The persistently rising price of a key input was the main factor behind the recent sag in Denny's (DENN -0.72%) stock. Investors weren't very forgiving this week, as according to data compiled by S&P Global Market Intelligence, they traded the company's shares down by nearly 16% over the period.
A growing number of restaurants are adding surcharges as the cost of eggs continues to skyrocket due to outbreaks of highly pathogenic avian influenza.
Denny's said Monday that it will put a surcharge in place for meals with eggs as the restaurant chain deals with the ongoing bird flu. The company declined to say which locations or markets would see the surcharges.
Denny's stock has fallen nearly 60% over the past decade, but its current inexpensive valuation and share repurchase program make it a speculative buy. Despite recent underwhelming earnings, Denny's hidden asset, Keke's Breakfast Café, shows promising growth potential and could drive future profitability and market re-rating. Keke's expansion into new states and remodeling efforts are yielding positive results, with analysts predicting it will boost Denny's EBITDA growth by 5-7% annually.
Denny's faces significant challenges with declining same-store sales and mixed performance between franchised and company-owned restaurants, despite initial optimism from the ICR Conference. Keke's shows promise with strong ASR and expansion plans, but recent franchise terminations and hurricane impacts have created headwinds for same-store sales. Denny's management issued weak guidance for FY 2025, expecting flat to negative same-store sales and a net reduction in restaurant locations.
Denny's Corporation (NASDAQ: DENN) told investors it is closing another 30 restaurants, for a total of 180 closures combined in 2024 and 2025, while reporting fourth-quarter earnings on Wednesday. (It had previously said it would close a total of 150 locations.
Shares of restaurant company Denny's (DENN -23.81%) crashed on Wednesday after reporting financial results for the fourth quarter of 2024 and providing a business update -- an update that greatly troubled investors. As of 3:15 p.m.
Denny's Corporation (NASDAQ:DENN ) Q4 2024 Earnings Call February 12, 2025 8:30 AM ET Company Participants Kayla Money - Senior Director, Investor Relations Kelli Valade - Chief Executive Officer Robert Verostek - Executive Vice President and Chief Financial Officer Conference Call Participants Nick Setyan - Wedbush Securities Mike Tamas - Oppenheimer & Company Jake Bartlett - Truist Securities Operator Greetings and welcome to the Denny's Corporation Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.
The headline numbers for Denny's (DENN) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.