デニーズの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) October 30, 2023

DENNY’S CORPORATION

(Exact name of registrant as specified in its charter)


Delaware	0-18051	13-3487402
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

203 East Main Street

Spartanburg, South Carolina 29319-0001

(Address of principal executive offices)

(Zip Code)

(864) 597-8000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

$.01 Par Value, Common Stock

DENN

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 30, 2023, Denny's Corporation (the "Company") issued a press release announcing financial results for the third quarter ended September 27, 2023. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

The management of the Company will conduct meetings with members of the investment community during October, November, and December 2023. A copy of the investor presentation to be used during these meetings is attached to this Current Report on Form 8-K as Exhibit 99.2 and is also available at the Company's investor relations website at investor.dennys.com.

The information in this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Item 7.01 of this Current Report on Form 8-K shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

See the Exhibit Index below, which is incorporated by reference herein.

EXHIBIT INDEX


Exhibit number			Description
99.1			Press Release, dated October 30, 2023.
99.2			Investor Presentation, dated October 30, 2023.
104			Cover Page Interactive Data File (formatted as Inline XBRL)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


			Denny's Corporation


Date: October 30, 2023			/s/ Robert P. Verostek
			Robert P. Verostek
			Executive Vice President and
			Chief Financial Officer

EX-99.1 2 q32023ex991earningspressre.htm EX-99.1 Document

DENNY’S CORPORATION REPORTS RESULTS FOR THIRD QUARTER 2023

SECURES DEVELOPMENT AGREEMENTS FOR 100 KEKE'S CAFÉS

SPARTANBURG, S.C., October 30, 2023 - Denny’s Corporation (the "Company") (NASDAQ: DENN), owner and operator of Denny's Inc. ("Denny's") and Keke's Inc. ("Keke's") today reported results for its third quarter ended September 27, 2023 and provided a business update on the Company’s operations.

Kelli Valade, Chief Executive Officer, stated, "We were pleased to have generated a 1.8% increase in Denny’s domestic system-wide same-restaurant sales** and 15.5% growth in Adjusted EBITDA* during the third quarter. Despite a persistently challenging operating environment, we remain laser-focused on providing best-in-class breakfast, an unbeatable value proposition, and convenience through off-premises options.”

Ms. Valade continued, “We are pleased to announce a meaningful number of Keke’s development agreements as we welcome Denny’s franchisees into the Keke’s system. Additionally, we are excited by the progress we are making with our CRAVE strategies and positive momentum with the Keke’s brand, which combined should translate into a long-term winning proposition for many years to come.”

Third Quarter 2023 Highlights

•Total operating revenue was $114.2 million compared to $117.5 million in the prior year quarter.

•Denny's domestic system-wide same-restaurant sales** were 1.8% compared to the equivalent fiscal period in 2022, including 2.1% at domestic franchised restaurants and (1.4)% at company restaurants.

•Opened eight franchised restaurants, including two international Denny's locations and one Keke's location.

•Completed four Denny's franchised restaurant remodels.

•Operating income was $14.0 million compared to $15.8 million in the prior year quarter.

•Franchise Operating Margin* was $31.2 million, or 51.2% of franchise and license revenue, and Company Restaurant Operating Margin* was $7.3 million, or 13.7% of company restaurant sales.

•Net income was $7.9 million, or $0.14 per diluted share.

•Adjusted Net Income* and Adjusted Net Income Per Share* were $9.4 million and $0.17, respectively.

•Adjusted EBITDA* was $22.2 million.

•Cash provided by (used in) operating, investing, and financing activities was $15.1 million, ($1.9) million, and ($13.4) million, respectively.

•Adjusted Free Cash Flow* was $12.0 million.

•Repurchased $16.5 million of common stock.

Third Quarter 2023 Results

Total operating revenue was $114.2 million compared to $117.5 million in the prior year quarter.

Franchise and license revenue was $61.0 million compared to $65.2 million in the prior year quarter. This change was primarily driven by a $4.4 million decrease in initial and other fees associated with the sale of kitchen equipment in the prior year quarter. These impacts were partially offset by Denny's franchised restaurants same-restaurant sales** growth and a full quarter of Keke's franchise revenue contribution in the current quarter compared to a partial contribution in the prior year quarter.

Company restaurant sales were $53.2 million compared to $52.2 million in the prior year quarter. This growth was primarily due to an increase of $0.8 million at Keke's company restaurant sales in the current quarter compared to the prior year quarter.

Franchise Operating Margin* was $31.2 million, or 51.2% of franchise and license revenue, compared to $30.7 million, or 47.0%, in the prior year quarter. Approximately 330 basis points of the favorable change in margin rate resulted from a lower kitchen modernization rollout impact in the current year quarter.

Company Restaurant Operating Margin* was $7.3 million, or 13.7% of company restaurant sales, compared to $3.8 million, or 7.2%, in the prior year quarter. This margin change was primarily due to lower legal settlement expense, improvements in product costs, and more equivalent units compared to the prior year quarter.

Total general and administrative expenses were $18.2 million, compared to $16.6 million in the prior year quarter. This change was primarily due to increases in share-based compensation expense and corporate administration expenses, partially offset by a reduction in performance-based incentive compensation.

The provision for income taxes was $1.7 million, reflecting an effective tax rate of 17.6% for the quarter. Approximately $2.6 million in cash taxes were paid during the quarter.

Net income was $7.9 million, or $0.14 per diluted share, compared to $17.1 million, or $0.29 per diluted share, in the prior year quarter. This change in net income was primarily due to $10.8 million of gains related to dedesignated interest rate swap valuation adjustments in the prior year quarter. Adjusted Net Income* per share was $0.17 compared to $0.12 in the prior year quarter.

The Company ended the quarter with $258.6 million of total debt outstanding, including $248.1 million of borrowings under its credit facility.

Adjusted Free Cash Flow* and Capital Allocation

Adjusted Free Cash Flow* in the quarter was $12.0 million after investing $3.4 million in cash capital expenditures, including one company restaurant remodel and facilities maintenance.

During the quarter, the Company allocated $16.5 million to share repurchases resulting in approximately $116.6 million remaining under its existing repurchase authorization.

Business Outlook

The Company updated its full year 2023 guidance reflecting management's expectations that the current consumer and economic environment will not change materially:

•Denny's domestic system-wide same-restaurant sales** between 2.75% and 3.50% (vs. between 3% and 6%).

•Consolidated restaurant openings of 35 to 45, including 4 to 6 new Keke's restaurants (vs. 8 to 12), with a consolidated net decline of 10 to 20 (vs. a consolidated net decline of 15 to 25).

•Commodity inflation between 1% and 2% (vs. between 1% and 3%).

•Labor inflation of approximately 4%.

•Consolidated total general and administrative expenses between $75 million and $77 million (vs. between $78 million and $80 million), including approximately $11 million (vs. approximately $12 million) related to share-based compensation expense which does not impact Consolidated Adjusted EBITDA*.

•Consolidated Adjusted EBITDA* between $85 million and $87 million (vs. between $86 million and $90 million).

* Please refer to the Reconciliation of Net Income and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures, as well as the Reconciliation of Operating Income to Non-GAAP Financial Measures included in the tables below. The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most directly comparable U.S. generally accepted accounting principles (GAAP) estimates without unreasonable efforts because it is unable to predict, forecast or determine the probable significance of the items impacting these estimates, including gains, losses and other charges, with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP estimates are not provided.

** Same-restaurant sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, initial and other fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP.

Conference Call and Webcast Information

The Company will provide further commentary on the results for the third quarter ended September 27, 2023 on its quarterly investor conference call today, Monday, October 30, 2023 at 4:30 p.m. Eastern Time. Interested parties are invited to listen to a live broadcast of the conference call accessible through the Company's investor relations website at investor.dennys.com.

About Denny's Corporation

Denny’s Corporation is one of America’s largest full-service restaurant chains based on number of restaurants. As of September 27, 2023, the Company consisted of 1,644 restaurants, 1,570 of which were franchised and licensed restaurants and 74 of which were company operated.

Denny's Corporation consists of the Denny’s brand and the Keke’s brand. As of September 27, 2023, the Denny's brand consisted of 1,588 global restaurants, 1,522 of which were franchised and licensed restaurants and 66 of which were company operated. As of September 27, 2023, the Keke's brand consisted of 56 restaurants, 48 of which were franchised restaurants and 8 of which were company operated.

For further information on Denny's Corporation, including news releases, links to SEC filings, and other financial information, please visit investor.dennys.com.

Cautionary Language Regarding Forward-Looking Statements

The Company urges caution in considering its current trends and any outlook on earnings disclosed in this press release. In addition, certain matters discussed in this release may constitute forward-looking statements. These forward-looking statements, which reflect management's best judgment based on factors currently known, are intended to speak only as of the date such statements are made and involve risks, uncertainties, and other factors that may cause the actual performance of Denny’s Corporation, its subsidiaries, and underlying restaurants to be materially different from the performance indicated or implied by such statements. Words such as “expect”, “anticipate”, “believe”, “intend”, “plan”, “hope”, "will", and variations of such words and similar expressions are intended to identify such forward-looking statements. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Factors that could cause actual performance to differ materially from the performance indicated by these forward-looking statements include, among others: economic, public health and political conditions that impact consumer confidence and spending, commodity and labor inflation; the ability to effectively staff restaurants and support personnel; the Company's ability to maintain adequate levels of liquidity for its cash needs, including debt obligations, payment of dividends, planned share repurchases and capital expenditures as well as the ability of its customers, suppliers, franchisees and lenders to access sources of liquidity to provide for their own cash needs; competitive pressures from within the restaurant industry; the Company's ability to integrate and derive the expected benefits from its acquisition of Keke's Breakfast Cafe; the level of success of the Company’s operating initiatives and advertising and promotional efforts; adverse publicity; health concerns arising from food-related pandemics, outbreaks of flu viruses or other diseases; changes in business strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general economy (including with regard to energy costs), particularly at the retail level; political environment and geopolitical events (including acts of war and terrorism); and other factors from time to time set forth in the Company’s SEC reports and other filings, including but not limited to the discussion in Management’s Discussion and Analysis and the risks identified in Item 1A. Risk Factors contained in the Company’s Annual Report on Form 10-K for the year ended December 28, 2022 (and in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K).

Investor Contact: 877-784-7167

Media Contact: 864-597-8005


DENNY’S CORPORATION
Consolidated Balance Sheets
(Unaudited)

($ in thousands)				9/27/23		12/28/22
Assets
	Current assets
		Cash and cash equivalents		$	1,022	$	3,523
		Investments		1,255		1,746
		Receivables, net		16,950		25,576
		Inventories		2,354		5,538
		Assets held for sale		1,557		1,403
		Prepaid and other current assets		11,816		12,529
			Total current assets	34,954		50,315
	Property, net			91,248		94,469
	Finance lease right-of-use assets, net			5,988		6,499
	Operating lease right-of-use assets, net			119,436		126,065
	Goodwill			72,142		72,740
	Intangible assets, net			93,845		95,034
	Deferred financing costs, net			1,861		2,337

	Other noncurrent assets			60,361		50,876
			Total assets	$	479,835	$	498,335

Liabilities
	Current liabilities

		Current finance lease liabilities		$	1,393	$	1,683
		Current operating lease liabilities		14,917		15,310
		Accounts payable		15,560		19,896
		Other current liabilities		59,071		56,762
			Total current liabilities	90,941		93,651
	Long-term liabilities
		Long-term debt		248,100		261,500
		Noncurrent finance lease liabilities		9,094		9,555
		Noncurrent operating lease liabilities		117,027		123,404
		Liability for insurance claims, less current portion		6,693		7,324
		Deferred income taxes, net		12,867		7,419
		Other noncurrent liabilities		30,911		32,598
			Total long-term liabilities	424,692		441,800
			Total liabilities	515,633		535,451

Shareholders' deficit
		Common stock		657		650
		Paid-in capital		147,393		142,136
		Deficit		(24,686)		(41,729)
		Accumulated other comprehensive loss, net		(27,760)		(42,697)
		Treasury stock		(131,402)		(95,476)
			Total shareholders' deficit	(35,798)		(37,116)
			Total liabilities and shareholders' deficit	$	479,835	$	498,335

Debt Balances
	Credit facility revolver due 2026			$	248,100	$	261,500
	Finance lease liabilities			10,487		11,238
		Total debt		$	258,587	$	272,738


DENNY’S CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)

			Quarter Ended
($ in thousands, except per share amounts)			9/27/23		9/28/22
Revenue:
	Company restaurant sales		$	53,153	$	52,211
	Franchise and license revenue		61,030		65,245
		Total operating revenue	114,183		117,456
Costs of company restaurant sales, excluding depreciation and amortization			45,893		48,451
Costs of franchise and license revenue, excluding depreciation and amortization			29,810		34,579
General and administrative expenses			18,237		16,607
Depreciation and amortization			3,605		3,914
Operating (gains), losses and other charges, net			2,620		(1,897)
		Total operating costs and expenses, net	100,165		101,654
Operating income			14,018		15,802
Interest expense, net			4,381		3,691
Other nonoperating expense (income), net			43		(10,461)
Income before income taxes			9,594		22,572
Provision for income taxes			1,686		5,489
Net income			$	7,908	$	17,083

Net income per share - basic			$	0.14	$	0.29
Net income per share - diluted			$	0.14	$	0.29

Basic weighted average shares outstanding			55,869		59,020
Diluted weighted average shares outstanding			56,082		59,040

Comprehensive income			$	20,469	$	20,061

General and Administrative Expenses
	Corporate administrative expenses		$	14,580	$	13,758
	Share-based compensation		2,864		1,947
	Incentive compensation		1,049		1,187
	Deferred compensation valuation adjustments		(256)		(285)
		Total general and administrative expenses	$	18,237	$	16,607


DENNY’S CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)

			Three Quarters Ended
($ in thousands, except per share amounts)			9/27/23		9/28/22
Revenue:
	Company restaurant sales		$	161,486	$	145,354
	Franchise and license revenue		187,083		190,226
		Total operating revenue	348,569		335,580
Costs of company restaurant sales, excluding depreciation and amortization			138,953		131,904
Costs of franchise and license revenue, excluding depreciation and amortization			92,657		100,513
General and administrative expenses			58,515		50,188
Depreciation and amortization			10,878		11,052
Operating (gains), losses and other charges, net			2,467		(1,051)
		Total operating costs and expenses, net	303,470		292,606
Operating income			45,099		42,974
Interest expense, net			13,288		9,529
Other nonoperating expense (income), net			9,470		(49,871)
Income before income taxes			22,341		83,316
Provision for income taxes			5,298		21,375
Net income			$	17,043	$	61,941

Net income per share - basic			$	0.30	$	1.01
Net income per share - diluted			$	0.30	$	1.00

Basic weighted average shares outstanding			56,764		61,558
Diluted weighted average shares outstanding			56,973		61,686

Comprehensive income			$	31,980	$	73,108

General and Administrative Expenses
	Corporate administrative expenses		$	43,919	$	38,303
	Share-based compensation		8,477		9,467
	Incentive compensation		5,335		4,945
	Deferred compensation valuation adjustments		784		(2,527)
		Total general and administrative expenses	$	58,515	$	50,188

DENNY’S CORPORATION

Reconciliation of Net Income and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures

(Unaudited)

The Company believes that, in addition to GAAP measures, certain non-GAAP financial measures are appropriate indicators to assist in the evaluation of operating performance and liquidity on a period-to-period basis. The Company uses Adjusted EBITDA, Adjusted Free Cash Flow, Adjusted Net Income and Adjusted Net Income Per Share internally as performance measures for planning purposes, including the preparation of annual operating budgets, and for compensation purposes, including incentive compensation for certain employees. Adjusted EBITDA is also used in the calculation of financial covenant ratios in accordance with the Company’s credit facility. Adjusted Free Cash Flow is also used as a non-GAAP liquidity measure by Management to assess the Company’s ability to generate cash and plan for future operating and capital actions. Management believes that the presentation of Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share and Adjusted Free Cash Flow provide useful information to investors and analysts about the Company’s operating results, financial condition or cash flows. However, each of these non-GAAP financial measures should be considered as a supplement to, not a substitute for, operating income, net income, net income per share, net cash provided by operating activities, or other financial performance and liquidity measures prepared in accordance with GAAP.


	Quarter Ended				Three Quarters Ended
($ in thousands)	9/27/23		9/28/22		9/27/23		9/28/22
Net income	$	7,908	$	17,083	$	17,043	$	61,941
Provision for income taxes	1,686		5,489		5,298		21,375
Operating (gains), losses and other charges, net	2,620		(1,897)		2,467		(1,051)
Other nonoperating expense (income), net	43		(10,461)		9,470		(49,871)
Share-based compensation expense	2,864		1,947		8,477		9,467
Deferred compensation plan valuation adjustments	(256)		(285)		784		(2,527)
Interest expense, net	4,381		3,691		13,288		9,529
Depreciation and amortization	3,605		3,914		10,878		11,052
Cash payments for restructuring charges and exit costs	(667)		(284)		(1,665)		(665)
Cash payments for share-based compensation	(9)		—		(3,131)		(5,147)
Adjusted EBITDA	$	22,175	$	19,197	$	62,909	$	54,103


DENNY’S CORPORATION
Reconciliation of Net Income and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures (Continued)
(Unaudited)
	Quarter Ended				Three Quarters Ended
($ in thousands)	9/27/23		9/28/22		9/27/23		9/28/22
Net cash provided by operating activities	$	15,117	$	15,341	$	50,768	$	24,950
Capital expenditures	(2,192)		(4,375)		(5,499)		(10,146)
Acquisition of real estate and restaurant(1)	(1,227)		(750)		(1,227)		(750)
Cash payments for restructuring charges and exit costs	(667)		(284)		(1,665)		(665)
Cash payments for share-based compensation	(9)		—		(3,131)		(5,147)
Deferred compensation plan valuation adjustments	(256)		(285)		784		(2,527)
Other nonoperating expense (income), net	43		(10,461)		9,470		(49,871)
Gains (losses) on investments	30		(66)		59		(289)
Gains on early termination of debt and leases	—		53		—		29
Amortization of deferred financing costs	(159)		(158)		(476)		(475)
Gains (losses) and amortization on interest rate swap derivatives, net	(94)		10,754		(10,838)		52,678
Interest expense, net	4,381		3,691		13,288		9,529
Cash interest expense, net (2)	(4,128)		(3,823)		(12,392)		(10,998)
Deferred income tax expense	341		(4,903)		(369)		(15,669)

Provision for income taxes	1,686		5,489		5,298		21,375
Income taxes paid, net	(2,621)		(1,517)		(6,531)		(6,161)
Changes in operating assets and liabilities, excluding acquisitions and dispositions
Receivables	(1,475)		1,369		(8,235)		4,788
Inventories	(180)		(3,282)		(3,184)		3,866
Other current assets	1,776		1,880		(712)		(1,683)
Other noncurrent assets	1,149		2,936		902		(3,189)
Operating lease assets and liabilities	120		94		479		560
Accounts payable	(675)		1,574		7,079		3,115
Other accrued liabilities	(327)		(7,579)		1,319		3,483
Other noncurrent liabilities	1,374		3,034		2,073		9,245
Adjusted Free Cash Flow	$	12,007	$	8,732	$	37,260	$	26,048


(1)			For the quarter and year-to-date period ended September 27, 2023, amounts include cash paid for the acquisition of a piece of real estate. For the quarter and year-to-date period ended September 28, 2022, amounts include cash paid for the acquisition of a Denny's franchise restaurant and exclude capital paid for the acquisition of Keke's.
(2)			Includes cash interest income, net for the quarter and year-to-date period ended September 27, 2023, and cash receipts of approximately $0.2 million for dedesignated interest rate swap derivatives for the year-to-date period ended September 27, 2023. Includes cash interest expense, net and cash payments of approximately $0.3 and $2.0 million for dedesignated interest rate swap derivatives for the quarter and year-to-date period ended September 28, 2022, respectively.


DENNY’S CORPORATION
Reconciliation of Net Income and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures (Continued)
(Unaudited)
	Quarter Ended				Three Quarters Ended
($ in thousands, except per share amounts)	9/27/23		9/28/22		9/27/23		9/28/22
Adjusted EBITDA	$	22,175	$	19,197	$	62,909	$	54,103
Cash interest expense, net (1)	(4,128)		(3,823)		(12,392)		(10,998)
Cash paid for income taxes, net	(2,621)		(1,517)		(6,531)		(6,161)
Cash paid for capital expenditures (2)	(3,419)		(5,125)		(6,726)		(10,896)
Adjusted Free Cash Flow	$	12,007	$	8,732	$	37,260	$	26,048

Net income	$	7,908	$	17,083	$	17,043	$	61,941
(Gains) losses and amortization on interest rate swap derivatives, net	94		(10,754)		10,838		(52,678)
Gains on sales of assets and other charges, net	(88)		(3,066)		(2,132)		(3,311)
Impairment charges	1,711		697		1,840		963
Tax effect (3)	(179)		3,163		(2,457)		14,142
Adjusted Net Income	$	9,446	$	7,123	$	25,132	$	21,057

Diluted weighted average shares outstanding	56,082		59,040		56,973		61,686

Net Income Per Share - Diluted	$	0.14	$	0.29	$	0.30	$	1.00
Adjustments Per Share	0.03		(0.17)		0.14		(0.66)
Adjusted Net Income Per Share	$	0.17	$	0.12	$	0.44	$	0.34


(1)			Includes cash interest income, net for the quarter and year-to-date period ended September 27, 2023, and cash receipts of approximately $0.2 million for dedesignated interest rate swap derivatives for the year-to-date period ended September 27, 2023. Includes cash interest expense, net and cash payments of approximately $0.3 million and $2.0 million for dedesignated interest rate swap derivatives for the quarter and year-to-date period ended September 28, 2022, respectively.
(2)			For the quarter and year-to-date period ended September 27, 2023, amounts include cash paid for capital expenditures and the acquisition of a piece of real estate. For the quarter and year-to-date period ended September 28, 2022, amounts include cash paid for capital expenditures and the acquisition of a Denny's franchise restaurant, and exclude capital paid for the acquisition of Keke's.
(3)			Tax adjustments for the quarter and year-to-date period ended September 27, 2023 reflect effective tax rates of 10.4% and 23.3%, respectively. Tax adjustments for the quarter and year-to-date period ended September 28, 2022 reflect effective tax rates of 24.1% and 25.7%, respectively.

DENNY’S CORPORATION

Reconciliation of Operating Income to Non-GAAP Financial Measures

(Unaudited)

The Company believes that, in addition to GAAP measures, certain other non-GAAP financial measures are appropriate indicators to assist in the evaluation of restaurant-level operating efficiency and performance of ongoing restaurant-level operations. The Company uses Restaurant-level Operating Margin, Company Restaurant Operating Margin and Franchise Operating Margin internally as performance measures for planning purposes, including the preparation of annual operating budgets, and these three non-GAAP measures are used to evaluate operating effectiveness.

The Company defines Restaurant-level Operating Margin as operating income excluding the following three items: general and administrative expenses, depreciation and amortization, and operating (gains), losses and other charges, net. Restaurant-level Operating Margin is presented as a percent of total operating revenue. The Company excludes general and administrative expenses, which include primarily non-restaurant-level costs associated with support of company and franchised restaurants and other activities at their corporate office. The Company excludes depreciation and amortization expense, substantially all of which is related to company restaurant-level assets, because such expenses represent historical sunk costs which do not reflect current cash outlays for the restaurants. The Company excludes special items, included within operating (gains), losses and other charges, net, to provide investors with a clearer perspective of its ongoing operating performance and a more relevant comparison to prior period results.

Restaurant-level Operating Margin is the total of Company Restaurant Operating Margin and Franchise Operating Margin. The Company defines Company Restaurant Operating Margin as company restaurant sales less costs of company restaurant sales (which include product costs, company restaurant level payroll and benefits, occupancy costs, and other operating costs including utilities, repairs and maintenance, marketing and other expenses) and presents it as a percent of company restaurant sales. The Company defines Franchise Operating Margin as franchise and license revenue (which includes franchise royalties and other non-food and beverage revenue streams such as initial franchise and other fees, advertising revenue and occupancy revenue) less costs of franchise and license revenue and presents it as a percent of franchise and license revenue.

These non-GAAP financial measures provide a meaningful comparison between periods and enable investors to focus on the performance of restaurant-level operations by excluding revenues and costs unrelated to food and beverage sales in addition to corporate general and administrative expense, depreciation and amortization, and operating (gains), losses and other charges, net. However, each of these non-GAAP financial measures should be considered as a supplement to, not a substitute for, operating income, net income or other financial performance measures prepared in accordance with GAAP. Restaurant-level Operating Margin, Company Restaurant Operating Margin and Franchise Operating Margin do not accrue directly to the benefit of shareholders because of the aforementioned excluded items and are not indicative of the overall results for the Company.


	Quarter Ended				Three Quarters Ended
($ in thousands)	9/27/23		9/28/22		9/27/23		9/28/22
Operating income	$	14,018	$	15,802	$	45,099	$	42,974
General and administrative expenses	18,237		16,607		58,515		50,188
Depreciation and amortization	3,605		3,914		10,878		11,052
Operating (gains), losses and other charges, net	2,620		(1,897)		2,467		(1,051)
Restaurant-level Operating Margin	$	38,480	$	34,426	$	116,959	$	103,163

Restaurant-level Operating Margin consists of:
Company Restaurant Operating Margin (1)	$	7,260	$	3,760	$	22,533	$	13,450
Franchise Operating Margin (2)	31,220		30,666		94,426		89,713
Restaurant-level Operating Margin	$	38,480	$	34,426	$	116,959	$	103,163


(1)			Company Restaurant Operating Margin is calculated as operating income plus general and administrative expenses; depreciation and amortization; operating (gains), losses and other charges, net; and costs of franchise and license revenue, excluding depreciation and amortization; less franchise and license revenue.
(2)			Franchise Operating Margin is calculated as operating income plus general and administrative expenses; depreciation and amortization; operating (gains), losses and other charges, net; and costs of company restaurant sales, excluding depreciation and amortization; less company restaurant sales.


DENNY’S CORPORATION
Operating Margins
(Unaudited)

				Quarter Ended
($ in thousands)				9/27/23				9/28/22
Company restaurant operations: (1)
	Company restaurant sales			$	53,153	100.0	%	$	52,211	100.0	%
	Costs of company restaurant sales, excluding depreciation and amortization:
		Product costs		13,587		25.6	%	14,462		27.7	%
		Payroll and benefits		19,754		37.2	%	20,176		38.6	%
		Occupancy		4,182		7.9	%	4,294		8.2	%
		Other operating costs:
			Utilities	2,120		4.0	%	1,984		3.8	%
			Repairs and maintenance	996		1.9	%	1,089		2.1	%
			Marketing	1,393		2.6	%	1,340		2.6	%
			Legal settlements	245		0.5	%	1,567		3.0	%
			Other direct costs	3,616		6.8	%	3,539		6.8	%
	Total costs of company restaurant sales, excluding depreciation and amortization			$	45,893	86.3	%	$	48,451	92.8	%
	Company restaurant operating margin (non-GAAP) (2)			$	7,260	13.7	%	$	3,760	7.2	%

Franchise operations: (3)
	Franchise and license revenue:
	Royalties			$	29,703	48.7	%	$	28,992	44.4	%
	Advertising revenue			19,297		31.6	%	18,950		29.0	%
	Initial and other fees			3,388		5.6	%	7,749		11.9	%
	Occupancy revenue			8,642		14.2	%	9,554		14.6	%
	Total franchise and license revenue			$	61,030	100.0	%	$	65,245	100.0	%

	Costs of franchise and license revenue, excluding depreciation and amortization:
	Advertising costs			$	19,297	31.6	%	$	18,950	29.0	%
	Occupancy costs			5,389		8.8	%	5,910		9.1	%
	Other direct costs			5,124		8.4	%	9,719		14.9	%
	Total costs of franchise and license revenue, excluding depreciation and amortization			$	29,810	48.8	%	$	34,579	53.0	%
	Franchise operating margin (non-GAAP) (2)			$	31,220	51.2	%	$	30,666	47.0	%

Total operating revenue (4)				$	114,183	100.0	%	$	117,456	100.0	%
Total costs of operating revenue (4)				75,703		66.3	%	83,030		70.7	%
Restaurant-level operating margin (non-GAAP) (4)(2)				$	38,480	33.7	%	$	34,426	29.3	%

Other operating expenses: (4)(2)
	General and administrative expenses			$	18,237	16.0	%	$	16,607	14.1	%
	Depreciation and amortization			3,605		3.2	%	3,914		3.3	%
	Operating losses and other charges, net			2,620		2.3	%	(1,897)		(1.6)	%
	Total other operating expenses			$	24,462	21.4	%	$	18,624	15.9	%

Operating income (4)				$	14,018	12.3	%	$	15,802	13.5	%

(1)		As a percentage of company restaurant sales.
(2)		Other operating expenses such as general and administrative expenses and depreciation and amortization relate to both company and franchise operations and are not allocated to costs of company restaurant sales and costs of franchise and license revenue. As such, operating margin is considered a non-GAAP financial measure. Operating margins should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with GAAP.
(3)		As a percentage of franchise and license revenue.
(4)		As a percentage of total operating revenue.


DENNY’S CORPORATION
Operating Margins
(Unaudited)

				Three Quarters Ended
($ in thousands)				9/27/23				9/28/22
Company restaurant operations: (1)
	Company restaurant sales			$	161,486	100.0	%	$	145,354	100.0	%
	Costs of company restaurant sales, excluding depreciation and amortization:
		Product costs		41,796		25.9	%	38,874		26.7	%
		Payroll and benefits		60,482		37.5	%	55,598		38.3	%
		Occupancy		12,381		7.7	%	11,316		7.8	%
		Other operating costs:
			Utilities	6,037		3.7	%	5,211		3.6	%
			Repairs and maintenance	2,667		1.7	%	2,803		1.9	%
			Marketing	4,207		2.6	%	3,877		2.7	%
			Legal settlements	475		0.3	%	4,223		2.9	%
			Other direct costs	10,908		6.8	%	10,002		6.9	%
	Total costs of company restaurant sales, excluding depreciation and amortization			$	138,953	86.0	%	$	131,904	90.7	%
	Company restaurant operating margin (non-GAAP) (2)			$	22,533	14.0	%	$	13,450	9.3	%

Franchise operations: (3)
	Franchise and license revenue:
	Royalties			$	90,106	48.2	%	$	84,276	44.3	%
	Advertising revenue			58,818		31.4	%	56,642		29.8	%
	Initial and other fees			10,994		5.9	%	20,035		10.5	%
	Occupancy revenue			27,165		14.5	%	29,273		15.4	%
	Total franchise and license revenue			$	187,083	100.0	%	$	190,226	100.0	%

	Costs of franchise and license revenue, excluding depreciation and amortization:
	Advertising costs			$	58,818	31.4	%	$	56,642	29.8	%
	Occupancy costs			16,853		9.0	%	18,351		9.6	%
	Other direct costs			16,986		9.1	%	25,520		13.4	%
	Total costs of franchise and license revenue, excluding depreciation and amortization			$	92,657	49.5	%	$	100,513	52.8	%
	Franchise operating margin (non-GAAP) (2)			$	94,426	50.5	%	$	89,713	47.2	%

Total operating revenue (4)				$	348,569	100.0	%	$	335,580	100.0	%
Total costs of operating revenue (4)				231,610		66.4	%	232,417		69.3	%
Restaurant-level operating margin (non-GAAP) (4)(2)				$	116,959	33.6	%	$	103,163	30.7	%

Other operating expenses: (4)(2)
	General and administrative expenses			$	58,515	16.8	%	$	50,188	15.0	%
	Depreciation and amortization			10,878		3.1	%	11,052		3.3	%
	Operating (gains), losses and other charges, net			2,467		0.7	%	(1,051)		(0.3)	%
	Total other operating expenses			$	71,860	20.6	%	$	60,189	17.9	%

Operating income (4)				$	45,099	12.9	%	$	42,974	12.8	%

(1)		As a percentage of company restaurant sales.
(2)		Other operating expenses such as general and administrative expenses and depreciation and amortization relate to both company and franchise operations and are not allocated to costs of company restaurant sales and costs of franchise and license revenue. As such, operating margin is considered a non-GAAP financial measure. Operating margin should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with GAAP.
(3)		As a percentage of franchise and license revenue.
(4)		As a percentage of total operating revenue.


DENNY’S CORPORATION
Statistical Data
(Unaudited)

			Denny's				Keke's (2)
Changes in Same-Restaurant Sales (1)			Quarter Ended		Three Quarters Ended		Quarter Ended		Three Quarters Ended
(Increase vs. prior year)			9/27/23	9/28/22	9/27/23	9/28/22	9/27/23	9/28/22	9/27/23	9/28/22
	Company Restaurants		(1.4)%	7.1%	4.1%	12.1%	(3.4)%	N/A	(3.4)%	N/A
	Domestic Franchise Restaurants		2.1%	1.1%	4.3%	7.6%	(5.3)%	N/A	(5.3)%	N/A
	Domestic System-wide Restaurants		1.8%	1.5%	4.3%	7.9%	(5.0)%	N/A	(5.0)%	N/A

Average Unit Sales
($ in thousands)
	Company Restaurants		$755	$766	$2,303	$2,209	$429	$334	$1,354	$334
	Franchised Restaurants		$458	$435	$1,376	$1,281	$430	$349	$1,397	$349


(1)		Same-restaurant sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, initial and other fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP.
(2)		Effective July 20, 2022, the Company acquired Keke's, as such data for the quarter and year-to-date period ended September 28, 2022 only represent post-acquisition results.


Restaurant Unit Activity			Denny's			Keke's
				Franchised			Franchised
			Company	& Licensed	Total	Company	& Licensed	Total
Ending Units June 28, 2023			66	1,525	1,591	8	47	55
	Units Opened		—	7	7	—	1	1




	Units Closed		—	(10)	(10)	—	—	—
		Net Change	—	(3)	(3)	—	1	1
Ending Units September 27, 2023			66	1,522	1,588	8	48	56

Equivalent Units
	Third Quarter 2023		66	1,523	1,589	8	48	56
	Third Quarter 2022		65	1,560	1,625	6	34	40
		Net Change	1	(37)	(36)	2	14	16

			Denny's			Keke's
				Franchised			Franchised
Restaurant Unit Activity			Company	& Licensed	Total	Company	& Licensed	Total
Ending Units December 28, 2022			66	1,536	1,602	8	46	54
	Units Opened		—	21	21	—	2	2




	Units Closed		—	(35)	(35)	—	—	—
		Net Change	—	(14)	(14)	—	2	2
Ending Units September 27, 2023			66	1,522	1,588	8	48	56

Equivalent Units
	Year-to-Date 2023		65	1,525	1,590	8	47	55
	Year-to-Date 2022		64	1,566	1,630	2	11	13
		Net Change	1	(41)	(40)	6	36	42

EX-99.2 3 denninvestordeckoctober2.htm EX-99.2 denninvestordeckoctober2

D E N N Y ’ S C O R P O R AT I O N INVESTOR PRESENTATION O C T O B E R T H R O U G H D E C E M B E R 2 0 2 3

FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES The Company urges caution in considering its current trends and any outlook on earnings disclosed either in this presentation or in its press releases. In addition, certain matters discussed in either this presentation or related press releases may constitute forward- looking statements. These forward-looking statements, which reflect management's best judgment based on factors currently known, are intended to speak only as of the date such statements are made and involve risks, uncertainties, and other factors that may cause the actual performance of Denny’s Corporation, its subsidiaries, and underlying restaurants to be materially different from the performance indicated or implied by such statements. Words such as “expect”, “anticipate”, “believe”, “intend”, “plan”, “hope”, "will", and variations of such words and similar expressions are intended to identify such forward-looking statements. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date this presentation was published or to reflect the occurrence of unanticipated events. Factors that could cause actual performance to differ materially from the performance indicated by these forward-looking statements include, among others: economic, public health and political conditions that impact consumer confidence and spending; commodity and labor inflation; the ability to effectively staff restaurants and support personnel; the Company's ability to maintain adequate levels of liquidity for its cash needs, including debt obligations, payment of dividends, planned share repurchases and capital expenditures as well as the ability of its customers, suppliers, franchisees and lenders to access sources of liquidity to provide for their own cash needs; competitive pressures from within the restaurant industry; the Company's ability to integrate and derive the expected benefits from its acquisition of Keke's Breakfast Cafe; the level of success of the Company’s operating initiatives and advertising and promotional efforts; adverse publicity; health concerns arising from food-related pandemics, outbreaks of flu viruses or other diseases; changes in business strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general economy (including with regard to energy costs), particularly at the retail level; political environment and geopolitical events (including acts of war and terrorism); and other factors from time to time set forth in the Company’s SEC reports and other filings, including but not limited to the discussion in Management’s Discussion and Analysis and the risks identified in Item 1A. Risk Factors contained in the Company’s Annual Report on Form 10-K for the year ended December 28, 2022 (and in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). The presentation includes references to the Company’s non-GAAP financials measures. All such measures are designated by an asterisk (*). The Company believes that, in addition to U.S. generally accepted accounting principles (GAAP) measures, certain non-GAAP financial measures are appropriate indicators to assist in the evaluation of operating performance and liquidity on a period-to-period basis. The Company uses Adjusted EBITDA, Adjusted Free Cash Flow, Adjusted Net Income and Adjusted Net Income Per Share internally as performance measures for planning purposes, including the preparation of annual operating budgets, and for compensation purposes, including incentive compensation for certain employees. Adjusted EBITDA is also used in the calculation of financial covenant ratios in accordance with the Company’s credit facility. Adjusted Free Cash Flow is also used as a non-GAAP liquidity measure by Management to assess the Company’s ability to generate cash and plan for future operating and capital actions. Management believes that the presentation of Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share and Adjusted Free Cash Flow provide useful information to investors and analysts about the Company’s operating results, financial condition or cash flows. However, each of these non-GAAP financial measures should be considered as a supplement to, not a substitute for, operating income, net income, net income per share, net cash provided by (used in) operating activities, or other financial performance and liquidity measures prepared in accordance with U.S. generally accepted accounting principles. See Appendix for non-GAAP reconciliations to the following GAAP measures: $ Millions (except per share amounts) 2018 2019 2020 2021 2022 YTD Sep 2023 Operating Income $73.6 $165.0 $6.7 $104.1 $60.6 $45.1 Net Income (Loss) $43.7 $117.4 ($5.1) $78.1 $74.7 $17.0 Net Income (Loss) per Share $0.67 $1.90 ($0.08) $1.19 $1.23 $0.30 Cash Provided By (Used In): Operating Activities $73.7 $43.3 ($3.1) $76.2 $39.5 $50.8 Investing Activities ($32.0) $105.0 $4.7 $29.0 ($86.6) ($3.0) Financing Activities ($41.6) ($150.0) ($1.0) ($78.5) $20.0 ($50.2) 2

Q3 2023 HIGHLIGHTS 𝟏 Same-restaurant sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, initial and other fees and occupancy revenue from non- consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company’s results as reported under GAAP. * See Appendix for reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures, as well as the reconciliation of Operating Income (Loss) to Non-GAAP Financial Measures. 3 $114.2M Total Operating Revenue Denny’s Domestic System-Wide Same-Restaurant Sales 1 $22.2M 15.5% Increase vs Prior Year Quarter Adjusted EBITDA* Portfolio Share RepurchasesAdjusted Free Cash Flow* $12.0M 37.5% Increase vs Prior Year Quarter $16.5M 1.7M Shares Repurchased Total Debt to Adjusted EBITDA* Leverage Ratio 2.99x % of Denny’s Domestic Units Operating at Least 18 Hours Per Day 93% At End of Quarter 1.8% Versus 2022 Seven New Openings Including Two International Openings One New Opening

DENNY’S INC.

D E N N Y ’ S D O M E S T I C AV E R A G E W E E K LY S A L E S 3 & S A M E - R E S TA U R A N T S A L E S 1 $3.8 $4.1 $4.2 $8.4 $8.0 $7.9 $8.8 $8.1 $7.0 $7.2 $7.0 $6.5 $6.1 $6.5 $6.5 $6.2 $6.0 $0.4 $1.1 $1.0 $1.0 $0.9 $0.9 $0.9 $1.1 $1.1 $1.0 $1.0 $29.7 $30.0 $26.5 $6.4 $14.4 $15.4 $17.3 $25.3 $26.2 $27.0 $25.2 $28.3 $28.1 $28.9 $29.1 $30.3 $29.6 $33.6 $34.1 $30.8 $14.9 $22.4 $23.3 $26.6 $34.5 $34.3 $35.2 $33.1 $35.7 $35.1 $36.5 $36.7 $37.5 $36.5 1% 2% -6% -57% -34% -33% -20% -1% 0% 1% -2% 2% 2% 3% 8% 3% 2% -70% -50% -30% -10% 10% 30% $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 D om es tic S ys te m -W id e S am e- R es ta ur an t S al es 1 A ve ra ge W ee kl y S al es ( $0 00 s) 3 Denny's Off-Premise Sales Virtual Brands Off-Premise Sales Denny's On-Premise Sales Denny's Total Sales Denny's Domestic System-Wide Same-Restaurant Sales 𝟏 Same-restaurant sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, initial and other fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company’s results as reported under GAAP. 𝟐 2021 and 2022 Denny’s domestic system-wide same-restaurant sales 1 are versus 2019. 𝟑 Domestic average weekly sales reflect sales for company and franchised restaurants on Denny’s proprietary point of sale (POS) system. Denny’s Q3 ‘23 Domestic Average Weekly Sales Outperformed Q3 ‘22 by 3.9% 2 5

DENNY’S OFF-PREMISE SALES 52% 47% 46% 44% 42% 43% 44% 42% 41% 43% 41% 43% 50% 52% 53% 56% 55% 54% 56% 57% 56% 56% 5% 3% 3% 2% 2% 2% 2% 1% 1% 1% 2% 0% 20% 40% 60% 80% 100% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Domestic Off-Premise Sales By Channel Delivery - Online Dispatch Delivery - 3rd Party (Includes Virtual Brands) Carry Out 𝟏 Data for the Fiscal Third Quarter 2023. The Burge r Den i s cu r ren t ly ac t i ve i n ove r 1 ,200 domes t ic l o ca t ions . The Me l tdown i s cu r ren t l y ac t i ve i n ove r 1 ,000 domes t i c l oca t ions . 68% 51% 24% 34%32% 49% 76% 66% 0% 20% 40% 60% 80% 100% Dine In Off-Premise The Burger Den The Meltdown Sales Mix by Daypart1 Breakfast & Lunch Dinner & Late-Night 60% 63% 69% 69% 40% 37% 31% 31% 0% 20% 40% 60% 80% Dine In Off-Premise The Burger Den The Meltdown Sales Mix Weekday vs. Weekend1 Weekday Weekend Off-Premise Sales Over-Index At the Dinner & Late-Night Dayparts, Which Are More Popular With Younger Generations and More Diverse Guests. 6

7𝟏 Data through Fiscal September ended September 27, 2023. Total of 1,422 Restaurants in the U.S. with Strongest Presence in California, Texas, Florida, and Arizona 1 Top 10 U .S . Marke ts 1 DMA Number of Restaurants Los Angeles 172 Houston 66 Phoenix 66 Dallas/Ft. Worth 53 Sacramento/Stockton 44 Orlando/Daytona 40 San Francisco/Oakland 39 San Diego 38 Miami/Ft. Lauderdale 34 Las Vegas 33 % of Domestic System 41% DENNY’S DOMESTIC FOOTPRINT 3 25 2 6 5 5 1 6

8 I n t e rna t iona l Foo tp r in t 1 Country Number of Restaurants United States 1,422 Canada 86 Puerto Rico 16 Mexico 15 Philippines 15 New Zealand 7 Honduras 6 United Arab Emirates 5 Guatemala 4 Costa Rica 3 El Salvador 3 Guam 2 Indonesia 2 Curaçao 1 United Kingdom 1 Total System 1,588 International Presence of 166 Restaurants in 14 Countries and U.S. Territories Grown by ~91% Since Year End 2010 1 𝟏 Data through Fiscal September ended September 27, 2023. DENNY’S INTERNATIONAL FOOTPRINT

9 Well Diversified, Experienced, and Energetic Group of 210 Franchisees 1 • 35 franchisees with more than 10 restaurants each collectively comprise approximately 66% of the franchise system. • Approximately 20% of our franchisees operate multiple concepts1 providing a well-rounded perspective within the industry. Ownersh ip o f 1 ,522 Franch isee Res taurants 1 Number of Franchised Units Number of Franchisees Franchisees as % of Total Total Franchised Units Franchised Units as % of Total 1 75 36% 75 5% 2–5 72 34% 224 15% 6–10 28 13% 221 15% 11–15 13 6% 167 11% 16–30 9 4% 185 12% >30 13 6% 650 43% Total 210 100% 1,522 100% 𝟏 Data through Fiscal September ended September 27, 2023. DENNY'S STRONG PARTNERSHIP WITH FRANCHISEES

KEKE’S

KEKE’S FOOTPRINT AND PERFORMANCE 11 63 3 3 1 Total of 56 Restaurants Across Florida with Heavy Concentrations in the Orlando and Tampa Areas1 𝟏 Data through Fiscal September ended September 27, 2023. 𝟐 Keke’s data is annualized based on the reported Average Unit Volumes following acquisition. Ownership o f 48 Franchisee Res taurants 1 Number of Franchised Units Number of Franchisees Franchisees as % of Total Total Franchised Units Franchised Units as % of Total 1 9 47% 9 19% 2–5 8 42% 24 50% 6–10 2 11% 15 31% Total 19 100% 48 100% 8 Company and 48 Franchised Restaurants $1.7 $1.2 $1.6 $1.8 $1.6 $1.2 $1.9 $1.8 $0.0 $1.0 $2.0 $3.0 2019 2020 2021 2022 $M s System Restaurant AUVs Comparison Denny's Keke's 22 18 2

DENNY’S CORPORATION

HISTORY OF CONSISTENTLY RETURNING CAPITAL TO SHAREHOLDERS $50 $25 $25 $3.9 $21.6 $22.2 $24.7 $36.0 $105.8 $58.7 $82.9 $67.9 $96.2 $34.2 $30.6 $64.9 $35.9 Q4 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ASR Total Share Repurchases In $ Millions• During Q3 2023, we allocated approximately $16.5 million to share repurchases. • Since late 20101, we have repurchased over 65 million shares at an average of $10.43 per share resulting in a 46% net reduction in our share count. • Approximately $117 million remaining under existing repurchase authorization2. 𝟏 Data from November 2010 through Fiscal September ended September 27, 2023. 𝟐 Data through Fiscal September ended September 27, 2023. Includes 1% excise tax on the value of corporate share repurchases (net of issuance). Average Price of $10.43 Multi-year share repurchase program suspended from February 2020 through August 2021 Over $685 Million Allocated Towards Share Repurchases Since We Started Returning Capital to Shareholders in late 2010 1 2 13

SOLID BALANCE SHEET WITH FLEXIBILITY $240.2 $198.1 $170.0 $153.0 $140.0 $195.0 $218.5 $259.0 $286.5 $240.0 $210.0 $170.0 $261.5 $248.1 $23.1 $22.5 $20.1 $20.1 $18.8 $20.7 $27.1 $30.2 $30.6 $16.5 $15.4 $12.7 $11.2 $10.5 3.5x 2.7x 2.4x 2.2x 1.9x 2.5x 2.5x 2.8x 3.0x 2.7x 2.1x 3.4x 3.0x 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q3 2023 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 To ta l D eb t ( $ M ill io ns ) Finance Leases Credit Facility Total Debt / Adjusted EBITDA* 2 Disciplined Focus on Debt Leverage with Financial Flexibility to Make Brand Investments & Return Capital to Shareholders Target Total Debt / Adjusted EBITDA* Leverage Ratio Range of 2.5x to 3.5x 1 Total Debt / Adjusted EBITDA* leverage ratio was waived starting in Q2 ’20 through Q1 ‘21. 2 Increased borrowings under the credit facility in 2022 are primarily due to the Keke’s acquisition. * See Appendix for reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures, as well as the reconciliation of Operating Income (Loss) to Non-GAAP Financial Measures 14 Debt amendments provided temporary covenant relief 1

STRATEGIC PRIORITES C • Create leading edge solutions with technology & innovation R • Robust new Restaurant growth as the franchisor of choice A • Assemble best in class people and teams through culture, tools & systems V • Validate & optimize the business model to maximize restaurant margins E • Elevate profitable traffic through the guest experience & uniquely craveable food 15

APPENDIX

17 $1.8 $1.9 $2.0 $2.1 $2.2 $2.3 $2.3 $2.3 $2.5 $1.8 $2.7 $3.0 $0.0 $1.0 $2.0 $3.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $M s Denny’s Company Restaurant AUVs $1.4 $1.4 $1.4 $1.5 $1.6 $1.6 $1.6 $1.6 $1.7 $1.2 $1.6 $1.7 $0.0 $1.0 $2.0 $3.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $M s Denny’s Franchised Restaurant AUVs History of Steady Growth in Franchised and Company Average Unit Volumes Refranchising Strategy Benefited AUVs at Both Franchised and Company Restaurants in 2019 DENNY’S FRANCHISED AND COMPANY RESTAURANT SALES

18 Approximately $500 Million in Adjusted Free Cash Flow* Generated Over Last 12 Fiscal Years Adjusted Free Cash Flow* Impacted by ~$21 Million of Real Estate Acquisitions Between 2019 and 2021 ¹ Includes cash interest expense, net and cash payments of approximately $1.9 million, $3.3 million, and $1.8 million for dedesignated interest rate swap derivatives for full year 2020, 2021, and 2022, respectively. * See Appendix for reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures, as well as the reconciliation of Operating Income (Loss) to Non-GAAP Financial Measures. ~$11 ~$10 $17 $12 $9 $8 $8 $11 $15 $20 $18 $18 $17 $15 $1 $2 $3 $4 $5 $3 $6 $3 $24 $0 $10 $9 $16 $16 $21 $22 $33 $34 $31 $32 $25 $18 $13 $82 $79 $78 $83 $89 $100 $103 $105 $97 $27 $86 $78 $48 $49 $45 $49 $42 $52 $51 $50 $30 $2 $41 $41 $0 $20 $40 $60 $80 $100 $120 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $ M ill io ns Real Estate Acquisitions Cash Interest Cash Taxes Cash Capital Adjusted EBITDA* Adjusted Free Cash Flow* Cash capital expenditures include real estate acquisitions through like- kind exchange transactions 1 ADJUSTED FREE CASH FLOW*

19 Robert P. Verostek, Executive Vice President, Chief Financial Officer. Joined Denny’s in 1999 and served in numerous leadership positions across the Finance and Accounting teams. Named Vice President of Financial Planning and Analysis in 2012 and Chief Financial Officer in 2020. Prior experience includes various accounting roles for Insignia Financial Group. Kelli A. Valade, Chief Executive Officer. Prior to joining Denny's in June 2022, served as CEO of Red Lobster, CEO of Black Box Intelligence, and held various management positions at Chili’s including Brand President, Chief Operating Officer and Senior Vice President of Human Resources. Jay C. Gilmore, Senior Vice President, Chief Accounting Officer and Corporate Controller. Joined Denny’s in 1999 as Director of Accounting and Assistant Corporate Controller and was named Senior Vice President, Chief Accounting Officer and Corporate Controller in 2021. Prior experience includes serving as a Senior Manager with KPMG LLP. Gail S. Myers, Executive Vice President, Chief Legal Officer, Chief People Officer and Secretary. Prior to joining Denny’s in 2020, served as Executive Vice President, General Counsel, Secretary and Chief Compliance Officer for American Tire Distributors, Inc., Senior Vice President, Deputy General Counsel and Chief Compliance Counsel at U.S. Foods and Senior Vice President, General Counsel and Secretary at Snyder's-Lance, Inc. David P. Schmidt, President of Keke’s Breakfast Café. Prior to joining Keke’s in September 2022, served as CFO of Red Lobster and worked for Bloomin’ Brands where he held various leadership roles throughout his tenure including Group Vice President and CFO of Bloomin’ Brand’s Casual Dining. Stephen C. Dunn, Executive Vice President, Chief Global Development Officer. Prior to joining Denny’s in 2004, held executive-level positions with Church's Chicken, El Pollo Loco, Mr. Gatti's, and TCBY. Earned the distinction of Certified Franchise Executive by the International Franchise Association Educational Foundation. Served as an Infantry Officer in the United States Army. EXPERIENCED AND COMMITTED LEADERSHIP TEAM Pankaj Patra, Executive Vice President, Chief Digital and Technology Officer. Prior to joining Denny’s in 2023, served as Chief Information Officer and Senior Vice President at Brinker International, Inc. and brings 25 years of experience as an innovative enterprise technology architect, digital strategist and information technology leader.

20 1 Includes 53 operating weeks. $ Millions 2018 2019 20201 2021 2022 YTD Sep 2023 Net Income (Loss) $43.7 $117.4 ($5.1) $78.1 $74.7 $17.0 Provision for (Benefit from) Income Taxes 8.6 31.8 (2.0) 26.0 24.7 5.3 Operating (Gains) Losses and Other Charges, Net 2.6 (91.2) 1.8 (46.1) (1.0) 2.5 Other Nonoperating Expense (Income), Net 0.6 (2.8) (4.2) (15.2) (52.6) 9.5 Share‐Based Compensation Expense 6.0 6.7 7.9 13.6 11.4 8.5 Deferred Compensation Plan Valuation Adjustments (1.0) 2.6 1.6 2.1 (2.2) 0.8 Interest Expense, Net 20.7 18.5 18.0 15.1 13.8 13.3 Depreciation and Amortization 27.0 19.8 16.2 15.4 14.9 10.9 Cash Payments for Restructuring Charges and Exit Costs (1.1) (2.6) (3.0) (1.8) (1.1) (1.7) Cash Payments for Share‐Based Compensation (1.9) (3.6) (4.6) (1.8) (5.1) (3.1) Adjusted EBITDA $105.3 $96.8 $26.6 $85.6 $77.5 $62.9 Adjusted EBITDA Margin % 16.7% 17.9% 9.2% 21.5% 17.0% 18.0% RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP FINANCIAL MEASURES

21 $ Millions 2018 2019 20201 2021 2022 YTD Sep 2023 Net Cash Provided By (Used In) Operating Activities $73.7 $43.3 ($3.1) $76.2 $39.5 $50.8 Capital Expenditures (22.0) (14.0) (7.0) (7.4) (11.8) (5.5) Acquisition of Restaurants and Real Estate2 (10.4) (11.3) - (10.4) (0.8) (1.2) Cash Payments for Restructuring Charges and Exit Costs (1.1) (2.6) (3.0) (1.8) (1.1) (1.7) Cash Payments for Share‐Based Compensation (1.9) (3.6) (4.6) (1.8) (5.1) (3.1) Deferred Compensation Plan Valuation Adjustments (1.0) 2.6 1.6 2.1 (2.2) 0.8 Other Nonoperating Expense (Income), Net 0.6 (2.8) (4.2) (15.2) (52.6) 9.5 Gains (Losses) on Investments 0.0 0.2 0.1 (0.0) (0.3) 0.1 Gains (Losses) on Early Termination of Debt and Leases 0.2 0.0 (0.2) 0.5 0.0 - Amortization of Deferred Financing Costs (0.6) (0.6) (0.9) (1.1) (0.6) (0.5) Gains (Losses) and Amortization on Interest Rate Swap Derivatives, Net - - 2.2 12.6 55.0 (10.8) Interest Expense, Net 20.7 18.5 18.0 15.1 13.8 13.3 Cash Interest Expense, Net3 (19.6) (17.6) (18.0) (17.2) (14.9) (12.4) Deferred Income Tax Expense (6.2) (16.0) (4.0) (14.1) (14.7) (0.4) Decrease (Increase) in Tax Valuation Allowance (0.1) 2.9 3.0 5.0 (0.5) - Provision for (Benefit from) Income Taxes 8.6 31.8 (2.0) 26.0 24.7 5.3 Income Taxes Paid, Net (3.3) (24.1) (0.0) (9.9) (9.3) (6.5) Changes in Operating Assets and Liabilities Receivables 4.7 2.0 (6.4) (1.4) 5.9 (8.2) Inventories (0.1) (1.7) (0.1) 3.9 0.5 (3.2) Other Current assets (0.9) 4.1 3.9 (7.5) 1.1 (0.7) Other Noncurrent Assets (0.0) 4.6 1.8 1.9 2.1 0.9 Operating Lease Assets and Liabilities - 0.6 (0.8) 1.5 0.7 0.5 Accounts Payable 5.1 5.2 10.7 (6.6) (3.9) 7.1 Other Accrued Liabilities (0.8) 10.0 9.1 (15.5) 8.8 1.3 Other Noncurrent Liabilities 4.4 (1.9) 5.5 5.5 6.5 2.1 Adjusted Free Cash Flow $50.0 $29.8 $1.6 $40.8 $40.7 $37.3 ¹ Includes 53 operating weeks. 2 For 2022, amounts include cash paid for the acquisition of a Denny's franchise restaurant and exclude capital paid for the acquisition of Keke's. For the year-to-date period ended September 27, 2023, amounts include cash paid for the acquisition of a piece of real estate. 3 Includes cash interest expense (income), net and cash payments (receipts) of approximately $1.9 million, $3.3 million, $1.8 million and ($0.2) million for dedesignated interest rate swap derivatives for full year 2020, 2021, 2022 and year-to-date 2023, respectively. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO NON- GAAP FINANCIAL MEASURES

22 $ Millions (except per share amounts) 2018 2019 20201 2021 2022 YTD Sep 2023 Adjusted EBITDA $105.3 $96.8 $26.6 $85.6 $77.5 $62.9 Adjusted EBITDA Margin % 16.7% 17.9% 9.2% 21.5% 17.0% 18.0% Cash Interest Expense, Net2 (19.6) (17.6) (18.0) (17.2) (14.9) (12.4) Cash Paid for Income Taxes, Net (3.3) (24.1) (0.0) (9.9) (9.3) (6.5) Cash Paid for Capital Expenditures and Acquisition of Restaurants and Real Estate3 (32.4) (25.3) (7.0) (17.7) (12.6) (6.7) Adjusted Free Cash Flow $50.0 $29.8 $1.6 $40.8 $40.7 $37.3 Net Income (Loss) $43.7 $117.4 ($5.1) $78.1 $74.7 $17.0 (Gains) Losses and Amort. on Interest Rate Swap Derivatives, Net - - (2.2) (12.6) (55.0) 10.8 (Gains) Losses on Sales of Assets and Other, Net (0.5) (93.6) (4.7) (47.8) (3.4) (2.1) Impairment Charges 1.6 - 4.1 0.4 1.0 1.8 Tax Effect4 (0.2) 24.1 0.7 15.0 14.3 (2.5) Adjusted Net Income (Loss) $44.6 $47.9 ($7.2) $33.1 $31.6 $25.1 Diluted Net Income (Loss) Per Share $0.67 $1.90 ($0.08) $1.19 $1.23 $0.30 Adjustments Per Share $0.01 ($1.13) ($0.04) ($0.69) ($0.71) $0.14 Adjusted Net Income (Loss) Per Share $0.68 $0.77 ($0.12) $0.50 $0.52 $0.44 Diluted Weighted Average Shares Outstanding (000’s) 65,562 61,833 60,812 65,573 60,879 56,973 1 Includes 53 operating weeks. 2 Includes cash interest expense (income), net and cash (receipts) payments of approximately $1.9 million, $3.3 million, $1.8 million and ($0.2) million for dedesignated interest rate swap derivatives for full year 2020, 2021, 2022 and year-to-date 2023, respectively. 3 For 2022, amount includes cash paid for capital expenditures and the acquisition of a Denny's franchise restaurant, and excludes capital paid for the acquisition of Keke's. For the year-to-date period ended September 27, 2023, amounts include cash paid for capital expenditures and the acquisition of a piece of real estate. 4 Tax adjustments for full year 2018 use full year effective tax rates of 16.4%. Tax adjustments for the gains on sales of assets and other, net in 2019 are calculated using an effective rate of 25.7%. Tax adjustments for full year 2020, 2021, 2022 and year-to-date 2023 reflect an effective tax rate of 25.6%, 25.0%, 24.9%, and 23.3%, respectively. RECONCILIATION OF NET INCOME (LOSS) AND NET CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FINANCIAL MEASURES

23 $ Millions 2018 2019 20201 2021 2022 YTD Sep 2023 Operating Income $73.6 $165.0 $6.7 $104.1 $60.6 $45.1 General and Administrative Expenses 63.8 69.0 55.0 68.7 67.2 58.5 Depreciation and Amortization 27.0 19.8 16.2 15.4 14.9 10.9 Operating (Gains) Losses and Other Charges, Net 2.6 (91.2) 1.8 (46.1) (1.0) 2.5 Restaurant-Level Operating Margin $167.1 $162.7 $79.7 $142.1 $141.6 $117.0 Restaurant-Level Operating Margin Consists Of: Company Restaurant Operating Margin 63.2 48.0 3.6 28.1 20.3 22.5 Franchise Operating Margin 104.0 114.7 76.1 114.0 121.3 94.4 Restaurant-Level Operating Margin $167.1 $162.7 $79.7 $142.1 $141.6 $117.0 𝟏 Includes 53 operating weeks. The Company believes that, in addition to GAAP measures, certain other non-GAAP financial measures are appropriate indicators to assist in the evaluation of restaurant-level operating efficiency and performance of ongoing restaurant-level operations. The Company uses Restaurant-level Operating Margin, Company Restaurant Operating Margin and Franchise Operating Margin internally as performance measures for planning purposes, including the preparation of annual operating budgets, and these three non-GAAP measures are used to evaluate operating effectiveness. The Company defines Restaurant-level Operating Margin as operating income excluding the following three items: general and administrative expenses, depreciation and amortization, and operating (gains), losses and other charges, net. Restaurant-level Operating Margin is presented as a percent of total operating revenue. The Company excludes general and administrative expenses, which include primarily non-restaurant-level costs associated with support of company and franchised restaurants and other activities at their corporate office. The Company excludes depreciation and amortization expense, substantially all of which is related to company restaurant-level assets, because such expenses represent historical sunk costs which do not reflect current cash outlays for the restaurants. The Company excludes special items, included within operating (gains), losses and other charges, net, to provide investors with a clearer perspective of its ongoing operating performance and a more relevant comparison to prior period results. Restaurant-level Operating Margin is the total of Company Restaurant Operating Margin and Franchise Operating Margin. The Company defines Company Restaurant Operating Margin as company restaurant sales less costs of company restaurant sales (which include product costs, company restaurant level payroll and benefits, occupancy costs, and other operating costs including utilities, repairs and maintenance, marketing and other expenses) and presents it as a percent of company restaurant sales. The Company defines Franchise Operating Margin as franchise and license revenue (which includes franchise royalties and other non-food and beverage revenue streams such as initial franchise and other fees, advertising revenue and occupancy revenue) less costs of franchise and license revenue and presents it as a percent of franchise and license revenue. These non-GAAP financial measures provide a meaningful comparison between periods and enable investors to focus on the performance of restaurant-level operations by excluding revenues and costs unrelated to food and beverage sales in addition to corporate general and administrative expense, depreciation and amortization, and operating (gains), losses and other charges, net. However, each of these non-GAAP financial measures should be considered as a supplement to, not a substitute for, operating income, net income or other financial performance measures prepared in accordance with U.S. generally accepted accounting principles. Restaurant-level Operating Margin, Company Restaurant Operating Margin and Franchise Operating Margin do not accrue directly to the benefit of shareholders because of the aforementioned excluded items and are not indicative of the overall results for the Company. RECONCILIATION OF OPERATING INCOME TO NON-GAAP FINANCIAL MEASURES