Oppenheimer analyst Michael Tamas lowered the firm’s price target on Denny’s (DENN) to $7 from $10 and keeps an Outperform rating on the shares. The firm notes that at the Denny’s investor day, management disclosed plans to close low-volume units representing about 10% of domestic system through 2025, accelerate unit growth to +3% after closures normalize, target a long-term EBITDA CAGR of +5%-7% including G&A reductions. While investors were braced for store closures, the magnitude is more outsized than anticipated, and Oppenheimer anticipates consensus EBITDA estimates to reduce through 2025 by an estimated about 10%.
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Read More on DENN:
- Denny’s Q3 2024 Results and Strategic Growth Plans
- Denny’s sees FY24 adjusted EBITDA $81M-$84M
- Denny’s reports Q3 adjusted EPS 14c, consensus 15c
- DENN Upcoming Earnings Report: What to Expect?
- Denny’s price target lowered to $7 from $8 at Citi
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