Zacks Investment Research Upgrades Denny’s (DENN) to “Hold”

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

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. “

A number of other brokerages have also weighed in on DENN. Stephens raised shares of Denny’s from an “equal” rating to a “weight” rating and raised their price target for the company from $16.50 to $17.00 in a research note on Wednesday, October 31st. BidaskClub raised shares of Denny’s from a “hold” rating to a “buy” rating in a research note on Thursday, October 18th. ValuEngine raised shares of Denny’s from a “hold” rating to a “buy” rating in a research note on Thursday, November 1st. Finally, Wedbush decreased their price target on shares of Denny’s from $18.50 to $17.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 31st. Two equities research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. Denny’s presently has a consensus rating of “Buy” and an average target price of $17.33.

Shares of Denny’s stock opened at $16.29 on Thursday. The stock has a market capitalization of $1.05 billion, a P/E ratio of 28.09 and a beta of 0.14. Denny’s has a twelve month low of $12.20 and a twelve month high of $18.16.

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

In other Denny’s news, EVP F Mark Wolfinger sold 7,500 shares of the stock in a transaction dated Monday, November 5th. The shares were sold at an average price of $16.65, for a total value of $124,875.00. Following the completion of the sale, the executive vice president now owns 723,394 shares in the company, valued at approximately $12,044,510.10. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 5.80% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently added to or reduced their stakes in DENN. Principal Financial Group Inc. acquired a new stake in Denny’s in the 1st quarter valued at about $177,000. Millennium Management LLC raised its holdings in Denny’s by 420.0% in the 1st quarter. Millennium Management LLC now owns 295,249 shares of the restaurant operator’s stock valued at $4,556,000 after acquiring an additional 238,474 shares during the last quarter. Royal Bank of Canada raised its holdings in Denny’s by 27.0% in the 1st quarter. Royal Bank of Canada now owns 35,866 shares of the restaurant operator’s stock valued at $554,000 after acquiring an additional 7,628 shares during the last quarter. Cornerstone Wealth Management LLC acquired a new stake in Denny’s in the 2nd quarter valued at about $300,000. Finally, Acadian Asset Management LLC raised its holdings in Denny’s by 222.9% in the 2nd quarter. Acadian Asset Management LLC now owns 285,345 shares of the restaurant operator’s stock valued at $4,544,000 after acquiring an additional 196,986 shares during the last quarter. Institutional investors own 89.89% of the company’s stock.

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 December 27, 2017, it had 1,735 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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