Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Denny's (NASDAQ:DENN) and its peers.
Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.
The 13 sit-down dining stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 2.4% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.5% since the latest earnings results.
Denny's (NASDAQ:DENN)
Open around the clock, Denny’s (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare.
Denny's reported revenues of $114.7 million, flat year on year. This print fell short of analysts’ expectations by 1.2%. Overall, it was a softer quarter for the company with full-year EBITDA guidance missing analysts’ expectations.
Kelli Valade, Chief Executive Officer, stated, "We are proud of our progress through 2024, culminating in strong performances from both Denny's and Keke's, which outperformed their respective BBI Family Dining indices in the fourth quarter. We have made significant progress in our strategy to enhance the overall health of our flagship brand by accelerating the closure of lower-volume restaurants and completing 23 remodels, and also opened a record number of Keke’s cafes while expanding into six new states. Looking ahead to 2025, there is still work to be done within our brands, particularly as we navigate near-term consumer sentiment that has been affected by macroeconomic factors. With the actions we are taking to maintain our position as a value leader, invest in our brands, reduce costs, and drive traffic, we are well positioned to deliver shareholder value.”
The stock is down 41.7% since reporting and currently trades at $3.92.
Read our full report on Denny's here, it’s free.
Best Q4: Brinker International (NYSE:EAT)
Founded by Norman Brinker in Dallas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Brinker International reported revenues of $1.36 billion, up 26.5% year on year, outperforming analysts’ expectations by 9.6%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Brinker International delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.9% since reporting. It currently trades at $142.44.
Is now the time to buy Brinker International? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Bloomin' Brands (NASDAQ:BLMN)
Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Bloomin' Brands reported revenues of $972 million, down 18.6% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.
Bloomin' Brands delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 29.2% since the results and currently trades at $8.42.
Read our full analysis of Bloomin' Brands’s results here.
The ONE Group (NASDAQ:STKS)
Doubling as a hospitality services provider for hotels and resorts, The One Group Hospitality (NASDAQ:STKS) is an upscale restaurant company that operates STK Steakhouse and Kona Grill.
The ONE Group reported revenues of $221.9 million, up 147% year on year. This print topped analysts’ expectations by 1.9%. Taking a step back, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and full-year EBITDA guidance slightly missing analysts’ expectations.
The ONE Group scored the fastest revenue growth among its peers. The stock is down 6.2% since reporting and currently trades at $2.72.
Read our full, actionable report on The ONE Group here, it’s free.
Red Robin (NASDAQ:RRGB)
Known for its bottomless steak fries, Red Robin (NASDAQ:RRGB) is a chain of casual restaurants specializing in burgers and general American fare.
Red Robin reported revenues of $285.2 million, down 7.7% year on year. This result met analysts’ expectations. More broadly, it was a mixed quarter as it also produced a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.
Red Robin had the weakest full-year guidance update among its peers. The stock is down 5.8% since reporting and currently trades at $4.27.
Read our full, actionable report on Red Robin here, it’s free.
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