Monday June 3, 2019, 00:00:00
DENN CHANGING OUR RATING ON DENNY’S TO…
With this report, we upgrade the shares of Denny’s (DENN) to Buy (from Neutral). Our ratings change is due primarily to improving same-store sales trends in the familydining sector, of which we believe Denny’s has been a beneficiary during Q2. As a result, we increase our Q2E same-store sales forecast for U.S. systemwide Denny’s by +100 basis points, to +2.8%, placing us as the new “high-on-the-sell-side” forecast according to Consensus Metrix data. We are now also 70 basis points above sellside consensus (although we expect consensus to move up a bit once our raised estimate becomes reflected in consensus).
