Introduction and Basis of Presentation

6 Months Ended

Jun. 29, 2011

Introduction and Basis of Presentation [Abstract]

Introduction and Basis of Presentation

Note 1.     Introduction and Basis of Presentation

Denny's Corporation, or Denny's, is one of America's largest family-style restaurant chains. At June 29, 2011, the Denny's brand consisted of 1,677 restaurants, 1,452 (87%) of which were franchised/licensed restaurants and 225 (13%) of which were company-owned and operated.

The following table shows the unit activity for the quarter and two quarters ended June 29, 2011 and June 30, 2010:

	Quarter Ended						Two Quarters Ended
	June 29, 2011			June 30, 2010			June 29, 2011			June 30, 2010
Company-owned restaurants, beginning of period		226			237			232			233
Units opened		1			-			6			4
Units sold to franchisees		(1	)		(9	)		(10	)		(9	)
Units closed		(1	)		-			(3)			-
End of period		225			228			225			228
Franchised and licensed restaurants, beginning of period		1,439			1,322			1,426			1,318
Units opened		17			7			30			13
Units relocated		1			1			1			1
Units purchased from Company		1			9			10			9
Units closed (including units relocated)		(6	)		(11	)		(15	)		(13	)
End of period		1,452			1,328			1,452			1,328
Total restaurants, end of period		1,677			1,556			1,677			1,556

Of the 37 units opened and relocated during the two quarters ended June 29, 2011, six company-owned and 14 franchise units represent conversions and openings of restaurants at Pilot Flying J Travel Centers. Of the 18 units opened and relocated during the two quarters ended June 30, 2010, four company-owned and one franchise unit represent conversions and openings of restaurants at Pilot Flying J Travel Centers.

Our unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. In our opinion, all adjustments considered necessary for a fair presentation of the interim periods presented have been included. Such adjustments are of a normal and recurring nature. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions; however, we believe that our estimates, including those for the above-described items, are reasonable.

These interim condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 29, 2010 and the related Management's Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Annual Report on Form 10-K for the fiscal year ended December 29, 2010. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 28, 2011.