Denny’s (NASDAQ:DENN) Upgraded to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Denny’s (NASDAQ:DENN) from a hold rating to a buy rating in a report released on Monday morning, Zacks.com reports. Zacks Investment Research currently has $22.00 price objective on the restaurant operator’s stock.
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 brokerages have also weighed in on DENN. BidaskClub lowered Denny’s from a sell rating to a strong sell rating in a research report on Tuesday, November 5th. Oppenheimer began coverage on Denny’s in a report on Thursday, September 19th. They issued an outperform rating and a $27.00 price target for the company. CL King initiated coverage on Denny’s in a report on Tuesday, October 1st. They issued a buy rating for the company. MKM Partners initiated coverage on shares of Denny’s in a research note on Thursday, September 26th. They issued a neutral rating and a $25.00 price target on the stock. Finally, ValuEngine cut shares of Denny’s from a buy rating to a hold rating in a report on Wednesday, October 2nd. One analyst has rated the stock with a sell rating, three have given a hold rating and four have given a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average target price of $24.40.
Denny’s (NASDAQ:DENN) last posted its quarterly earnings results on Tuesday, October 29th. The restaurant operator reported $0.18 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.16 by $0.02. The company had revenue of $124.30 million for the quarter, compared to analysts’ expectations of $126.62 million. Denny’s had a negative return on equity of 34.15% and a net margin of 18.80%. Denny’s’s quarterly revenue was down 21.3% on a year-over-year basis. During the same period last year, the firm earned $0.17 earnings per share. On average, sell-side analysts expect that Denny’s will post 0.68 earnings per share for the current year.
In other news, VP Timothy E. Flemming sold 50,873 shares of Denny’s stock in a transaction dated Thursday, September 12th. The stock was sold at an average price of $22.82, for a total transaction of $1,160,921.86. Following the sale, the vice president now owns 100,828 shares in the company, valued at $2,300,894.96. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Robert P. Verostek sold 4,500 shares of the business’s stock in a transaction dated Wednesday, September 4th. The shares were sold at an average price of $23.57, for a total value of $106,065.00. Following the completion of the sale, the senior vice president now directly owns 3,500 shares of the company’s stock, valued at $82,495. The disclosure for this sale can be found here. Insiders sold 172,001 shares of company stock valued at $3,762,447 in the last 90 days. 6.10% of the stock is currently owned by insiders.
Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Maverick Capital Ltd. acquired a new stake in shares of Denny’s in the third quarter valued at approximately $5,694,000. Millennium Management LLC increased its holdings in shares of Denny’s by 206.8% in the 3rd quarter. Millennium Management LLC now owns 1,076,609 shares of the restaurant operator’s stock valued at $24,509,000 after acquiring an additional 725,669 shares during the period. Man Group plc increased its holdings in shares of Denny’s by 588.4% in the 3rd quarter. Man Group plc now owns 70,276 shares of the restaurant operator’s stock valued at $1,600,000 after acquiring an additional 60,067 shares during the period. Voloridge Investment Management LLC raised its position in Denny’s by 133.1% in the 3rd quarter. Voloridge Investment Management LLC now owns 47,097 shares of the restaurant operator’s stock valued at $1,072,000 after purchasing an additional 26,889 shares during the last quarter. Finally, Stifel Financial Corp raised its position in Denny’s by 2.7% in the 3rd quarter. Stifel Financial Corp now owns 104,799 shares of the restaurant operator’s stock valued at $2,386,000 after purchasing an additional 2,793 shares during the last quarter. 90.63% of the stock is currently owned by institutional investors.
Denny's Corporation, through its subsidiary, Denny's, Inc, owns and operates full-service restaurant chains under the Denny's brand. As of December 26, 2018, it operated 1,709 franchised, licensed, and company restaurants, including 1,578 restaurants in the United States; and 131 in Canada, Puerto Rico, Mexico, New Zealand, the Philippines, Honduras, Costa Rica, the United Arab Emirates, Guam, the United Kingdom, El Salvador, and Guatemala.
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