By Mark Kalinowski
Published on July 16, 2019 at 12:00 AM
Earlier today, Domino’s (DPZ; Buy) reported second-quarter EPS of $2.19, ahead of our $2.04 forecast and sell-side consensus (according to Consensus Metrix) of $2.02. However, a lower-than-projected tax rate of 12.9% (versus our 20.5% projection and consensus of 19.8%) helped EPS by about $0.20 relative to our forecast. On the other hand, EPS was hampered by about $0.04 related to a loss on the sale of 59 New York City area stores. Taking the tax-rate and refranchising loss issues out, Q2 EPS would have been one cent below our forecast and one cent above sell-side consensus.
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By Mark Kalinowski
Published on June 3, 2019 at 12:00 AM
With this report, we upgrade the shares of Denny’s (DENN) to Buy (from Neutral). Our ratings change is due primarily to improving same-store sales trends in the familydining sector, of which we believe Denny’s has been a beneficiary during Q2. As a result, we increase our Q2E same-store sales forecast for U.S. systemwide Denny’s by +100 basis points, to +2.8%, placing us as the new “high-on-the-sell-side” forecast according to Consensus Metrix data. We are now also 70 basis points above sellside consensus (although we expect consensus to move up a bit once our raised estimate becomes reflected in consensus).
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By Mark Kalinowski
Published on April 30, 2019 at 12:00 AM
After Tuesday’s market close, Denny’s (DENN; Neutral) reported adjusted Q1 EPS of $0.13, matching our $0.13 forecast and sell-side consensus (according to Consensus Metrix) of $0.13. First-quarter U.S. systemwide same-store sales were up by +1.3%, as opposed to our +1.1% projection and consensus of +1.1%.
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