Why Denny's Stock Tumbled by 16% This Week
The persistently rising price of a key input was the main factor behind the recent sag in Denny's (NASDAQ: DENN) stock. Investors weren't very forgiving this week, as according to data compiled by S&P Global Market Intelligence, they traded the company's shares down by nearly 16% over the period.For the most part Denny's is, famously, a slinger of breakfast meals. In America, breakfast very often involves an egg dish, hence the food's importance for the company. This is why it is vulnerable to the U.S.'s current egg shortage.Towards the end of February, management attempted to mitigate this by imposing an egg surcharge on meals containing the protein. This wasn't universal, though; it was levied on a case-by-case basis, in certain markets and restaurant locations. Continue reading
The persistently rising price of a key input was the main factor behind the recent sag in Denny's (NASDAQ: DENN) stock. Investors weren't very forgiving this week, as according to data compiled by S&P Global Market Intelligence, they traded the company's shares down by nearly 16% over the period.
For the most part Denny's is, famously, a slinger of breakfast meals. In America, breakfast very often involves an egg dish, hence the food's importance for the company. This is why it is vulnerable to the U.S.'s current egg shortage.
Towards the end of February, management attempted to mitigate this by imposing an egg surcharge on meals containing the protein. This wasn't universal, though; it was levied on a case-by-case basis, in certain markets and restaurant locations.
