Denny’s Corp Third Quarter Earnings Sneak Peek

Denny’s Corp (NASDAQ:DENN) will unveil its latest earnings on Tuesday, November 1, 2011. 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.

Denny’s Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 10 cents per share, no change from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 11 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 17.9% versus last year to 33 cents.

Past Earnings Performance: The company fell in line with estimates last quarter after missing in the prior quarter. After falling short of the mean estimate by one cent in the first quarter, the company fell in line with expectations by reporting net income of 8 cents last quarter.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 1.2% in revenue from the year-earlier quarter to $138.2 million.

Analyst Ratings: Analysts are bullish on this stock with six analysts rating it as a buy, none rating it as a sell and none rating it as a hold.

A Look Back: In the second quarter, profit rose 49% to $8.1 million (8 cents a share) from $5.5 million (5 cents a share) the year earlier, meeting analyst expectations. Revenue rose 0.6% to $135.9 million from $135.1 million.

Key Stats:

A year-over-year revenue increase in the second quarter snapped a streak of three consecutive quarters of revenue declines. Revenue fell 1.3% in the first quarter, 3.3% in the fourth quarter of the last fiscal year and 4.2% in the third quarter of the last fiscal year.

The increase in profit in the second quarter broke a streak of three consecutive quarters of year-over-year profit decreases. Net income dropped 10.1% in the first quarter, 84.7% in the fourth quarter of the last fiscal year and 1% in the third quarter of the last fiscal year.

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).

Stock Price Performance: During August 2, 2011 to October 26, 2011, the stock price had fallen 30 cents (-8%) from $3.77 to $3.47. The stock price saw one of its best stretches over the last year between October 27, 2010 and November 4, 2010 when shares rose for seven-straight days, rising 12.5% (+39 cents) over that span. It saw one of its worst periods between September 16, 2011 and September 22, 2011 when shares fell for five-straight days, falling 12.4% (-45 cents) over that span. Shares are down 11 cents (-3.1%) year to date.

(Source: Xignite Financials)

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

 

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