Stephens analyst Will Slabaugh upgraded Denny's to Overweight from Equal Weight and raised his price target for the shares to $17 from $16.50. The company's transition to a 95%-plus franchised model, and the improving return on invested capital that accompanies the transition, should "command a higher valuation," Slabaugh tells investors in a research note titled "Transformational Changes Call for Higher Valuation." He also expects the combination of proceeds from the refranchising transactions, additional leverage, and free cash flow from the business to allow Denny's to repurchase around 25% of its market cap over the next 12-18 months. This should further support the stock, says Slabaugh.