Denny's gains as Wedbush turns bullish on sales, margin upside

Dennys

23/08/2022 13:09

** Shares in restaurant chain Denny's Corp  DENN.O  rise ~4%
to $9.73 after Wedbush lifts rating to "outperform" from
"neutral"
    ** Brokerage says DENN is poised to hurdle current H2 2022
and 2023 expectations, as co's cheaper menu items draw more
customers amid high inflation
    ** DENN's H2 margins could also see potential upside as
commodity inflation and wage pressures ease, while co's price
hikes catch up, Wedbush analyst Nick Setyan says 
    ** Notes Keke's Breakfast Cafe, which DENN recently
acquired, also set to boost business; raises PT to $12.50 from
$10
    ** DENN is rated "buy" on average among eight brokerages
covering stock on Refinitiv; their median PT is $12.25 
    ** As of last close, DENN shares down ~41% YTD

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com;))