UPDATE: Feltl and Company Downgrades Denny's to Buy

Feltl and Company has published a research report on Denny's

and has downgraded the company from Strong Buy to Buy after 4Q earnings came in below consensus estimates. In the report, Feltl and Company writes, "We reduced our revenue estimate to $482.6mm from $487.5mm due to fewer company-operated restaurants, but slightly higher same-store sales expectations. We think the restaurant operating environment will remain difficult and lowered our restaurant-level margin assumption to 13.4% from 14.1%. Our operating estimates are relatively unchanged with some higher estimates for G&A expense but lower expectations for D&A. We lowered our adjusted EBITDA and adjusted income before taxes estimates to $82.2mm and $44.3mm, respectively, from $84.7mm and $48.1mm. We lowered our 2012 EPs estimate to $0.27 from $0.38, but note that most of the reduction came from expectations for a higher tax rate. If the tax rate was unchanged our EPs estimate would be $0.01 lower. Our estimates are all inline with management's guidance." Feltl and Company maintains its $5 price target on Denny's, which is currently trading down $0.07 from yesterday's $4.30 closing price.