Coffee Industry - Coffee prices have reached record highs, with futures prices more than doubling over the past 12 months and surpassing $4 per pound for the first time last month [6] - A dry spell in Brazil has significantly impacted crop yields, contributing to the rising prices [6] - Coffee Labs Roasters signed a new purchase order at approximately $5 per bag, up from a previous deal of about $4 per bag [2] Egg Industry - The price of eggs in the U.S. has increased by 53% year over year, with a 15% spike from December to January [4] - The avian flu outbreak has led to the culling of millions of hens, exacerbating supply issues [5] - The U.S. Department of Justice is investigating potential antitrust practices in the egg industry [5] Consumer Behavior - Rising prices of coffee and eggs are causing consumers to change their purchasing habits, with many opting to skip breakfast or replace it with cheaper alternatives [9][10] - A survey indicated that consumer sentiment has turned negative for the first time since June 2024, with expectations of worsening inflation [7] Restaurant Industry - Dine Brands, the parent company of IHOP, has seen its stock decline over 13% this year, with a disappointing outlook for 2025 due to rising costs primarily driven by egg prices [11][12] - Waffle House and Denny's have implemented surcharges for menu items containing eggs, while McDonald's has not raised prices [13] - Restaurant stocks offering breakfast items have underperformed the market, with Denny's stock down over 55% and Cracker Barrel down 38% over the past year [14] Trade and Tariffs - Proposed tariffs on coffee could further increase prices, particularly for decaffeinated coffee that involves cross-border processing between the U.S., Mexico, and Canada [15][16] - There is uncertainty regarding the impact of these tariffs on decaf coffee, with industry experts seeking more clarity [17]

Core Insights - The primary reason for the decline in Denny's stock is the rising price of eggs, leading to a nearly 16% drop in shares [1] Company Performance - Denny's, known for its breakfast offerings, is significantly affected by the ongoing egg shortage in the U.S. [2] - The company attempted to address the egg shortage by implementing an egg surcharge on certain meals, but this was not applied universally across all locations [2] - In contrast, other restaurant chains like Waffle House have implemented more consistent surcharges, which may have influenced investor perceptions [3] Financial Results - Denny's reported a decline in both revenue and GAAP net profitability for the fourth quarter and 2024, which has contributed to negative investor sentiment [4] - The company's earnings release did not specifically address the egg shortage, and it received minimal attention during the management's conference call [4] Investor Sentiment - Until the egg supply situation improves or Denny's provides a more detailed response to its impact, investor confidence in the stock is likely to remain low [5]

Core Insights - Denny's is launching a new limited-time spring menu featuring innovative dishes centered around salted caramel and banana flavors, appealing to customer cravings for unique and delicious meals [3][4][5] - The introduction of new Slammin' Sodas enhances the beverage offerings, providing a bold and flavorful drink option for guests [2][6] - Denny's continues to emphasize value with its $2 $4 $6 $8 Value Menu, ensuring affordability alongside new menu items [7][8] Menu Highlights - New Salted Caramel Banana Waffle Slam® includes two Liege-style waffles with fresh banana slices and salted caramel, served with eggs and bacon or sausage [3] - Returning Salted Caramel Banana Pancake Slam® features buttermilk pancakes topped with vanilla cream and banana slices, also served with eggs and sides [4] - New Salted Caramel Banana Stuffed French Toast Slam® offers brioche French toast filled with cream cheese, topped with bananas and salted caramel [5] Beverage Offerings - The new Slammin' Sodas are available in flavors like Dr Pepper®, Coca-Cola® Classic, and Sprite® & Strawberry, topped with sweet cream and lime [2][6] Seasonal Promotions - Denny's is reintroducing the Fried Fish Platter for the Lent season, featuring wild-caught Alaska pollock fillets with tartar sauce and sides [2][6] Company Overview - Denny's operates 1,499 restaurants globally, with a significant portion being franchised, and has a long-standing commitment to community support through various initiatives [10]

Core Insights - Denny's is launching a limited-time menu featuring new Salted Caramel Banana-themed dishes and drinks, aiming to attract customers with fresh flavors and value [1][3][6] Menu Offerings - New Salted Caramel Banana Waffle Slam® includes two Liege-style waffles with banana slices and salted caramel, served with eggs, bacon, and sausage [3] - Returning Salted Caramel Banana Pancake Slam® features buttermilk pancakes topped with vanilla cream, banana slices, and salted caramel, also served with eggs and sides [4] - New Salted Caramel Banana Stuffed French Toast Slam® consists of Brioche French Toast stuffed with cream cheese, topped with banana slices and salted caramel, served with eggs and sides [5] - New Slammin'™ Sodas are introduced, featuring popular soft drinks topped with sweet cream and lime [2][6] Value Menu - Denny's offers a $2 $4 $6 $8 Value Menu, providing a range of diner classics and fan favorites, available all day, every day [7][8] Availability - The limited-time menu and value menu are available at Denny's locations nationwide, including options for dine-in, online orders, and delivery [8] Company Overview - Denny's is a family dining restaurant brand based in Spartanburg, SC, with over 70 years of history, focusing on providing craveable meals at meaningful value [10][9] - As of December 25, 2024, Denny's operates 1,499 restaurants globally, with a significant number being franchised [10]

Denny's is the latest restaurant to add an egg surcharge amid the nationwide shortage caused by outbreaks of bird flu.  The company announced in a statement that some of its restaurants will be adding a temporary surcharge to meals that include eggs. However, Denny's said the "pricing decision is market-by-market, and restaurant-by-restaurant due to the regional impacts of the egg shortage." It stopped short of specifying which locations would be impacted. AMERICANS TAKE TO RAISING THEIR OWN CHICKENS AMID N ...

A sign is posted in front of a Denny's restaurant on February 13, 2023 in Emeryville, California.Denny's will temporarily add surcharges to meals that contain eggs as Americans contend with a shortage of the staple food item, the restaurant chain said Monday.The South Carolina-based company said the size of the surcharge will vary across its approximately 1,500 locations. It marks the latest shift for consumers and businesses alike as they grapple with the the bird flu's effects on egg availability and cost ...

Restaurant Operations - Denny's operates 1,499 restaurants globally, with 1,334 in the U.S. and 165 internationally, of which 96% are franchised or licensed[17] - Keke's, acquired on July 20, 2022, has 69 restaurants, with 80% being franchised, and off-premises sales represented about 16% of total sales in 2024[19][18] - Denny's anticipates the majority of future growth will come from franchised restaurant development, with 1,438 franchised restaurants as of December 25, 2024[29] - The company opened three international franchised locations in 2024, including one each in Canada, Honduras, and the Philippines[26] - Approximately 90% of Denny's domestic franchised restaurants operated under traditional franchise agreements as of December 25, 2024[22] Sales Performance - Off-premises sales, including delivery and virtual brands, accounted for approximately 20% of total sales in 2024[16] - Denny's average daily sales breakdown: breakfast 28%, lunch 36%, dinner 20%, and late night 16%[16] - Approximately 38% of weekly sales occur from Friday late night through Sunday lunch, indicating strong weekend performance[16] - Keke's off-premises sales represented approximately 16% of total sales in 2024[18] - The restaurant sales are generally higher in the second and third quarters, with potential impacts from severe weather conditions[61] Development and Growth - The company has 64 domestic development commitments as of December 25, 2024, to enhance market share in under-penetrated areas[25] - Keke's plans to open more company-operated cafes to accelerate brand expansion, with 23 development agreements for 141 franchised cafes[30] Employee Engagement and Diversity - The company offers Modern Health Mental Wellness benefits to all full-time employees and their families, along with a comprehensive Employee Assistance Program available 24/7[48] - Approximately 75% of the total workforce and 77% of restaurant management are diverse, with 64% of domestic restaurants owned by diverse franchisees[58] - The company offers a comprehensive benefits package, including a 401(k) savings plan, tuition reimbursement, and a competitive vacation policy to support employee well-being[48] - The company focuses on employee engagement through periodic surveys, leading to numerous policy changes based on feedback[47] Technology and Operations - The company invests in technology to enhance operations, including online ordering and payment systems, and has a robust cloud-based Enterprise Resource Planning (ERP) platform[55] - The company has invested in technology to enhance operations, including a cloud-based ERP platform that supports finance, accounting, and human resources functions[55] - The company is committed to developing new technologies and R&D efforts to improve guest experience, including online ordering and payment solutions[54] Corporate Governance and Ethics - The Board of Directors consists of nine directors, with 56% from diverse backgrounds and 56% being women[58] - The company maintains a code of ethics applicable to key executives and all salaried employees, ensuring accountability and ethical conduct[82] - Amendments or waivers to the Denny's Code of Conduct will be posted on the company's website, emphasizing transparency in governance[82] Community Engagement - The company is committed to community engagement, including initiatives like the Denny's Hungry for Education® Scholarship program and partnerships with No Kid Hungry[57] - The company has implemented initiatives to fight childhood hunger and increase spending with diverse businesses[57] Compliance and Security - The company maintains compliance with Payment Card Industry Data Security Standards (PCI DSS) to protect customer data and has implemented point-to-point encryption[56] - The company is committed to cybersecurity, maintaining compliance with PCI Data Security Standards and continuously enhancing its cybersecurity capabilities[56] - The company is subject to various federal, state, and international regulations affecting its operations, including health and safety standards[67] Competitive Position - The company has a strong competitive position with brand recognition, well-located restaurants, and economies of scale in advertising and purchasing[65] - The restaurant industry is highly competitive, with the company competing against national chains, independent operators, and quick-service restaurants[63] Financial Information - Denny's domestic contractual royalty rate averaged approximately 4.36% during 2024, with franchisees contributing up to 3.25% for marketing[22] - The average royalty rate for Denny's domestic franchise agreements was approximately 4.36% in 2024[22]

Core Insights - Denny's has a market capitalization of just under $250 million and has experienced poor performance over the past decade [1] Company Overview - Denny's is known for its Original Grand Slam breakfast offering [1] Investment Perspective - The article aims to uncover interesting investment ideas, suggesting that Denny's may be overlooked despite its long-standing presence in the market [1]

Group 1 - The company specializes in analyzing restaurant stocks in the U.S. market, covering various segments such as QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] - The founder actively engages in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] Group 2 - The company has no stock, option, or similar derivative position in any of the companies mentioned, nor plans to initiate any such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not receiving compensation from any company mentioned [2] - Seeking Alpha clarifies that past performance is not a guarantee of future results and that no investment recommendations are being made [3]

Financial Performance - Denny's shares dropped significantly by 22% following the release of its fourth-quarter financial results for 2024, nearing a decade-low price [1] - Same-store sales for Denny's flagship brand decreased by less than 1%, but this figure does not account for the closures of underperforming locations [3] - In early 2025, same-store sales trends worsened, with a reported drop of 5% in the first two weeks of February, leading management to anticipate a total decline of up to 2% for the year [4] Business Operations - The company closed 88 underperforming restaurants in 2024, which had an average annual sales volume of under $1.1 million, prompting plans to close an additional 70 to 90 locations in 2025 [2] - Denny's management acknowledged that many of the closed restaurants had been operational for about 30 years, indicating a need to reposition in more favorable areas [5] - In 2024, Denny's opened 14 new locations and plans to open between 25 to 40 new locations in the current year, including those for its smaller Keke's brand [5] Market Position - Denny's is facing challenges in stimulating sales growth and improving profit margins, indicating a need for strategic changes to enhance its market position [6]