-8.75%
-28.47%
-28.36%
-26.26%
-50.49%
-70.38%
-72.58%

Company Description

Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand.As of December 29, 2021, it had 1,640 franchised, licensed, and company restaurants worldwide.The company was formerly known as Advantica Restaurant Group, Inc.


and changed its name to Denny's Corporation in 2002.Denny's Corporation was founded in 1953 and is based in Spartanburg, South Carolina.

Market Data

Last Price 4.54
Change Percentage -8.75%
Open 4.97
Previous Close 4.97
Market Cap ( Millions) 234
Volume 1758312
Year High 9.53
Year Low 4.51
M A 50 5.94
M A 200 6.47

Financial Ratios

FCF Yield 0.39%
Dividend Yield 0.00%
ROE -43.69%
Debt / Equity -1199.69%
Net Debt / EBIDTA 612.23%
Price To Book -7.01
Price Earnings Ratio 11.06
Price To FCF 255.42
Price To sales 0.52
EV / EBITDA 9.65

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Denny's

Expected Growth : 4.0 %

What the company do ?

Denny's is a popular American diner-style restaurant chain serving classic breakfast, lunch, and dinner items 24/7.

Why we expect these perspectives ?

Denny's 4.0 growth driven by refranchising efforts, increasing same-store sales, and expansion into new markets. Additionally, menu innovation, digital transformation, and remodels of existing locations contribute to growth. Furthermore, the brand's focus on value, convenience, and customer experience also supports its growth momentum.

Segment nΒ°2 -> Other

Expected Growth : 2.0 %

What the company do ?

Denny's Corporation's 'Other' segment includes franchise operations, which generate revenue from royalties and advertising fees from franchisees.

Why we expect these perspectives ?

Denny's Corporation's 'Other' segment growth of 2.0% is driven by increased sales from company-owned restaurants, expansion of delivery and online ordering services, and strategic partnerships. Additionally, menu innovation, remodels, and marketing efforts have contributed to the growth. These initiatives have improved customer experience, driving sales and profitability.

Denny'S Corporation Products

Product Range What is it ?
Grand Slam A signature dish featuring two buttermilk pancakes, two eggs, two sausage links, and two strips of bacon
Moons Over My Hammy A sandwich featuring scrambled eggs, crispy bacon, and melted cheese on sourdough bread
Fit Slam A healthier take on the Grand Slam, featuring egg whites, turkey bacon, and whole wheat pancakes
Skillets A variety of savory skillets featuring ingredients like scrambled eggs, sausage, bacon, and hash browns
Burgers A range of classic American-style burgers featuring beef, chicken, or veggie patties
Sandwiches A variety of sandwiches featuring ingredients like turkey, ham, roast beef, and chicken
Coffee and Beverages A range of hot and cold beverages, including coffee, tea, and juice
Desserts A variety of sweet treats, including pancakes, waffles, and milkshakes

Denny's Corporation's Porter Forces

Denny's Corporation faces moderate threat from substitutes, as customers have various options for breakfast and casual dining. However, Denny's unique menu offerings and 24/7 operations help maintain customer loyalty.

Denny's customers have limited bargaining power due to the company's widespread presence and lack of dependence on individual customers. Additionally, Denny's menu prices are relatively low, reducing customer negotiating power.

Denny's has a diversified supplier base, reducing dependence on individual suppliers. The company's large scale of operations also gives it bargaining power in negotiating prices with suppliers.

The casual dining industry has high barriers to entry, including significant capital requirements and established brand recognition. This limits the threat of new entrants and allows Denny's to maintain its market position.

The casual dining industry is highly competitive, with many established players competing for market share. Denny's faces intense rivalry from companies like IHOP, Applebee's, and Waffle House, which can lead to pricing pressures and advertising wars.

Capital Structure

Value
Debt Weight 130.00%
Debt Cost 6.01%
Equity Weight -30.00%
Equity Cost 13.65%
WACC 3.72%
Leverage -433.37%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
CHUY Chuy's Holdings, Inc., through its subsidiaries, owns and operates full-service restaurants under the Chuy's name in the United States. As of December 26, 2021, it operated 96 restaurants in 17 …
FWRG First Watch Restaurant Group, Inc. operates and franchises restaurants under the First Watch trade name. As of March 23, 2022, it operated 341 company-owned restaurants and 94 franchised restaurants in …
CNNE Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae …
RAVE Rave Restaurant Group, Inc., together with its subsidiaries, operates and franchises pizza buffet, delivery/carry-out (delco), and express restaurants under the Pizza Inn trademark in the United States and internationally. It …
RICK RCI Hospitality Holdings, Inc., through its subsidiaries, engages in the hospitality and related businesses in the United States. The company operates through Nightclubs, Bombshells, and Other segments. It owns and/or …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
4.53$
Current Price
4.54$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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