Denny's: A Forgotten Stock With A Hidden Growth Driver
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Denny's stock has declined significantly over the past decade, but its low valuation and share repurchase program make it a speculative buy. The growth potential of Keke's Breakfast Café, a hidden asset, could drive future profitability and market re-rating.
February 18, 2025 | 8:30 am
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Denny's stock has fallen nearly 60% over the past decade, but its current inexpensive valuation and share repurchase program make it a speculative buy. Keke's Breakfast Café, a hidden asset, shows promising growth potential and could drive future profitability.
Denny's stock is currently undervalued, and the company's share repurchase program indicates confidence in its future. The growth potential of Keke's Breakfast Café, with its expansion and remodeling efforts, is expected to boost Denny's EBITDA by 5-7% annually, which could lead to a market re-rating and increase in stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100