DENN

Denny'sNasdaqCM:DENN Stock Report

Market Cap

US$1.0b

7D

-1.7%

1Y

45.0%

Updated

16 Sep, 2021

Data

Company Financials +
DENN fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance2/6
Financial Health2/6
Dividends0/6

DENN Overview

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

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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DENN's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.7%

DENN

-1.6%

US Hospitality

-0.6%

US Market


1 Year Return

45.0%

DENN

29.0%

US Hospitality

33.6%

US Market

Return vs Industry: DENN exceeded the US Hospitality industry which returned 29.5% over the past year.

Return vs Market: DENN exceeded the US Market which returned 33.7% over the past year.


Shareholder returns

DENNIndustryMarket
7 Day-1.7%-1.6%-0.6%
30 Day4.5%8.4%1.3%
90 Day-2.6%-0.06%5.3%
1 Year45.0%45.0%29.5%29.0%35.6%33.6%
3 Year14.6%14.6%5.3%1.7%60.9%51.0%
5 Year49.5%49.5%44.0%34.5%123.4%99.1%

Long-Term 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

Denny's Fundamentals Summary

How do Denny's's earnings and revenue compare to its market cap?
DENN fundamental statistics
Market CapUS$1.03b
Earnings (TTM)US$31.19m
Revenue (TTM)US$338.49m

33.1x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DENN income statement (TTM)
RevenueUS$338.49m
Cost of RevenueUS$206.10m
Gross ProfitUS$132.39m
ExpensesUS$101.20m
EarningsUS$31.19m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.48
Gross Margin39.11%
Net Profit Margin9.21%
Debt/Equity Ratio-227.3%

How did DENN perform over the long term?

See historical performance and comparison

Valuation

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

33.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DENN ($16.07) is trading above our estimate of fair value ($16)

Significantly Below Fair Value: DENN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DENN is poor value based on its PE Ratio (33.1x) compared to the US Hospitality industry average (24.2x).

PE vs Market: DENN is poor value based on its PE Ratio (33.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: DENN is poor value based on its PEG Ratio (2x)


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.


Future Growth

How is Denny's forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DENN's forecast earnings growth (16.5% per year) is above the savings rate (2%).

Earnings vs Market: DENN's earnings (16.5% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: DENN's earnings are forecast to grow, but not significantly.

Revenue vs Market: DENN's revenue (7.6% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: DENN's revenue (7.6% per year) is forecast to grow slower than 20% 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


Past Performance

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

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DENN has high quality earnings.

Growing Profit Margin: DENN's current net profit margins (9.2%) are lower than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: DENN's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: DENN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DENN had negative earnings growth (-38.7%) over the past year, making it difficult to compare to the Hospitality industry average (96.4%).


Return on Equity

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


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 (21.3%).

Interest Coverage: DENN's interest payments on its debt are well covered by EBIT (13.7x coverage).


Balance Sheet


Dividend

What is Denny'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 recent payouts.

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

3.6yrs

Average management tenure


CEO

John Miller (66 yo)

10.58yrs

Tenure

US$5,340,240

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 ($USD5.34M) is above average for companies of similar size in the US market ($USD2.33M).

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


Leadership Team

Experienced Management: DENN's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: DENN's board of directors are seasoned and experienced ( 10.6 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$1.032b
  • Shares outstanding: 64.20m
  • Website: https://www.dennys.com

Number of Employees


Location

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

Listings


Biography

Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand. As of June 24, 2021, it had 1,649 franchised, licensed, and company res...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:48
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/30


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.