Denny’s to Report Q4 Earnings Results: What Investors Should Know
Diner restaurant chain, Denny’s, is set to announce its fourth-quarter financial results tomorrow after the closing bell. As investors eagerly await these results, let’s take a closer look at what they should know.
During the previous quarter, Denny’s reported a decline in revenues, generating $114.2 million, down 2.8% compared to the previous year. This missed analyst expectations by 2.3% and reflected a weak quarter for the company. Analysts are now predicting that the restaurant chain’s revenue will decline 4.3% year-on-year to $115.7 million for this quarter, indicating a slowdown from the 12.3% increase recorded during the same period last year. Additionally, adjusted earnings are expected to come in at $0.17 per share.
Over the past month, analysts covering Denny’s have become increasingly bearish about the company’s financial performance, with revenue estimates seeing two downward revisions. Furthermore, Denny’s has missed Wall Street’s revenue estimates three times in the last two years, raising concerns among investors.
To gain insight into what to expect from Denny’s, it may be helpful to look at other players in the restaurant segment which have already reported their Q4 earnings results. Brinker International, for instance, experienced a top-line growth of 5.4% year-on-year, falling slightly short of analyst estimates by 0.4%. Similarly, Kura Sushi reported a substantial 30.9% year-on-year increase in revenues, surpassing estimates by 0.1%. Following these results, Brinker International’s stock remained unchanged, while Kura Sushi’s stock fell by 4.6%.
Overall, there has been a positive sentiment among investors in the restaurant segment, with stocks in this sector experiencing an average increase of 5.7% over the past month. In comparison, Denny’s stock has risen by 1.6% during the same period.
As Denny’s heads into its earnings announcement, analysts have set a price target of $12.1 per share, compared to its current share price of $10.5. Investors will be closely monitoring the company’s performance to see if it can meet or exceed these expectations.
In conclusion, Denny’s upcoming earnings release will provide crucial insights into the company’s financial performance. With analysts growing increasingly wary and missed revenue estimates in the past, investors are eagerly awaiting the results to gauge the restaurant chain’s direction.
Analyst comment
Negative news. Denny’s is expected to report a decline in revenue for the fourth quarter, following a weak previous quarter. Analysts have revised revenue estimates downward and there are concerns about the company’s performance. However, the restaurant sector as a whole has seen positive stock growth recently. Denny’s stock has had a modest increase but is below the average for the sector. Analysts have set a price target above the current share price, so investors will be closely watching to see if Denny’s can meet or exceed expectations.
