Denny's Corporation (NASDAQ:DENN) reported weaker-than-expected first-quarter financial results on Tuesday.
Denny's posted adjusted earnings of 11 cents per share, missing market estimates of 14 cents per share. The company's quarterly sales came in at $110.00 million, missing expectations of $115.16 million, according to data from Benzinga Pro.
Kelli Valade, Chief Executive Officer, stated, "I am very pleased that our first quarter domestic same-restaurant sales and traffic outperformed both the family and casual dining segments, while overcoming the industry's tough operating environment. We were also excited for Keke's to expand outside of Florida and begin testing our new design in the latest Florida openings. I am encouraged by the sales driving initiatives planned for the back half of the year including expanding our third virtual brand, Banda Burrito, launching our test with Franklin Junction, reigniting our Denny's remodel program and having the full force of our local co-op advertising fund for the first time since the pandemic began. These initiatives are sure to generate incremental sales and margins at our flagship brand."
Denny's shares fell 2.3% to close at $8.02 on Tuesday.
These analysts made changes to their price targets on Denny's following earnings announcement.
- Wedbush cut the price target on Denny's from $9.5 to $8.5. Wedbush analyst Nick Setyan maintained a Neutral rating.
- Oppenheimer slashed the price target on Denny's from $12 to $11. Oppenheimer analyst Michael Tames maintained an Outperform rating.