Denny's Corporation Reports Results for Fourth Quarter and Full Year 2012

Denny's Corporation Reports Results for Fourth Quarter and Full Year 2012

     - Achieves Second Consecutive Year of Positive Franchise and Company
                              Same-Store Sales -

        - 2012 Full Year Adjusted Income Before Taxes* Increased 26% -

SPARTANBURG, S.C., Feb. 20, 2013 (GLOBE NEWSWIRE) -- Denny's Corporation
(Nasdaq:DENN), franchisor and operator of one of America's largest
full-service restaurant chains, today reported results for its fourth quarter
and full year ended December 26, 2012.

Full Year Summary

  oSystem-wide same-store sales grew 1.3%, comprised of a 1.5% increase at
    franchised restaurants and a 0.2% increase at company restaurants.
  oOpened 40 new system-wide restaurants, including six international
    locations.
  oRefranchised 36 company restaurants completing the Franchise Growth
    Initiative started in 2007, achieving our target of operating
    approximately 10% of the Denny's system as company restaurants.
  oAdjusted EBITDA* margin, as a percentage of total operating revenue,
    increased 0.8 percentage points to 16.0% compared with the prior year.
  oNet income of $22.3 million, or $0.23 per diluted share, was impacted by a
    $7.9 million charge to other nonoperating expense as a result of
    refinancing our credit facility, $3.7 million of impairment expense, and
    $7.1 million in gains on the sale of assets.
  oAdjusted Income Before Taxes* grew 26.2% to $47.0 million compared with
    the prior year.
  oGenerated $48.8 million of Free Cash Flow* used to reduce outstanding term
    loan debt by $28.0 million and repurchase 4.8 million shares for $22.2
    million.

Fourth Quarter Summary

  oSystem-wide same-store sales grew 1.7%, comprised of a 2.0% increase at
    franchised restaurants and a 0.5% increase at company restaurants.
  oOpened 13 new system-wide restaurants, including one company restaurant in
    Las Vegas and one international restaurant located in San Pedro Sula,
    Honduras.
  oAcquired one franchised restaurant located in the San Diego market for
    $1.4 million.
  oNet income of $6.5 million, or $0.07 per diluted share, was impacted by
    $0.7 million of impairment expense.
  oAdjusted Income Before Taxes* grew 15.6% to $10.9 million compared with
    the prior year quarter.

John Miller, President and Chief Executive Officer, stated, "Denny's delivered
another year of solid results while generating our second consecutive year of
positive company and franchise same-store sales. This is a testament to our
positioning as America's Diner, emphasizing everyday affordability with
attractive Limited Time Only products. Although we are encouraged about the
progress we have made thus far, we believe there is much work to be done in
our revitalization plan to drive additional value. In our efforts to increase
long-term shareholder value, we will continue to work closely with our
franchisees to increase sales, profitability and new restaurant growth through
our franchised-focused business model.By balancing our capital allocation
between reinvestments in the brand, whether it's through our franchisees or
our company restaurants, strengthening our balance sheet, and returning value
to shareholders, we will continue to grow value for all stakeholders."

Fourth Quarter Results

For the fourth quarter of 2012, franchise and license revenue increased 7.5%
to $34.2 million compared with $31.8 million in the prior year quarter. The
$2.4 million increase in franchise revenue was primarily driven by a $1.5
million increase in royalties and a $1.1 million increase in occupancy revenue
due to 55 additional equivalent franchise restaurants. Company restaurant
sales of $81.7 million decreased $16.6 million due to 49 fewer equivalent
company restaurants.This decrease reflects the continuing impact of selling
company restaurants to franchisees as part of our FGI refranchising strategy
that was completed at the end of 2012.

Denny's opened 12 new franchised restaurants in the fourth quarter of this
year, including the third location in Honduras. The Company opened one
company restaurant in the quarter in downtown Las Vegas and acquired one
franchised restaurant location in the San Diego market for $1.4 million.
During the quarter, Denny's closed 11 franchised restaurants, one company
restaurant and sold eight company restaurants to franchisees.

Franchise operating margin increased $1.5 million to $22.3 million primarily
due to the increases in franchise royalties and occupancy margin. Franchise
operating margin (as a percentage of franchise and license revenue) was 65.2%,
a decrease of 0.3 percentage points.The decrease was primarily due to lower
initial fee revenue from refranchising fewer restaurants.

Company restaurant operating margin decreased $1.6 million primarily due to
the impact of selling company restaurants to franchisees. However, company
restaurant operating margin (as a percentage of company restaurant sales) was
13.5%, an increase of 0.7 percentage points. The increase was primarily
driven by lower payroll and benefits costs and lower other operating costs,
partially offset by increases in product costs.

Total general and administrative expenses increased $1.4 million primarily due
to higher performance-based compensation expenses. Depreciation and
amortization expense decreased by $1.5 million primarily as a result of the
sale of restaurants over the past two years. Interest expense decreased by
$1.8 million to $2.8 million as a result of a $30.4 million reduction in total
gross debt over the last 12 months and lower interest rates under our
refinanced credit facility.

Adjusted Income Before Taxes*, Denny's target metric for earnings, increased
15.6% to $10.9 million compared with $9.5 million in the prior year quarter.
In the fourth quarter, the provision for income taxes was $2.5 million,
reflecting an annual effective tax rate of 36.4%. Due to the use of net
operating loss and tax credit carryforwards, the Company paid only $0.2
million in cash taxes in the fourth quarter and $2.0 million in 2012.

Denny's net income was $6.5 million for the fourth quarter 2012, or $0.07 per
diluted share, which was impacted by $0.7 million of impairment expense.
Prior year quarter net income of $92.0 million, or $0.94 per diluted share,
was impacted by the recording of an $89.1 million, or $0.91 per diluted share,
net deferred tax benefit resulting 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.

For the full year 2012, Denny's generated $48.8 million of Free Cash Flow*
which the Company used to reduce its outstanding term loan by $28.0 million
and to return value to shareholders by repurchasing 4.8 million shares for
$22.2 million. Since initiatingour share repurchase strategy in November
2010, the Company has repurchased 11.5 million shares and now has 3.5 million
shares remaining in its current authorized share repurchase initiative.

Mark Wolfinger, Executive Vice President, Chief Administrative Officer and
Chief Financial Officer, concluded, "We are pleased that we have reached our
target of being a 90% franchised system, which has enabled us to drive
significant improvements in our financial performance. Our franchise focused
business model enables us to continue to reinvest in the growth of the brand,
pay down debt and repurchase shares. Despite numerous external headwinds
facing the restaurant industry in 2013, we anticipate growing adjusted
earnings per share by at least 10% and generating close to $50 million in Free
Cash Flow* this year, after reinvestments in our company restaurants."

Business Outlook

The Company continues to successfully execute against our Key Objectives
implemented to strengthen and grow our position as one of the largest American
full-service restaurant brands, based on number of restaurants. These
include:

  *Revitalize Denny's image with our "America's Diner" positioning.
  *Increase the growth of the Denny's brand both domestically and
    internationally.
  *Grow profitability and Free Cash Flow* through a primarily
    franchise-focused business model that balances reinvesting in the brand
    with debt repayment and returning cash to shareholders.

The following full year 2013 estimates are based on management's expectations
at this time.

  *System-wide same-store sales growth between 0% and 2%.
  *New restaurant openings (all franchised) between 40 and 45 restaurants
    with net restaurant growth between 5 and 10 restaurants.
  *Total G&A, including share-based compensation, between $59 million and $61
    million.
  *Adjusted EBITDA* between $76 million and $80 million.
  *Cash capital expenditures between $17 million and $19 million, including
    approximately 20 to 25 remodels at company restaurants.
  *Depreciation and amortization between $20 million and $21 million.
  *Net interest expense between $10.5 million and $11.5 million.
  *Cash taxes between $2.5 million and $3.5 million with income tax rate
    between 35% and 40%.
  *Free Cash Flow* between $46 million and $49 million.

* 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.

Further Information

Denny's will provide further commentary on the results for the fourth quarter
and full year 2012 on its quarterly investor conference call today, Wednesday,
February 20, 2013 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 investor.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 restaurants. Denny's
currently has 1,688 franchised, licensed, and company restaurants around the
world with combined sales of $2.5 billion including 1,590 restaurants in the
United States and 98 restaurants in Canada, Costa Rica, Mexico, Honduras,
Guam, Curaçao, Puerto Rico, Dominican Republic and New Zealand. As of December
26, 2012, 1,524 of Denny's restaurants were franchised and 164 restaurants
were company operated. 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 at investor.dennys.com.

The Denny's Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=16562

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)         12/26/2012 12/28/2011
Revenue:                                                   
Company restaurant sales                         $81,733  $98,360
Franchise and license revenue                    34,216     31,834
Total operating revenue                          115,949    130,194
Costs of company restaurant sales                70,700     85,770
Costs of franchise and license revenue           11,899     10,971
General and administrative expenses              15,157     13,786
Depreciation and amortization                    5,130      6,602
Operating (gains), losses and other charges, net 1,276      1,259
Total operating costs and expenses               104,162    118,388
Operating income                                 11,787     11,806
Other expenses:                                            
Interest expense, net                            2,832      4,650
Other nonoperating (income) expense, net         (15)       81
Total other expenses, net                        2,817      4,731
Net income before income taxes                   8,970      7,075
Provision for (benefit from) income taxes        2,490      (84,973)
Net income                                       $6,480   $92,048
                                                          
Net income per share:                                      
Basic                                            $0.07    $0.96
Diluted                                          $0.07    $0.94
                                                          
Weighted average shares outstanding:                       
Basic                                            93,379     96,188
Diluted                                          95,437     97,750
                                                          
Comprehensive income                             $5,490   $86,434


DENNY'S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
                                                          
                                                Fiscal Year Ended
(In thousands, except per share amounts)         12/26/2012 12/28/2011
Revenue:                                                   
Company restaurant sales                         $353,710 $411,595
Franchise and license revenue                    134,653    126,939
Total operating revenue                          488,363    538,534
Costs of company restaurant sales                302,206    357,759
Costs of franchise and license revenue           46,675     44,368
General and administrative expenses              60,307     55,352
Depreciation and amortization                    22,304     27,979
Operating (gains), losses and other charges, net 482        2,102
Total operating costs and expenses               431,974    487,560
Operating income                                 56,389     50,974
Other expenses:                                            
Interest expense, net                            13,369     20,040
Other nonoperating expense, net                  7,926      2,607
Total other expenses, net                        21,295     22,647
Net income before income taxes                   35,094     28,327
Provision for (benefit from) income taxes        12,785     (83,960)
Net income                                       $22,309  $112,287
                                                          
Net income per share:                                      
Basic                                            $0.23    $1.15
Diluted                                          $0.23    $1.13
                                                          
Weighted average shares outstanding:                       
Basic                                            94,949     97,646
Diluted                                          96,754     99,588
                                                          
Comprehensive income                             $22,123  $106,673


DENNY'S CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
                                                                  
(In thousands)                                           12/26/2012 12/28/2011
Assets                                                             
Current assets                                                     
Cash and cash equivalents                                $13,565  $13,740
Receivables, net                                         19,947     14,971
Assets held for sale                                     —          2,351
Current deferred tax asset                               19,807     15,519
Other                                                    11,291     14,712
                                                        64,610     61,293
Property, net                                            107,004    112,772
Goodwill                                                 31,430     30,764
Intangible assets, net                                   48,920     50,921
Noncurrent deferred tax asset                            45,776     60,636
Other assets                                             27,145     34,115
Total assets                                             $324,885 $350,501
                                                                  
Liabilities                                                        
Current liabilities                                                
Current maturities of long-term debt                     $8,500   $2,591
Current maturities of capital lease obligations          4,181      4,380
Accounts payable                                         24,461     25,935
Other current liabilities                                54,682     54,289
                                                        91,824     87,195
Long-term liabilities                                              
Long-term debt, less current maturities                  161,500    193,257
Capital lease obligations, less current maturities       15,953     18,077
Other                                                    60,068     61,648
                                                        237,521    272,982
Total liabilities                                       329,345    360,177
                                                                  
Shareholders' equity                                               
Common stock                                             1,038      1,027
Paid-in capital                                          562,657    557,396
Deficit                                                  (495,518)  (517,827)
Accumulated other comprehensive loss, net of tax         (24,999)   (24,813)
Treasury stock                                           (47,638)   (25,459)
Total shareholders' equity                               (4,460)    (9,676)
Total liabilities and shareholders' equity               $324,885 $350,501
                                                                  
Debt Balances                                                      
(In thousands)                                           12/26/2012 12/28/2011
Credit facility term loan due 2017, net of discount of   $170,000 $195,749
$0 and $2,251, respectively
Capital leases and other debt                            20,134     22,556
Total debt                                               $190,134 $218,305


DENNY'S CORPORATION
Income, EBITDA, Free Cash Flow and G&A Reconciliations
(Unaudited)
                                                             
Income and EBITDA      Quarter Ended               Fiscal Year Ended
Reconciliation
(In thousands)         12/26/2012    12/28/2011    12/26/2012    12/28/2011
Net income             $6,480      $92,048     $22,309     $112,287
                                                             
Provision for (benefit 2,490         (84,973)      12,785        (83,960)
from) income taxes
Operating (gains),
losses and other       1,276         1,259         482           2,102
charges, net
Other nonoperating     (15)          81            7,926         2,607
(income) expense, net
Share-based            702           1,039         3,496         4,219
compensation
                                                             
Adjusted Income Before $10,933     $9,454      $46,998     $37,255
Taxes ^(1)
                                                             
Interest expense, net  2,832         4,650         13,369        20,040
Depreciation and       5,130         6,602         22,304        27,979
amortization
Cash payments for
restructuring charges  (936)         (575)         (3,781)       (2,661)
and exit costs
Cash payments for
share-based            (303)         (209)         (952)         (803)
compensation
                                                             
Adjusted EBITDA ^(1)   $17,656     $19,922     $77,938     $81,810
                                                             
Cash interest expense, (2,505)       (3,907)       (11,553)      (17,019)
net
Cash paid for income   (169)         (136)         (2,034)       (1,124)
taxes, net
Cash paid for capital  (7,740)       (3,162)       (15,586)      (16,089)
expenditures
                                                             
Free Cash Flow ^(1)    $7,242      $12,717     $48,765     $47,578
                                                             
General and
Administrative         Quarter Ended               Fiscal Year Ended
Expenses
Reconciliation
(In thousands)         12/26/2012    12/28/2011    12/26/2012    12/28/2011
Share-based            $702        $1,039      $3,496      $4,219
compensation
Other general and
administrative         14,455        12,747        56,811        51,133
expenses
Total general and
administrative         $15,157     $13,786     $60,307     $55,352
expenses
                                                             
                                                             
(1) 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 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)             12/26/2012                12/28/2011
Company restaurant                                               
operations: ^(2)
Company restaurant sales   $81,733      100.0%     $98,360      100.0%
Costs of company                                                 
restaurant sales:
Product costs              20,789         25.4%      24,701         25.1%
Payroll and benefits       32,524         39.8%      39,698         40.4%
Occupancy                  5,629          6.9%       6,791          6.9%
Other operating costs:                                           
Utilities                  3,292          4.0%       4,310          4.4%
Repairs and maintenance    1,359          1.7%       1,721          1.7%
Marketing                  3,259          4.0%       4,314          4.4%
Legal settlements          316            0.4%       160            0.2%
Other                      3,532          4.3%       4,075          4.1%
Total costs of company     $70,700      86.5%      $85,770      87.2%
restaurant sales
Company restaurant         $11,033      13.5%      $12,590      12.8%
operating margin ^(3)
                                                                
Franchise operations: ^(4)                                       
Franchise and license                                            
revenue
Royalty and license        $ 21,040       61.5%      $ 19,552       61.4%
revenue
Initial and other fee      925            2.7%       1,147          3.6%
revenue
Occupancy revenue          12,251         35.8%      11,135         35.0%
Total franchise and        $34,216      100.0%     $31,834      100.0%
license revenue
                                                                
Costs of franchise and                                           
license revenue
Occupancy costs           $8,946       26.1%      $8,055       25.3%
Direct franchise costs    2,953          8.7%       2,916          9.2%
Total costs of franchise   $11,899      34.8%      $10,971      34.5%
and license revenue
Franchise operating margin $22,317      65.2%      $20,863      65.5%
^(3)
                                                                
Total operating revenue    $115,949     100.0%     $130,194     100.0%
^(1)
Total costs of operating   82,599         71.2%      96,741         74.3%
revenue ^(1)
Total operating margin     $33,350      28.8%      $33,453      25.7%
^(1)(3)
                                                                
Other operating expenses:                                        
^(1)(3)
General and administrative $15,157      13.1%      $13,786      10.6%
expenses
Depreciation and           5,130          4.4%       6,602          5.1%
amortization
Operating gains, losses    1,276          1.1%       1,259          1.0%
and other charges, net
Total other operating      $21,563      18.6%      $21,647      16.6%
expenses
                                                                
Operating income ^(1)      $11,787      10.2%      $11,806      9.1%
                                                                
                                                                
(1) As a percentage of total operating revenue
(2) As a percentage of company restaurant sales
(3) 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 U.S. generally accepted
accounting principles.
(4) As a percentage of franchise and license revenue


DENNY'S CORPORATION
Operating Margins
(Unaudited)
                                                                
                          Fiscal Year Ended
(In thousands)             12/26/2012                12/28/2011
Company restaurant                                               
operations: ^(2)
Company restaurant sales   $353,710     100.0%     $411,595     100.0%
Costs of company                                                 
restaurant sales:
Product costs              88,473         25.0%      101,796        24.7%
Payroll and benefits       141,303        39.9%      167,574        40.7%
Occupancy                  23,405         6.6%       27,372         6.7%
Other operating costs:                                           
Utilities                  14,358         4.1%       18,051         4.4%
Repairs and maintenance    6,259          1.8%       7,207          1.8%
Marketing                  13,397         3.8%       16,052         3.9%
Legal settlements          682            0.2%       831            0.2%
Other                      14,329         4.1%       18,876         4.6%
Total costs of company     $302,206     85.4%      $357,759     86.9%
restaurant sales
Company restaurant         $51,504      14.6%      $53,836      13.1%
operating margin ^(3)
                                                                
Franchise operations: ^(4)                                       
Franchise and license                                            
revenue
Royalty and license        $83,774      62.2%      $79,221      62.4%
revenue
Initial and other fee      3,092          2.3%       3,197          2.5%
revenue
Occupancy revenue          47,787         35.5%      44,521         35.1%
Total franchise and        $134,653     100.0%     $126,939     100.0%
license revenue
                                                                
Costs of franchise and                                           
license revenue
Occupancy costs           $35,401      26.3%      $33,622      26.5%
Direct franchise costs    11,274         8.4%       10,746         8.5%
Total costs of franchise   $46,675      34.7%      $44,368      35.0%
and license revenue
Franchise operating margin $87,978      65.3%      $82,571      65.0%
^(3)
                                                                
Total operating revenue    $488,363     100.0%     $538,534     100.0%
^(1)
Total costs of operating   348,881        71.4%      402,127        74.7%
revenue (1)
Total operating margin     $139,482     28.6%      $136,407     25.3%
^(1)(3)
                                                                
Other operating expenses:                                        
^(1)(3)
General and administrative $60,307      12.3%      $55,352      10.3%
expenses
Depreciation and           22,304         4.6%       27,979         5.2%
amortization
Operating gains, losses    482            0.1%       2,102          0.4%
and other charges, net
Total other operating      $83,093      17.0%      $85,433      15.9%
expenses
                                                                
Operating income ^(1)      $56,389      11.5%      $50,974      9.5%
                                                                
                                                                
(1) As a percentage of total operating revenue
(2) As a percentage of company restaurant sales
(3) 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 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         Fiscal Year Ended
(increase/(decrease) vs. prior     12/26/2012 12/28/2011 12/26/2012 12/28/2011
year)
Company Restaurants                0.5%       1.0%       0.2%       0.8%
Franchised Restaurants             2.0%       1.8%       1.5%       0.7%
System-wide Restaurants            1.7%       1.6%       1.3%       0.7%
                                                                
Company Restaurant Sales Detail                                  
Guest Check Average                1.3%       0.3%       1.8%       0.6%
Guest Counts                       (0.8)%     0.7%       (1.6)%     0.2%
                                                                
Average Unit Sales                 Quarter Ended         Fiscal Year Ended
(In thousands)                     12/26/2012 12/28/2011 12/26/2012 12/28/2011
Company Restaurants                $489     $455     $1,936   $1,838
Franchised Restaurants             $349     $342     $1,410   $1,385
                                                                
                                            Franchised           
Restaurant Unit Activity           Company    & Licensed Total      
Ending Units 9/26/12               171        1,516      1,687      
Units Opened                       1          12         13         
Units Relocated                    0          2          2          
Units Reacquired                   1          (1)        0          
Units Refranchised                 (8)        8          0          
Units Closed (Including Units      (1)        (13)       (14)       
Relocated)
Net Change                         (7)        8          1          
Ending Units 12/26/12              164        1,524      1,688      
                                                                
Equivalent Units                                                 
Fourth Quarter 2012                167        1,520      1,687      
Fourth Quarter 2011                216        1,465      1,681      
                                  (49)       55         6          
                                                                
                                            Franchised           
Restaurant Unit Activity           Company    & Licensed Total      
Ending Units 12/28/11              206        1,479      1,685      
Units Opened                       1          39         40         
Units Relocated                    0          2          2          
Units Reacquired                   1          (1)        0          
Units Refranchised                 (36)       36         0          
Units Closed (Including Units      (8)        (31)       (39)       
Relocated)
Net Change                         (42)       45         3          
Ending Units 12/26/12              164        1,524      1,688      
                                                                
Equivalent Units                                                 
Year-to-Date 2012                  183        1,501      1,684      
Year-to-Date 2011                  224        1,447      1,671      
                                  (41)       54         13         

CONTACT: Investor Contact:
         Whit Kincaid
         877-784-7167
        
         Media Contact:
         Liz DiTrapano, ICR
         646-277-1226

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