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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Monday June 3, 2019, 00:00:00
By Mark Kalinowski
With this report, we increase our data-driven Kalinowski Family Dining Index for Q2E for the second time this quarter. This time, we increase the figure by +60 basis points, to +3.0%. Our updated figure is based on our latest proprietary checks/data as regards same-store sales performance for this segment over the course of May 2019.
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