UPDATE: Wedbush Initiates Denny's Corporation at Outperform on Valuation, Refranchising Catalyst

Wedbush initiated Denny's Corporation (NASDAQ: DENN) with an Outperform rating and a $6.00 price target.

Wedbush said, "We believe Denny's current 30% discount to franchised peers is poised to narrow as investors give its business model appropriate recognition and as management executes towards the recapture of transactions lost since 2006. … With refranchising now complete, we expect the recapture of 16% of transactions lost since 2006 to be management's main focus going forward. In 2013, we believe remodels, non-breakfast daypart expansion, and a continued emphasis on LTOs and improved food quality could be drivers of SSS growth in addition to 100-150 bps of menu price."

Denny's Corporation closed at $5.00 on Monday.

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.