Penguins look like they're wearing tuxedos because they have knees and dress pants.
Penguins do have knees, they're just hidden by their body and covered with feathers. Their thighbones are short and tucked into their bodies. Their waddle is limited by this body structure, not by lack of knees. When you see penguin skeletons, the knees become visible, revealing their fully functional leg structure.
Reception
Sources
- Penguin Anatomy - Wikipedia PRIMARY
- Snopes: Penguin Knees REFERENCE