Denny's Corporation (NASDAQ
ENN) recently announced its financial results for the fourth quarter of 2024. The company, known for its popular diner-style restaurants, reported an EPS of $0.14, slightly below the expected $0.15. Despite this, Denny's generated revenue of $114.7 million, surpassing the estimated $113.1 million. This performance highlights the importance of comparing financial metrics to both year-ago numbers and analyst estimates.
The reported revenue of $114.67 million for the quarter ending December 2024 marks a slight year-over-year decline of 0.6%. This figure fell short of the Zacks Consensus Estimate of $115.61 million, resulting in a negative surprise of 0.81%. Despite the revenue shortfall, Denny's managed to exceed its own revenue estimate, showcasing its ability to perform better than internal expectations.
Denny's EPS of $0.14 remained unchanged from the previous year, mirroring the earnings from the same quarter a year ago. However, it fell short of the Zacks Consensus Estimate, leading to a negative surprise of 6.67%. This consistent underperformance against consensus EPS estimates over the past four quarters indicates potential challenges in meeting market expectations.
In terms of market valuation, Denny's has a price-to-earnings (P/E) ratio of approximately 15.10, reflecting the market's valuation of its earnings. The company's price-to-sales ratio stands at about 0.58, suggesting a relatively low market valuation compared to its revenue. These metrics provide insight into how the market perceives Denny's financial health and growth potential.
Denny's debt-to-equity ratio is notably negative at -7.42, indicating a higher level of liabilities compared to equity. This could pose challenges in managing financial obligations. Additionally, the current ratio of approximately 0.39 suggests potential difficulties in covering short-term liabilities with current assets. These financial ratios highlight areas where Denny's may need to focus on improving its financial stability.
