Wednesday February 12, 2025, 10:37:24
DENN (Post-Call): Soft Sales to Start Q1, Adjusted EBITDA Target for 2025 Below Consensus
Earlier today (Wednesday), Denny’s reported fourth-quarter adjusted EPS of $0.14. This was one cent below our $0.15 forecast and one cent below sell-side consensus (according to Consensus Metrix) of $0.15. We calculate that the adjusted tax rate amounted to 35.7% in Q4 – well above our 25.0% projection and consensus of 24.9%. By our math, Q4 adjusted EPS would have been +2 to +3 cents higher if the adjusted tax rate had matched consensus.