Denny’s Corp Earnings Cheat Sheet: Misses Expectations

Denny’s Corporation (NASDAQ:DENN) reported its results for the third quarter. Denny’s operates a family-style restaurant chains in America. The company, through its wholly-owned subsidiaries, Denny’s Holdings and Denny’s, owns and operates the Denny’s restaurant brand.

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Denny’s Earnings Cheat Sheet for the Third Quarter

Results: Net income for the restaurant fell to $8 million (8 cents per share) vs. $9.9 million (10 cents per share) a year earlier. This is a decline of 19.6% from the year earlier quarter.

Revenue: Fell 2.3% to $136.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: DENN fell short of the mean analyst estimate of 10 cents per share. Analysts were expecting revenue of $138.2 million.

Quoting Management: John Miller, President and Chief Executive Officer, stated, “Denny’s generated positive same-store sales and positive two-year same-store guest counts in the face of a very challenging consumer and inflationary economic environment. This is a testament to the success of our positioning as America’s favorite diner, emphasizing everyday affordability with attractive Limited Time Only products. We also achieved an increase in profitability despite the headwinds coming from inflationary pressures. We are working closely with our franchisees to continue building on our success in growing units, sales and profitability which has enabled Denny’s to grow free cash flow, pay down debt and repurchase shares in its efforts to increase long-term shareholder value.”

Key Stats:

The company fell short of estimates last quarter after being in line with expecations the quarter before with net income of 8 cents.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 0.6% to $135.9 million in the second quarter from the year earlier.

Looking Forward: The average estimate for the fourth quarter remains unchanged at 10 cents a share. For the fiscal year, the average estimate has moved down from 35 cents a share to 33 cents over the last ninety days.

Competitors to Watch: DineEquity, Inc. (NYSE:DIN), Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL), Bob Evans Farms, Inc. (NASDAQ:BOBE), Biglari Holdings Inc (NYSE:BH), Chipotle (NYSE:CMG), McDonald’s (NYSE:MCD), O’Charley’s Inc. (NASDAQ:CHUX), Famous Dave’s of America, Inc. (NASDAQ:DAVE), Starbucks (NASDAQ:SBUX), Darden Restaurants (NYSE:DRI), Morton’s Restaurant Group, Inc. (NYSE:MRT), and Flanigan’s Enterprises, Inc. (AMEX:BDL).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)