Here's What Key Metrics Tell Us About Denny's (DENN) Q1 Earnings

For the quarter ended March 2024, Denny's (DENN) reported revenue of $109.97 million, down 6.4% over the same period last year. EPS came in at $0.11, compared to $0.13 in the year-ago quarter.

The reported revenue represents a surprise of -3.89% over the Zacks Consensus Estimate of $114.42 million. With the consensus EPS estimate being $0.14, the EPS surprise was -21.43%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Denny's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Changes in Same-Restaurant Sales - Company Restaurants: -3% versus the five-analyst average estimate of -1.2%.

• Changes in Same-Restaurant Sales - Domestic Franchise Restaurants: -1.2% versus -0.4% estimated by five analysts on average.

• Total restaurants end of period: 1,614 versus the five-analyst average estimate of 1,631.

• Franchised and licensed restaurants at end of period: 1,539 versus the five-analyst average estimate of 1,557.

• Company operated restaurants at end of period: 75 versus 74 estimated by five analysts on average.

• Changes in Same-Restaurant Sales - Domestic System-wide Restaurants: -1.3% versus -0.5% estimated by four analysts on average.

• Revenue- Franchise and license revenue: $57.63 million compared to the $61.45 million average estimate based on five analysts. The reported number represents a change of -10% year over year.

• Revenue- Company restaurant sales: $52.34 million versus the five-analyst average estimate of $52.99 million. The reported number represents a year-over-year change of -2.1%.

• Revenue- Franchise and license revenue- Advertising revenue: $18.14 million versus the three-analyst average estimate of $19.62 million.

• Revenue- Franchise and license revenue- Initial and other fees: $1.82 million compared to the $3.25 million average estimate based on two analysts.

• Revenue- Franchise and license revenue- Occupancy revenue: $8.37 million versus the two-analyst average estimate of $9 million.

• Revenue- Franchise and license revenue- Royalties: $29.31 million compared to the $29.51 million average estimate based on two analysts.

View all Key Company Metrics for Denny's here>>>

Shares of Denny's have returned -8% over the past month versus the Zacks S&P 500 composite's -2.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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