Wrapping up Q2 earnings, we look at the numbers and key takeaways for the sit-down dining stocks, including Denny's (NASDAQ:DENN) and its peers.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 12 sit-down dining stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and while some sit-down dining stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.

Denny's (NASDAQ:DENN)

Open around the clock, Denny’s (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare.

Denny's reported revenues of $115.9 million, flat year on year. This print fell short of analysts’ expectations by 2.6%. Overall, it was a weaker quarter for the company with a miss of analysts’ earnings estimates.

Kelli Valade, Chief Executive Officer, stated, "I am very pleased that for the second quarter in a row Denny's outperformed BBI Family Dining same-restaurant sales, and Keke's continued to close the gap in Florida all while navigating a very competitive environment.”

Unsurprisingly, the stock is down 16.4% since reporting and currently trades at $6.41.

Read our full report on Denny's here, it’s free.

Best Q2: First Watch (NASDAQ:FWRG)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

First Watch reported revenues of $258.6 million, up 19.5% year on year, in line with analysts’ expectations. It was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ earnings estimates.

The market seems happy with the results as the stock is up 15.7% since reporting. It currently trades at $16.51.

Is now the time to buy First Watch? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Bloomin' Brands (NASDAQ:BLMN)

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $1.12 billion, down 2.9% year on year, in line with analysts’ expectations. It was a weak quarter for the company with underwhelming earnings guidance for the next quarter and a miss of analysts’ earnings estimates.

Bloomin' Brands had the slowest revenue growth in the group. As expected, the stock is down 4.3% since the results and currently trades at $17.50.

Read our full analysis of Bloomin' Brands’s results here.

Texas Roadhouse (NASDAQ:TXRH)

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Texas Roadhouse reported revenues of $1.34 billion, up 14.5% year on year, in line with analysts’ expectations. Overall, it was a strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ earnings estimates.

The stock is up 1.7% since reporting and currently trades at $168.79.

Read our full, actionable report on Texas Roadhouse here, it’s free.

Red Robin (NASDAQ:RRGB)

Known for its bottomless steak fries, Red Robin (NASDAQ:RRGB) is a chain of casual restaurants specializing in burgers and general American fare.

Red Robin reported revenues of $300.2 million, flat year on year, surpassing analysts’ expectations by 2.7%. This aside, it was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates and full-year revenue guidance topping analysts’ expectations.

The stock is down 23.6% since reporting and currently trades at $3.62.

Read our full, actionable report on Red Robin here, it’s free.

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