WallStSmart

Denny’s Corp (DENN)vsYum! Brands Inc (YUM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Yum! Brands Inc generates 1697% more annual revenue ($8.21B vs $457.21M). YUM leads profitability with a 19.0% profit margin vs 2.2%. DENN appears more attractively valued with a PEG of 1.06. YUM earns a higher WallStSmart Score of 59/100 (C).

DENN

Hold

41

out of 100

Grade: D

Growth: 3.3Profit: 5.0Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.08

YUM

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 8.0Value: 10.0Quality: 4.5
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DENNSignificantly Overvalued (-359.6%)

Margin of Safety

-359.6%

Fair Value

$1.36

Current Price

$6.25

$4.89 premium

UndervaluedFair: $1.36Overvalued
YUMUndervalued (+38.8%)

Margin of Safety

+38.8%

Fair Value

$259.74

Current Price

$159.16

$100.58 discount

UndervaluedFair: $259.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DENN1 strengths · Avg: 10.0/10
Debt/EquityHealth
-12.7410/10

Conservative balance sheet, low leverage

YUM2 strengths · Avg: 9.0/10
Operating MarginProfitability
31.9%10/10

Strong operational efficiency at 31.9%

EPS GrowthGrowth
27.7%8/10

Earnings expanding 27.7% YoY

Areas to Watch

DENN4 concerns · Avg: 3.5/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Market CapQuality
$321.87M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

YUM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.964/10

Expensive relative to growth rate

P/E RatioValuation
28.7x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : DENN

The strongest argument for DENN centers on Debt/Equity. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : YUM

The strongest argument for YUM centers on Operating Margin, EPS Growth. Profitability is solid with margins at 19.0% and operating margin at 31.9%.

Bear Case : DENN

The primary concerns for DENN are P/E Ratio, Revenue Growth, Market Cap. Thin 2.2% margins leave little buffer for downturns.

Bear Case : YUM

The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

DENN profiles as a value stock while YUM is a mature play — different risk/reward profiles.

DENN carries more volatility with a beta of 1.37 — expect wider price swings.

YUM is growing revenue faster at 6.5% — sustainability is the question.

YUM generates stronger free cash flow (482M), providing more financial flexibility.

Bottom Line

YUM scores higher overall (59/100 vs 41/100), backed by strong 19.0% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Denny’s Corp

CONSUMER CYCLICAL · RESTAURANTS · USA

Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand. The company is headquartered in Spartanburg, South Carolina.

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Yum! Brands Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.

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