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.
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