Denny's's Return on Invested Capital Insights

Pulled from Benzinga Pro data, Denny's DENN posted Q1 earnings of $21.86 million, an increase from Q4 of 49.71%. Sales dropped to $103.11 million, a 4.21% decrease between quarters. Denny's earned $43.45 million, and sales totaled $107.64 million in Q4.

What Is Return On Invested Capital?

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q1, Denny's posted an ROIC of 10.75%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q1, Denny's posted an ROIC of 10.75%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For Denny's, the positive return on invested capital ratio of 10.75% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Analyst Predictions

Denny's reported Q1 earnings per share at $0.11/share, which did not meet analyst predictions of $0.12/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.