DENN - Denny's slides as Q2 results disappoint

2023-08-02 10:22:31 ET

Denny's Corporation ( NASDAQ: DENN ) fell more than 7% after reporting disappointing quarterly results.

Q2 non-GAAP EPS of $0.14 missed the average analyst estimate by $0.02. Revenue of $116.9M missed by $3.74M.

Denny's domestic system-wide same-restaurant sales grew 3% compared to the equivalent fiscal period in 2022, including increases of 3% at domestic franchised restaurants and 3% at company restaurants.

Total operating revenue grew 1.7% to $116.9M and operating income of $14.9M compared to $13.9M in the prior year quarter.

While the recession many people forecast for the U.S. economy has yet to materialize, the overall demand environment is softening.

“We're watching and listening for cues about whether the consumer is truly being still being resilient, which everything would point to saying yes,” Chief Executive Officer Kelli Valade said on an earnings call. “At the same time, you think about inflation, we know who our consumer is, and… lower income levels are still going to be impacted.”

“So while not saying as much talk of a recession and good news there, you're still seeing reasons to just be cautious, right, just to be cautious” Valade said.

“The amount of value offers, the amount of not necessarily discounting, but the amount of conversations out there around trying to capture more share of wallet, the deals are everywhere, which would suggest everyone now understands maybe there's a little relief in some places, so we can not only afford to do that, but we've got to come off of some of the price.”

DENN is up 11% so far in 2023.

More on Denny’s:

• Denny's Corporation: A Tale Of 2 Brands
• Denny's Non-GAAP EPS of $0.14 misses by $0.02, revenue of $116.9M misses by $3.74M
• Seeking Alpha’s Quant Ratings on Denny’s

For further details see: