Tuesday November 5, 2019, 00:00:00
By Mark Kalinowski
Since reporting its third-quarter results and hosting its related conference call late last month, Denny’s (DENN; Buy) stock has mostly drifted downward. We believe that one factor contributing to this slide has been concern on the Street that Denny’s might acquire part or all of another restaurant concept. In our view, it would be a mistake for Denny’s to do so. We believe the odds do not favor Denny’s pursuing this route, although we (of course) cannot rule out this possibility with 100% certainty. We reiterate our Buy rating on DENN, and note the following:
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Tuesday October 29, 2019, 00:00:00
By Mark Kalinowski
After Tuesday’s market close, Denny’s (DENN; Buy) reported adjusted Q3 EPS of $0.18, coming in ahead of our $0.16 forecast and sell-side consensus (according to Consensus Metrix) of $0.16. We attribute the EPS beat to a combination of: (1) better-than-expected Payroll and Benefits/Company Restaurant Sales (37.4% actual vs. 38.3% projected), (2) better-than-anticipated G&A/Revenues (13.2% actual vs. 13.8% estimated), (3) better-than-expected D&A/Revenues (3.5% actual vs. 4.2% forecasted), (4) lower-than-anticipated interest expense ($4.2 million actual vs. $5.3 million projected), and (5) a favorable adjusted tax rate (15.5% actual vs. 21.2% forecasted) — all partially offset by some other factors (such as lower-thananticipated Company Restaurant Sales, due to the faster-than-expected pace of refranchising).
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Friday September 13, 2019, 00:00:00
By Mark Kalinowski
Kalinowski Equity Research will host a non-deal roadshow (NDR) with Denny’s (DENN; Buy) in New York City on Wednesday, November 20th. Management attendees will include: (1) CEO & President John Miller, (2) Executive Vice President, Chief Administrative Officer & CFO Mark Wolfinger, (3) Senior Vice President, Finance Robert P. Verostek, and (4) Senior Director Investor Relations Curt Nichols. This should be an excellent opportunity for institutional buysiders to hear from Denny’s leadership about its refranchising initiative as well as about issues affecting the restaurant industry in general. Institutional buysiders who are interested in participating should indicate their interest to: [email protected]
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