Denny's releases positive Q4 and FY24 preliminary results with mixed stock performance

From Nasdaq: 2025-01-14 09:04:00

Denny’s Corporation (DENN) has released selected preliminary financial results for Q4 and fiscal 2024, showing positive momentum with solid sales. Expectations for Q4 and FY2024 results will be released on Feb. 12, 2025. DENN stock showed mixed performance in trading hours and after-hours. The company operates through two segments, Denny’s and Keke’s, each showing different sales figures for the quarter.

In terms of same-restaurant sales, Denny’s brand saw a slight decline while Keke’s brand showed growth. The company expects to close some underperforming restaurants while opening new ones. Denny’s Diner 2.0 remodel program is ongoing. Keke’s brand saw expansion into new states.

Denny’s stock price has declined in the past three months due to softness in sales and increased costs. However, the company is focusing on menu innovation and marketing strategies to drive traffic. Analysts expect 11.5% EPS growth in fiscal 2025. The company’s VGM Score is B, indicating bullish sentiments in the market.

Denny’s currently holds a Zacks Rank #2 (Buy). Other top-ranked stocks in the Retail-Wholesale sector include The Gap, Inc. (GAP) with a Zacks Rank #1 (Strong Buy), Amazon.com, Inc. (AMZN) with a Zacks Rank #1, and Deckers Outdoor Corporation (DECK) with a Zacks Rank #1. These companies have shown positive sales and EPS growth in the past year.

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