Financial Comparison: Denny’s (DENN) versus Chanticleer (BURG)

Denny’s (NASDAQ:DENN) and Chanticleer (NASDAQ:BURG) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Risk and Volatility

Denny’s has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, Chanticleer has a beta of 2.65, suggesting that its share price is 165% more volatile than the S&P 500.

Insider and Institutional Ownership

93.2% of Denny’s shares are owned by institutional investors. Comparatively, 2.7% of Chanticleer shares are owned by institutional investors. 6.1% of Denny’s shares are owned by company insiders. Comparatively, 18.8% of Chanticleer shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Denny’s and Chanticleer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Denny’s 7.89% -34.51% 12.18%
Chanticleer -15.02% -70.24% -17.75%

Analyst Ratings

This is a breakdown of current ratings and price targets for Denny’s and Chanticleer, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Denny’s 0 0 2 0 3.00
Chanticleer 0 0 1 0 3.00

Denny’s presently has a consensus target price of $19.67, indicating a potential upside of 0.44%. Chanticleer has a consensus target price of $3.50, indicating a potential upside of 194.12%. Given Chanticleer’s higher probable upside, analysts clearly believe Chanticleer is more favorable than Denny’s.

Earnings & Valuation

This table compares Denny’s and Chanticleer’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Denny’s $630.18 million 1.87 $43.69 million $0.68 28.79
Chanticleer $40.61 million 0.12 -$6.85 million ($1.45) -0.82

Denny’s has higher revenue and earnings than Chanticleer. Chanticleer is trading at a lower price-to-earnings ratio than Denny’s, indicating that it is currently the more affordable of the two stocks.

Summary

Denny’s beats Chanticleer on 10 of the 13 factors compared between the two stocks.

About Denny’s

Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand. As of December 26, 2018, it operated 1,709 franchised, licensed, and company restaurants, including 1,578 restaurants in the United States; and 131 in Canada, Puerto Rico, Mexico, New Zealand, the Philippines, Honduras, Costa Rica, the United Arab Emirates, Guam, the United Kingdom, El Salvador, and Guatemala. The company was formerly known as Advantica Restaurant Group, Inc. and changed its name to Denny's Corporation in 2002. The company was founded in 1953 and is headquartered in Spartanburg, South Carolina.

About Chanticleer

There is no company description available for Chanticleer Holdings Inc.

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