Denny's, headquartered in Spartanburg, South Carolina, operates approximately 1,631 restaurants, including 1,573 under the Denny’s brand and 58 Keke’s Breakfast Cafe locations. The company employs 3,500 full-time staff and offers a variety of meal options across four dayparts.
Based on our analysis, Denny's Corporation (DENN) has been rated as undervalued with a score of 4 out of 5 stars. Several key financial ratios highlight the company's potential for growth and strong performance relative to its sector.
Denny's Price-to-Earnings (PE) ratio stands at 9.25, significantly lower than the sector average of 17.12. A lower PE ratio may indicate that the stock is undervalued relative to its earnings, making it an attractive option for investors looking for value.
The Price-to-Book (PB) ratio of Denny's is 545.96, which contrasts sharply with the sector's 2.04. While a high PB ratio can indicate overvaluation, in this context, it reflects Denny's substantial asset base and potential for asset appreciation over time.
The company's net profit margin is 4.77, vastly superior to the sector average of 0.25. This indicates that Denny's is more efficient at converting revenue into profit, enhancing its attractiveness as a profitable investment.
Denny's Return on Equity (ROE) ratio is an impressive 2043.75 compared to the sector average of 1.98. This suggests that Denny's is exceptionally effective at generating returns on shareholder equity, further underscoring its operational efficiency.
However, Denny's currently has a dividend yield of 0.00, which is below the sector average of 1.48. While this may be a concern for income-focused investors, it also indicates that the company may be reinvesting profits for future growth.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary
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