Why Denny's Stock Tumbled by 16% This Week

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]