NasdaqCM:DENN

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


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

-12.9%

DENN

-9.5%

US Hospitality

-5.3%

US Market


1 Year Return

-55.2%

DENN

-22.5%

US Hospitality

10.4%

US Market

Return vs Industry: DENN underperformed the US Hospitality industry which returned -21.8% over the past year.

Return vs Market: DENN underperformed the US Market which returned 12% over the past year.


Shareholder returns

DENNIndustryMarket
7 Day-12.9%-9.5%-5.3%
30 Day-10.4%-8.5%-2.1%
90 Day0.8%11.0%1.7%
1 Year-55.2%-55.2%-21.1%-22.5%12.9%10.4%
3 Year-30.2%-30.2%-17.7%-23.1%34.3%25.4%
5 Year-15.1%-15.1%11.3%-0.4%73.7%54.3%

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?

23.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DENN ($8.96) is trading below our estimate of fair value ($11.65)

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


Price To Earnings Ratio

PE vs Industry: DENN is poor value based on its PE Ratio (47.8x) compared to the US Hospitality industry average (27.1x).

PE vs Market: DENN is poor value based on its PE Ratio (47.8x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: DENN is good value based on its PEG Ratio (0.5x)


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?

103.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DENN's forecast earnings growth (103.6% per year) is above the savings rate (2.2%).

Earnings vs Market: DENN's earnings (103.6% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DENN's revenue (17.9% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: DENN's revenue (17.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DENN is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

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

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DENN has high quality earnings.

Growing Profit Margin: DENN's current net profit margins (3.4%) are lower than last year (18.7%).


Past Earnings Growth Analysis

Earnings Trend: DENN's earnings have grown significantly by 24.1% 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 (-89.9%) over the past year, making it difficult to compare to the Hospitality industry average (-50.9%).


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 operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: DENN's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

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?

3.5yrs

Average management tenure


CEO

John Miller (65 yo)

9.58yrs

Tenure

US$5,143,878

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 ($USD5.14M) is above average for companies of similar size in the US market ($USD1.96M).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Miller
CEO & Director9.58yrsUS$5.14m0.97%
$ 5.5m
F. Wolfinger
President & Director9.75yrsUS$2.19m1.26%
$ 7.2m
Christopher Bode
Senior VP & COO6yrsUS$1.28m0.036%
$ 206.0k
Stephen Dunn
Senior VP & Chief Global Development Officer5.25yrsUS$1.21m0.076%
$ 432.9k
John Dillon
Executive VP & Chief Brand Officer1.83yrsUS$1.28m0.12%
$ 687.3k
Robert Verostek
CFO & Senior VP0.58yrno data0.036%
$ 204.8k
Jay Gilmore
VP, Chief Accounting Officer & Corporate Controllerno datano data0.14%
$ 780.0k
Michael Furlow
Senior VP & Chief Information Officer3.5yrsUS$1.03m0.021%
$ 118.6k
Curtis Nichols
Vice President of Investor Relations and Financial Planning & Analysisno datano datano data
Gail Myers
General Counsel0.33yrno datano data
Laurie Curtis
Vice President of Marketing & Menu Innovationno datano datano data
Jill Van Pelt
Senior VP & Chief People Officer6yrsno data0.17%
$ 997.0k

3.5yrs

Average Tenure

53yo

Average Age

Experienced Management: DENN's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Miller
CEO & Director9.58yrsUS$5.14m0.97%
$ 5.5m
F. Wolfinger
President & Director9.75yrsUS$2.19m1.26%
$ 7.2m
Gregg Dedrick
Independent Director10.75yrsUS$203.23k0.12%
$ 692.9k
Brenda Lauderback
Independent Chair of the Boardno dataUS$300.01k0%
$ 0
Robert Marks
Independent Director22.75yrsUS$189.99k0.16%
$ 910.8k
Donald Robinson
Independent Director12.75yrsUS$203.23k0.0089%
$ 50.7k
Jose Gutierrez
Independent Director7.75yrsUS$209.99k0.038%
$ 218.6k
Laysha Ward
Independent Director10.75yrsUS$184.99k0.037%
$ 211.1k
Bernadette Aulestia
Independent Director2.42yrsUS$184.99k0%
$ 0

10.3yrs

Average Tenure

65yo

Average Age

Experienced Board: DENN's board of directors are seasoned and experienced ( 10.3 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 been diluted in the past year, with total shares outstanding growing by 7.3%.


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$571.362m
  • Shares outstanding: 63.77m
  • 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 March 25, 2020, it had 1,695 franchised, licensed, and company re ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 23:34
End of Day Share Price2020/10/30 00:00
Earnings2020/09/23
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.