Stock Story -
Diner restaurant chain Denny’s (NASDAQ:DENN) will be reporting results tomorrow afternoon. Here's what investors should know.
Denny's missed analysts' revenue expectations by 4.5% last quarter, reporting revenues of $110 million, down 6.4% year on year. It was a weaker quarter for the company, with a miss of analysts' earnings estimates.
Is Denny's a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Denny's revenue to grow 1.8% year on year to $119 million, in line with the 1.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 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 four times over the last two years.
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. BJ's posted flat year-on-year revenue, meeting analysts' expectations, and Texas Roadhouse reported revenues up 14.5%, in line with consensus estimates. BJ's traded down 15.4% following the results while Texas Roadhouse was up 2%.
Read the full analysis of BJ's and Texas Roadhouse's results on StockStory.
Investors in the sit-down dining segment have had steady hands going into earnings, with share prices flat over the last month. Denny's is up 11.5% during the same time and is heading into earnings with an average analyst price target of $10.4 (compared to the current share price of $7.45).
