Denny’s price target lowered to $7 from $8 at Citi

Citi analyst Jon Tower lowered the firm’s price target on Denny’s to $7 from $8 and keeps a Neutral rating on the shares. The firm expects Denny’s will focus its investor day on the pillars of driving the “America’s Favorite Diner” brand and potential layers to franchisee profitability. However, even with the shares down over 40% year-to-date, fundamental brand and category headwinds, from the company’s lower income exposure and older demographic, are only exacerbated by the macro backdrop, the analyst tells investors in a research note. Citi believes this could mean Denny’s message “will largely fall upon deaf ears until some combination of initiatives drives positive traffic.”