Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Denny's's
Operating Income
for the
three
months ended in Sep. 2025 was €8.8 Mil. Denny's's Interest Expense for the
three
months ended in Sep. 2025 was €-4.3 Mil.
Denny's's interest coverage for the quarter that ended in Sep. 2025 was 2.07.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Denny's Corp interest coverage is 2.17, which is low.
The historical rank and industry rank for Denny's's Interest Coverage or its related term are showing as below:
FRA:DE8'
s Interest Coverage Range Over the Past 10 Years
Min: 0.56 Med: 4.51 Max: 8.55
Current: 2.17
FRA:DE8's Interest Coverage is not ranked
in the Restaurants industry.
Industry Median: 6.44
vs FRA:DE8: 2.17
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Denny's Interest Coverage Related Terms
Denny's Interest Coverage Historical Data
* Premium members only.
The historical data trend for Denny's's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:DE8 vs LOCO, BRCB, VENU: Interest Coverage Comparison
For the Restaurants subindustry, Denny's's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Denny's Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Denny's's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Denny's's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Denny's (FRA:DE8) has a Interest Coverage of 2.07 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Denny's and its competitors. This is 54% below median its historical median of 4.51. Over the past decade, Denny's' Interest Coverage has ranged from 0.56 to 8.55.
Is Denny's' Interest Coverage too high?
Denny's' current Interest Coverage of 2.07 is 54% below median its 10-year median of 4.51. Over the past 10 years, this metric has ranged from a low of 0.56 to a high of 8.55. The Restaurants industry median Interest Coverage is 6.44. Denny's' value of 2.07 is 67.9% below this industry median. Overall, Denny's has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does Denny's' Interest Coverage compare to LOCO and BRCB?
Denny's' Interest Coverage of 2.07 can be compared against companies in the Restaurants industry. The industry median Interest Coverage is 6.44. Denny's' value of 2.07 is 67.9% below this benchmark. Historically, Denny's' own Interest Coverage has ranged from 0.56 to 8.55 over the past decade. While the company's 10-year median is 4.51 vs. the industry median of 6.44, Denny's has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.44, based on 261 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Denny's's current Interest Coverage of 2.07 is 67.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Denny's and its competitors. For the Restaurants industry, the median Interest Coverage is 6.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Denny's's current Interest Coverage is 2.07, which is 54% below median its own 10-year median of 4.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denny's stock overvalued right now?
Denny's (FRA:DE8) has a current Interest Coverage of 2.07. The stock's GF Value™ is €7.23, compared to a current price of €5.30 — trading 26.7% below its estimated fair value. The current Interest Coverage is 2.07, which is 54% below median its 10-year median of 4.51 and 67.9% below the Restaurants industry median of 6.44. Denny's' overall GF Score™ is 58/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Denny's (FRA:DE8), the current Interest Coverage is 2.07 as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Denny's (FRA:DE8) Overvalued in 2026?
Based on GuruFocus' analysis, Denny's stock appears to be undervalued.
The current stock price of €5.30 is trading 26.7% below its estimated GF Value™ of €7.23.
Key valuation signals for FRA:DE8:
Interest Coverage: 2.07 (54% below median its 10-year median of 4.51)
GF Value™: €7.23 vs. price of €5.30 (26.7% below fair value)
Industry Position: 67.9% below the Restaurants median
No single metric tells the full story. See the FRA:DE8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Denny's Corp is America's franchised full-service restaurant chains based on the number of restaurants. The company owns and operates the Denny's brand and the Keke's Breakfast Cafe brand. It provides Pancakes, Appetizers & Soups, Sandwiches & Salads, Breakfast Melts, Omelets, and others. The company generates its revenue from two sources: the sale of food and beverages and the collection of royalties, advertising revenue, initial and other fees, including occupancy revenue, from restaurants operated by their franchisees. Geographically operates in USA states as well as globally like Canada, Mexico, Guatemala, Indonesia, United Kingdom, New Zealand and others. Maximum revenue is from USA and Canada.
58GF Score
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