Denny's stock got spanked today. It was down 17% from yesterday's close. The company reported poor earnings this quarter. Profit was flat at $10M versus $10.6M a year ago. However revenue was down a whopping 23%.The one bright note was that analysts were predicting the company to tank this quarter. When the economy is bad, people just don't go out to eat. So at least the 3Q results beat analysts estimates. However the company expects to also have a bad 4Q.
I usually like to look for deals. These are mostly good companies down on their luck. There was not a lot of good news in this quarter's earnings. For now I am going to hold off on acquiring any Denny's stock. I will still visit them for breakfast though.
