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SA Articles: Is There Upside to Denny's? Is Danaher Looking Good Right Now?

There Is Big Upside To Buying Denny's Shares

Summary
  • DENN’s recent results indicate that the company’s revitalization initiatives are working according to plan.
  • DENN’s capacity to generate FCF is very impressive.
  • According to my DCF model, DENN’s shares have a fair value of $12.24.
Denny's Corporation (NASDAQ:DENN) recently announced its Q4 2015 results and the company narrowly managed to beat analysts' estimates. Keeping in mind DENN's annual guidance for 2016, I discuss DENN from a valuation perspective in this article.

Denny's breakfast isn't the only thing that looks good right now. Its stock looks appetizing as well.

DENN has a franchise driven business model with a restaurant portfolio mix of 90% franchised and 10% company operated restaurants. This model has served the company well as it has been able to operate profitably with lower risk. The success of DENN's brand is largely dependent on the company's revitalization strategy driven by its heritage remodel program. It's been nearly 5 years since DENN launched its revitalization initiatives and the results clearly indicate that the company is on the right track. The revitalization strategies have been definitely improving the quality of food and overall service because barring Q1 2011 and Q1 2013, DENN has posted positive system-wide same-store sales in every quarter since 2011. In addition to this, DENN ended 2015 with the highest overall guest satisfaction scores in 5 years... READ MORE



Danaher Has More Room To Run After The Split

Summary
  • Danaher’s strategies are resulting in big profits.
  • The company’s separation of its industrial businesses will further enhance its future fundamentals.
  • Its stock price could continue to grow beyond the huge recovery of the past two months.
Danaher Corp (NYSE:DHR) has been making very exciting moves over the past couple of years. The company has completed more than 14 acquisitions in the last year alone, mostly in emerging markets, including China. However, the company is also expanding its penetration into developed markets, with acquisitions like Nobel Biocare.

Danaher acquired the water filtration systems company, Pall Corporation, for $13.6 billion, the largest acquisition in its history. This acquisition could realize $300 million in synergies for DHR for the next 5 years. This acquisition has already significantly strengthened Danaher's Life Science & Diagnostics business segment. The company has further supported this segment - which accounts for nearly 40% of its revenue - with the acquisitions of MicroScan and Devicor... READ MORE

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