Denny’s Corporation (NASDAQ:DENN), the full-service restaurant chain, has seen its stock price touch a 52-week low, dipping to $3.6. With a market capitalization of $183 million and a P/E ratio of 12.1, the company’s valuation metrics are drawing attention from value investors. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with analyst price targets ranging from $6 to $8.50. This latest price level reflects a significant downturn in the company’s market valuation over the past year. Investors have witnessed a stark decrease in the value of their holdings, with Denny’s stock experiencing a precipitous 1-year change of -58.3%. The decline to this 52-week low underscores the challenges faced by the restaurant industry, which has been grappling with a complex mix of economic pressures that continue to shape the financial landscape for businesses in this sector. With a beta of 2.09, the stock shows higher volatility than the broader market. For deeper insights into Denny’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, Denny’s Corporation reported its fourth-quarter earnings, revealing adjusted earnings per share of $0.14, which fell short of the $0.15 consensus estimate. The company’s revenue was $114.7 million, missing the anticipated $116 million. The shortfall in revenue was partly attributed to the accelerated closure of franchisee-operated restaurants as part of Denny’s strategy to eliminate 150 underperforming units by the end of 2025. Additionally, Denny’s announced a cautious outlook for 2025, projecting domestic system-wide same-restaurant sales between -2.0% and 1.0%, citing macroeconomic factors affecting consumer sentiment.
Benchmark analysts responded by lowering their price target for Denny’s stock to $8 from $10, although they maintained a Buy rating. In another development, Denny’s disclosed a pre-arranged stock trading plan to repurchase shares of its common stock, scheduled to commence in March 2025. Furthermore, Denny’s announced that Brenda Lauderback, the Chair of the Board of Directors, will retire in May 2025, initiating the search for her successor. These recent developments highlight Denny’s ongoing efforts to manage its capital, streamline operations, and navigate leadership transitions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.