Super Bowl 'Smash-It-Up' Trades

• «
• »

Super Bowl Trade IX: Denny's (DENN)

The shares are priced like Grand Slam Breakfast

By Bryan Perry

When shares of Denny's (DENN) are trading at half the price of a Grand Slam Breakfast, I gotta jump in my car and get down to Denny's and see what's gone wrong. Problem is, nothing has gone wrong. They are just as crowded as ever, especially during this recession. They represent a full sit-down meal destination at fast-food prices. And the portions are big.

Look, the company has totally restructured, selling off franchises and keeping all the best locations for its own portfolio, and the results are pouring in. On Jan. 15, 2009, the company said it expects to meet or exceed its previous guidance for full-year 2008, thanks to the success of the Franchise Growth Initiative (FGI) and other cost-saving actions that protect margins and cash flow. With the stock trading at $1.50 per share, it's time to consider whether Denny's (DENN) is some low-hanging fruit ready for the picking.

Buy Denny's. (DENN).

Don't fall for these 6 Option Trading Mistakes!

Next: Super Bowl Trade X