Denny’s Reports Mixed Quarterly Earnings Amidst Market Challenges

On a recent Tuesday, Denny’s Corporation, operating under the ticker symbol NASDAQ:DENN, released its quarterly earnings report. The popular restaurant chain reported earnings of $0.14 per share for the quarter, narrowly missing the consensus estimate of $0.17 per share by $0.03, as noted by financial reporting service Briefing.com. The revenue for the quarter was reported at $115.40 million, slightly below the projected $115.67 million forecasted by market analysts. A notable piece of financial data from the report was Denny’s net margin at 6.35% and a contrasting negative return on equity standing at 88.90%. Revenue saw a downward trend, dipping 4.5% in comparison to the same quarter from the previous year. The figures signal a decrease from last year’s earnings of $0.18 per share for the same quarter.

Rise in Denny’s Stock Value

Denny’s shares experienced a positive uptick, rising 1.8% in mid-day trading on Thursday to reach a selling price of $9.47. In terms of trading volume, 588,891 shares changed hands, surpassing the average volume benchmark of 542,822 shares. Market valuation facts reveal Denny’s market capitalization stands at $502.67 million, with a price-to-earnings (P/E) ratio of 17.88, a price/earnings-to-growth (P/E/G) ratio of 1.64, and a beta coefficient of 1.99. An assessment of stock price trends shows Denny’s 50-day moving average at $10.57 and the 200-day moving average at $9.72, indicating recent stock price performance. The stock’s 52-week range has seen lows of $8.11 and highs of $12.98.

Institutional Investors Update on Denny’s Holdings

In recent financial movements by hedge funds and other institutional investors, there has been marked activity regarding Denny’s shares. LPL Financial LLC has increased its stake in Denny’s stock by 11.4% during the 4th quarter, now holding 14,677 shares valued at approximately $135,000. This was after an additional purchase of 1,500 shares. New positions in the stock were also acquired by Trexquant Investment LP, Gilbert & Cook Inc., Diversified Trust Co, and Virtu Financial LLC during the 3rd and 4th quarters with investments ranging from $96,000 to $122,000. In total, institutional investors own a significant 84.50% of Denny’s shares.

Modification in Analyst Ratings

Equity research analysts have been active in re-evaluating Denny’s stock with multiple adjustments to their insights. Oppenheimer rescaled their price target from $13.00 to $12.00, sustaining an “outperform” rating, while StockNews.com shifted their stance from “hold” to “buy.” Truist Financial cut down their price target from $13.00 to $12.00 yet maintained a “buy” rating on the stock. Wedbush followed suit by reducing their price target to $10.50 from $11.00 and assigning a “neutral” rating. The latest consensus from three analysts suggests a hold position, while four recommend a buy, leading to a “Moderate Buy” average rating for Denny’s with an average price target of $11.92.

About Denny’s Corporation

Denny’s Corporation, which underwent a rebranding from Advantica Restaurant Group, Inc. in July 2002, is the parent company of the Denny’s chain and Keke's Breakfast Cafe. With operations spreading across the United States and international markets, Denny’s operates in two primary segments: Denny’s and Other.

Earnings, Stock, Market