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

1.8%

DENN

-0.7%

US Hospitality

-0.02%

US Market


1 Year Return

61.7%

DENN

-2.3%

US Hospitality

1.6%

US Market

DENN outperformed the Hospitality industry which returned -2.3% over the past year.

DENN outperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

DENNIndustryMarket
7 Day1.8%-0.7%-0.02%
30 Day-1.0%3.5%2.7%
90 Day14.3%1.3%1.4%
1 Year61.7%61.7%0.08%-2.3%3.8%1.6%
3 Year114.5%114.5%46.6%37.0%45.2%35.8%
5 Year224.1%224.1%42.6%27.0%61.8%44.1%

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 weeks ago | Simply Wall St

How Much Are Denny's Corporation (NASDAQ:DENN) Insiders Taking Off The Table?

Valuation

Is Denny's undervalued based on future cash flows and its price relative to the stock market?

19.78x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Denny's's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Denny's's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Denny's is good value based on earnings compared to the US Hospitality industry average.

Denny's is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Denny's earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Denny's has negative assets, we can't compare the value of its assets to the US Hospitality industry average.


Next Steps

Future Growth

How is Denny's expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

-17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Denny's's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Denny's's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Denny's's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Denny's's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Denny's's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Denny's will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Denny's's year on year earnings growth rate has been positive over the past 5 years.

Denny's's 1-year earnings growth exceeds its 5-year average (64.4% vs 13.8%)

Denny's's earnings growth has exceeded the US Hospitality industry average in the past year (64.4% vs -9.8%).


Return on Equity

It is difficult to establish if Denny's has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Denny's used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Denny's's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Denny's's financial position?


Financial Position Analysis

Denny's's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Denny's's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Denny's has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Denny's's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (23.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Denny's 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 and Payments Analysis

Unable to evaluate Denny's's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Denny's's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Denny's has not reported any payouts.

Unable to verify if Denny's's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Denny's has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

John Miller (64yo)

8.6yrs

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

John's remuneration is about average for companies of similar size in United States of America.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.9yrs

Average Tenure

56yo

Average Age

The tenure for the Denny's management team is about average.


Board Age and Tenure

8.6yrs

Average Tenure

64yo

Average Age

The tenure for the Denny's board of directors is about average.


Insider Trading

Denny's individual 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: 8.7yrs
    • Compensation: US$1.60m
  • John Miller (64yo)

    CEO, President & Director

    • Tenure: 8.6yrs
    • 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: 10.5yrs
    • Compensation: US$915.52k
  • Jill Van Pelt (50yo)

    Senior VP & Chief People Officer

    • Tenure: 4.9yrs
  • Steve Dunn (54yo)

    Senior VP & Chief Global Development Officer

    • Tenure: 4.2yrs
    • Compensation: US$917.67k
  • Chris Bode (56yo)

    Senior VP & COO

    • Tenure: 4.9yrs
    • Compensation: US$974.94k
  • Michael Furlow (61yo)

    Senior VP & Chief Information Officer

    • Tenure: 2.4yrs
  • Curt Nichols

    Senior Director of Investor Relations & Financial Analysis

    • Tenure: 0yrs

Board Members

  • F. Wolfinger (64yo)

    Executive VP

    • Tenure: 8.7yrs
    • Compensation: US$1.60m
  • John Miller (64yo)

    CEO, President & Director

    • Tenure: 8.6yrs
    • Compensation: US$4.00m
  • Gregg Dedrick (60yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$190.00k
  • Brenda Lauderback (68yo)

    Chair of the Board of Directors

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

    Director

    • Tenure: 21.7yrs
    • Compensation: US$190.01k
  • Don Robinson (66yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$190.00k
  • José Gutiérrez (58yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$190.00k
  • Laysha Ward (51yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$175.00k
  • Bernadette Aulestia (46yo)

    Director

    • Tenure: 1.3yrs
    • 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$1.369b
  • 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 Analysis2019/09/20 00:08
End of Day Share Price2019/09/19 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.