Wedbush upgrades Denny’s to outperform, shares rise

Shares of Denny’s Corp. DENN, -1.47% rallied 4% in premarket trades Tuesday after Wedbush upgraded shares of the restaurant chain to outperform from neutral and raised its 12-month price target to $12.50 a share from $10 a share. “We came away from meetings with CFO Robert Verostek…incrementally positive,” Wedbush said. The company is poised to beat second half 2022 and 2023 expectations and its historical drivers of consistent 10%-plus annual earnings per share and free cash flow per share growth are unlikely to change under new CEO Kelli Valade, Wedbush said. Analysts added that the company’s acquisition of Keke’s is on track for a successful integration.