Denny's (DENN) Stock Forecast & Price Target

Denny's Corp, a leading full-service restaurant chain in the U.S. and internationally, is experiencing varied same-store sales (SSS) growth, with its Keke's Breakfast Cafe brand showcasing a robust SSS growth of 6.2%, while Denny's itself faced a modest 1.0% SSS growth and negative trends in franchised units. Despite recent challenges reflected in conservative 2025 guidance and a decline in SSS growth in early February, the company remains optimistic about future recovery as operational headwinds diminish and new initiatives like value offerings take hold. Overall, the company's diverse revenue streams from food sales and franchising, coupled with its geographic expansion, position it well for potential growth as market conditions improve.

Denny's Corp faces a negative outlook due to declining same-restaurant sales, with management reporting a recent drop in system-wide sales attributed to changing consumer sentiment influenced by macroeconomic factors. The company's first-quarter estimates indicate same-restaurant sales growth was revised down to 0.0%, significantly below the low end of its forecast for fiscal year 2025, which projects a decline of up to 2%. Furthermore, an adjusted EPS of $0.14 fell short of consensus expectations and was accompanied by weaker restaurant margins, prompting a downward revision of EBITDA estimates for fiscal years 2025 and 2026 by approximately 3-4%.