Market Cap
US$469.5m
Last Updated
2020/04/08 04:17 UTC
Data Sources
Company Financials +
Executive Summary
Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -53.6% per year for the next 3 years
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: DENN's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
15.1%
DENN
-3.1%
US Hospitality
2.4%
US Market
1 Year Return
-52.8%
DENN
-46.1%
US Hospitality
-10.0%
US Market
Return vs Industry: DENN underperformed the US Hospitality industry which returned -52.8% over the past year.
Return vs Market: DENN underperformed the US Market which returned -15.9% over the past year.
Shareholder returns
| DENN | Industry | Market | |
|---|---|---|---|
| 7 Day | 15.1% | -3.1% | 2.4% |
| 30 Day | -42.2% | -31.0% | -11.0% |
| 90 Day | -59.1% | -50.6% | -19.4% |
| 1 Year | -52.8%-52.8% | -44.7%-46.1% | -8.1%-10.0% |
| 3 Year | -32.3%-32.3% | -33.5%-38.0% | 17.3%9.6% |
| 5 Year | -28.3%-28.3% | -28.4%-36.3% | 36.1%21.1% |
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
4 days ago | Simply Wall St
Is Denny's Corporation’s (NASDAQ:DENN) 20% ROCE Any Good?2 weeks ago | Simply Wall St
What Is Denny's's (NASDAQ:DENN) P/E Ratio After Its Share Price Tanked?1 month ago | Simply Wall St
Do You Know What Denny's Corporation's (NASDAQ:DENN) P/E Ratio Means?Valuation
Is Denny's undervalued compared to its fair value and its price relative to the market?
38.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DENN ($6.78) is trading below our estimate of fair value ($13.61)
Significantly Below Fair Value: DENN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DENN is good value based on its PE Ratio (3.5x) compared to the Hospitality industry average (11.5x).
PE vs Market: DENN is good value based on its PE Ratio (3.5x) compared to the US market (12.2x).
Price to Earnings Growth Ratio
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 6 analysts?
-57.1%
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 (-53.6% per year).
Earnings vs Market: DENN's earnings are forecast to decline over the next 3 years (-53.6% 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 (-9% per year).
High Growth Revenue: DENN's revenue is forecast to decline over the next 3 years (-9% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
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?
26.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DENN has a high level of non-cash earnings.
Growing Profit Margin: DENN's current net profit margins (21.7%) are higher than last year (6.9%).
Past Earnings Growth Analysis
Earnings Trend: DENN's earnings have grown significantly by 26.4% per year over the past 5 years.
Accelerating Growth: DENN's earnings growth over the past year (168.6%) exceeds its 5-year average (26.4% per year).
Earnings vs Industry: DENN earnings growth over the past year (168.6%) exceeded the Hospitality industry 1.6%.
Return on Equity
High ROE: DENN'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: 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 not well covered by operating cash flow (15.2%).
Interest Coverage: DENN's interest payments on its debt are well covered by EBIT (4x coverage).
Balance Sheet
Next Steps
Dividend
What is Denny's's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
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.
Stability and Growth of Payments
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
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
John Miller (64yo)
9.17s
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 US market ($USD2.26M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 9.17yrs | US$4.00m | 1.1% $5.2m | |
| President & Director | 9.25yrs | US$1.60m | 1.43% $6.7m | |
| Senior VP & COO | 5.5yrs | US$974.94k | 0.041% $192.4k | |
| Senior VP & Chief Global Development Officer | 4.75yrs | US$917.67k | 0.086% $404.5k | |
| Executive VP & Chief Brand Officer | 1.33yrs | US$928.58k | 0.14% $642.3k | |
| CFO & Senior VP | 0.17yr | no data | 0.041% $191.3k | |
| VP, Chief Accounting Officer & Corporate Controller | no data | no data | 0.16% $728.9k | |
| Senior VP & Chief Information Officer | 3yrs | US$1.03m | 0.024% $110.7k | |
| Senior Director of Investor Relations & Financial Analysis | no data | no data | no data | |
| Senior VP & Chief People Officer | 5.5yrs | no data | 0.20% $931.6k |
3.9yrs
Average Tenure
54yo
Average Age
Experienced Management: DENN's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 9.17yrs | US$4.00m | 1.1% $5.2m | |
| President & Director | 9.25yrs | US$1.60m | 1.43% $6.7m | |
| Independent Director | 10.25yrs | US$190.00k | 0.14% $647.5k | |
| Chair of the Board of Directors | no data | US$290.00k | no data | |
| Independent Director | 22.25yrs | US$190.01k | 0.18% $851.0k | |
| Independent Director | 2.25yrs | US$190.00k | no data | |
| Independent Director | 7.25yrs | US$190.00k | no data | |
| Independent Director | 10.25yrs | US$175.00k | 0.032% $149.8k | |
| Independent Director | 1.92yrs | US$148.42k | no data |
9.2yrs
Average Tenure
64yo
Average Age
Experienced Board: DENN's board of directors are considered experienced (9.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DENN 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: DENN
- Exchange: NasdaqCM
- Founded: 1953
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: US$469.450m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DENN | NasdaqCM (Nasdaq Capital Market) | Yes | Common Stock Par Value 0.01 | US | USD | Jan 1998 |
| DE8 | DB (Deutsche Boerse AG) | Yes | Common Stock Par Value 0.01 | DE | EUR | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 04:17 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/25 |
| Annual Earnings | 2019/12/25 |
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.