Denny's Corporation owns and operates full-service restaurants under the Dennys brand name. The company was founded in 1980 and is based in Spartanburg, South Carolina.
DENN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for DENNY'S Corp. To summarize, we found that DENNY'S Corp ranked in the 78th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 469%. As for the metrics that stood out in our discounted cash flow analysis of DENNY'S Corp, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 5.28; that's higher than 69.8% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
The business' balance sheet reveals debt to be 46% of the company's capital (with equity being the remaining amount). Approximately 68.55% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
DENNY'S Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 3.17% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DENN, try NVFY, TILE, NXST, EVK, and AN.
Image source Stocks of restaurants have been absolutely pummeled as a group this year. The reasons are obvious, but the pain has been palpable. Some restaurants have fared much better than others, owing their relative success to digital ordering channels, drive-thru service, etc., as dining rooms across the nation were...
Denny’s Corporation (DENN) Q2 2020 Results Earnings Conference Call July 28, 2020, 4:30 PM ET Company Participants Curt Nichols - Vice President, Investor Relations and Financial Planning and Analysis John Miller - Chief Executive Officer Mark Wolfinger - President Robert Verostek - Senior Vice President and CFO Conference Call Participants...
THE TRADER Second-quarter earnings season may be starting, but more than ever, cash is king. And cash-flow problems could derail stock performance during the second half of 2020. Investors have already written off 2020 as a lost year for profits.