Market Overview

Why There Could Be Upside To Current Expectations For Denny's Q3

Why There Could Be Upside To Current Expectations For Denny's Q3

Iconic American diner Denny's Corporation (NASDAQ: DENN) may be providing some significant upside, according to Wedbush securities.

Driven by strong same-store sales growth, expense control and share repurchases, Wedbush is expected earnings per share of $0.14 on revenues of $129 million. These figures are slightly ahead of the consensus EPS of $0.13 and $128 million in revenue.

Wedbush believes several factors are working in Denny's favor, including restaurant remodels, additional compelling menu innovation and a customer demographic benefitting from lower gas prices, increased employment and wage growth. Denny's is expected to report Q3 results on November 1.

Related Link: Darden's Comps, Outperformance More Than A Flash In The Pan

"We believe continued labor expense management, an even more favorable 2h:16 commodity environment, and accretive franchisee acquisitions could drive further EBITDA upside as the year progresses," said Wedbush analysts.

The bulk of Denny's franchise remodels are expected to take place between 2016 and 2018. Denny's royalty rate topped 4 percent for the first time, due to higher royalty agreements from franchisees. Denny's also has $130 million in share repurchases still authorized.

Wedbush maintains an Outperform rating with a $14 price target, providing some significant upside.

At last check, Denny's was up 2 percent Friday, trading at $10.44.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for DENN

Jul 2020WedbushMaintainsOutperform
Jul 2020WedbushMaintainsOutperform
Jul 2020Stephens & Co.DowngradesOverweightEqual-Weight

View More Analyst Ratings for DENN
View the Latest Analyst Ratings


Related Articles (DENN)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Termination Price Target Reiteration Restaurants Analyst Ratings Best of Benzinga

Latest Ratings

AZORBC CapitalMaintains1,329.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at