Denny’s price target lowered to $10 from $15 at Benchmark

Benchmark analyst Todd Brooks lowered the firm’s price target on Denny’s (DENN) to $10 from $15 and keeps a Buy rating on the shares. Q3 results were below consensus expectations while slightly below the firm’s revenue and same-store sales estimates, but with inline AEBITDA results and better than estimated adjusted EPS results, the analyst tells investors. Much of the content of the investor day was “overwhelmed” by the announcement that Denny’s was working with franchisees to accelerate the closure of 150 lower volume units by the end of 2025 in an attempt to create a stabilized base of franchisee locations exiting FY25, notes the analyst, who is lowering the firm’s target multiple following the earnings report and investor event.