Kelli Valade, CEO of Denny's Corp (NASDAQ:DENN), recently acquired 9,700 shares of the company's common stock, according to a regulatory filing. The restaurant chain, currently valued at $274 million, appears undervalued according to InvestingPro analysis. The shares were purchased at a weighted average price of $5.126, with the total transaction valued at approximately $49,722. This acquisition brings Valade's total direct ownership to 192,806 shares. The purchase was executed in multiple transactions, with prices ranging from $5.119 to $5.1278 per share. Trading at a P/E ratio of 12.9 and showing positive momentum with a 9.5% gain over the past week, Denny's has caught analysts' attention. InvestingPro subscribers can access 8 additional key insights and a comprehensive analysis of the company's financial health.
In other recent news, Denny's Corporation reported its fourth-quarter financial results, revealing adjusted earnings per share of $0.14, which was slightly below the consensus estimate of $0.15. The company's revenue for the quarter was $114.7 million, falling short of the anticipated $116 million. This revenue shortfall was partly attributed to the accelerated closure of underperforming franchisee-operated restaurants, part of Denny's strategy to streamline operations by closing 150 units by the end of 2025. Despite these challenges, Denny's managed to align its adjusted earnings before interest, taxes, depreciation, and amortization (AEBITDA) with expectations at $22.2 million.
Benchmark analysts responded to these results by lowering their price target for Denny's shares from $10 to $8, while maintaining a Buy rating. This decision was influenced by Denny's cautious outlook for 2025 and the challenging start to the year. The company projects domestic system-wide same-restaurant sales between -2.0% and 1.0% for 2025, citing macroeconomic factors affecting consumer sentiment as a key challenge.
In leadership news, Denny's announced that Brenda Lauderback, the Chair of the Board of Directors, will retire in May 2025, prompting the company to begin its search for a successor. This transition is part of Denny's adherence to corporate governance practices and succession planning efforts. The leadership change comes as the company continues its focus on improving financial health and efficiency through strategic restaurant closures and expansions.
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