Jim Cramer: Expect Denny's (DENN) Stock to Go Higher After Great Earnings Today

NEW YORK (TheStreet) -- Shares of Denny's  (DENN) rose 4.12% to $11.01 in early morning trading Monday after Jim Cramer was optimistic about the stock on his Mad Money show on CNBC on Friday.

Denny's reports earnings after the market close today, and Cramer said Friday he expects the restaurant chain to report great results that could propel the stock higher on Tuesday.

Cramer also said he thinks Denny's could give investors a reason to buy other restaurant names if the chain reports the strong quarter he is expecting.

The consensus estimate calls for Denny's to report earnings of 9 cents a share on revenue of $116.84 million, according to analysts polled by Thomson Reuters.

In the first quarter last year, Denny's reported earnings of 7 cents a share, which matched the consensus estimate. Revenue totaled $111.92 million, which came up short of the consensus estimate of $112.97 million.

Insight from TheStreet's Research Team

Sebastian Silva commented on Denny's in a recent post on Real Money. Here is what he had to say about the stock:

Cramer's game plan includes Denny's on Monday, a great restaurant that he thinks may give investors a reason to buy other restaurant names if Denny's comes in as strong as expected.

"Restaurant stocks had been darlings when gasoline was going down and the dollar was going higher, but both trends have reversed and now the group's being hammered," Cramer added. "I want to see if there's a bottom being put in and, if so, we might want to buy more Panera (PNRA) for [Action Alerts PLUS]."

- Sebastian Silva, 'Will Buffett Halo Give Markets a Boost?' originally published 5/3/2015 on Real Money

Want more information like this from Sebastian Silva BEFORE your stock moves? Learn more about Real Money now!

Separately, TheStreet Ratings team rates DENNYS CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DENNYS CORP (DENN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."

You can view the full analysis from the report here: DENN Ratings Report

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