • Tenure: 5yrs
  • Steve Dunn (54yo)

    Senior VP & Chief Global Development Officer

    • Tenure: 4.3yrs
    • Compensation: US$917.67k
  • Chris Bode (56yo)

    Senior VP & COO

    • Tenure: 5yrs
    • Compensation: US$974.94k
  • Michael Furlow (61yo)

    Senior VP & Chief Information Officer

    • Tenure: 2.5yrs
  • Curt Nichols

    Senior Director of Investor Relations & Financial Analysis

    • Tenure: 0yrs

Board Members

  • F. Wolfinger (64yo)

    Executive VP

    • Tenure: 8.8yrs
    • Compensation: US$1.60m
  • John Miller (64yo)

    CEO, President & Director

    • Tenure: 8.7yrs
    • Compensation: US$4.00m
  • Gregg Dedrick (60yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$190.00k
  • Brenda Lauderback (68yo)

    Chair of the Board of Directors

    • Tenure: 0yrs
    • Compensation: US$290.00k
  • Robert Marks (67yo)

    Director

    • Tenure: 21.8yrs
    • Compensation: US$190.01k
  • Don Robinson (66yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$190.00k
  • José Gutiérrez (58yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$190.00k
  • Laysha Ward (51yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$175.00k
  • Bernadette Aulestia (46yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$148.42k

Company Information

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


Key Information

  • Name: Denny's Corporation
  • Ticker: DENN
  • Exchange: NasdaqCM
  • Founded: 1953
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$1.300b
  • Shares outstanding: 59.43m
  • Website: https://www.dennys.com

Number of Employees


Location

  • Denny's Corporation
  • 203 East Main Street
  • Spartanburg
  • South Carolina
  • 29319
  • 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 26, 2018, it operated 1,709 franchised, licensed, and co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:31
End of Day Share Price2019/10/18 00:00
Earnings2019/06/26
Annual Earnings2018/12/26


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.