Last Updated: 13 Nov 2024
Executive Summary
Denny's Corp (DENN) is a restaurant chain operator with a market capitalization of $358.79 million. The company reported revenue of $453.01 million and EPS of $0.33 for the latest quarter. DENN has a trailing PE ratio of 21.18 and a forward PE ratio of 12.71. The stock is currently trading at $6.7, which is below its 52-week high of $11.16 and above its 52-week low of $5.37. Analysts have a consensus rating of "Hold" on DENN, with a target price of $7.93.
Company Overview
Denny's Corp owns and operates full-service restaurant chains under the Denny's brand. The company is headquartered in Spartanburg, South Carolina. Denny's has over 1,600 restaurants in the United States, Canada, Mexico, and Puerto Rico. The company's menu features a variety of breakfast, lunch, and dinner items, as well as a selection of desserts and beverages.
Fundamental Analysis
DENN's financial performance has been mixed in recent quarters. The company's revenue has declined slightly over the past year, while its EPS has remained relatively flat. DENN's profit margin is thin, at just 3.9%. However, the company's operating margin is higher, at 11.3%. DENN's return on assets is 6.73%, and its return on equity is 0%.
DENN's balance sheet is relatively weak. The company has a high level of debt, and its book value is negative. However, DENN's cash flow from operations is positive, and the company has a strong track record of paying down its debt.
Technical Analysis
DENN's stock price has been trending down in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
DENN's stock is likely to continue to trade sideways in the short term. The stock's technical indicators are bearish, and the company's financial performance has been mixed. However, DENN's stock is trading at a discount to its fair value, and the company has a strong brand and a loyal customer base.
Long Term Outlook
DENN's long-term outlook is uncertain. The company faces a number of challenges, including competition from other restaurant chains, rising labor costs, and a weak economy. However, DENN has a strong brand and a loyal customer base, and the company is taking steps to improve its financial performance.
Analyst Recommendations
Analysts have a consensus rating of "Hold" on DENN, with a target price of $7.93. One analyst has a "Strong Buy" rating on DENN, three analysts have a "Buy" rating, five analysts have a "Hold" rating, and no analysts have a "Sell" or "Strong Sell" rating.
