Denny’s (DENN) Upgraded to Hold at Zacks Investment Research

Denny’s (NASDAQ:DENN) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Monday.

According to Zacks, “Denny’s Corp., formerly Advantica Restaurant Group, Inc., is one of the largest restaurant companies, operating moderately-priced restaurants: Denny’s, Hardee’s, Quincy’s, El Pollo Loco, Coco’s and Carrows. The company believes its restaurants benefit from the diversity of the restaurant concepts, the generally strong market positions and consumer recognition enjoyed by these chains, the benefits of a centralized support system for purchasing, menu development, human resources, management information systems, site selection, restaurant design and construction. “

Several other research firms have also issued reports on DENN. ValuEngine raised Denny’s from a “hold” rating to a “buy” rating in a report on Thursday, November 1st. BidaskClub raised Denny’s from a “hold” rating to a “buy” rating in a report on Thursday, December 13th. Maxim Group assumed coverage on Denny’s in a report on Tuesday, December 11th. They set a “buy” rating and a $21.00 price target for the company. Finally, Stephens raised Denny’s from an “equal” rating to a “weight” rating and boosted their price target for the company from $16.50 to $17.00 in a report on Wednesday, October 31st. Two investment analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and an average target price of $18.25.

NASDAQ:DENN opened at $17.72 on Monday. Denny’s has a 52-week low of $13.32 and a 52-week high of $18.94. The stock has a market cap of $1.14 billion, a price-to-earnings ratio of 30.55 and a beta of 0.13.

Denny’s (NASDAQ:DENN) last released its quarterly earnings results on Tuesday, October 30th. The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.18 by ($0.01). Denny’s had a net margin of 7.48% and a negative return on equity of 40.31%. The company had revenue of $158.00 million for the quarter, compared to the consensus estimate of $159.28 million. During the same period in the prior year, the firm posted $0.14 EPS. The business’s revenue for the quarter was up 19.3% on a year-over-year basis. On average, equities research analysts expect that Denny’s will post 0.68 EPS for the current fiscal year.

In other news, VP Timothy E. Flemming sold 43,600 shares of the company’s stock in a transaction dated Wednesday, November 14th. The stock was sold at an average price of $17.24, for a total value of $751,664.00. Following the completion of the transaction, the vice president now owns 161,791 shares of the company’s stock, valued at $2,789,276.84. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP F Mark Wolfinger sold 7,500 shares of the company’s stock in a transaction dated Monday, November 5th. The stock was sold at an average price of $16.65, for a total value of $124,875.00. Following the completion of the transaction, the executive vice president now directly owns 723,394 shares of the company’s stock, valued at approximately $12,044,510.10. The disclosure for this sale can be found here. Insiders have sold 79,100 shares of company stock valued at $1,347,299 in the last three months. 5.80% of the stock is currently owned by corporate insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Atlantic Trust LLC boosted its stake in shares of Denny’s by 9.9% in the third quarter. Atlantic Trust LLC now owns 37,910 shares of the restaurant operator’s stock worth $558,000 after acquiring an additional 3,430 shares during the period. Connor Clark & Lunn Investment Management Ltd. boosted its stake in shares of Denny’s by 61.9% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 16,475 shares of the restaurant operator’s stock worth $243,000 after acquiring an additional 6,300 shares during the period. Mesirow Financial Investment Management Inc. boosted its stake in shares of Denny’s by 41.3% in the third quarter. Mesirow Financial Investment Management Inc. now owns 21,709 shares of the restaurant operator’s stock worth $320,000 after acquiring an additional 6,341 shares during the period. First Republic Investment Management Inc. boosted its stake in shares of Denny’s by 46.4% in the second quarter. First Republic Investment Management Inc. now owns 22,882 shares of the restaurant operator’s stock worth $365,000 after acquiring an additional 7,252 shares during the period. Finally, Olstein Capital Management L.P. boosted its stake in shares of Denny’s by 7.6% in the third quarter. Olstein Capital Management L.P. now owns 103,900 shares of the restaurant operator’s stock worth $1,529,000 after acquiring an additional 7,300 shares during the period. 89.80% of the stock is owned by hedge funds and other institutional investors.

About Denny’s

Denny's Corporation, through its subsidiary, Denny's, Inc, owns and operates full-service restaurant chains under the Denny's brand. As of September 26, 2018, it had 1,715 franchised, licensed, and company restaurants worldwide, including 128 restaurants in Canada, Puerto Rico, Mexico, New Zealand, Honduras, the Philippines, Costa Rica, Dominican Republic, the United Arab Emirates, Guam, Curaçao, El Salvador, Guatemala, and the United Kingdom.

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