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Denny's (DENN) Stock Jumps 6.6%: Will It Continue to Soar?
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Denny's (DENN - Free Report) shares soared 6.6% in the last trading session to close at $9.15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.5% loss over the past four weeks.
Denny's rally is largely driven by optimism regarding the company’s improvement in sales trends backed by its off-premise business, improving transaction counts and effective pricing strategies. Also, emphasis on strategic initiatives such as the roll out of new kitchen equipment and beta testing of new cloud-based restaurant technology platform bodes well for the company.
This restaurant operator is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -22.2%. Revenues are expected to be $110.69 million, up 4.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Denny's, the consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DENN going forward to see if this recent jump can turn into more strength down the road.
Denny's is part of the Zacks Retail - Restaurants industry. Wendy's (WEN - Free Report) , another stock in the same industry, closed the last trading session 0.6% higher at $20.64. WEN has returned 9.6% in the past month.
For Wendy's, the consensus EPS estimate for the upcoming report has changed -2% over the past month to $0.22. This represents a change of -18.5% from what the company reported a year ago. Wendy's currently has a Zacks Rank of #3 (Hold).
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Denny's (DENN) Stock Jumps 6.6%: Will It Continue to Soar?
Denny's (DENN - Free Report) shares soared 6.6% in the last trading session to close at $9.15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.5% loss over the past four weeks.
Denny's rally is largely driven by optimism regarding the company’s improvement in sales trends backed by its off-premise business, improving transaction counts and effective pricing strategies. Also, emphasis on strategic initiatives such as the roll out of new kitchen equipment and beta testing of new cloud-based restaurant technology platform bodes well for the company.
This restaurant operator is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -22.2%. Revenues are expected to be $110.69 million, up 4.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Denny's, the consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DENN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Denny's is part of the Zacks Retail - Restaurants industry. Wendy's (WEN - Free Report) , another stock in the same industry, closed the last trading session 0.6% higher at $20.64. WEN has returned 9.6% in the past month.
For Wendy's, the consensus EPS estimate for the upcoming report has changed -2% over the past month to $0.22. This represents a change of -18.5% from what the company reported a year ago. Wendy's currently has a Zacks Rank of #3 (Hold).