Diner restaurant chain Denny’s (NASDAQ:DENN) will be reporting earnings tomorrow before market hours. Here’s what you need to know.
Denny's missed analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $115.9 million, flat year on year. It was a disappointing quarter for the company, with a miss of analysts’ earnings 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 1.1% year on year to $115.5 million, a reversal from the 2.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 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. Denny's has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Denny’s peers in the restaurants segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Darden posted flat year-on-year revenue, missing analysts’ expectations by 1.5%, and Domino's reported revenues up 5.1%, falling short of estimates by 1.6%. Darden traded up 7% following the results while Domino's was also up 4%.
Read our full analysis of Darden’s results here and Domino’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 6.6% on average over the last month. Denny's is up 2.1% during the same time and is heading into earnings with an average analyst price target of $9.57 (compared to the current share price of $6.66).
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