Denny's (DENN) Reports Q4: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2024/02/12 2:01 am EST

Diner restaurant chain Denny’s (NASDAQ:DENN) will be reporting results tomorrow after the bell. Here's what investors should know.

Last quarter Denny's reported revenues of $114.2 million, down 2.8% year on year, missing analyst expectations by 2.3%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.

Is Denny's buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Denny's's revenue to decline 4.3% year on year to $115.7 million, a deceleration on the 12.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.

Denny's Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Denny's's peers in the restaurants segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Brinker International delivered top-line growth of 5.4% year on year, missing analyst estimates by 0.4% and Kura Sushi reported revenues up 30.9% year on year, exceeding estimates by 0.1%. Brinker International traded flat on the results, Kura Sushi was down 4.6%.

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 the stocks up on average 5.7% over the last month. Denny's is up 1.6% during the same time, and is heading into the earnings with analyst price target of $12.1, compared to share price of $10.5.

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