Diner restaurant chain Denny’s (NASDAQ:DENN) will be reporting results tomorrow before the bell. Here’s what investors should know.
Denny's missed analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $111.8 million, down 2.1% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ EPS estimates.
Is Denny's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Denny’s revenue to be flat year on year at $116 million, improving from the 4.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Denny's has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Denny’s peers in the restaurants segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Brinker International delivered year-on-year revenue growth of 26.5%, beating analysts’ expectations by 9.6%, and Kura Sushi reported revenues up 25.2%, topping estimates by 4.7%. Brinker International traded up 18% following the results while Kura Sushi was down 11.8%.
Read our full analysis of Brinker International’s results here and Kura Sushi’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 11.9% on average over the last month. Denny's is up 26.3% during the same time and is heading into earnings with an average analyst price target of $8.71 (compared to the current share price of $7.10).
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