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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Tuesday July 30, 2019, 00:00:00
By Mark Kalinowski
After today’s market close, Denny’s (DENN; Buy) reported adjusted Q2 EPS of $0.23, ahead of our $0.18 estimate and sell-side consensus (according to Consensus Metrix) of $0.18. We attribute the EPS beat to some “tax provision benefits” — the Q2 actual (adjusted) tax rate was -1.2%; a more normalized tax rate of approximately 20.0% would have led to an adjusted EPS number of about $0.18, by our calculations.
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Monday June 24, 2019, 00:00:00
By Mark Kalinowski
Not too long ago, Denny’s (DENN; Buy) filed its 400+ page Franchise Disclosure Document (FDD) for 2019. In this report, we cite some of the highlights from that document following our review of it, including our review of it in comparison to last year’s Franchise Disclosure Document. For example, the 2019 FDD reveals that Denny’s is testing Presto, providing these details: “Presto is a table top ordering option that we are testing in 2019. The cost for 30 tablets is $15,000 that includes the tablets and three years of software services. Presto does not offer financing but has financing partners. These partners may offer leases to franchisees for three or four years with an option to purchase the tablets at the end of term. In addition to the ability for customers to pay their check using the tablet, games are offered. The current price is $1.99 for unlimited game play during a single visit. Restaurants maintain 80% of profits from game play with 20% being paid to Presto. The Presto charges will be billed monthly through your franchise finance account.”
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