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:
Below please find a table outlining a discounted cash flow forecast for DENN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that DENNY'S Corp ranked in the 69th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of DENNY'S Corp, consider:
The compound growth rate in the free cash flow of DENNY'S Corp over the past 5.63 years is 0.16%; that's higher than 56.22% of free cash flow generating stocks in the Consumer Cyclical sector.
The business' balance sheet suggests that 38% of the company's capital is sourced from debt; this is greater than 64.56% of the free cash flow producing stocks we're observing.
DENNY'S Corp's weighted average cost of capital (WACC) is 9%; for context, that number is higher than 58.41% 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 BDL, GEF, STRT, TALN, and WHR.
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.