Last Updated: 16 Sep 2024
Executive Summary
Denny's Corp (DENN) is a full-service restaurant chain operator with a market capitalization of $327.25 million. The company is currently trading at $6.37, below its 52-week high of $11.16. Despite a recent decline in quarterly earnings, DENN remains a fundamentally sound company with strong revenue growth and profitability. Analysts are generally bullish on the stock, with a consensus rating of "Buy."
Company Overview
Denny's Corp owns and operates over 1,600 Denny's restaurants in the United States and Canada. The company's menu features a wide variety of breakfast, lunch, and dinner options, including its signature Grand Slam breakfast. Denny's also offers a variety of catering and delivery services.
Fundamental Analysis
DENN has shown strong financial performance in recent years. Revenue has grown steadily, reaching $455.44 million in the latest quarter. The company's profit margin is also healthy at 4.19%. DENN's earnings per share (EPS) were $0.35 in the latest quarter, a slight decline from the previous year.
The company's balance sheet is also strong. DENN has a low level of debt and a high level of cash on hand. The company's book value is negative, but this is due to a large amount of goodwill on its balance sheet.
Technical Analysis
DENN's stock price has been trending downwards in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
In the short term, DENN's stock price is likely to continue to trade sideways or decline. The company's recent earnings miss could weigh on the stock price in the near term. However, DENN's strong fundamentals should provide support for the stock price.
Long Term Outlook
In the long term, DENN's stock price is likely to rise. The company's strong brand recognition, loyal customer base, and healthy financial position should drive long-term growth. DENN is also well-positioned to benefit from the growing demand for casual dining.
Analyst Recommendations
Analysts are generally bullish on DENN's stock. The consensus rating is "Buy." The average analyst target price is $9.86, which represents a potential upside of over 50% from the current price.
