Denny's Corporation
$6.25
+0.0000%Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand. As of December 29, 2021, it had 1,640 franchised, licensed, and company restaurants worldwide. The company was formerly known as Advantica Restaurant Group, Inc. and changed its name to Denny's Corporation in 2002. Denny's Corporation was founded in 1953 and is based in Spartanburg, South Carolina.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 14.7).
Valuation inputs: P/E 14.7, earnings yield +6.8%, momentum 0.0%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -63.4%, ROIC +8.0%).
Profitability stack: net margin +4.8%, ROE -63.4%, ROIC +8.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +106.9%, momentum 0.0%, net margin +4.8%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Denny's Corporation Market vs Earnings Trajectory
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Denny's Corporation Fair Value Envelope
Denny's Corporation Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.
Denny's Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Flat FCF growth. Stable but not expanding—monitor for signs of business maturity or temporary headwinds.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Capital-intensive growth: Heavy reinvestment limits current cash available but may drive future returns. Assess whether CapEx supports compelling growth opportunities with adequate ROI.
Denny's Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Denny's Corporation Street Expectations Map
Wall Street analysts project that DENN stock may decline over the coming 12 months. The consensus 1-year price target stands at 5.00, with estimates ranging from a low of 4.00 to a high of 6.00.
The consensus 1-year price target stands at 5.00, with estimates ranging from a low of 4.00 to a high of 6.00.
Analyst Consensus Analysis
Upside Potential
Significant downside risk. Stock trading well above analyst consensus suggests elevated valuation concerns and potential correction.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Risk-Reward Profile
Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Denny's Corporation Insider Positioning
During the last 12 months, insiders have purchased $1.84M and sold $10.78M worth of DENN shares, resulting in $8.94M of net selling activity.
3 Months
0
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0.00
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3-6 Months
0
0.00
0
0.00
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6-9 Months
412.9K
1.84M
2.2M
10.78M
-8.9M
-$8.94M
9-12 Months
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0.00
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Top Buyers
Jumana Capital Investments Llc
Other: See Footnote 1
$1.84M
Top Sellers
Jumana Capital Investments Llc
Other: See Footnote 1
$10.78M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $8.94M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Insider Participation
1 insider buyers and 1 sellers. Equal participation suggests mixed or neutral insider views.
No Dividend Yield Data
DENN has not reported any dividend yield values in the available annual periods.
denn Dividend History
Learning Layer
Related Guides
Build conviction on DENN by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.