Denny’s Corp. was upgraded to buy from hold at Truist Securities, with analysts growing more upbeat as the restaurant chain restores 24/7 dining service and growing strength in key markets, California, Texas and Florida. Truist raised its price target to $18 from $17. “As of 10/18, we found that 24-hour operations are offered at 52% of Denny’s stores on Saturdays, up from 44% at the end of 2Q21, and the percent open midnight or later increased to 78% from 68%,” analysts said. “While still far from having all stores open 24/7, which the vast majority were pre-COVID, we view the improvement as encouraging, given still persistent staffing challenges.” Analysts also think that Denny’s franchised business creates a margin opportunity as franchisors raise price to manage inflation. Denny’s stock is up 6.5% in Thursday trading, and up 6% for the year to date. The S&P 500 index has gained 20.8% for 2021 so far.
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