Denny’s Stock Pops Premarket: $5 ‘Slams’ Menu Sparks Bullish Retail Mood

Retail traders are betting that seasonal nostalgia and value deals will drive traffic and sales.

Denny's Corp ranked among the top trending stocks on Stocktwits in early premarket trading on Tuesday, as retail watchers cheered its new limited-time menu items and $5 value deals expected to drive sales.

The retail sentiment for the DENN turned 'bullish' from 'bearish' the previous day, with shares jumping 4.7% premarket.

As consumers grow more budget-conscious, Denny's last month announced a "5 Slams" menu, featuring a New Grand Slam Burrito, New BLT&E Slamwich, New 2-Egg Breakfast Slam, Everyday Value Slam, and Super Slam. Each of those items is priced $5 until the promotional offer expires on Oct. 28.

Denny's also reintroduced Pumpkin Pecan Pancakes for the fall and added other limited-time options such as a Bourbon Bacon Sirloin Dinner and a Chocolate Cinnamon Milkshake. Every year, restaurants introduce foods with seasonal pumpkin spices during this time.

"$DENN it's an all American experience at this point. Memories and nostalgia for the win," a user posted, with another one noting unusually high bullish options activity.

Users also drew comparisons between Denny's and Cracker Barrel Old Country Store, the iconic country store cum restaurant chain that recently faced backlash for a logo change, with some suggesting Denny's is gaining an edge with budget-conscious consumers.

In recent years, Denny's has undergone a major realignment, including shuttering over 100 outlets, trimming its menu, moderating round-the-clock open hours, and expanding its virtual Banda Burrito brand and the Keke's Breakfast Cafes.

The company operated more than 1,480 restaurants as of June.

DENN stock has been rising sharply since the company’s latest earnings report on Aug. 5. Although the numbers were weak, shares have climbed about 56%.

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