Denny's Corporation DENN

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
50/100
Developing

About Denny's Corporation

Denny's Corporation, through its subsidiaries, owns and operates franchised full-service restaurant chains under the Denny's and Keke's Breakfast Cafe brand names in the United States and internationally. The company was formerly known as Advantica Restaurant Group, Inc. and changed its name to Denny's Corporation in July 2002. Denny's Corporation was founded in 1953 and is headquartered in Spartanburg, South Carolina. Full DENN analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 72.2th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Operating Leverage in Effect Operating leverage is evident (score 0.63), with margins expanding over time.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.26), raising questions about short-term obligations.
  • Weak or Negative Cash Flow Cash generation is weak (score 0.39), limiting financial flexibility.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
49

Where DENN ranks in Restaurants

Denny's Corporation ranks #30 of 57 scored companies in Restaurants by moat score — the top 53%. The widest moat in the group is Yum! Brands, Inc. (YUM) at 83/100.

Moat scores for companies ranked near DENN in Restaurants
# Company Moat score Rating
26 Papa John's International, Inc. PZZA 56/100 Moderate
27 BJ's Restaurants, Inc. BJRI 56/100 Moderate
28 CAVA Group, Inc. CAVA 54/100 Moderate
29 RCI Hospitality Holdings, Inc. RICK 53/100 Moderate
30 Denny's Corporation DENN 50/100 Developing
31 Cracker Barrel Old Country Stor CBRL 48/100 Developing
32 First Watch Restaurant Group, I FWRG 45/100 Developing
33 Chanson International Holding CHSN 45/100 Developing
34 Red Robin Gourmet Burgers, Inc. RRGB 44/100 Developing

See every General Corporate company ranked by moat score →

How DENN scores on the Corporate Default defenses

Pricing Power

Score 48 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 56 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 32 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 56 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 38 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 66 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding DENN's moat

What is Denny's Corporation's moat score?

Denny's Corporation (DENN) scores 50 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #30 of 57 scored companies in Restaurants, the top 53%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 56 companies in Restaurants. Its strongest defense is Scale & Market Position (66/100) and its weakest is Customer Stickiness (32/100).

How does Denny's Corporation compare with other Restaurants companies?

Denny's Corporation ranks #30 of 57 scored companies in Restaurants by moat score. The widest moat in Restaurants is Yum! Brands, Inc. (YUM) at 83/100. The companies ranked closest are RCI Hospitality Holdings, Inc. (RICK) at 53 just above it and Cracker Barrel Old Country Stor (CBRL) at 48 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 56 companies in Restaurants. The defenses are then weighted to produce the overall score out of 100.

Why is Denny's Corporation scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Denny's Corporation?

The Corporate Default template measures 6 defenses, and DENN scores: Pricing Power (48), Cost Advantage (56), Customer Stickiness (32), Capital Efficiency (56), Resilience (38), Scale & Market Position (66). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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