DENN: Updating Our Stock Rating and EPS Projections

By Ryan D. Lavender Published on February 8, 2021 at 2:57 PM

With this note, we change our rating on Denny’s (DENN; $17.41) to Neutral (from Buy). This change reflects: (1) lowered EPS estimates for 2021E and 2022E, and (2) a reduced same-store sales forecast for Q1E 2021, despite what appears to be some meaningful help from a calendar-shift effect related to Denny’s 2020 being a 53-week fiscal year, and (3) being mindful of DENN shares’ run-up from their 52-week low of $4.50 (intraday March 19, 2020) to $17.41 as of this past Friday’s market close. (FYI, the stock is also up +18.6% year-to-date.)

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PZZA Updating Our Rating on Papa John’s Given CEO Switch

By Mark Kalinowski Published on August 27, 2019 at 12:00 AM

Earlier today, Papa John’s (PZZA) announced a CEO change, bringing in Rob Lynch — most recently President at privately-held Arby’s Restaurant Group — to be the new CEO. We upgrade the shares of PZZA to Buy (from Neutral) based on this switch, as we expect Mr. Lynch to be a catalyst for a greater pace of change at the company.

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DIN Updated EPS Estimates Lead to Ratings Change on Dine Brands

By Mark Kalinowski Published on June 28, 2019 at 12:00 AM

Based on what we believe is our newly-improved quarter-by-quarter understanding of the Dine Brands (DIN) model, and in the context of the stock’s +40.1% year-todate rise through the market’s close on June 27th, we reduce our rating on DIN to Neutral (from Buy), and adjust our quarterly EPS estimates for Q2E-Q4E as follows:

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