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Segment Information
6 Months Ended
Jun. 28, 2023
Segment Reporting [Abstract]  
Segment Information Segment InformationWe manage our business by brand and as a result have identified two operating segments, Denny’s and Keke’s. In addition, we have identified Denny’s as a reportable segment. The Denny’s reportable segment includes the results of all company and franchised and licensed Denny’s restaurants. Our Keke’s operating segment, which includes the results of all company and franchised Keke's restaurants, is included in Other.
The primary sources of revenues for all operating segments are the sale of food and beverages at our company restaurants and the collection of royalties, advertising revenue, initial and other fees, including occupancy revenue, from restaurants operated by our franchisees. We do not rely on any major customer as a source of sales and the customers and assets of all operating segments are located predominantly in the United States. There are no material transactions between segments.

Management’s measure of segment income is restaurant-level operating margin. The Company defines restaurant-level operating margin as operating income excluding the following three items: general and administrative expenses, depreciation and amortization, and operating (gains), losses and other charges, net. The Company excludes general and administrative expenses, which include primarily non restaurant-level costs associated with support of company and franchised restaurants and other activities at their corporate office. The Company excludes depreciation and amortization expense, substantially all of which is related to company restaurant-level assets, because such expenses represent historical sunk costs which do not reflect current cash outlays for the restaurants. The Company excludes operating (gains), losses and other charges, net, to provide a clearer perspective of its ongoing operating performance. Restaurant-level operating margin is used by our chief operating decision maker (“CODM”) to evaluate restaurant-level operating efficiency and performance.

The following tables present revenues by segment and a reconciliation of restaurant-level operating margin to operating income:
Quarter EndedTwo Quarters Ended
June 28, 2023June 29, 2022June 28, 2023June 29, 2022
Revenues by operating segment:(In thousands)
Denny’s$111,586 $115,017 $223,816 $218,124 
Other5,329 — 10,570 — 
Total operating revenue$116,915 $115,017 $234,386 $218,124 
Segment income:
Denny’s$37,941 $34,924 $74,581 $68,737 
Other1,946 — 3,898 — 
Total restaurant-level operating margin$39,887 $34,924 $78,479 $68,737 
General and administrative expenses$20,160 $16,623 $40,278 $33,581 
Depreciation and amortization3,617 3,590 7,273 7,138 
Operating (gains), losses and other charges, net1,176 846 (153)846 
Total other operating expenses24,953 21,059 47,398 41,565 
Operating income14,934 13,865 31,081 27,172 
Interest expense, net4,402 2,878 8,907 5,838 
Other nonoperating expense (income), net(666)(19,795)9,427 (39,410)
Income before income taxes11,198 30,782 12,747 60,744 
Provision for income taxes2,660 7,779 3,612 15,886 
Net income$8,538 $23,003 $9,135 $44,858 

June 28, 2023December 28, 2022
Segment assets:(In thousands)
Denny’s$362,443 $394,051 
Other103,182 104,284 
Total assets$465,625 $498,335