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Sit-Down Dining Stocks Q3 Teardown: Denny's (NASDAQ:DENN) Vs The Rest

DENN Cover Image

Looking back on sit-down dining stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including 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 12 sit-down dining stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

Luckily, sit-down dining stocks have performed well with share prices up 10.2% on average since the latest earnings results.

Slowest Q3: 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 $113.2 million, up 1.3% year on year. This print fell short of analysts’ expectations by 3.2%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue and EBITDA estimates.

Kelli Valade, Chief Executive Officer, stated, "Our third quarter progress on strategic initiatives demonstrates our ability to remain agile and focused on what is within our control amid a choppy industry backdrop. These achievements are the direct result of our incredible teams and franchisees maintaining their unwavering commitment to our brands and our guests."

Denny's Total Revenue

Denny's delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 51.1% since reporting and currently trades at $6.21.

Read our full report on Denny's here, it’s free for active Edge members.

Best Q3: 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 $928.8 million, down 10.6% year on year, outperforming analysts’ expectations by 2.7%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

Bloomin' Brands Total Revenue

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 12.4% since reporting. It currently trades at $6.33.

Is now the time to buy Bloomin' Brands? Access our full analysis of the earnings results here, it’s free for active Edge members.

Dine Brands (NYSE: DIN)

Operating a franchise model, Dine Brands (NYSE: DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.

Dine Brands reported revenues of $216.2 million, up 10.8% year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Interestingly, the stock is up 34.1% since the results and currently trades at $32.98.

Read our full analysis of Dine Brands’s results here.

First Watch (NASDAQ: FWRG)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ: FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

First Watch reported revenues of $316 million, up 25.6% year on year. This number beat analysts’ expectations by 1.9%. It was a very strong quarter as it also recorded a solid beat of analysts’ same-store sales and EBITDA estimates.

First Watch pulled off the fastest revenue growth among its peers. The stock is down 2% since reporting and currently trades at $15.54.

Read our full, actionable report on First Watch here, it’s free for active Edge members.

Texas Roadhouse (NASDAQ: TXRH)

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Texas Roadhouse reported revenues of $1.44 billion, up 12.8% year on year. This result topped analysts’ expectations by 0.7%. Aside from that, it was a mixed quarter as it also logged an impressive beat of analysts’ same-store sales estimates but a miss of analysts’ EBITDA estimates.

The stock is up 5.2% since reporting and currently trades at $169.04.

Read our full, actionable report on Texas Roadhouse here, it’s free for active Edge members.


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