Diner restaurant chain Denny’s (NASDAQ:DENN) will be reporting earnings this Monday after market close. Here’s what you need to know.
Denny's beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $111.6 million, up 1.5% year on year. It was a slower 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 grow 2% year on year to $118.3 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.11 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Denny’s peers in the sit-down dining segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Kura Sushi delivered year-on-year revenue growth of 17.3%, beating analysts’ expectations by 2.5%, and The Cheesecake Factory reported revenues up 5.7%, topping estimates by 0.8%. Kura Sushi traded down 11.8% following the results while The Cheesecake Factory was up 5.2%.
Read our full analysis of Kura Sushi’s results here and The Cheesecake Factory’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the sit-down dining stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7.6% on average over the last month. Denny's is down 16.8% during the same time and is heading into earnings with an average analyst price target of $6.55 (compared to the current share price of $3.67).
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