
Denny's (DENN) Stock Forecast & Price Target
Denny's (DENN) Analyst Ratings
Bulls say
Denny's Corp has a diversified revenue model that includes food and beverage sales, as well as royalties and fees from franchised restaurants, with the majority of its revenue coming from the USA and Canada. Despite facing challenges with same-store sales (SSS) growth, particularly at their company units and franchises, Keke's Breakfast Cafe demonstrated strong SSS growth at 6.2%, indicating potential for brand strength and customer interest. The company remains optimistic that strategic initiatives and a reduced sales bar for 2025 could lead to improved performance as market conditions stabilize.
Bears say
Denny's Corporation is experiencing declining same-restaurant sales (SSS), with management indicating a noticeable drop in sales trends attributable to changing consumer sentiment amid macroeconomic factors, particularly highlighting a 1Q25 forecast of SSS below the low-end of FY2025 guidance, projecting a decline greater than 2%. Additionally, the company's reported adjusted earnings per share (EPS) of $0.14 fell short of the consensus estimate of $0.15, while overall restaurant margins have weakened to 11.3%, further compounding the negative outlook. These challenges have prompted downward adjustments to EBITDA estimates for fiscal years 2025 and 2026 by 3-4%, escalating concerns over the company's financial performance moving forward.
This aggregate rating is based on analysts' research of Denny's and is not a guaranteed prediction by Public.com or investment advice.
Denny's (DENN) Analyst Forecast & Price Prediction
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