Denny’s Corporation Reports Results for Third Quarter 2012

  Denny’s Corporation Reports Results for Third Quarter 2012

                  - Adjusted Income Before Taxes* Grows 9% -

- Achieves Sixth Consecutive Quarter of Positive System-wide Same-Store Sales
                                      -

Business Wire

SPARTANBURG, S.C. -- October 30, 2012

Denny’s Corporation (NASDAQ: DENN), franchisor and operator of one of
America's largest full-service restaurant chains, today reported results for
its third quarter ended September 26, 2012.

Third Quarter Summary

  *System-wide same-store sales grew 0.4%, which marks the sixth consecutive
    quarter that system-wide same-store sales have been positive.
  *Opened 12 franchised units, including the first international university
    unit located in Canada at the Southern Alberta Institute of Technology.
  *Signed first international development agreement in South America for 10
    units in Chile.
  *Franchise operating margin increased $1.0 million to $22.3 million while
    franchise operating margin (as a percentage of franchise and license
    revenue) was 64.9%.
  *Company restaurant operating margin increased 0.6 percentage points to
    14.7% compared with the prior year, and was impacted by $1.3 million for
    unfavorable workers’ compensation claims development.
  *Adjusted Income Before Taxes* grew 9.3% to $13.1 million compared with the
    prior year.
  *Net income of $5.4 million, or $0.06 per diluted share, was impacted by
    $2.5 million in impairment expense and $1.3 million for unfavorable
    workers’ compensation claims development.
  *Generated $12.9 million of Free Cash Flow* in the quarter which was used
    to reduce outstanding term loan debt by $7.0 million and repurchase 1.0
    million shares.

John Miller, President and Chief Executive Officer, stated, “We are pleased
that we achieved our sixth consecutive quarter of positive system-wide
same-store sales despite the ongoing challenging consumer economic
environment. We continue to grow and revitalize the brand and are making
progress in our efforts to differentiate Denny’s in the market place. As
Denny’s approaches its 60th anniversary and 1,700th location, we believe that
Denny’s will grow its position as one of the largest American full-service
brands in the world. Our recent partnership to open units in South America is
another step toward that goal. By executing on our strategies to further
reinforce our position as America’s Diner, we will build on our efforts to
grow the brand and increase shareholder value.”

Third Quarter Results

For the third quarter of 2012, franchise and license revenue increased 7.3% to
$34.4 million compared with $32.0 million in the prior year quarter.The $2.3
million increase in franchise revenue was primarily driven by a $1.2 million
increase in occupancy revenue and $0.9 million increase in royalties due to 60
additional equivalent franchise restaurants. Company restaurant sales of $86.6
million decreased $18.1 million due to 49 fewer equivalent company restaurants
compared with the prior year quarter. This decrease reflects the continuing
impact of selling company-owned units to franchisees as part of our FGI
refranchising strategy that will be completed at the end of 2012. Denny’s
total operating revenue, including both company restaurant sales and franchise
revenue, was $120.9 million compared with $136.7 million in the prior year
quarter.

Denny’s opened 12 new franchised units in the third quarter of this year,
including the first international university unit located in Calgary, Canada,
at the Southern Alberta Institute of Technology. During the quarter, Denny’s
closed nine franchised and company restaurants and franchisees purchased five
company-owned restaurants.

Franchise operating margin increased $1.0 million to $22.3 million primarily
due to the increases in occupancy margin and franchise royalties. Franchise
operating margin (as a percentage of franchise and license revenue) was 64.9%,
a decrease of 1.5 percentage points compared with the prior year quarter,
primarily due to an increase in direct franchise costs.

Company restaurant operating margin decreased $2.0 million primarily due to a
$1.3 million unfavorable workers’ compensation claims development and the
impact of selling company-owned units to franchisees. Company restaurant
operating margin (as a percentage of company restaurant sales) was 14.7%, an
increase of 0.6 percentage points compared with the prior year quarter. The
current year quarter included a 1.5 percentage point unfavorable impact from
worker’s compensation claims development.

Total general and administrative expenses increased $1.4 million compared with
the prior year quarter primarily due to higher performance-based compensation
accruals.

Depreciation and amortization expense decreased by $1.7 million compared with
the prior year quarter, primarily as a result of the sale of restaurants over
the past two years. Net operating gains, losses and other charges, which
include restructuring charges, exit costs, impairment charges and gains or
losses on the sale of assets, decreased $1.6 million in the quarter. The
decrease was primarily the result of lower gains on the sale of company-owned
units to franchisees and higher restructuring costs.

Interest expense decreased $1.7 million to $3.1 million as a result of a $37.4
million reduction in total gross debt over the last 12 months and lower
interest rates under the refinanced credit facility.

Adjusted Income Before Taxes*, Denny’s target metric for earnings, increased
9.3% to $13.1 million compared with the prior year quarter Adjusted Income
Before Taxes* of $12.0 million.

In the third quarter, the provision for income taxes increased $2.8 million,
primarily due to a higher effective tax rate of 37.4% compared to 4.8%
effective tax rate in the prior year quarter. The change in the effective tax
rate compared to the prior year resulted from the release of a substantial
portion of the valuation allowance on certain deferred tax assets based on our
improved historical and projected pre-tax income. Due to the use of net
operating loss and tax credit carryforwards, the Company only paid $0.5
million in cash taxes in the third quarter.

Denny’s net income was $5.4 million for the third quarter 2012, or $0.06 per
diluted share, compared with prior year period net income of $8.0 million, or
$0.08 per diluted share. Net income was impacted by $2.5 million in impairment
expense and $1.3 million for unfavorable workers’ compensation claims
development.

In the first three quarters of 2012, Denny’s has generated $41.5 million of
Free Cash Flow* which the Company has used to reduce its outstanding term loan
by $22.0 million and repurchase 2.4 million shares. As of October 26, 2012,
the Company has repurchased approximately 10 million shares since initiating a
share repurchase strategy and now has 5 million shares remaining in its
current authorized share repurchase initiative.

Business Outlook

Mark Wolfinger, Executive Vice President, Chief Administrative Officer and
Chief Financial Officer, stated, “The continuous improvements we are making to
our franchised-focused business model are reflected in our results where we
have been able to generate new unit growth, positive same-store sales, and
growing profitability. Our franchise-focused business model provides financial
stability and flexibility enabling us to navigate the challenging environment
while continuing to return value to shareholders through debt repayment and
share repurchases.”

Based on year-to-date results and management’s expectations at this time,
Denny’s is updating its full-year 2012 financial guidance to reflect the third
quarter results and current thinking for the fourth quarter. The Company
anticipates that the system will achieve its second consecutive year of
positive same-store sales. Despite the challenging consumer economic
environment, the company expects Adjusted Income Before Taxes* to grow more
than 20% this year while generating around $50 million of Free Cash Flow*.

Component              Full Year 2012 Guidance
                        Previous**                        Current
Franchise Same-Store    1.0% to 3.0%                       1.0% to 1.5%
Sales
Company Same-Store      0.0% to 2.0%                       0.0% to 0.5%
Sales
                        45 – 50                            46 – 48
New System Units
                        (includes 1 company-owned unit)    (includes 1
                                                           company-owned unit)
Adjusted EBITDA*        $80M to $84M                       $77M to $80M
Adjusted Income         $45M to $49M                       $45M to $48M
Before Taxes*
                        $12.5M to $13.5M
Interest Expense, net                                      No Change
                        (includes $10.5M to $11.5M of
                        net cash interest expense)
Cash Capital            $15M to $16M                       No Change
Expenditure
Cash Taxes              $3M to $4M                         $2M to $2.5M
Free Cash Flow*         $51M to $55M                       $49M to $52M

* Please refer to the historical reconciliation of net income to Adjusted
Income Before Taxes, Adjusted EBITDA, and Free Cash Flow included in the
tables below.

** As announced in First Quarter 2012 Earnings Release on April 30, 2012 and
reiterated in Second Quarter 2012 Earnings Release on July 31, 2012.

Further Information

Denny’s will provide further commentary on the results for the third quarter
of 2012 on its quarterly investor conference call today, Tuesday, October 30,
2012 at 5:00 p.m. ET. Interested parties are invited to listen to a live
broadcast of the conference call accessible through the investor relations
section of Denny’s website at ir.dennys.com. A replay of the call may be
accessed at the same location later in the day and will remain available for
30 days.

Denny's is the franchisor and operator of one of America's largest
full-service restaurant chains, based on number of units. As of September 26,
2012, Denny’s had 1,687 franchised, licensed, and company-owned restaurants
across the United States, Canada, Costa Rica, Mexico, Honduras, Guam, Curaçao,
Puerto Rico, Dominican Republic and New Zealand. For further information on
Denny's, including news releases, links to SEC filings and other financial
information, please visit the Denny's investor relations website.

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 our 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 “expects”, “anticipates”,
“believes”, “intends”, “plans”, “hopes”, 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: the competitive pressures from within the restaurant
industry; the level of success of the Company’s strategic and operating
initiatives, advertising and promotional efforts; adverse publicity; changes
in business strategy or development plans; terms and availability of capital;
regional weather conditions; overall changes in the general economy,
particularly at the retail level; political environment (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, 2011 (and in the Company’s subsequent quarterly reports on
Form 10-Q).

                                                            
DENNY’S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
                                                               
                                                   Quarter Ended
(In thousands, except per share amounts)            9/26/12    9/28/11
Revenue:
Company restaurant sales                           $ 86,575    $ 104,659
Franchise and license revenue                       34,370     32,023
Total operating revenue                             120,945    136,682
Costs of company restaurant sales                    73,808      89,887
Costs of franchise and license revenue               12,078      10,747
General and administrative expenses                  14,702      13,335
Depreciation and amortization                        5,287       6,955
Operating (gains), losses and other charges, net    3,380      1,791
Total operating costs and expenses                  109,255    122,715
Operating income                                    11,690     13,967
Other expenses:
Interest expense, net                                3,088       4,796
Other nonoperating expense, net                     38         780
Total other expenses, net                           3,126      5,576
Net income before income taxes                       8,564       8,391
Provision for income taxes                          3,201      406
Net income                                         $ 5,363     $ 7,985
                                                               
                                                               
Net income per share:
Basic                                              $ 0.06      $ 0.08
Diluted                                            $ 0.06      $ 0.08
                                                               
Weighted average shares outstanding:
Basic                                               94,705     96,997
Diluted                                             96,745     98,746
                                                               
Comprehensive income                               $ 5,631     $ 7,985

                                                              
DENNY’S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
                                                                 
                                                   Three Quarters Ended
(In thousands, except per share amounts)            9/26/12     9/28/11
Revenue:
Company restaurant sales                           $ 271,977     $ 313,235
Franchise and license revenue                       100,437     95,105
Total operating revenue                             372,414     408,340
Costs of company restaurant sales                    231,506       271,989
Costs of franchise and license revenue               34,776        33,397
General and administrative expenses                  45,150        41,566
Depreciation and amortization                        17,174        21,377
Operating (gains), losses and other charges, net    (794    )    843
Total operating costs and expenses                  327,812     369,172
Operating income                                    44,602      39,168
Other expenses:
Interest expense, net                                10,537        15,390
Other nonoperating expense, net                     7,941       2,526
Total other expenses, net                           18,478      17,916
Net income before income taxes                       26,124        21,252
Provision for income taxes                          10,295      1,013
Net income                                         $ 15,829     $ 20,239
                                                                 
                                                                 
Net income per share:
Basic                                              $ 0.17       $ 0.21
Diluted                                            $ 0.16       $ 0.20
                                                                 
Weighted average shares outstanding:
Basic                                               95,472      98,132
Diluted                                             97,196      100,203
                                                                 
Comprehensive income                               $ 16,633     $ 20,239


DENNY’S CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
                                                               
(In thousands)                                      9/26/12      12/28/11 
Assets
Current assets
Cash and cash equivalents                          $ 24,148       $ 13,740
Receivables, net                                     13,614         14,971
Assets held for sale                                 1,582          2,351
Current deferred tax asset                           18,706         15,519
Other                                               10,183       14,712   
                                                    68,233       61,293   
Property, net                                        103,235        112,772
Goodwill                                             30,402         30,764
Intangible assets, net                               49,208         50,921
Noncurrent deferred tax asset                        47,943         60,636
Other assets                                        26,833       34,115   
Total assets                                       $ 325,854     $ 350,501  
                                                                  
Liabilities
Current liabilities
Current maturities of long-term debt               $ 9,781        $ 2,591
Current maturities of capital lease obligations      4,264          4,380
Accounts payable                                     17,604         25,935
Other current liabilities                           53,673       54,289   
                                                    85,322       87,195   
Long-term liabilities
Long-term debt, less current maturities              166,250        193,257
Capital lease obligations, less current              16,239         18,077
maturities
Other                                               57,480       61,648   
                                                    239,969      272,982  
Total liabilities                                   325,291      360,177  
                                                                  
Shareholders' equity
Common stock                                         1,037          1,027
Paid-in capital                                      561,665        557,396
Deficit                                              (501,998 )     (517,827 )
Accumulated other comprehensive loss, net of tax     (24,009  )     (24,813  )
Treasury stock                                      (36,132  )    (25,459  )
Total shareholders' equity                          563          (9,676   )
Total liabilities and shareholders' equity         $ 325,854     $ 350,501  
                                                                  
                                                                  
Debt Balances
(In thousands)                                      9/26/12      12/28/11 
Credit facility term loan due 2017, net of         $ 176,000      $ 195,749
discount of $0 and $2,251, respectively
Capital leases and other debt                       20,534       22,556   
Total debt                                         $ 196,534     $ 218,305  

                                                             
DENNY’S CORPORATION
Income, EBITDA, Free Cash Flow and G&A Reconciliations
(Unaudited)
                                                                   
Income and EBITDA        Quarter Ended               Three Quarters Ended
Reconciliation
(In thousands)            9/26/12     9/28/11     9/26/12     9/28/11 
Net income               $ 5,363       $ 7,985       $ 15,829      $ 20,239
                                                                   
Provision for (benefit     3,201         406           10,295        1,013
from) income taxes
Operating (gains),
losses and other           3,380         1,791         (794    )     843
charges, net
Other nonoperating         38            780           7,941         2,526
expense, net
Share-based                1,128         1,031         2,794         3,180
compensation
                                                                
Adjusted Income Before   $ 13,110     $ 11,993     $ 36,065     $ 27,801  
Taxes ^ (1)
                                                                   
Interest expense, net      3,088         4,796         10,537        15,390
Depreciation and           5,287         6,955         17,174        21,377
amortization
Cash payments for
restructuring charges      (1,521  )     (633    )     (2,845  )     (2,086  )
and exit costs
Cash payments for
share-based                (294    )     (495    )     (649    )     (594    )
compensation
                                                                
Adjusted EBITDA ^ (1)    $ 19,670     $ 22,616     $ 60,282     $ 61,888  
                                                                   
Cash interest expense,     (2,719  )     (4,027  )     (9,048  )     (13,112 )
net
Cash paid for income       (500    )     (251    )     (1,865  )     (988    )
taxes, net
Cash paid for capital      (3,567  )     (4,073  )     (7,846  )     (12,927 )
expenditures
                                                                
Free Cash Flow ^(1)      $ 12,884     $ 14,265     $ 41,523     $ 34,861  
                                                                   
General and
Administrative           Quarter Ended               Three Quarters Ended
Expenses
Reconciliation
(In thousands)            9/26/12     9/28/11     9/26/12     9/28/11 
Share-based              $ 1,128       $ 1,031       $ 2,794       $ 3,180
compensation
Other general and
administrative            13,574      12,304      42,356      38,386  
expenses
Total general and
administrative           $ 14,702     $ 13,335     $ 45,150     $ 41,566  
expenses
                                                                   
                                                                   

        We believe that, in addition to other financial measures, Adjusted
        Income Before Taxes, Adjusted EBITDA and Free Cash Flow are
        appropriate indicators to assist in the evaluation of our operating
        performance on a period-to-period basis. We also use Adjusted Income,
        Adjusted EBITDA and Free Cash Flow internally as performance measures
        for planning purposes, including the preparation of annual operating
        budgets, and for compensation purposes, including bonuses for certain
        employees. Adjusted EBITDA is also used to evaluate our ability to
        service debt because the excluded charges do not have an impact on our
(1)   prospective debt servicing capability and these adjustments are
        contemplated in our credit facility for the computation of our debt
        covenant ratios. Free Cash Flow, defined as Adjusted EBITDA less cash
        portion of interest expense net of interest income, capital
        expenditures, and cash taxes, is used to evaluate operating
        effectiveness and decisions regarding the allocation of resources.
        However, Adjusted Income, Adjusted EBITDA and Free Cash Flow 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.


DENNY’S CORPORATION
Operating Margins
(Unaudited)
                                                               
                                     Quarter Ended
(In thousands)                       9/26/12              9/28/11           
Company restaurant operations:
^(2)
  Company restaurant sales           $ 86,575    100.0 %   $ 104,659   100.0 %
  Costs of company restaurant
  sales:
         Product costs                 21,449    24.8  %     25,847    24.7  %
         Payroll and benefits          34,409    39.7  %     41,261    39.4  %
         Occupancy                     5,780     6.7   %     6,928     6.6   %
         Other operating costs:
               Utilities               3,760     4.3   %     4,762     4.6   %
               Repairs and             1,578     1.8   %     1,754     1.7   %
               maintenance
               Marketing               3,213     3.7   %     3,926     3.8   %
               Legal settlements       197       0.2   %     607       0.6   %
               Other                  3,422    4.0   %    4,802    4.6   %
  Total costs of company             $ 73,808   85.3  %   $ 89,887   85.9  %
  restaurant sales
  Company restaurant operating       $ 12,767   14.7  %   $ 14,772   14.1  %
  margin ^(3)
                                                                       
Franchise operations: ^(4)
  Franchise and license revenue
  Royalty and license revenue        $ 21,333    62.1  %   $ 20,449    63.9  %
  Initial and other fee revenue        728       2.1   %     437       1.3   %
  Occupancy revenue                   12,309   35.8  %    11,137   34.8  %
  Total franchise and license        $ 34,370   100.0 %   $ 32,023   100.0 %
  revenue
                                                                       
  Costs of franchise and license
  revenue
  Occupancy costs                    $ 9,027     26.2  %   $ 8,349     26.1  %
  Direct franchise costs              3,051    8.9   %    2,398    7.5   %
  Total costs of franchise and       $ 12,078   35.1  %   $ 10,747   33.6  %
  license revenue
  Franchise operating margin ^(3)    $ 22,292   64.9  %   $ 21,276   66.4  %
                                                                       
Total operating revenue ^(1)         $ 120,945   100.0 %   $ 136,682   100.0 %
Total costs of operating revenue      85,886   71.0  %    100,634  73.6  %
^(1)
Total operating margin ^(1)(3)       $ 35,059   29.0  %   $ 36,048   26.4  %
                                                                       
Other operating expenses: ^(1)(3)
  General and administrative         $ 14,702    12.2  %   $ 13,335    9.8   %
  expenses
  Depreciation and amortization        5,287     4.4   %     6,955     5.1   %
  Operating gains, losses and         3,380    2.8   %    1,791    1.3   %
  other charges, net
  Total other operating expenses     $ 23,369   19.3  %   $ 22,081   16.2  %
                                                                  
Operating income ^(1)                $ 11,690   9.7   %   $ 13,967   10.2  %
                                                                       

(1)   As a percentage of total operating revenue
(2)     As a percentage of company restaurant sales
        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
(3)     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 U.S. generally accepted accounting principles.
(4)     As a percentage of franchise and license revenue


DENNY’S CORPORATION
Operating Margins
(Unaudited)
                                                               
                                  Three Quarters Ended
(In thousands)                    9/26/12                 9/28/11           
Company restaurant operations:
^(2)
  Company restaurant sales        $ 271,977     100.0 %    $ 313,235   100.0 %
  Costs of company restaurant
  sales:
        Product costs               67,684      24.9  %      77,095    24.6  %
        Payroll and benefits        108,779     40.0  %      127,876   40.8  %
        Occupancy                   17,776      6.5   %      20,581    6.6   %
        Other operating costs:
            Utilities               11,066      4.1   %      13,741    4.4   %
            Repairs and             4,901       1.8   %      5,485     1.8   %
            maintenance
            Marketing               10,138      3.7   %      11,738    3.7   %
            Legal settlements       366         0.1   %      671       0.2   %
            Other                  10,796    4.0   %     14,802   4.7   %
  Total costs of company          $ 231,506   85.1  %    $ 271,989  86.8  %
  restaurant sales
  Company restaurant operating    $ 40,471    14.9  %    $ 41,246   13.2  %
  margin ^(3)
                                                                       
Franchise operations: ^(4)
  Franchise and license revenue
  Royalty and license revenue     $ 62,734      62.5  %    $ 59,669    62.7  %
  Initial and other fee revenue     2,167       2.2   %      2,050     2.2   %
  Occupancy revenue                35,536    35.3  %     33,386   35.1  %
  Total franchise and license     $ 100,437   100.0 %    $ 95,105   100.0 %
  revenue
                                                                       
  Costs of franchise and
  license revenue
  Occupancy costs                 $ 26,455      26.3  %    $ 25,567    26.9  %
  Direct franchise costs           8,321     8.3   %     7,830    8.2   %
  Total costs of franchise and    $ 34,776    34.6  %    $ 33,397   35.1  %
  license revenue
  Franchise operating margin      $ 65,661    65.4  %    $ 61,708   64.9  %
  ^(3)
                                                                       
Total operating revenue ^(1)      $ 372,414     100.0 %    $ 408,340   100.0 %
Total costs of operating           266,282   71.5  %     305,386  74.8  %
revenue ^(1)
Total operating margin ^(1)(3)    $ 106,132   28.5  %    $ 102,954  25.2  %
                                                                       
Other operating expenses:
^(1)(3)
  General and administrative      $ 45,150      12.1  %    $ 41,566    10.2  %
  expenses
  Depreciation and amortization     17,174      4.6   %      21,377    5.2   %
  Operating gains, losses and      (794    )  (0.2  %)    843      0.2   %
  other charges, net
  Total other operating           $ 61,530    16.5  %    $ 63,786   15.6  %
  expenses
                                                                  
Operating income ^(1)             $ 44,602    12.0  %    $ 39,168   9.6   %
                                                                       

(1)   As a percentage of total operating revenue
(2)     As a percentage of company restaurant sales
        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
(3)     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 U.S. generally accepted accounting principles.
(4)     As a percentage of franchise and license revenue


DENNY’S CORPORATION
Statistical Data
(Unaudited)
                                                                
Same-Store Sales               Quarter Ended            Three Quarters Ended
(increase/(decrease) vs.       9/26/12     9/28/11      9/26/12      9/28/11
prior year)
Company Restaurants              (0.5 %)     1.1   %      0.1   %      0.7   %
Franchised Restaurants           0.6  %      0.8   %      1.4   %      0.3   %
System-wide Restaurants          0.4  %      0.9   %      1.1   %      0.4   %
                                                                     
Company Restaurant Sales
Detail
Guest Check Average              1.8  %      1.3   %      1.9   %      0.8   %
Guest Counts                     (2.2 %)     (0.2  %)     (1.8  %)     0.0   %
                                                                     
                                                                     
Average Unit Sales             Quarter Ended            Three Quarters Ended
(In thousands)                 9/26/12     9/28/11      9/26/12      9/28/11
Company Restaurants            $ 493       $ 468        $ 1,447      $ 1,383
Franchised Restaurants         $ 358       $ 355        $ 1,061      $ 1,043
                                                                     
                                           Franchised
Restaurant Unit Activity       Company     & Licensed   Total
Ending Units 6/27/12             177         1,507        1,684
Units Opened                     0           12           12
Units Refranchised               (5   )      5            0
Units Closed                    (1   )     (8    )     (9    )
Net Change                      (6   )     9          3     
Ending Units 9/26/12            171       1,516      1,687 
                                                                     
Equivalent Units
Third Quarter 2012               175         1,511        1,686
Third Quarter 2011              224       1,451      1,675 
                                (49  )     60         11    
                                                                     
                                                                     
                                           Franchised
Restaurant Unit Activity       Company     & Licensed   Total
Ending Units 12/28/11            206         1,479        1,685
Units Opened                     0           27           27
Units Refranchised               (28  )      28           0
Units Closed                    (7   )     (18   )     (25   )
Net Change                      (35  )     37         2     
Ending Units 9/26/12            171       1,516      1,687 
                                                                     
Equivalent Units
Year-to-Date 2012                188         1,495        1,683
Year-to-Date 2011               226       1,441      1,667 
                                (38  )     54         16    

Contact:

Investor Contact:
Denny’s Corporation
Whit Kincaid, 877-784-7167
or
Media Contact:
ICR
Liz Brady, 646-277-1226
 
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