Denny's (Nasdaq: DENN) reported earnings on Feb. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 26 (Q4), Denny's beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.

Gross margins contracted, operating margins were steady, net margins dropped.

Revenue details
Denny's chalked up revenue of $115.9 million. The six analysts polled by S&P Capital IQ predicted a top line of $111.5 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $130.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.08. The six earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. Non-GAAP EPS of $0.08 for Q4 were 92% lower than the prior-year quarter's $0.96 per share. GAAP EPS of $0.07 for Q4 were 93% lower than the prior-year quarter's $0.95 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.8%, 680 basis points worse than the prior-year quarter. Operating margin was 10.2%, about the same as the prior-year quarter. Net margin was 5.6%, 6,510 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $111.3 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $454.0 million. The average EPS estimate is $0.33.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 418 members out of 459 rating the stock outperform, and 41 members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 give Denny's a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Denny's is outperform, with an average price target of $5.28.

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