Denny's Corporation Reports Results for Second Quarter 2014

Denny's Corporation Reports Results for Second Quarter 2014

- Domestic System-Wide Same-Store Sales Increases 1.9% with Company Same-Store
                             Sales Growing 3.7% -

   - Generated $11.6 million of Free Cash Flow* and Repurchased 2.3 Million
                                   Shares -

                       - Raises 2014 Annual Guidance -

SPARTANBURG, S.C., July 28, 2014 (GLOBE NEWSWIRE) -- Denny's Corporation
(Nasdaq:DENN), franchisor and operator of one of America's largest franchised
full-service restaurant chains, today reported results for its second quarter
ended June 25, 2014.

Second Quarter Summary

  *Domestic system-wide same-store sales increased 1.9%, comprised of a 3.7%
    increase at company restaurants and 1.7% increase at domestic franchised
    restaurants.
  *43 remodels were completed at company and franchise restaurants, including
    30 in the new Heritage image.
  *Adjusted EBITDA* of $21.1 million, or 18.4% of total operating revenue,
    increased $1.1 million compared with the prior year quarter.
  *Net Income of $8.3 million, or $0.09 per diluted share, increased 33.5%
    compared with the prior year quarter Net Income of $6.2 million, or $0.07
    per diluted share.
  *Adjusted Net Income per Share* increased 15.7% compared with the prior
    year quarter.
  *Generated $11.6 million of Free Cash Flow* after remodel investments at
    company restaurants.
  *Repurchased 2.3 million shares for $14.9 million with 5.6 million
    authorized shares remaining at the end of the second quarter.

* Adjusted Net Income excludes debt refinancing charges, impairment charges
and gains on sales of assets and other. Please refer to the historical
reconciliation of Net Income to Adjusted Net Income, Adjusted Net Income per
Share, Adjusted EBITDA and Free Cash Flow included in the following tables.

John Miller, President and Chief Executive Officer, stated, "We generated
another quarter of growing franchise and company same-store sales as we
continue to build on the positive momentum from our brand revitalization. Our
America's Diner strategy, supported by our newly launched Heritage remodel
program, continues to resonate with our guests and our franchisees. The
investments we are making in our remodel program contributed to our company
restaurants growing same-store guest traffic for the second consecutive
quarter. We remain focused on driving long-term shareholder value through our
brand revitalization strategy. Our strong balance sheet and free cash flow
enables us to prudently allocate capital between reinvesting in the brand and
returning value to shareholders."

Second Quarter Results

Denny's total operating revenue, including company restaurant sales and
franchise and license revenue, was $114.6 million resulting from a reduction
in both company restaurant sales and franchise and license revenue. Franchise
and license revenue was $33.5 million compared with $33.7 million due to a
decrease in occupancy revenue, partially offset by an increase in royalty
revenue from nine additional equivalent franchised restaurants. Company
restaurant sales were $81.1 million compared with $82.8 million due to five
fewer equivalent company restaurants. The reduction in equivalent company
restaurants includes the impact of the previously announced temporary closure
for the reconstruction of the highest volume restaurant located in Las Vegas
and temporary closures for remodeling restaurants. The decrease in company
restaurant sales was partially offset by a 3.7% increase in same-store sales
during the quarter.

Denny's opened three franchised restaurants in the second quarter of this year
and closed six system restaurants (five franchised and one company) bringing
the total restaurant count to 1,693, comprised of 160 company restaurants and
1,533 franchised restaurants.

Franchise operating margin was $22.8 million, or 68.2% of franchise and
license revenue, an increase of 2.5 percentage points. This improvement was
primarily due to an increase in royalties. Company restaurant operating margin
of $11.5 million, or 14.2% of company restaurant sales, expanded 0.5
percentage points. The increase in company margin was primarily driven by a
reduction in payroll and benefits and occupancy costs, which were partially
offset by higher product costs and the previously mentioned temporary
restaurant closure in Las Vegas. In the second quarter of 2013, this high
volume restaurant generated pre-tax operating income of $0.8 million on sales
of $2.1 million.

Total general and administrative expenses of $14.1 million and depreciation
and amortization expense of $5.3 million were both flat to the prior year. 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 $1.4 million in the quarter.Interest expense improved $0.3
million to $2.3 million as a result of lower interest rates under the
Company's refinanced credit facility.In the second quarter, the provision for
income taxes was $4.7 million, reflecting an effective tax rate of 36.4%.Due
to the use of net operating loss and tax credit carryforwards, the Company
paid $0.8 million in cash taxes during the second quarter.

Denny's second quarter net income of $8.3 million, or $0.09 per diluted share,
increased 33.5% compared to prior year quarter net income of $6.2 million, or
$0.07 per diluted share.Adjusted net income* of $8.3 million grew 9.2%
compared to prior year quarter adjusted net income* of $7.6 million.Adjusted
Net Income per Share* of $0.09 increased 15.7% compared with the prior year
quarter Adjusted Net Income per Share* of $0.08.

Denny's generated $11.6 million of Free Cash Flow* in the second quarter,
after spending $6.7 million on capital expenditures, primarily to remodel 17
company restaurants.During the quarter, the Company repurchased 2.3 million
shares for $14.9 million.As of June25, 2014, the Company had repurchased
19.4 million shares since initiating its share repurchase strategy in November
2010.At the end of the second quarter, the Company had 5.6 million authorized
shares remaining to be purchased.Denny's ended the second quarter with $179.9
million of total debt outstanding, including $105.0 million of borrowings
under the revolving line of credit and $56.3 million of term loan debt
outstanding.

Business Outlook

Mark Wolfinger, Executive Vice President, Chief Administrative Officer and
Chief Financial Officer, commented, "Our ability to grow profitability and
Free Cash Flow* while making investments in our company restaurants through
our Heritage remodel program is a testament to our highly franchised business,
which provides financial stability and flexibility.Returning value to our
shareholders remains a very important part of our strategic plan as evidenced
by the 2.3 million shares repurchased in the second quarter of this year.With
our momentum growing through the first half of the year, we are well
positioned to raise our annual guidance."

Key considerations impacting the Company's outlook for 2014 include:

  *2014 will include 53 operating weeks (14 in the fourth quarter) compared
    to 52 operating weeks in 2013.
  *The highest volume company operated restaurant located on the Las Vegas
    Strip is closed for reconstruction and expected to reopen in early
    2015.In 2013, this restaurant generated $7.9 million of sales and $2.9
    million of pre-tax operating income.The new retail development will
    include a completely reconstructed Denny's restaurant, funded by the
    landlord, where Denny's will have a new long-term lease.

Based on year-to-date results and management's expectations at this time,
Denny's is updating the Company's financial guidance for full year 2014.The
Company is increasing expectations for AdjustedEBITDA* and Free Cash Flow* in
addition to updating expectations for other selected components.

Component                              Full Year 2014 Guidance
                                      Previous**            Current
Domestic Franchise Same-Store Sales    1.0% to 2.0%          No Change
Company Same-Store Sales               2.0% to 3.0%          2.5% to 3.5%
New Restaurant Openings                45 - 50 (All          40 - 45 (All
                                       Franchised)           Franchised)
Net Restaurant Growth                  5 - 15                No Change
Total General and Administrative
Expenses (includes Share-Based         $57M to $59M          $56M to $58M
Compensation)
Adjusted EBITDA*                       $77M to $79M          $78M to $80M
Cash Capital Expenditures              $20M to $22M          No Change
Depreciation and Amortization Expense  $20.5M to $21.5M      No Change
Interest Expense, net                  $9.0M to $9.5M        No Change
Effective Income Tax Rate              34% to 38%            No Change
(Cash Taxes)                           ($3.5M to $4.5M)
Free Cash Flow*                        $44M to $47M          $45M to $48M
                                                           
* Please refer to the historical reconciliation of Net Income to Adjusted Net
Income, Adjusted Net Income per Share, Adjusted EBITDA and Free Cash Flow
included in the following tables.
** As announced in First Quarter 2014 Earnings Release on April 28, 2014.

Conference Call and Webcast Information

Denny's will provide further commentary on the results for the second quarter
ended June25, 2014 on its quarterly investor conference call today, Monday,
July28, 2014 at 4:30 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.

About Denny's

Denny's is the franchisor and operator of one of America's largest franchised
full-service restaurant chains, based on the number of restaurants.Denny's
currently has 1,693 franchised, licensed, and company restaurants around the
world with combined sales of $2.5 billion including 1,591 restaurants in the
United States and 102 restaurants in Canada, Costa Rica, Mexico, Honduras,
Guam, Curaçao, Puerto Rico, Dominican Republic, El Salvador, Chile and New
Zealand.As of June25, 2014, 1,533 of Denny's restaurants were franchised and
160 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 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 its 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 December25, 2013 (and in the Company's subsequent quarterly reports on
Form 10-Q).

DENNY'S CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
                                                            
(In thousands)                                     6/25/2014  12/25/2013
Assets                                                       
Current assets                                               
Cash and cash equivalents                          $1,221   $2,943
Receivables                                        13,998     17,321
Current deferred tax asset                         22,385     23,264
Other current assets                               7,840      10,298
Total current assets                               45,444     53,826
Property, net                                      108,280    105,620
Goodwill                                           31,451     31,451
Intangible assets, net                             47,093     47,925
Noncurrent deferred tax asset                      24,071     28,290
Other noncurrent assets                            27,855     28,665
Total assets                                       $284,194 $295,777
                                                            
Liabilities                                                  
Current liabilities                                          
Current maturities of long-term debt               $3,375   $3,000
Current maturities of capital lease obligations    4,047      4,150
Accounts payable                                   14,332     14,237
Other current liabilities                          45,179     52,698
Total current liabilities                          66,933     74,085
Long-term liabilities                                        
Long-term debt, less current maturities            157,875    150,000
Capital lease obligations, less current maturities 14,556     15,923
Other                                              44,844     47,338
Total long-term liabilities                        217,275    213,261
Total liabilities                                  284,208    287,346
                                                            
Shareholders' equity                                         
Common stock                                       1,053      1,050
Paid-in capital                                    568,939    567,505
Deficit                                            (456,242)  (470,946)
Accumulated other comprehensive loss, net of tax   (17,438)   (16,842)
Treasury stock                                     (96,326)   (72,336)
Total shareholders' equity (deficit)               (14)       8,431
Total liabilities and shareholders' equity         $284,194 $295,777
                                                            
Debt Balances
(In thousands)                                     6/25/2014  12/25/2013
Credit facility term loan and revolver due 2018    $161,250 $153,000
Capital leases                                     18,603     20,073
Total debt                                         $179,853 $173,073


DENNY'S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
                                                         
                                                Quarter Ended
(In thousands, except per share amounts)         6/25/2014 6/26/2013
Revenue:                                                  
Company restaurant sales                         $81,138 $82,841
Franchise and license revenue                    33,476    33,730
Total operating revenue                          114,614   116,571
Costs of company restaurant sales                69,647    71,451
Costs of franchise and license revenue           10,633    11,585
General and administrative expenses              14,068    14,085
Depreciation and amortization                    5,281     5,352
Operating (gains), losses and other charges, net 40        1,484
Total operating costs and expenses, net          99,669    103,957
Operating income                                 14,945    12,614
Interest expense, net                            2,274     2,548
Other nonoperating (income) expense, net         (332)     1,331
Net income before income taxes                   13,003    8,735
Provision for income taxes                       4,730     2,537
Net income                                       $8,273  $6,198
                                                         
                                                         
Basic net income per share                       $0.10   $0.07
Diluted net income per share                     $0.09   $0.07
                                                         
Basic weighted average shares outstanding        86,781    91,659
Diluted weighted average shares outstanding      88,384    93,665
                                                         
Comprehensive income                             $7,885  $8,793
                                                         
General and Administrative Expenses              Quarter Ended
(In thousands)                                   6/25/2014 6/26/2013
Share-based compensation                         $1,180  $1,206
Other general and administrative expenses        12,888    12,879
Total general and administrative expenses        $14,068 $14,085


DENNY'S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
                                                          
                                                Two Quarters Ended
(In thousands, except per share amounts)         6/25/2014  6/26/2013
Revenue:                                                   
Company restaurant sales                         $160,442 $163,871
Franchise and license revenue                    66,092     67,190
Total operating revenue                          226,534    231,061
Costs of company restaurant sales                139,822    140,571
Costs of franchise and license revenue           21,330     22,987
General and administrative expenses              28,184     29,244
Depreciation and amortization                    10,519     10,576
Operating (gains), losses and other charges, net 462        1,618
Total operating costs and expenses, net          200,317    204,996
Operating income                                 26,217     26,065
Interest expense, net                            4,596      5,348
Other nonoperating (income) expense, net         (432)      1,332
Net income before income taxes                   22,053     19,385
Provision for income taxes                       7,349      6,106
Net income                                       $14,704  $13,279
                                                          
                                                          
Basic net income per share                       $0.17    $0.14
Diluted net income per share                     $0.16    $0.14
                                                          
Basic weighted average shares outstanding        87,792     92,004
Diluted weighted average shares outstanding      89,630     94,081
                                                          
Comprehensive income                             $14,108  $16,128
                                                          
General and Administrative Expenses              Two Quarters Ended
(In thousands)                                   6/25/2014  6/26/2013
Share-based compensation                         $2,344   $2,381
Other general and administrative expenses        25,840     26,863
Total general and administrative expenses        $28,184  $29,244


DENNY'S CORPORATION
Income, EBITDA, Free Cash Flow, and Net Income Reconciliations
(Unaudited)
                                                              
Income, EBITDA and Free    Quarter Ended             Two Quarters Ended
Cash Flow Reconciliation
(In thousands)             6/25/2014    6/26/2013    6/25/2014    6/26/2013
Net income                 $8,273     $6,198     $14,704    $13,279
Provision for income taxes 4,730        2,537        7,349        6,106
Operating (gains), losses  40           1,484        462          1,618
and other charges, net
Other nonoperating         (332)        1,331        (432)        1,332
(income) expense, net
Share-based compensation   1,180        1,206        2,344        2,381
Adjusted Income Before     $13,891    $12,756    $24,427    $24,716
Taxes ^(1)
                                                              
Interest expense, net      2,274        2,548        4,596        5,348
Depreciation and           5,281        5,352        10,519       10,576
amortization
Cash payments for
restructuring charges and  (385)        (725)        (1,016)      (1,397)
exit costs
Cash payments for          —            (10)         (1,083)      (900)
share-based compensation
Adjusted EBITDA ^(1)       21,061       19,921       37,443       38,343
                                                              
Cash interest expense, net (2,010)      (2,249)      (4,062)      (4,734)
Cash paid for income       (820)        (992)        (1,640)      (1,335)
taxes, net
Cash paid for capital      (6,669)      (5,538)      (13,526)     (8,544)
expenditures
Free Cash Flow ^(1)        $11,562    $11,142    $18,215    $23,730
                                                              
Net Income Reconciliation  Quarter Ended             Quarter Ended
(In thousands)             6/25/2014    6/26/2013    6/25/2014    6/26/2013
Net income                 $8,273     $6,198     $14,704    $13,279
(Gains) losses on sales of (33)         (33)         (41)         (15)
assets and other, net
Impairment charges         28           857          28           857
Loss on debt refinancing   —            1,187        —            1,187
Tax effect ^(2)            2            (633)        4            (639)
Adjusted Net Income ^(1)   $8,270     $7,576     $14,695    $14,669
                                                              
Diluted weighted-average   88,384       93,665       89,630       94,081
shares outstanding
                                                              
Adjusted Net Income Per    $0.09      $0.08      $0.16      $0.16
Share ^(1)
                                                              
(1) The Company believes that, in addition to other financial measures,
Adjusted Income Before Taxes, Adjusted EBITDA, Free Cash Flow, Adjusted Net
Income and Adjusted Net Income Per Share are appropriate indicators to assist
in the evaluation of its operating performance on a period-to-period basis.
The Company also uses 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 its ability to service debt because the excluded charges do not have
an impact on its prospective debt servicing capability and these adjustments
are contemplated in its credit facility for the computation of its 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, Free Cash
Flow, Adjusted Net Income and Adjusted Net Income Per Share 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.
(2) Tax adjustments for the three and six months ended June 25, 2014 are
calculated using the Company's year-to-date effective tax rate of 33.3%. Tax
adjustments for the three and six months ended June 26, 2013 are calculated
using the Company's year-to-date effective tax rate of 31.5%.


DENNY'S CORPORATION
Operating Margins
(Unaudited)
                                                                
                          Quarter Ended
(In thousands)             6/25/2014                 6/26/2013
Company restaurant                                               
operations: ^(1)
Company restaurant sales   $81,138      100.0%     $82,841      100.0%
Costs of company                                                 
restaurant sales:
Product costs              21,327         26.3%      21,402         25.8%
Payroll and benefits       31,978         39.4%      33,220         40.1%
Occupancy                  4,899          6.0%       5,513          6.7%
Other operating costs:                                           
Utilities                  3,326          4.1%       3,178          3.8%
Repairs and maintenance    1,473          1.8%       1,524          1.8%
Marketing                  2,855          3.5%       3,113          3.8%
Legal settlements          200            0.2%       238            0.3%
Other                      3,589          4.4%       3,263          3.9%
Total costs of company     $69,647      85.8%      $71,451      86.3%
restaurant sales
Company restaurant         $11,491      14.2%      $11,390      13.7%
operating margin ^(2)
                                                                
Franchise operations: ^(3)                                       
Franchise and license                                            
revenue:
Royalties                  $22,125      66.1%      $21,401      63.5%
Initial fees               332            1.0%       450            1.3%
Occupancy revenue          11,019         32.9%      11,879         35.2%
Total franchise and        $33,476      100.0%     $33,730      100.0%
license revenue
                                                                
Costs of franchise and                                           
license revenue:
Occupancy costs            $8,213       24.6%      $8,766       26.0%
Other direct costs         2,420          7.2%       2,819          8.3%
Total costs of franchise   $10,633      31.8%      $11,585      34.3%
and license revenue
Franchise operating margin $22,843      68.2%      $22,145      65.7%
^(2)
                                                                
Total operating revenue    $114,614     100.0%     $116,571     100.0%
^(4)
Total costs of operating   80,280         70.0%      83,036         71.2%
revenue ^(4)
Total operating margin     $34,334      30.0%      $33,535      28.8%
^(4)(2)
                                                                
Other operating expenses:                                        
^(4)(2)
General and administrative $14,068      12.3%      $14,085      12.1%
expenses
Depreciation and           5,281          4.6%       5,352          4.6%
amortization
Operating gains, losses    40             0.0%       1,484          1.3%
and other charges, net
Total other operating      $19,389      16.9%      $20,921      17.9%
expenses
                                                                
Operating income ^(4)      $14,945      13.0%      $12,614      10.8%
                                                                
(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 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.
(3) As a percentage of franchise and license revenue
(4) As a percentage of total operating revenue


DENNY'S CORPORATION
Operating Margins
(Unaudited)
                                                                
                          Two Quarters Ended
(In thousands)             6/25/2014                 6/26/2013
Company restaurant                                               
operations: ^(1)
Company restaurant sales   $160,442     100.0%     $163,871     100.0%
Costs of company                                                 
restaurant sales:
Product costs              41,910         26.1%      42,548         26.0%
Payroll and benefits       65,077         40.6%      64,766         39.5%
Occupancy                  10,027         6.2%       10,741         6.6%
Other operating costs:                                           
Utilities                  6,657          4.1%       6,305          3.8%
Repairs and maintenance    2,932          1.8%       2,873          1.8%
Marketing                  5,862          3.7%       6,129          3.7%
Legal settlements          254            0.2%       514            0.3%
Other                      7,103          4.4%       6,695          4.1%
Total costs of company     $139,822     87.1%      $140,571     85.8%
restaurant sales
Company restaurant         $20,620      12.9%      $23,300      14.2%
operating margin ^(2)
                                                                
Franchise operations: ^(3)                                       
Franchise and license                                            
revenue:
Royalties                  $43,606      66.0%      $42,428      63.1%
Initial fees               449            0.7%       730            1.1%
Occupancy revenue          22,037         33.3%      24,032         35.8%
Total franchise and        $66,092      100.0%     $67,190      100.0%
license revenue
                                                                
Costs of franchise and                                           
license revenue:
Occupancy costs            $16,481      25.0%      $17,619      26.2%
Other direct costs         4,849          7.3%       5,368          8.0%
Total costs of franchise   $21,330      32.3%      $22,987      34.2%
and license revenue
Franchise operating margin $44,762      67.7%      $44,203      65.8%
^(2)
                                                                
Total operating revenue    $226,534     100.0%     $231,061     100.0%
^(4)
Total costs of operating   161,152        71.1%      163,558        70.8%
revenue ^(4)
Total operating margin     $65,382      28.9%      $67,503      29.2%
^(4)(2)
                                                                
Other operating expenses:                                        
^(4)(2)
General and administrative $28,184      12.4%      $29,244      12.7%
expenses
Depreciation and           10,519         4.6%       10,576         4.6%
amortization
Operating gains, losses    462            0.2%       1,618          0.7%
and other charges, net
Total other operating      $39,165      17.3%      $41,438      17.9%
expenses
                                                                
Operating income ^(4)      $26,217      11.6%      $26,065      11.3%
                                                                
(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 U.S. generally accepted
accounting principles.
(3) As a percentage of franchise and license revenue
(4) As a percentage of total operating revenue


DENNY'S CORPORATION
Statistical Data
(Unaudited)
                                                                 
Same-Store Sales                     Quarter Ended         Two Quarters Ended
(increase / (decrease) vs. prior     6/25/2014 6/26/2013   6/25/2014 6/26/2013
year)
Company Restaurants                  3.7%      (0.5)%      3.4%      (1.0)%
Domestic Franchised Restaurants      1.7%      0.7%        1.6%      0.1%
Domestic System-wide Restaurants     1.9%      0.6%        1.8%      0.0%
System-wide Restaurants              1.7%      0.6%        1.5%      0.0%
                                                                 
Average Unit Sales                   Quarter Ended         Two Quarters Ended
(In thousands)                       6/25/2014 6/26/2013   6/25/2014 6/26/2013
Company Restaurants                  $511    $505      $1,009  $999
Franchised Restaurants               $366    $359      $722    $708
                                                                 
                                             Franchised           
Restaurant Unit Activity             Company   & Licensed Total     
Ending Units 3/26/14                 161       1,535       1,696     
Units Opened                         —         3           3         
Units Closed                         (1)       (5)         (6)       
Net Change                           (1)       (2)         (3)       
Ending Units 6/25/14                 160       1,533       1,693     
                                                                 
Equivalent Units                                                  
Second Quarter 2014                  159       1,534       1,693     
Second Quarter 2013                  164       1,525       1,689     
                                    (5)       9           4         
                                                                 
                                             Franchised           
Restaurant Unit Activity             Company   & Licensed Total     
Ending Units 12/25/13                163       1,537       1,700     
Units Opened                         —         7           7         
Units Closed                         (3)       (11)        (14)      
Net Change                           (3)       (4)         (7)       
Ending Units 6/25/14                 160       1,533       1,693     
                                                                 
Equivalent Units                                                  
Year-to-Date 2014                    159       1,535       1,694     
Year-to-Date 2013                    164       1,525       1,689     
                                    (5)       10          5         

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

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