DENN Earnings Prediction
The chart below shows how DENN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DENN sees a +0.46% change in stock price 10 days leading up to the earnings, and a +0.08% change 10 days following the report. On the earnings day itself, the stock moves by -2.13%. This data can give you a slight idea of what to expect for the next quarter's release.
DENN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
111.76M
-2.12%
-3.60%
Gross Margin
60.25%
0.43%
4.69%
Operating Margin
11.31%
-23.53%
20.19%
Net Margin
5.83%
-15.87%
89.29%
EPS
0.12
-14.29%
71.43%
No Data Available
DENN Earnings Analysis
DENNY'S CORP Corporation (DENN.O) Earnings Conference Call
Positive
Sales Recovery Trend: Sequential improvement in sales for Denny's brand, with September showing a positive 1.1% increase after a flat July and a negative 1.7% in August, indicating a recovery trend.
Everyday Value Sales Lift: The launch of the $2, $4, $6, $8 Everyday Value proposition contributed to a 2% to 2.5% sales lift, demonstrating effective customer engagement and value perception.
Virtual Brand Expansion: Denny's introduced a third virtual brand, Banda Burrito, which contributed approximately 70 basis points to sales, showcasing successful expansion into new market segments.
Diner 2.0 Remodel Success: The remodel program, Diner 2.0, has shown strong results, with remodeled locations outperforming the average by $400,000, indicating effective capital investment in enhancing customer experience.
Franchise Expansion Potential: Keke's Breakfast Cafe has signed over 140 development agreements, indicating strong franchisee interest and growth potential in new markets, with plans to expand beyond Florida.
Negative
Operating Revenue Decline: Denny's reported a total operating revenue of $111.8 million, which reflects a decline in adjusted company restaurant operating margin to 11.8%, down from previous quarters, indicating pressure on profitability.
EBITDA Guidance Adjustment: The company is tightening its sales guidance range, with a downward adjustment in EBITDA expectations to $81 million to $84 million, signaling potential challenges in achieving prior financial targets.
Restaurant Closures Strategy: Denny's is planning to close 75 to 95 underperforming restaurants, up from an initial estimate of 40 to 60 closures, which suggests a more aggressive approach to portfolio optimization due to ongoing performance issues.
Sales Decline Analysis: The Keke's brand experienced a negative 1% sales decline, heavily impacted by weather-related disruptions, highlighting vulnerabilities in its growth strategy amid external challenges.
Family Dining Segment Challenges: The company acknowledged that the family dining segment has contracted the most since COVID, with Denny's being the second player in this segment, indicating ongoing struggles to regain pre-pandemic traffic levels.
DENN FAQs
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DENN Earning Call Sentiment
Denny's Corporation (DENN) CEO Kelli Valade Hosts Investor Day and Q3 2024 Earnings Call (Transcript)
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DENN.O
-0.16%Positive
The earnings call presented a mixed picture. Financial performance showed stability, with positive EPS and strong EBITDA, but the guidance was weak, projecting flat same-store sales and increased closures. The Q&A highlighted management's uncertainty about certain metrics, which could concern investors. However, the successful rollout of new initiatives, like the Banda Burrito brand, and the stable franchise system are positives. The lack of a share buyback or dividend program and the absence of a market cap make it difficult to gauge the overall impact, leading to a neutral sentiment prediction.