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SPARTANBURG, SC - Denny’s Corporation (NASDAQ:DENN), a full-service restaurant chain with a market capitalization of $340 million, has announced an amendment to its bylaws that now permits stockholders to call special meetings. This significant change was approved by the Board of Directors on Monday and took effect on Wednesday. According to InvestingPro analysis, the company’s stock has shown considerable volatility, with a 34% decline over the past year despite recent management initiatives including share buybacks.
Previously, Denny’s bylaws did not allow for special meetings to be called at the request of stockholders. With the new amendment, beneficial owners holding at least 25% of the outstanding shares can request a special meeting, provided they adhere to the notice procedures outlined in the bylaws. This governance change comes as InvestingPro data indicates the company maintains a FAIR overall financial health score, though it faces challenges with short-term obligations exceeding liquid assets.
This decision empowers stockholders with greater influence in corporate matters, allowing them to convene meetings to address urgent issues without waiting for the next annual meeting. The amendment aligns Denny’s governance practices with a growing trend in corporate America to enhance shareholder rights.
The updated bylaw provisions are detailed in Exhibit 3.1 of the company’s SEC filing. Denny’s, headquartered in Spartanburg, South Carolina, operates under the retail-eating places industry classification and is incorporated in Delaware.
The company’s fiscal year-end remains on December 31, and the recent bylaw amendment does not affect this. Denny’s Corporation has confirmed the amendment through an 8-K filing with the Securities and Exchange Commission, ensuring full transparency and compliance with regulatory requirements. Investors should note that Denny’s is scheduled to report its next earnings on February 12, 2025. For deeper insights into Denny’s financial performance and governance structure, comprehensive analysis is available through InvestingPro’s detailed research reports, which cover over 1,400 US equities.
Investors and stockholders of Denny’s Corporation can refer to the company’s SEC filing for a comprehensive understanding of the new bylaw amendment and its implications.
In other recent news, Denny’s Corporation has been under the scrutiny of leading financial firms, with both Citi and Truist Securities reiterating their Buy ratings on the company’s stock. Denny’s recent performance, marked by a 1.1% increase in system-wide same-store sales in the fourth quarter, surpassed analyst expectations, leading to Citi’s continued optimism. However, Denny’s total store count fell short due to an increased number of net closures, perceived as an acceleration of previously announced closures rather than a new trend.
In addition, Truist Securities expressed confidence in Denny’s future prospects following discussions with the company’s executives at the GLLR Summit. The firm highlighted areas of expected progress, including improving same-store sales, robust unit growth at Keke’s Cafe, acceleration of Keke’s same-store sales due to marketing initiatives and store remodels, and optimizing the Denny’s system through accelerated closures and franchisee-to-franchisee transfers.
These recent developments indicate a resilient operational strategy by Denny’s, even as it navigates challenges such as a reduction in store count and external factors like the California wildfires. The company’s performance, particularly in comparison to industry expectations, will continue to be closely monitored by investors.
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