 In Q2, Dennys NASDAQ: DENN saw a decline in both earnings and sales. Earnings decreased by 52.07 to 11.33 million, and sales dropped by 58.47 to 40.16 million. Dennys reached earnings of 23.64 million and sales of 96.69 million in Q1.What Is Return On Capital Employed? Changes in earnings and sales indicate shifts in Dennyss Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed in a business. Generally, a higher ROCE suggests successful growth in a company and is a sign of higher earnings per share for shareholders in the future. In Q2, Dennys posted an ROCE of 2.04.View more earnings on DENNIt is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a companys recent performance, but several factors could affect earnings and sales in the near future.Return on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders. In Dennyss case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.Q2 Earnings Dennys reported Q2 earnings per share at -0.25share against analyst predictions of -0.19share.See more from Benzinga Recap: Dennys Q2 Earnings Earnings Scheduled For July 28, 2020 Benzingas Top Upgrades, Downgrades For July 13, 2020C 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 