Denny's Corporation (NASDAQ:DENN) announced its preliminary Q4 results, with domestic co-owned same-store sales growth coming in at 58.6% and franchised at 48.3%, compared to the consensus estimates of 57.3% and 47.9%, respectively.

Analysts at Wedbush believe the difference in company same-store sales growth vs. franchised same-store sales growth is due to better staffing levels (including a higher percentage of 24/7 locations) and a catch up in average check as they believe franchisees may have been more aggressive with respect to menu price increases earlier in the year.

The analysts maintained their outperform rating and $20 price target on the company’s shares, stating that they continue to believe the company's current valuation does not fully reflect management's ability to deliver post-COVID growth above pre-COVID growth rates.