10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 27, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to ________________

Commission File Number 0-18051

DENNY’S CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		13-3487402
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
203 East Main Street
Spartanburg,	South Carolina	29319-0001
(Address of principal executive offices)		(Zip Code)

(864) 597-8000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
$.01 Par Value, Common Stock	DENN	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ý No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ý  No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☐ Accelerated Filer ý Non-Accelerated Filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐   No  ý

As of April 25, 2024, 52,018,583 shares of the registrant’s common stock, par value $0.01 per share, were outstanding.

TABLE OF CONTENTS

	Page
PART I - FINANCIAL INFORMATION
Item 1.   Financial Statements (Unaudited)
Consolidated Balance Sheets	3
Consolidated Statements of Income	4
Consolidated Statements of Comprehensive Income	5
Consolidated Statements of Shareholders' Deficit	6
Consolidated Statements of Cash Flows	7
Notes to Consolidated Financial Statements	8
Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.   Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.   Controls and Procedures	29
PART II - OTHER INFORMATION
Item 1.   Legal Proceedings	29
Item 1A.   Risk Factors	29
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 5. Other Information	30
Item 6.   Exhibits	31
Signatures	32

2

PART I - FINANCIAL INFORMATION

Item 1.     Financial Statements

Denny’s Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

	March 27, 2024		December 27, 2023
	(In thousands, except per share amounts)
Assets
Current assets:
Cash and cash equivalents	$	1,164	$	4,893
Investments	2,787		1,281
Receivables, net	17,288		21,391
Inventories	2,073		2,175
Assets held for sale	1,060		1,455
Prepaid and other current assets	9,646		12,855
Total current assets	34,018		44,050
Property, net of accumulated depreciation of $161,735 and $159,879, respectively	94,985		93,494
Finance lease right-of-use assets, net of accumulated amortization of $7,393 and $8,220, respectively	5,785		6,098
Operating lease right-of-use assets, net	114,912		116,795
Goodwill	65,908		65,908
Intangible assets, net	93,046		93,428
Deferred financing costs, net	1,543		1,702
Other noncurrent assets	50,214		43,343
Total assets	$	460,411	$	464,818
Liabilities
Current liabilities:
Current finance lease liabilities	$	1,363	$	1,383
Current operating lease liabilities	15,547		14,779
Accounts payable	15,076		24,070
Other current liabilities	56,986		63,068
Total current liabilities	88,972		103,300
Long-term liabilities:
Long-term debt	261,200		255,500
Noncurrent finance lease liabilities	8,845		9,150
Noncurrent operating lease liabilities	111,553		114,451
Liability for insurance claims, less current portion	7,550		6,929
Deferred income taxes, net	7,864		6,582
Other noncurrent liabilities	30,171		31,592
Total long-term liabilities	427,183		424,204
Total liabilities	516,155		527,504
Shareholders' deficit
Common stock $0.01 par value; 135,000 shares authorized; March 27, 2024: 53,262 shares issued and 52,119 outstanding; December 27, 2023: 52,906 shares issued and 52,239 shares outstanding	$	533	$	529
Paid-in capital	7,534		6,688
Deficit	(17,093)		(21,784)
Accumulated other comprehensive loss, net	(35,495)		(41,659)
Treasury stock, at cost, 1,143 and 667 shares, respectively	(11,223)		(6,460)
Total shareholders' deficit	(55,744)		(62,686)
Total liabilities and shareholders' deficit	$	460,411	$	464,818

See accompanying notes

3

Denny’s Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands, except per share amounts)
Revenue:
Company restaurant sales	$	52,342	$	53,452
Franchise and license revenue	57,632		64,019
Total operating revenue	109,974		117,471
Costs of company restaurant sales, excluding depreciation and amortization:
Product costs	13,311		14,039
Payroll and benefits	20,474		20,240
Occupancy	4,573		4,094
Other operating expenses	9,760		8,119
Total costs of company restaurant sales, excluding depreciation and amortization	48,118		46,492
Costs of franchise and license revenue, excluding depreciation and amortization	27,374		32,387
General and administrative expenses	21,222		20,118
Depreciation and amortization	3,581		3,656
Operating (gains), losses and other charges, net	(327)		(1,329)
Total operating costs and expenses, net	99,968		101,324
Operating income	10,006		16,147
Interest expense, net	4,420		4,505
Other nonoperating (income) expense, net	(637)		10,093
Income before income taxes	6,223		1,549
Provision for income taxes	1,532		952
Net income	$	4,691	$	597
Net income per share - basic	$	0.09	$	0.01
Net income per share - diluted	$	0.09	$	0.01
Basic weighted average shares outstanding	53,068		57,638
Diluted weighted average shares outstanding	53,214		57,840

See accompanying notes

4

Denny’s Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

(Unaudited)

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Net income	$	4,691	$	597
Other comprehensive income (loss), net of tax:
Minimum pension liability adjustment, net of tax of $6 and $22, respectively	10		67
Changes in the fair value of cash flow hedges, net of tax of $2,423 and $321, respectively	7,175		942
Reclassification of cash flow hedges to interest expense, net of tax of $(381) and $(236), respectively	(1,127)		(694)
Amortization of unrealized losses related to interest rate swaps to interest expense, net of tax of $36 and $14, respectively	106		42
Other comprehensive income	6,164		357
Total comprehensive income	$	10,855	$	954

See accompanying notes

5

Denny’s Corporation and Subsidiaries

Consolidated Statements of Shareholders’ Deficit

For the Quarter Ended March 27, 2024 and March 29, 2023

(Unaudited)

	Common Stock			Treasury Stock			Paid-in Capital		Deficit		Accumulated Other Comprehensive Loss, Net		Total Shareholders’ Deficit
	Shares	Amount		Shares	Amount
	(In thousands)
Balance, December 27, 2023	52,906	$	529	(667)	$	(6,460)	$	6,688	$	(21,784)	$	(41,659)	$	(62,686)
Net income	—	—		—	—		—		4,691		—		4,691
Other comprehensive income	—	—		—	—		—		—		6,164		6,164
Share-based compensation on equity classified awards, net of withholding tax	—	—		—	—		850		—		—		850
Purchase of treasury stock, including excise tax	—	—		(476)	(4,763)		—		—		—		(4,763)
Issuance of common stock for share-based compensation	356	4		—	—		(4)		—		—		—
Balance, March 27, 2024	53,262	$	533	(1,143)	$	(11,223)	$	7,534	$	(17,093)	$	(35,495)	$	(55,744)

	Common Stock			Treasury Stock			Paid-in Capital		Deficit		Accumulated Other Comprehensive Loss, Net		Total Shareholders’ Deficit
	Shares	Amount		Shares	Amount
	(In thousands)
Balance, December 28, 2022	64,998	$	650	(8,270)	$	(95,476)	$	142,136	$	(41,729)	$	(42,697)	$	(37,116)
Net income	—	—		—	—		—		597		—		597
Other comprehensive income	—	—		—	—		—		—		357		357
Share-based compensation on equity classified awards, net of withholding tax	—	—		—	—		127		—		—		127
Purchase of treasury stock, including excise tax	—	—		(806)	(8,967)		—		—		—		(8,967)
Issuance of common stock for share-based compensation	470	5		—	—		(5)		—		—		—
Balance, March 29, 2023	65,468	$	655	(9,076)	$	(104,443)	$	142,258	$	(41,132)	$	(42,340)	$	(45,002)

See accompanying notes

6

Denny’s Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Cash flows from operating activities:
Net income	$	4,691	$	597
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation and amortization	3,581		3,656
Operating (gains), losses and other charges, net	(327)		(1,329)
Losses and amortization on interest rate swaps, net	141		10,662
Amortization of deferred financing costs	159		159
Gains on investments	(6)		(5)
Losses on early termination of debt and leases	123		—
Deferred income tax (benefit) expense	(768)		133
Decrease of tax valuation allowance	(26)		—
Share-based compensation expense	2,776		3,094
Changes in assets and liabilities, excluding acquisitions and dispositions:
Receivables	4,011		1,814
Inventories	102		2,284
Prepaids and other current assets	3,208		2,652
Other noncurrent assets	860		1,119
Operating lease assets and liabilities	(164)		(246)
Accounts payable	(11,037)		(1,131)
Other accrued liabilities	(6,408)		(6,534)
Other noncurrent liabilities	(701)		(772)
Net cash flows provided by operating activities	215		16,153
Cash flows from investing activities:
Capital expenditures	(4,905)		(1,304)
Proceeds from sales of real estate and other assets	986		1,715
Investment purchases	(1,500)		(1,300)
Collections on notes receivable	171		320
Issuance of notes receivable	(79)		—
Net cash flows used in investing activities	(5,327)		(569)
Cash flows from financing activities:
Revolver borrowings	52,200		35,000
Revolver payments	(46,500)		(32,500)
Repayments of finance leases	(370)		(506)
Tax withholding on share-based payments	(1,872)		(2,846)
Purchase of treasury stock	(4,774)		(9,041)
Net bank overdrafts	2,699		(319)
Net cash flows provided by (used in) financing activities	1,383		(10,212)
(Decrease) increase in cash and cash equivalents	(3,729)		5,372
Cash and cash equivalents at beginning of period	4,893		3,523
Cash and cash equivalents at end of period	$	1,164	$	8,895

See accompanying notes

7

Denny’s Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

Note 1.     Introduction and Basis of Presentation

Denny’s Corporation, or the Company, is one of America’s largest full-service restaurant chains based on number of restaurants. As of March 27, 2024, the Company consisted of 1,614 restaurants, 1,539 of which were franchised/licensed restaurants and 75 of which were company operated.

The Company consists of the Denny’s brand ("Denny's") and the Keke’s Breakfast Café brand (“Keke’s”). As of March 27, 2024, the Denny's brand consisted of 1,553 restaurants, 1,489 of which were franchised/licensed restaurants and 64 of which were company operated. At March 27, 2024, the Keke's brand consisted of 61 restaurants, 50 of which were franchised restaurants and 11 of which were company operated.

Our unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been 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 are reasonable.

These interim consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto as of and for the fiscal year ended December 27, 2023 which are contained in our audited Annual Report on Form 10-K for the fiscal year ended December 27, 2023. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 25, 2024. Our significant interim accounting policies include the recognition of advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective rate.

Note 2.     Summary of Significant Accounting Policies

Newly Adopted Accounting Standards

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which was later clarified in January 2021 by ASU 2021-01, “Reference Rate Reform (Topic 848): Scope”. Additionally, in December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which allows ASU 2020-04 to be adopted and applied prospectively to contract modifications made on or before December 31, 2024. The guidance provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The Company adopted ASU 2020-04 on March 12, 2020. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on the Company’s consolidated financial position or results of operations. The guidance is effective through December 31, 2024.

8

Accounting Standards to be Adopted

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The new guidance requires enhanced reportable segment disclosures to include significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 (our fiscal 2024) and interim periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our Consolidated Financial Statements and will add necessary disclosures upon adoption.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The new guidance requires enhanced effective tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our Consolidated Financial Statements and will add necessary disclosures upon adoption.

We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption.

Note 3.     Receivables

Receivables consisted of the following:

	March 27, 2024		December 27, 2023
	(In thousands)
Receivables, net:
Trade accounts receivable from franchisees	$	12,181	$	14,092
Notes and loan receivables from franchisees	340		584
Vendor receivables	2,154		4,059
Credit card receivables	784		995
Other	2,134		1,862
Allowance for credit losses	(305)		(201)
Total receivables, net	$	17,288	$	21,391

Note 4.    Goodwill and Intangible Assets

Goodwill by segment consisted of the following:
	March 27, 2024		December 27, 2023
	(In thousands)
Denny’s	$	37,527	$	37,527
Other	28,381		28,381
Total goodwill	$	65,908	$	65,908

9

Intangible assets consisted of the following:

	March 27, 2024				December 27, 2023
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(In thousands)
Intangible assets with indefinite lives:
Trade names	$	79,687	$	—	$	79,687	$	—
Liquor licenses	120		—		120		—
Intangible assets with definite lives:
Reacquired franchise rights	9,470		5,820		9,470		5,614
Franchise agreements	10,700		1,111		10,700		935
Intangible assets, net	$	99,977	$	6,931	$	99,977	$	6,549

Amortization expense for intangible assets with definite lives totaled $0.4 million for each of the quarters ended March 27, 2024 and March 29, 2023.

Note 5.     Other Current Liabilities

Other current liabilities consisted of the following:

	March 27, 2024		December 27, 2023
	(In thousands)
Accrued payroll	$	11,896	$	16,400
Current portion of liability for insurance claims	3,977		3,758
Accrued taxes	4,062		4,699
Accrued advertising	9,827		10,664
Gift cards	6,398		7,838
Accrued legal settlements	8,436		7,488
Accrued interest	4,714		4,530
Other	7,676		7,691
Other current liabilities	$	56,986	$	63,068

10

Note 6.     Fair Value of Financial Instruments

Financial assets and liabilities measured at fair value on a recurring basis are summarized below: 

	Total		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Fair value measurements as of March 27, 2024:
Deferred compensation plan investments (1)	$	11,378	$	11,378	$	—	$	—
Interest rate swaps (2)	16,978		—		16,978		—
Investments (3)	2,787		—		2,787		—
Total	$	31,143	$	11,378	$	19,765	$	—
Fair value measurements as of December 27, 2023:
Deferred compensation plan investments (1)	$	12,225	$	12,225	$	—	$	—
Interest rate swaps (2)	8,888		—		8,888		—
Investments (3)	1,281		—		1,281		—
Total	$	22,394	$	12,225	$	10,169	$	—

(1)    The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments and are included in other noncurrent assets in our Consolidated Balance Sheets.

(2)    The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates, forward yield curves and credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For disclosures about the fair value measurements of our derivative instruments, see Note 7.

(3)    The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments.

Those assets and liabilities measured at fair value on a non-recurring basis are summarized below:

		Significant Unobservable Inputs (Level 3)		Impairment Charges
		(In thousands)
Fair value measurements as of March 27, 2024:
Assets held and used (1)		$	—	$	95
(1)	As of March 27, 2024, impaired assets were written down to their fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods.

Assets that are measured at fair value on a non-recurring basis include property, operating lease right-of-use assets, finance lease right-of-use assets, goodwill and intangible assets. During the quarter ended March 27, 2024, we recognized impairment charges of $0.1 million related to certain of these assets. See Note 9.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are deemed to approximate fair value due to the immediate or short-term maturity of these instruments. The fair value of notes receivable approximates the carrying value after consideration of recorded allowances and related risk-based interest rates. The liabilities under our credit facility are carried at historical cost, which approximates fair value. The fair value of our senior secured revolver approximates its carrying value since it is a variable rate facility (Level 2).

11

Note 7.     Long-Term Debt

The Company and certain of its subsidiaries have a credit facility consisting of a five-year $400 million senior secured revolver (with a $25 million letter of credit sublimit). The credit facility includes an accordion feature that would allow us to increase the size of the facility to $450 million. Borrowings bear a tiered interest rate, which is based on the Company's consolidated leverage ratio. The maturity date for the credit facility is August 26, 2026.

The credit facility is available for working capital, capital expenditures and other general corporate purposes. The credit facility is guaranteed by the Company and its material subsidiaries and is secured by assets of the Company and its subsidiaries, including the stock of its subsidiaries (other than its insurance captive subsidiary). It includes negative covenants that are usual for facilities and transactions of this type. The credit facility also includes certain financial covenants with respect to a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. We were in compliance with all financial covenants as of March 27, 2024.

As of March 27, 2024, we had outstanding revolver loans of $261.2 million and outstanding letters of credit under the credit facility of $17.0 million. These balances resulted in unused commitments of $121.8 million as of March 27, 2024 under the credit facility.

As of March 27, 2024, borrowings under the credit facility bore interest at a rate of Adjusted Daily Simple SOFR plus 2.25%. Letters of credit under the credit facility bore interest at a rate of 2.38%. The commitment fee, paid on the unused portion of the credit facility, was set to 0.35%.

Prior to considering the impact of our interest rate swaps, described below, the weighted-average interest rate on outstanding revolver loans was 7.69% and 7.41% as of March 27, 2024 and December 27, 2023, respectively. Taking into consideration our interest rate swaps that are designated as cash flow hedges, the weighted-average interest rate of outstanding revolver loans was 5.30% and 5.04% as of March 27, 2024 and December 27, 2023, respectively.

Interest Rate Hedges

We have receive-variable, pay-fixed interest rate swaps to hedge the forecasted cash flows of our floating rate debt. A summary of our interest rate swaps as of March 27, 2024 is as follows:

Trade Date	Effective Date	Maturity Date	Notional Amount			Fair Value		Fixed Rate
			(In thousands)
Swaps designated as cash flow hedges
March 20, 2015	March 29, 2018	March 31, 2025	$	120,000		$	3,040	2.34	%
October 1, 2015	March 29, 2018	March 31, 2026	$	50,000		$	1,980	2.37	%
February 15, 2018	March 31, 2020	December 31, 2033	$	44,000	(1)	$	11,958	3.09	%
Total			$	214,000		$	16,978

(1)     The notional amounts of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $335 million on August 31, 2033.

Termination and Designation of Certain Interest Rate Swaps

During the quarter ended March 29, 2023, we terminated a portion of our hedging relationship entered into in 2018 (“2018 Swaps”), reducing the previous maximum notional amount of $425 million on August 31, 2033 to $335 million. We received $1.5 million of cash as a result of the termination which is recorded as a component of operating activities in our Consolidated Statement of Cash Flows for the quarter ended March 29, 2023.

In addition, during the quarter ended March 29, 2023, we designated the remaining 2018 Swaps as cash flow hedges of our exposure to variability in future cash flows attributable to variable rate interest payments due on forecasted notional amounts.

12

Changes in Fair Value of Interest Rate Swaps

To the extent the swaps are highly effective in offsetting the variability of the hedged cash flows, changes in the fair value of the swaps are not included in the Consolidated Statements of Income but are reported as a component of other comprehensive income (loss). Our interest rate swaps are designated as cash flow hedges with unrealized gains and losses recorded as a component of accumulated other comprehensive loss, net.

As of March 27, 2024, the fair value of the swaps designated as cash flow hedges was an asset of $17.0 million, recorded as a component of other noncurrent assets. The designated swaps have an offsetting amount (before taxes) recorded as a component of accumulated other comprehensive loss, net in our Consolidated Balance Sheets. See Note 13 for amounts recorded in accumulated other comprehensive loss related to interest rate swaps. For the quarter ended March 27, 2024, we reclassified $1.5 million from accumulated other comprehensive loss, net as a reduction to interest expense, net. We expect to reclassify $6.2 million from accumulated other comprehensive loss, net as a reduction to interest expense, net in our Consolidated Statements of Income related to swaps designated as cash flow hedges during the next 12 months.

For the periods prior to their designation as cash flow hedges, changes in the fair value of the 2018 Swaps were recorded as a component of other nonoperating (income) expense, net in our Consolidated Statements of Income. For the quarter ended March 29, 2023, we recorded expense of $10.6 million as a component of other nonoperating (income) expense, net related to the 2018 Swaps resulting from changes in fair value.

Amortization of Certain Amounts Included in Accumulated Other Comprehensive Loss, Net

At March 27, 2024, we had a total of $64.0 million (before taxes) included in accumulated other comprehensive loss, net related to (i) the discontinuance of hedge accounting treatment related to certain cash flow hedges in prior years and (ii) the fair value of certain swaps at the date of designation as cash flow hedges that are being amortized into our Consolidated Statements of Income as a component of interest expense, net over the remaining term of the related swap.

For the quarter ended March 27, 2024, we recorded unrealized losses of $0.1 million to interest expense, net. For the quarter ended March 29, 2023, we recorded unrealized losses of less than $0.1 million to interest expense, net. We expect to amortize $0.9 million from accumulated other comprehensive loss, net to interest expense, net in our Consolidated Statements of Income related to dedesignated interest rate swaps during the next 12 months.

Note 8.     Revenues

The following table disaggregates our revenue by sales channel and type of good or service:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Company restaurant sales	$	52,342	$	53,452
Franchise and license revenue:
Royalties	29,306		30,027
Advertising revenue	18,138		19,668
Initial and other fees	1,816		4,990
Occupancy revenue	8,372		9,334
Franchise and license revenue	57,632		64,019
Total operating revenue	$	109,974	$	117,471

Franchise occupancy revenue consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Operating lease revenue	$	6,128	$	6,871
Variable lease revenue	2,244		2,463
Total occupancy revenue	$	8,372	$	9,334

13

Balances related to contracts with customers consist of receivables, contract assets, deferred franchise revenue and deferred gift card revenue. See Note 3 for details on our receivables.

Deferred franchise revenue consists primarily of the unamortized portion of initial franchise fees that are currently being amortized into revenue and amounts related to development agreements and unopened restaurants that will begin amortizing into revenue when the related restaurants are opened. Deferred franchise revenue represents our remaining performance obligations to our franchisees, excluding amounts of variable consideration related to sales-based royalties and advertising.

The components of the change in deferred franchise revenue are as follows:

	(In thousands)
Balance, December 27, 2023	$	19,150
Fees received from franchisees	220
Revenue recognized (1)	(779)
Balance, March 27, 2024	18,591
Less current portion included in other current liabilities	2,132
Deferred franchise revenue included in other noncurrent liabilities	$	16,459

(1)    Of this amount $0.7 million was included in the deferred franchise revenue balance as of December 27, 2023.

We record contract assets related to incentives and subsidies provided to franchisees related to new unit openings and/or equipment upgrades. These amounts will be recognized as a component of franchise and license revenue over the remaining term of the related franchise agreements.

The components of the change in contract assets are as follows:

	(In thousands)
Balance, December 27, 2023	$	6,608
Franchisee deferred costs	27
Contract asset amortization	(347)
Balance, March 27, 2024	6,288
Less current portion included in other current assets	1,005
Contract assets included in other noncurrent assets	$	5,283

The Company purchases equipment related to various programs for franchise restaurants, including kitchen and point-of-sale system equipment. We bill our franchisees and recognize revenue when the related equipment is installed, less amounts contributed from the Company, which have been deferred as contract assets in the table above. We recognized $0.3 million of revenue, recorded as a component of initial and other fees, related to the sale of equipment to franchisees during the quarter ended March 27, 2024. We recognized $2.4 million of revenue, recorded as a component of initial and other fees, related to the sale of equipment to franchisees during the quarter ended March 29, 2023. As of March 27, 2024, we had $0.5 million in inventory and $0.1 million in receivables related to the purchased equipment. As of December 27, 2023, we had $0.6 million in inventory and $0.3 million in receivables related to the purchased equipment.

As of March 27, 2024, deferred franchise revenue, net of contract asset amortization, expected to be recognized in the future is as follows:

	(In thousands)
Remainder of 2024	$	859
2025	1,131
2026	1,131
2027	1,100
2028	973
Thereafter	7,109
Deferred franchise revenue, net	$	12,303

14

Deferred gift card liabilities consist of the unredeemed portion of gift cards sold in company restaurants and at third party locations. The balance of deferred gift card liabilities represents our remaining performance obligations to our customers. The balance of deferred gift card liabilities as of March 27, 2024 and December 27, 2023 was $6.4 million and $7.8 million, respectively. During the quarter ended March 27, 2024, we recognized revenue of $0.2 million from gift card redemptions at company restaurants.

Note 9.     Operating (Gains), Losses and Other Charges, Net

Operating (gains), losses and other charges, net consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Gains on sales of assets and other, net	$	(620)	$	(1,522)
Restructuring charges and exit costs	198		64
Impairment charges	95		129
Operating (gains), losses and other charges, net	$	(327)	$	(1,329)

During the quarters ended March 27, 2024 and March 29, 2023, gains on sales of assets and other, net were primarily related to the sales of real estate.

As of March 27, 2024, we had recorded assets held for sale at the lesser of the carrying value or fair value amount of $1.1 million (consisting of property of $0.6 million and goodwill of $0.5 million) related to three Keke's restaurants. As of December 27, 2023, we had recorded assets held for sale at their carrying amount of $1.5 million (consisting of property of $0.9 million, goodwill of $0.5 million and other assets of $0.1 million) related to one parcel of real estate and three Keke's restaurants.

Restructuring charges and exit costs consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Exit costs	$	42	$	—
Severance and other restructuring charges	156		64
Total restructuring charges and exit costs	$	198	$	64

Exit costs primarily consist of costs related to closed restaurants. Exit cost liabilities related to lease costs are included as a component of operating lease liabilities in our Consolidated Balance Sheets.

As of March 27, 2024 and December 27, 2023, we had accrued severance and other restructuring charges of $1.0 million and $1.4 million, respectively. The balance as of March 27, 2024 is expected to be paid during the next 12 months.

We recorded impairment charges of $0.1 million related to property for the quarter ended March 27, 2024, resulting from our assessment of closed units.

15

Note 10.     Share-Based Compensation

Total share-based compensation included as a component of general and administrative expenses was as follows:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Employee share awards	$	2,571	$	2,847
Restricted stock units for board members	205		247
Total share-based compensation	$	2,776	$	3,094

Employee Share Awards

During the quarter ended March 27, 2024, we granted certain employees 0.6 million performance share units ("PSUs") with a weighted average grant date fair value of $15.48 per share that vest based on the total shareholder return (“TSR”) of our common stock compared to the TSRs of a group of peer companies. As the TSR based PSUs contain a market condition, a Monte Carlo valuation was used to determine the grant date fair value. The performance period for these PSUs is the three-year fiscal period beginning December 28, 2023 and ending December 30, 2026. The PSUs will vest and be earned at the end of the performance period at which point the relative TSR achievement percentages will be applied to the vested units (from 0% to 200% of the target award).

During the quarter ended March 27, 2024, we also granted certain employees 0.7 million restricted stock units ("RSUs") with a weighted average grant date fair value of $10.81 per share. These RSUs generally vest evenly over the three-year fiscal period beginning December 28, 2023 and ending December 30, 2026. We recognize compensation cost associated with these RSU awards on a straight-line basis over the entire performance period of the award.

During the quarter ended March 27, 2024, we issued 0.4 million shares of common stock related to vested PSUs and RSUs. In addition, 0.2 million shares of common stock were withheld in lieu of taxes related to vested PSUs and RSUs.

As of March 27, 2024, we had $24.0 million of unrecognized compensation cost related to unvested PSU awards and RSU awards outstanding, which have a weighted average remaining contractual term of 2.4 years.

Restricted Stock Units for Board Members

As of March 27, 2024, we had $0.1 million of unrecognized compensation cost related to unvested RSU awards outstanding, which have a weighted average remaining contractual term of 0.1 years.

Note 11.     Income Taxes

The effective income tax rate was 24.6% for the quarter ended March 27, 2024, compared to 61.5% for the prior year period. The effective income tax rate for the quarter ended March 29, 2023 included discrete items relating to share-based compensation of 36.6%. We did not have a similar discrete item for the quarter ended March 27, 2024.

16

Note 12.     Net Income Per Share

The amounts used for the basic and diluted net income per share calculations are summarized below:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands, except per share amounts)
Net income	$	4,691	$	597
Weighted average shares outstanding - basic	53,068		57,638
Effect of dilutive share-based compensation awards	146		202
Weighted average shares outstanding - diluted	53,214		57,840
Net income per share - basic	$	0.09	$	0.01
Net income per share - diluted	$	0.09	$	0.01
Anti-dilutive share-based compensation awards	970		807

Note 13.     Shareholders' Deficit

Share Repurchases

Our credit facility permits the repurchase of the Company's stock and the payment of cash dividends subject to certain limitations. Our Board of Directors approves share repurchases of our common stock. Under these authorizations, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions, subject to market and business conditions. Currently, we are operating under a $250 million share repurchase authorization approved by the Board of Directors in December 2019.

During the quarter ended March 27, 2024, we repurchased a total of 0.5 million shares of our common stock for $4.8 million, including excise taxes. This brings the total amount repurchased under the current authorization to $154.3 million, leaving $95.7 million that can be used to repurchase our common stock under this authorization as of March 27, 2024. Repurchased shares are included as treasury stock in our Consolidated Balance Sheets and our Consolidated Statements of Shareholders' Deficit.

In the fourth quarter of fiscal 2023, the Board approved the retirement of 12.8 million shares of treasury stock at a weighted average share price of $11.02, including excise taxes. As of March 27, 2024, 1.1 million shares were held in treasury stock.

17

Accumulated Other Comprehensive Loss, Net

The components of the change in accumulated other comprehensive loss, net were as follows:

	Defined Benefit Plans		Derivatives		Accumulated Other Comprehensive Loss, Net
	(In thousands)
Balance as of December 27, 2023	$	(337)	$	(41,322)	$	(41,659)
Amortization of net loss (1)	16		—		16
Changes in the fair value of cash flow hedges	—		9,598		9,598
Reclassification of cash flow hedges to interest expense, net (2)	—		(1,508)		(1,508)
Amortization of unrealized losses related to interest rate swaps to interest expense, net	—		142		142
Income tax expense related to items of other comprehensive income (loss)	(6)		(2,078)		(2,084)
Balance as of March 27, 2024	$	(327)	$	(35,168)	$	(35,495)

(1)    Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss, net and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Income during the quarter ended March 27, 2024.

(2)    Amounts reclassified from accumulated other comprehensive loss, net into interest expense, net in our Consolidated Statements of Income represent payments either (received from) or made to the counterparty for the interest rate hedges. See Note 7 for additional details.

Note 14.     Commitments and Contingencies

Legal Proceedings

There are various claims and pending legal actions against or indirectly involving us, incidental to and arising out of the ordinary course of the business. In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect our consolidated results of operations or financial position. 

Note 15.     Supplemental Cash Flow Information

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Income taxes paid, net	$	355	$	489
Interest paid	$	4,006	$	4,253
Noncash investing and financing activities:
Accrued purchase of property	$	100	$	—
Issuance of common stock, pursuant to share-based compensation plans	$	3,793	$	5,257
Execution of finance leases	$	42	$	14
Treasury stock payable	$	552	$	468

Note 16. Segment Information

We 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.

18

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 the 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 net income:

	Quarter Ended
	March 27, 2024		March 29, 2023
Revenues by operating segment:	(In thousands)
Denny’s	$	104,011	$	112,230
Other	5,963		5,241
Total operating revenue	$	109,974	$	117,471
Segment income:
Denny’s	$	33,660	$	36,640
Other	822		1,952
Total restaurant-level operating margin	$	34,482	$	38,592
General and administrative expenses	$	21,222	$	20,118
Depreciation and amortization	3,581		3,656
Operating (gains), losses and other charges, net	(327)		(1,329)
Total other operating expenses	24,476		22,445
Operating income	10,006		16,147
Interest expense, net	4,420		4,505
Other nonoperating expense (income), net	(637)		10,093
Income before income taxes	6,223		1,549
Provision for income taxes	1,532		952
Net income	$	4,691	$	597

	March 27, 2024		December 27, 2023
Segment assets:	(In thousands)
Denny’s	$	336,143	$	340,136
Other	124,268		124,682
Total assets	$	460,411	$	464,818

19

Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") should be read in conjunction with our Consolidated Financial Statements and the notes thereto that appear elsewhere in this report and the MD&A contained in our Annual Report on Form 10-K for the fiscal year ended December 27, 2023.

Forward-Looking Statements

This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company urges caution in considering its current trends and any outlook on its operations and financial results disclosed in this report. In addition, certain matters discussed in this report may constitute forward-looking statements. These forward-looking statements, which reflect management's 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 “expect”, “anticipate”, “believe”, “intend”, “plan”, “hope”, "will" 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 report 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: economic, public health and political conditions that impact consumer confidence and spending; commodity and labor inflation; the ability to effectively staff restaurants and support personnel; our ability to maintain adequate levels of liquidity for our cash needs, including debt obligations, payment of dividends, planned share repurchases and capital expenditures as well as the ability of our customers, suppliers, franchisees and lenders to access sources of liquidity to provide for their own cash needs; competitive pressures from within the restaurant industry; our ability to integrate and derive the expected benefits from our acquisition of Keke's; the level of success of our operating initiatives and advertising and promotional efforts; adverse publicity; health concerns arising from food-related pandemics, outbreaks of flu viruses, or other diseases; changes in business strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general economy (including with regard to energy costs), particularly at the retail level; political environment and geopolitical events (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 fiscal year ended December 27, 2023 and in the Company's subsequent quarterly reports on Form 10-Q.

Overview

We manage our business by brand and as a result have identified two operating segments, Denny’s and Keke’s. As of March 27, 2024, the Denny's brand consisted of 1,553 restaurants, 1,489 of which were franchised/licensed restaurants and 64 of which were company operated. At March 27, 2024, the Keke's brand consisted of 61 restaurants, 50 of which were franchised restaurants and 11 of which were company operated.

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. Total revenues at Keke’s for the quarter ended March 27, 2024 represented less than 10% of total consolidated revenues, therefore, the Keke’s operating segment is included in Other for segment reporting purposes.

Information discussed in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations relates to the Denny’s brand unless otherwise noted.

20

Statements of Income

The following table contains information derived from our Consolidated Statements of Income expressed as a percentage of total operating revenue, except as noted below. Percentages may not add due to rounding.

	Quarter Ended
	March 27, 2024				March 29, 2023
	(In thousands)
Revenue:
Company restaurant sales	$	52,342	47.6	%	$	53,452	45.5	%
Franchise and license revenue	57,632		52.4	%	64,019		54.5	%
Total operating revenue	109,974		100.0	%	117,471		100.0	%
Costs of company restaurant sales, excluding depreciation and amortization (a):
Product costs	13,311		25.4	%	14,039		26.3	%
Payroll and benefits	20,474		39.1	%	20,240		37.9	%
Occupancy	4,573		8.7	%	4,094		7.7	%
Other operating expenses	9,760		18.6	%	8,119		15.2	%
Total costs of company restaurant sales, excluding depreciation and amortization	48,118		91.9	%	46,492		87.0	%
Costs of franchise and license revenue, excluding depreciation and amortization (a)	27,374		47.5	%	32,387		50.6	%
General and administrative expenses	21,222		19.3	%	20,118		17.1	%
Depreciation and amortization	3,581		3.3	%	3,656		3.1	%
Operating (gains), losses and other charges, net	(327)		(0.3)	%	(1,329)		(1.1)	%
Total operating costs and expenses, net	99,968		90.9	%	101,324		86.3	%
Operating income	10,006		9.1	%	16,147		13.7	%
Interest expense, net	4,420		4.0	%	4,505		3.8	%
Other nonoperating (income) expense, net	(637)		(0.6)	%	10,093		8.6	%
Income before income taxes	6,223		5.7	%	1,549		1.3	%
Provision for income taxes	1,532		1.4	%	952		0.8	%
Net income	$	4,691	4.3	%	$	597	0.5	%

(a)Costs of company restaurant sales percentages are as a percentage of company restaurant sales. Costs of franchise and license revenue percentages are as a percentage of franchise and license revenue. All other percentages are as a percentage of total operating revenue.

21

Statistical Data	Quarter Ended
	March 27, 2024	March 29, 2023
	(Dollars in thousands)
Denny's
Company average unit sales	$743	$762
Franchise average unit sales	$457	$452
Company equivalent units (a)	65	65
Franchise equivalent units (a)	1,501	1,529
Company same-store sales (decrease) increase vs. prior year (b)(c)	(3.0)%	11.4%
Domestic franchise same-store sales (decrease) increase vs. prior year (b)(c)	(1.2)%	8.1%
Keke's
Company average unit sales	$455	$466
Franchise average unit sales	$472	$491
Company equivalent units (a)	9	8
Franchise equivalent units (a)	50	46
Company same-store sales decrease vs. prior year (b)(d)	(1.1)%	N/A
Franchise same-store sales decrease vs. prior year (b)(d)	(4.0)%	N/A

(a)Equivalent units are calculated as the weighted average number of units in operation during a defined time period.

(b)Same-store sales include sales from company restaurants or non-consolidated franchised and licensed restaurants that were open during the comparable periods noted.

(c)Prior year amounts have not been restated for 2024 comparable units.

(d)Same-store sales data for the quarter ended March 29, 2023 is not reported due to the acquisition being completed during the quarter ended September 28, 2022.

Unit Activity	Quarter Ended
	March 27, 2024	March 29, 2023
Denny's
Company restaurants, beginning of period	65	66
Units opened	—	—
Units closed	(1)	—
End of period	64	66
Franchised and licensed restaurants, beginning of period	1,508	1,536
Units opened	5	5
Units closed	(24)	(13)
End of period	1,489	1,528
Total restaurants, end of period	1,553	1,594

Keke's
Company restaurants, beginning of period	8	8
Units opened	3	—
Units closed	—	—
End of period	11	8
Franchised restaurants, beginning of period	50	46
Units opened	—	—
Units closed	—	—
End of period	50	46
Total restaurants, end of period	61	54

22

Company Restaurant Operations

Company restaurant sales decreased $1.1 million, or 2.1%, for the quarter ended March 27, 2024, compared to the prior year period, primarily resulting from a decrease of 3.0% in Denny's same-store sales, partially offset by one additional Keke's equivalent unit for the current quarter compared to the prior year period.

Total costs of company restaurant sales as a percentage of company restaurant sales were 91.9% for the quarter ended March 27, 2024 compared to 87.0% for the prior year period.

Product costs as a percentage of company restaurant sales were 25.4% for the quarter ended March 27, 2024 compared to 26.3% for the prior year period, primarily due to increased pricing, partially offset by higher commodity costs.

Payroll and benefits as a percentage of company restaurant sales were 39.1% for the quarter ended March 27, 2024 compared to 37.9% in the prior year period. The increase as a percentage of company restaurant sales was primarily due to a 1.0 percentage point increase in workers' compensation costs primarily resulting from negative claims development in the current quarter.

Occupancy costs as a percentage of company restaurant sales were 8.7% for the quarter ended March 27, 2024 compared to 7.7% in the prior year period. The increase as a percentage of company restaurant sales was primarily due to a 0.9 percentage point increase in general liability insurance costs resulting from negative claims development in the current quarter.

Other operating expenses consist of the following amounts and percentages of company restaurant sales:

	Quarter Ended
	March 27, 2024				March 29, 2023
	(In thousands)
Utilities	$	1,655	3.2	%	$	2,057	3.8	%
Repairs and maintenance	1,005		1.9	%	889		1.7	%
Marketing	1,604		3.1	%	1,395		2.6	%
Legal settlements	1,449		2.8	%	109		0.2	%
Pre-opening costs	366		0.7	%	—		0.0	%
Other direct costs	3,681		7.0	%	3,669		6.9	%
Other operating expenses	$	9,760	18.6	%	$	8,119	15.2	%

Other operating expenses were higher as a percentage of company restaurant sales as compared to the prior year period primarily due to unfavorable developments in certain legal claims during the quarter ended March 27, 2024.

Franchise Operations

Franchise and license revenue and costs of franchise and license revenue consisted of the following amounts and percentages of franchise and license revenue for the periods indicated:

	Quarter Ended
	March 27, 2024				March 29, 2023
	(In thousands)
Royalties	$	29,306	50.8	%	$	30,027	46.9	%
Advertising revenue	18,138		31.5	%	19,668		30.7	%
Initial and other fees	1,816		3.2	%	4,990		7.8	%
Occupancy revenue	8,372		14.5	%	9,334		14.6	%
Franchise and license revenue	$	57,632	100.0	%	$	64,019	100.0	%
Advertising costs	$	18,138	31.5	%	$	19,668	30.7	%
Occupancy costs	5,132		8.9	%	5,672		8.9	%
Other direct costs	4,104		7.1	%	7,047		11.0	%
Costs of franchise and license revenue	$	27,374	47.5	%	$	32,387	50.6	%

23

Franchise and license revenue decreased $6.4 million, or 10.0%, for the quarter ended March 27, 2024 compared to the prior year period. Royalties decreased $0.7 million, or 2.4% for the current quarter compared to the prior year period. The decrease in royalties primarily resulted from a 1.2% decrease in Denny's domestic franchise same-store sales and a decrease of 28 Denny's franchise equivalent units for the current quarter compared to the prior year period.

Advertising revenue decreased $1.5 million, or 7.8%, for the current quarter compared to the prior year period. The decrease in advertising revenue primarily resulted from a $1.4 million decrease in local advertising co-op contributions. The decrease in advertising revenue also includes the impact from a 1.2% decrease in Denny's domestic franchise same-store sales and a decrease of 28 Denny's franchise equivalent units for the current quarter compared to the prior year period. The decrease during the current quarter was partially offset by an increase of $0.5 million collected from Keke's franchise restaurants.

Initial and other fees decreased $3.2 million, or 63.6%, for the quarter ended March 27, 2024 compared to the prior year period. The decrease in initial and other fees primarily resulted from a $2.1 million decrease in revenue from the sale of equipment to franchisees during the current quarter as a result of the completion of our kitchen modernization program in 2023. Additionally, menu revenue decreased $1.0 million due to the timing of the prior year menu rollout. The revenue recorded related to the sale of equipment and menus has an equal and offsetting expense recorded in other direct costs as described below. Occupancy revenue decreased $1.0 million, or 10.3%, for the current quarter compared to the prior year period, primarily due to lease terminations.

Costs of franchise and license revenue decreased $5.0 million, or 15.5%, for the quarter ended March 27, 2024 compared to the prior year period. Advertising costs decreased $1.5 million, or 7.8%, for the current quarter, which corresponds to the related advertising revenue decrease noted above. Occupancy costs decreased $0.5 million, or 9.5%, for the current quarter compared to the prior year period, primarily due to lease terminations, which corresponds to the related occupancy revenue decrease noted above. Other direct franchise costs decreased $2.9 million, or 41.8%, for the current quarter compared to the prior year period. The decrease in other direct franchise costs was primarily due to a decrease of $2.2 million of expense for the current quarter related to the cost of equipment sold to franchisees as mentioned above. Additionally, other direct franchise costs included a decrease of $1.0 million in menu costs for the current quarter. As a result of the changes in franchise and license revenue discussed above, costs of franchise and license revenue decreased to 47.5% of franchise and license revenue for the quarter ended March 27, 2024 from 50.6% for the prior year period.

Other Operating Costs and Expenses

Other operating costs and expenses such as general and administrative expenses and depreciation and amortization expense relate to both company and franchise operations.

General and administrative expenses consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Corporate administrative expenses	$	15,192	$	14,179
Share-based compensation	2,776		3,094
Incentive compensation	2,523		2,387
Deferred compensation valuation adjustments	731		458
Total general and administrative expenses	$	21,222	$	20,118

Corporate administrative expenses increased $1.0 million for the quarter ended March 27, 2024 compared to the prior year period. The increase was primarily due to compensation increases and increased travel. Share-based compensation decreased $0.3 million for the current quarter primarily due to forfeitures and our performance against plan metrics. Changes in deferred compensation valuation adjustments have offsetting gains or losses on the underlying nonqualified deferred plan investments included as a component of other non-operating expense (income), net, for the corresponding periods.

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Depreciation and amortization consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Depreciation of property and equipment	$	2,655	$	2,699
Amortization of finance lease ROU assets	352		395
Amortization of intangible and other assets	574		562
Total depreciation and amortization expense	$	3,581	$	3,656

Depreciation and amortization expense decreased during the quarter ended March 27, 2024, primarily due to certain assets becoming fully depreciated.

Operating (gains), losses and other charges, net consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Gains on sales of assets and other, net	$	(620)	$	(1,522)
Restructuring charges and exit costs	198		64
Impairment charges	95		129
Operating (gains), losses and other charges, net	$	(327)	$	(1,329)

Gains on sales of assets and other, net for the quarter ended March 27, 2024 and March 29, 2023 were primarily related to the sales of real estate.

Restructuring charges and exit costs consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Exit costs	$	42	$	—
Severance and other restructuring charges	156		64
Total restructuring and exit costs	$	198	$	64

We recorded impairment charges of $0.1 million (consisting of property) during the quarter ended March 27, 2024, resulting from our assessment of closed units. We recorded impairment charges of $0.1 million (consisting of property and right-of-use assets) during the quarter ended March 29, 2023, related to a unit held for sale.

Operating income was $10.0 million for the current quarter compared to $16.1 million for the prior year period.

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Interest expense, net consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Interest on credit facility	$	5,057	$	4,513
Interest income on interest rate swaps	(1,508)		(930)
Interest on finance lease liabilities	509		551
Letters of credit and other fees	132		196
Interest income	(71)		(40)
Total cash interest, net	4,119		4,290
Amortization of deferred financing costs	159		159
Amortization of interest rate swap losses	142		56
Total interest expense, net	$	4,420	$	4,505

Other nonoperating (income) expense, net was income of $0.6 million for the current quarter, compared to expense of $10.1 million for the prior year period. Other nonoperating income, net for the current quarter primarily consisted of $0.7 million of gains on deferred compensation plan investments, partially offset by losses of $0.1 million related to early lease terminations. Prior year other nonoperating expense, net primarily consisted of $10.6 million of losses related to dedesignated interest rate swap valuation adjustments, partially offset by gains of $0.5 million on deferred compensation plan investments.

During the quarter ended March 29, 2023, we terminated a portion of our hedging relationship entered into in 2018 (“2018 Swaps”), reducing the previous maximum notional amount of $425 million on August 31, 2033 to $335 million. In addition, during the quarter ended March 29, 2023, we designated the remaining 2018 Swaps as cash flow hedges of our exposure to variability in future cash flows attributable to variable rate interest payments due on forecasted notional amounts. As a result, subsequent to the designation of the 2018 Swaps, gains and losses related to these cash flow hedges have been and will be recorded as a component of accumulated other comprehensive loss, net.

Provision for income taxes was $1.5 million for the quarter ended March 27, 2024 compared to $1.0 million for the prior year period. The effective tax rate was 24.6% for the current quarter compared to 61.5% for the prior year period. We expect the 2024 fiscal year effective tax rate to be between 23% and 27%. The annual effective tax rate cannot be determined until the end of the fiscal year; therefore, the actual rate could differ from our current estimates.

Net income was $4.7 million for the quarter ended March 27, 2024 compared to $0.6 million for the prior year period.

Liquidity and Capital Resources

Our primary sources of liquidity and capital resources are cash generated from operations and borrowings under our credit facility (as described below). Principal uses of cash are operating expenses, capital expenditures, and the repurchase of shares of our common stock.

The following table presents a summary of our sources and uses of cash and cash equivalents for the periods indicated:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Net cash provided by operating activities	$	215	$	16,153
Net cash used in investing activities	(5,327)		(569)
Net cash provided by (used in) financing activities	1,383		(10,212)
(Decrease) increase in cash and cash equivalents	$	(3,729)	$	5,372

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Net cash flows provided by operating activities were $0.2 million for the quarter ended March 27, 2024 compared to $16.2 million for the quarter ended March 29, 2023. The decrease in net cash flows provided by operating activities was primarily due to the timing of payments for accounts payable and other current liabilities over the past two years. We believe that our estimated cash flows from operations, combined with our capacity for additional borrowings under our credit facility and cash on hand, will enable us to meet our anticipated cash requirements and fund capital expenditures over the next 12 months.

Net cash flows used in investing activities were $5.3 million for the quarter ended March 27, 2024. These cash flows included capital expenditures of $4.9 million and investment purchases of $1.5 million, partially offset by net proceeds from the sale of real estate for $1.0 million. Net cash flows used in investing activities were $0.6 million for the quarter ended March 29, 2023. These cash flows included capital expenditures of $1.3 million, partially offset by net proceeds from the sale of real estate for $1.7 million.

Our principal capital requirements have been largely associated with the following:  

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Facilities	$	867	$	1,009
New construction	3,605		16
Remodeling	18		138
Information technology	333		50
Other	82		91
Capital expenditures	$	4,905	$	1,304

Net cash flows provided by financing activities were $1.4 million for the quarter ended March 27, 2024, including net long-term debt borrowings of $5.3 million and net bank overdrafts of $2.7 million, partially offset by cash payments for stock repurchases of $4.8 million and payments of tax withholding on share-based compensation of $1.9 million. Net cash flows used in financing activities were $10.2 million for the quarter ended March 29, 2023, which included cash payments for stock repurchases of $9.0 million and payments of tax withholding on share-based compensation of $2.8 million, partially offset by net long-term debt borrowings of $2.0 million.

Our working capital deficit was $55.0 million at March 27, 2024 compared to $59.3 million at December 27, 2023, primarily due to a decrease in accounts payable during the quarter ended March 27, 2024. We are able to operate with a substantial working capital deficit because (1) restaurant operations and most food service operations are conducted primarily on a cash (and cash equivalent) basis with a low level of accounts receivable, (2) rapid turnover allows for a limited investment in inventories, and (3) accounts payable for food, beverages and supplies usually becomes due after the receipt of cash from the related sales.

Credit Facility

The Company and certain of its subsidiaries have a credit facility consisting of a five-year $400 million senior secured revolver (with a $25 million letter of credit sublimit). The credit facility includes an accordion feature that would allow us to increase the size of the facility to $450 million. Borrowings bear a tiered interest rate, which is based on the Company's consolidated leverage ratio. The maturity date for the credit facility is August 26, 2026.

The credit facility is available for working capital, capital expenditures and other general corporate purposes. The credit facility is guaranteed by the Company and its material subsidiaries and is secured by assets of the Company and its subsidiaries, including the stock of its subsidiaries (other than its insurance captive subsidiary). It includes negative covenants that are usual for facilities and transactions of this type. The credit facility also includes certain financial covenants with respect to a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. We were in compliance with all financial covenants as of March 27, 2024.

As of March 27, 2024, we had outstanding revolver loans of $261.2 million and outstanding letters of credit under the credit facility of $17.0 million. These balances resulted in unused commitments of $121.8 million as of March 27, 2024 under the credit facility.

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As of March 27, 2024, borrowings under the credit facility bore interest at a rate of Adjusted Daily Simple SOFR plus 2.25%. Letters of credit under the credit facility bore interest at a rate of 2.38%. The commitment fee, paid on the unused portion of the credit facility, was set to 0.35%.

Prior to considering the impact of our interest rate swaps, described below, the weighted-average interest rate on outstanding revolver loans was 7.69% and 7.41% as of March 27, 2024 and December 27, 2023, respectively. Taking into consideration our interest rate swaps that are designated as cash flow hedges, the weighted-average interest rate of outstanding revolver loans was 5.30% and 5.04% as of March 27, 2024 and December 27, 2023, respectively.

Technology Transformation Initiatives

The Company has committed to investing approximately $4 million toward a new cloud-based restaurant technology platform in domestic franchise restaurants, which will lay the foundation for future technology initiatives to further enhance the guest experience. We currently expect the rollout to occur in 2024 and 2025.

Critical Accounting Policies and Estimates

For information regarding our Critical Accounting Policies and Estimates, see the "Critical Accounting Policies and Estimates" section in Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended December 27, 2023.

Implementation of New Accounting Standards

Information regarding the implementation of new accounting standards is incorporated by reference from Note 2 to our unaudited Consolidated Financial Statements set forth in Part I, Item 1 of this report.

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

We have exposure to interest rate risk related to certain instruments entered into for other than trading purposes. Specifically, as of March 27, 2024, borrowings under our credit facility bore interest at variable rates based on Adjusted Daily Simple SOFR plus 2.25% per annum.

We have receive-variable, pay-fixed interest rate swaps to hedge the forecasted cash flows of our floating rate debt. A summary of our interest rate swaps as of March 27, 2024 is as follows:

Trade Date	Effective Date	Maturity Date	Notional Amount			Fair Value		Fixed Rate
			(In thousands)
Swaps designated as cash flow hedges
March 20, 2015	March 29, 2018	March 31, 2025	$	120,000		$	3,040	2.34	%
October 1, 2015	March 29, 2018	March 31, 2026	$	50,000		$	1,980	2.37	%
February 15, 2018	March 31, 2020	December 31, 2033	$	44,000	(1)	$	11,958	3.09	%
Total			$	214,000		$	16,978

(1)     The notional amounts of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $335 million on August 31, 2033.

As of March 27, 2024, our swaps effectively increased our ratio of fixed rate debt from 4% of total debt to 83% of total debt. Based on the levels of borrowings under the credit facility at March 27, 2024, if interest rates changed by 100 basis points, our annual cash flow and income before taxes would change by $0.3 million. This computation is determined by considering the impact of hypothetical interest rates on the credit facility at March 27, 2024, taking into consideration the interest rate swaps that will be in effect during the next 12 months. However, the nature and amount of our borrowings may vary as a result of future business requirements, market conditions and other factors.

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Depending on market considerations, fluctuations in the fair values of our interest rate swaps could be significant. With the exception of these changes in the fair value of our interest rate swaps and in the levels of borrowings under our credit facility, there have been no material changes in our quantitative and qualitative market risks since the prior reporting period. For additional information related to our interest rate swaps, including changes in the fair value, refer to Note 6, Note 7 and Note 13 to our unaudited Consolidated Financial Statements in Part I, Item 1 of this report.

Item 4.     Controls and Procedures

As required by Rule 13a-15(b) under the Exchange Act, our management conducted an evaluation (under the supervision and with the participation of our Chief Executive Officer, Kelli F. Valade, and our Executive Vice President and Chief Financial Officer, Robert P. Verostek) as of the end of the period covered by this Quarterly Report on Form 10-Q, of the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) under the Exchange Act. Based on that evaluation, Ms. Valade and Mr. Verostek each concluded that our disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act (i) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and (ii) is accumulated and communicated to our management, including Ms. Valade and Mr. Verostek, as appropriate to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) of the Exchange Act that occurred during our fiscal quarter ended March 27, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.     Legal Proceedings

Information regarding legal proceedings is incorporated by reference from Note 14 to our unaudited Consolidated Financial Statements set forth in Part I, Item 1 of this report.

Item 1A.     Risk Factors

There have been no material changes in the risk factors set forth in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 27, 2023.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Equity Securities by the Issuer

The table below provides information concerning repurchases of shares of our common stock during the quarter ended March 27, 2024.

Period	Total Number of Shares Purchased	Average Price Paid Per Share (1)		Total Number of Shares Purchased as Part of Publicly Announced Programs (2)	Dollar Value of Shares that May Yet be Purchased Under the Programs (2)
	(In thousands, except per share amounts)
December 28, 2023 - January 24, 2024	155	$	10.63	155	$	98,775
January 25, 2024 - February 21, 2024	176	10.09		176	$	96,998
February 22, 2024 - March 27, 2024	145	9.11		145	$	95,665
Total	476	$	9.97	476

(1)Average price paid per share excludes commissions and any excise taxes paid.

(2)On December 2, 2019, we announced that our Board of Directors approved a share repurchase program, authorizing us to repurchase up to an additional $250 million of our common stock (in addition to prior authorizations). Such repurchases may take place from time to time in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Exchange Act) or in privately negotiated transactions, subject to market and business conditions. During the quarter ended March 27, 2024, we purchased 0.5 million shares of our common stock for an aggregate consideration of $4.8 million pursuant to the share repurchase program.

Item 5. Other Information

Rule 10b5-1 Trading Plans

During the quarter ended March 27, 2024, none of the Company’s directors or officers informed the Company of the adoption or termination of a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Regulation S-K, Item 408.

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Item 6.     Exhibits

The following are included as exhibits to this report: 

Exhibit No.	Description
10.1	Form of 2024 Long-Term Incentive Program Restricted Share Unit Award Certificate.
10.2	Form of 2024 Long-Term Incentive Program Performance Share Unit Award Certificate.
31.1	Certification of Kelli F. Valade, Chief Executive Officer of Denny's Corporation, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Robert P. Verostek, Executive Vice President and Chief Financial Officer of Denny's Corporation, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Kelli F. Valade, Chief Executive Officer of Denny's Corporation, and Robert P. Verostek, Executive Vice President and Chief Financial Officer of Denny's Corporation, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		DENNY'S CORPORATION
Date:	April 30, 2024	By:	/s/ Robert P. Verostek
			Robert P. Verostek
			Executive Vice President and Chief Financial Officer
Date:	April 30, 2024	By:	/s/ Jay C. Gilmore
			Jay C. Gilmore
			Senior Vice President, Chief Accounting Officer and Corporate Controller

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EX-10.1

2024 Long-Term Incentive Program Denny’s Corporation Restricted Stock Unit 203 East Main Street Award Certificate Spartanburg, SC 29319 «Name» (“Grantee”), Denny’s Corporation (the “Company”) has granted to you (“Grantee”) a restricted stock unit award (the “Award”) denominated in a number of restricted stock units (the “Restricted Stock Units”). The terms and conditions relating to the Restricted Stock Units are set forth in this Award Certificate. The Restricted Stock Units are rights that entitle you to earn shares of the Company’s $0.01 par value common stock (“Shares”), on a one-for-one basis. The Award is granted under the Denny’s Corporation 2021 Omnibus Incentive Plan (the “Plan”). By accepting the Award, you shall be deemed to have agreed to the terms and conditions set forth in this Award Certificate. The Restricted Stock Units will vest (become non-forfeitable) in three (3) equal installments on the last day of the Company’s 2024, 2025, and 2026 fiscal years, subject in each case to your continued employment with the Company through such date, unless vesting is accelerated under Section 2 or Section 3 of the attached Terms and Conditions in the event of certain employment terminations or a change in control. The number of Restricted Stock Units covered by your Award will be determined as follows:  Target Value of Restricted Stock Units (“Target Value”) = $_____  Number of Restricted Stock Units = Target Value/$[xx.xx]1 or ____ Restricted Stock Units2 This Award is governed by the terms of the Plan, and subject to the Terms and Conditions on the following page. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan. Grant Date: _______________ [Officer Name] [Officer Title] Denny’s Corporation 1The average closing market price per Share for the last 20 trading days of the Company’s 2023 fiscal year. 2Rounded up to the nearest whole share.

TERMS AND CONDITIONS 1. Vesting and Forfeiture of Award. The Award will vest and become non-forfeitable in three (3) equal installments on the last day of the Company’s 2024, 2025 and 2026 fiscal years (each a “Regular Vesting Date”) subject in each case to Grantee’s continued employment. Only a whole number of Restricted Stock Units will become vested as of any given Regular Vesting Date. If the number of Restricted Stock Units determined as of a Regular Vesting Date is a fractional number, the number vesting will be rounded down to the nearest whole number with any fractional portion carried forward. The Award shall vest, in full or in part, on an accelerated basis under certain circumstances as provided in Section 2 and Section 3 below. Notwithstanding anything contained herein to the contrary, if Grantee’s employment with the Company terminates for any reason other than as set forth in paragraph (a) or (b) of Section 2 below, Grantee shall forfeit all of Grantee’s right, title and interest in and to any unvested Restricted Stock Units as of the date of termination of employment. In addition, if Grantee’s employment is terminated by the Company for Cause, Grantee shall also forfeit any vested Restricted Stock Units that have not yet been converted to Shares. 2. Accelerated Vesting Under Certain Employment Terminations. The Award shall be subject to accelerated vesting in connection with a termination of employment under certain circumstances, as set forth below. (a) Death or Disability. Upon Grantee’s termination of employment with the Company due to death or Disability, a pro rata portion of the Restricted Stock Units, to the extent then outstanding and not previously vested, will vest and become non- forfeitable. The pro rata portion shall be determined by multiplying one third (1/3) of the number of Restricted Stock Units covered by Grantee’s Award by a fraction, (i) the numerator of which is the number of days that Grantee was employed during the Company’s fiscal year in which the employment termination date occurs, and (ii) the denominator of which is the total number of days in that fiscal year, rounded up to the next whole Restricted Stock Unit (as so determined, the “Pro Rata Amount”). (b) Retirement. Upon Grantee’s termination of employment with the Company due to Retirement (as defined below), the Pro Rata Amount (as defined in Section 2(a) above) of the Restricted Stock Units will vest and become non-forfeitable, provided Grantee does not engage in any Restricted Activities with a Competitor (each as defined below) prior to the next Regular Vesting Date (to the extent such restrictions are permissible under applicable law). For purposes of this Award Certificate: “Competitor” means all breakfast and family dining restaurants, including without limitation, [LIST OF NAMED COMPETITORS]. “Restricted Activities” means with respect to a Competitor, accepting employment, serving on a board of directors or otherwise being engaged as a consultant or advisor.

“Retirement” means Grantee’s voluntary resignation or termination of employment without Cause on or after attainment of age 55, provided that the sum of Grantee’s age and years of service with the Company is equal to or greater than 70. 3. Accelerated Vesting Upon a Change in Control. Upon a Change in Control of the Company during Grantee’s employment, the Restricted Stock Units (to the extent then unvested and not previously forfeited) will vest and become non-forfeitable. 4. Settlement of Restricted Stock Units. Except as otherwise provided in this Section 4 or in Section 6, (i) Restricted Stock Units that vest pursuant to Section 1 on a Regular Vesting Date (and are not otherwise forfeited due to a termination for Cause) shall convert into Shares and be paid out within 30 days following the applicable Regular Vesting Date, (ii) the Pro Rata Amount of Restricted Stock Units that vest pursuant to Section 2(a) (termination due to death or Disability) shall convert into Shares and be paid out within 30 days following the date of termination of employment, (iii) the Pro Rata Amount of Restricted Stock Units that vest pursuant to Section 2(b) (Retirement) shall convert into Shares and be paid out within 30 days following the next Regular Vesting Date to occur (or if sooner, a Change in Control), but in no event later than March 15 of the year following the year in which the termination of employment described in Section 2 occurs, and (iv) Restricted Stock Units that vest pursuant to Section 3 shall convert into Shares and be paid out within 30 days following the Change in Control. Shares paid upon conversion of the Restricted Stock Units will be registered on the books of the Company in Grantee’s name (or in street name to Grantee’s brokerage account) as of the date of payment in uncertificated (book-entry) form. 5. Limitation of Rights. The Award does not confer to Grantee or Grantee’s beneficiary any rights of a stockholder of the Company unless and until Shares are in fact issued to such person in connection with the Award. Nothing in this Award Certificate shall interfere with or limit in any way the right of the Company or any Affiliate to terminate Grantee’s employment at any time, nor confer upon Grantee any right to continue in employment of the Company or any Affiliate. From and after the Grant Date and until the earlier of (a) the time when the Restricted Stock Units become vested and are paid in accordance with this Award Certificate or (b) the time when Grantee’s right to receive Shares in payment of the Restricted Stock Units is forfeited in accordance with this Award Certificate, on the date the Company pays a cash dividend (if any) to holders of Shares generally, Grantee shall be credited with a cash amount per Restricted Stock Unit equal to the amount of such dividend per Share. Any amounts credited pursuant to the immediately preceding sentence shall be subject to the same applicable terms and conditions (including vesting, payment and forfeitability) as apply to the Restricted Stock Units to which they relate, and such cash amounts shall be paid only if and when the Restricted Stock Units to which they relate are settled. 6. Payment of Taxes. Grantee will owe federal, state, and local taxes in connection with the Award (the “Taxes”)). The withholding of Taxes shall be mandatorily satisfied by withholding from the settlement of the Restricted Stock Units a number of Shares having a fair market value equal to the amount required to be withheld for the Taxes. Grantee’s

acceptance of the Award constitutes Grantee’s acknowledgement that the Company will withhold on Grantee’s behalf a number of Shares sufficient to satisfy the Taxes. The obligations of the Company under this Award Certificate will be conditional on such payment of the Taxes by Grantee. Notwithstanding anything to the contrary contained in this Section 6, Section 15, or otherwise, the Company (i) makes no representations or undertakings regarding the treatment of Taxes in connection with any aspect of this Award, and (ii) does not commit to structure the terms of the Award to reduce or eliminate Grantee’s liability for Taxes. 7. Restrictions on Issuance of Shares. If at any time the Compensation and Incentives Committee of the Board (the “Compensation Committee”) shall determine, in its discretion, that registration, listing or qualification of the Shares underlying the Restricted Stock Units upon any securities exchange or similar self-regulatory organization or under any foreign, federal, or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition to the settlement of the Restricted Stock Units, the Shares will not be paid unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Compensation Committee. 8. Plan Controls. The terms contained in the Plan are incorporated into and made a part of this Award Certificate and this Award Certificate shall be governed by and construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Award Certificate, the provisions of the Plan shall be controlling and determinative. 9. Successors. This Award Certificate shall be binding upon any successor of the Company, in accordance with the terms of this Award Certificate and the Plan. 10. Severability. If any one or more of the provisions contained in this Award Certificate is deemed to be invalid, illegal or unenforceable, the other provisions of this Award Certificate will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included. 11. Notice. Notices and communications under this Award Certificate must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to Denny’s Corporation, 203 East Main Street, Spartanburg, SC 29319-0001, Attn: Secretary, or any other address designated by the Company in a written notice to Grantee. Notices to Grantee will be directed to the address of Grantee then currently on file with the Company, or at any other address given by Grantee in a written notice to the Company. 12. Compensation Recovery (Clawback) Policies. (a) Dodd-Frank Clawback Policy. The Award is subject to the requirements of (i) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder (the “Dodd-Frank Clawback Rules”), and (ii) the

Company’s Dodd-Frank Clawback Policy and any other policies adopted by the Company to implement such requirements, all to the extent determined by the Company in its discretion to be applicable to Grantee. For the avoidance of doubt, if the Dodd-Frank Clawback Rules and any implementing policy apply to Grantee, then the Company may take action against this Award or any proceeds the Grantee receives from it to recover any erroneously awarded compensation the Grantee may have received from the Company (whether related to this Award or otherwise), all in accordance with the Dodd-Frank Clawback Rules and the applicable implementing policy and subject to the requirements of applicable law. This Section 12(a) is in addition to, and not in lieu of, Section 15.7 of the Plan. (b) Other Clawback Policies. In addition to the provisions of Section 12(a) and in consideration for the grant of the Award, Grantee agrees to be subject to the “Other Clawback Policies,” which consist of: (i) any compensation, clawback, recoupment or similar policies of the Company or its Affiliates that may be in effect from time to time, whether adopted before or after the Grant Date (including, but not limited to, the Company’s Incentive Compensation Clawback Policy), and (ii) to such other clawback provisions and policies as may be required by applicable law, regulation or exchange listing standard. Grantee understands that the Other Clawback Policies are not limited in their application to the Award, or to equity or cash received in connection with the Award. To the extent that any Other Clawback Policies are now or in the future applicable to Grantee, Grantee agrees that Grantee is hereby bound by such Other Clawback Policies in its entirety. This Section 12(b) is in addition to, and not in lieu of, Section 15.7 of the Plan. 13. Other Company Policies. Grantee agrees, in consideration for the grant of the Restricted Stock Units, to be subject to any policies of the Company and its Affiliates regarding securities trading, and hedging or pledging of securities, that may be in effect from time to time, or as may otherwise be required by applicable law, regulation or exchange listing standard. 14. Governing Law. This Award Certificate shall be governed by the laws of the State of Delaware, excluding any conflicts or choice of law, rule or principle that might otherwise refer construction or interpretation of this Award Certificate to the substantive law of another jurisdiction. 15. Section 409A Compliance. This Award Certificate is intended to be exempt from or otherwise comply with the provisions of Section 409A of the Code. The Company may change or modify the terms of this Award Certificate without Grantee’s consent or signature if the Company determines, in its sole discretion, provided that such change or modification is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any regulations or other guidance issued thereunder. 16. Electronic Delivery of Documents. Grantee authorizes the Company to deliver electronically any prospectuses or other documentation related to the Award and any other compensation or benefit plan or arrangement in effect from time to time (including, without

limitation, reports, proxy statements or other documents that are required to be delivered to participants in such arrangements pursuant to federal or state laws, rules or regulations). For this purpose, electronic delivery will include, without limitation, delivery by means of e-mail or e-mail notification that such documentation is available on the Company’s Intranet site. Upon written request, the Company will provide to Grantee a paper copy of any document also delivered to Grantee electronically. The authorization described in this paragraph may be revoked by Grantee at any time by written notice to the Company. 17. Further Assurances. Grantee agrees, upon demand of the Company or the Compensation Committee, to do all acts and execute, deliver, and perform all additional documents, instruments, and agreements that may be reasonably required by the Company or the Compensation Committee, as the case may be, to implement the provisions and purposes of this Award and the Plan.

EX-10.2

2024 Long-Term Incentive Program Denny’s Corporation Performance Share Unit 203 East Main Street Award Certificate Spartanburg, SC 29319 «Name» (“Grantee”) Denny’s Corporation (the “Company”) has granted to you a performance share unit award (the “Award”) denominated in a target number of performance share units (the “Performance Share Units” or “PSUs”). The PSUs are rights that entitle you to earn shares of the Company’s $0.01 par value common stock (“Shares”), on a one-for-one basis. The Award is granted under the Denny’s Corporation 2021 Omnibus Incentive Plan (the “Plan”). By accepting the Award, you shall be deemed to have agreed to the terms and conditions set forth in this Award Certificate and the Plan. As described in detail in the Terms and Conditions attached to this Award Certificate, you may earn between 0 to 200% of the PSUs based on the Company’s achievement of [THE PERFORMANCE VESTING REQUIREMENT(S) LISTED ON APPENDIX A] during the Performance Period. The target number of PSUs underlying this Award was determined as follows: Target Grant Date Value of Award: $________/$[xx.xx]1 = _____ Target PSUs Performance Period: December 28, 2023 to December 30, 2026 This Award is governed by the terms of the Plan, and subject to the Terms and Conditions on the pages that follow. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan. Grant Date: [OFFICER NAME] [TITLE] Denny’s Corporation 1 The average closing market price per Share for the last 20 trading days of the Company’s 2023 fiscal year. The Target PSUs is then rounded up to nearest whole share.

2 TERMS AND CONDITIONS 1. Vesting and Forfeiture of Award. The Award will vest and become non-forfeitable on the last day of the Performance Period, subject to Grantee’s continued employment through such date and based on the achievement of [THE PERFORMANCE VESTING REQUIREMENT(S)], as described below. (a) [INSERT PERFORMANCE VESTING CRITERIA] (b) The Award shall vest on an accelerated basis under certain circumstances, as provided in Section 2 and Section 3 below. Notwithstanding anything contained herein to the contrary, if Grantee’s employment with the Company terminates for any reason other than as set forth in Section 2(a) or Section 2(b) below, Grantee shall forfeit all of Grantee’s right, title and interest in and to unvested PSUs as of the date of termination of employment. In addition, if Grantee’s employment is terminated by the Company for Cause, Grantee shall also forfeit any vested PSUs that have not yet been converted to Shares; provided, that the foregoing shall not apply to any vested PSUs that are deferred pursuant to Section 15 below. 2. Accelerated Vesting Under Certain Employment Terminations. The Award shall be subject to accelerated vesting in connection with a termination of employment under certain circumstances, as set forth below. (a) Death or Disability. Upon Grantee’s termination of employment with the Company due to death or Disability prior to the end of the Performance Period, the Company will multiply the Target PSUs by a fraction, the numerator of which is the number of days elapsed from the first day of the Performance Period through the employment termination date, and the denominator of which is 1,099 (such amount, the “Pro Rata Target PSUs”). The Award will then vest in accordance with Section 1(a) above, provided that, (x) for purposes of the calculation, “Pro Rata Target PSUs” will be substituted for “Target PSUs,” and (y) [FOR TSR-BASED GOALS: the Performance Period shall be considered to have ended on the last day of the Company’s most recently completed fiscal quarter] OR [FOR OTHER PERFORMANCE CRITERIA: 100% of the Pro Rata Target PSUs shall vest]. (b) Retirement. Upon Grantee’s termination of employment with the Company due to Retirement (as defined below), the Award will vest in accordance with Section 1(a) above at the end of the regular Performance Period, provided that, (x) for purposes of the calculations, “Pro Rata Target PSUs” will be substituted for “Target PSUs,” and (y) Grantee has not engaged in any Restricted Activities with a Competitor (each as defined below) during the Performance Period (to the extent such restrictions are permissible under applicable law). For the avoidance of doubt, the calculation described in this Section 2(b) shall be based on [PERFORMANCE CRITERIA] for the three-year Performance Period, provided that in the event of a Change in Control following Grantee’s Retirement but before the end of the Performance Period, the number of PSUs earned shall be calculated in accordance with Section 3 but shall still be prorated in accordance with this Section 2(b) based upon the Grantee’s Retirement date.

3 3. Accelerated Vesting Upon a Change in Control. Upon a Change in Control of the Company during the Performance Period, the Award will vest in accordance with Section 1(a), subject to Grantee’s continued employment through the Change in Control, provided that [FOR TSR-BASED GOALS: the Performance Period shall be considered to have ended on the date of the Change in Control] OR [FOR OTHER PERFORMANCE CRITERIA: the number of PSUs to vest will be based on assumed [PERFORMANCE CRITERIA] performance results at the greater of (i) target and (ii) estimated actual performance through the Change in Control, as determined by the Committee]. 4. Settlement of Performance Share Units. Except to the extent deferred in accordance with Section 15 below, (i) PSUs that vest pursuant to Section 1 (and are not otherwise forfeited due to a termination for Cause) will convert into Shares and be paid out as soon as practicable following the end of the Performance Period, but in no event later than 60 days following the end of the Performance Period, (ii) PSUs that vest pursuant to Section 2(a) (termination due to death or Disability) will convert into Shares and be paid out within 30 days following the employment termination date, (iii) PSUs that vest pursuant to Section 2(b) (Retirement) will convert into Shares and be paid out as soon as practicable following the end of the Performance Period, but in no event later than 60 days following the end of the Performance Period (or if sooner, within 30 days following a Change in Control) and (iv) PSUs that vest pursuant to Section 3 (Change in Control) will convert into Shares and be paid out within 30 days following the Change in Control. Any fractional Shares will be rounded up or down to the nearest next whole Share. Any PSUs that do not become vested will be forfeited. Stock certificates evidencing Shares paid hereunder will be registered on the books of the Company in Grantee’s name (or in street name to Grantee’s brokerage account) as of the date of payment in uncertificated (book-entry) form. 5. Definitions. For purposes of this Award Certificate: (a) [ADD APPLICABLE DEFINITIONS FOR PERFORMANCE CRITERIA] (b) “Competitor” means all breakfast and family dining restaurants, including without limitation, [LIST OF NAMED COMPETITORS]. (c) “Restricted Activities” means with respect to a Competitor, accepting employment, serving on a board of directors or otherwise being engaged as a consultant or advisor. (d) “Retirement” means Grantee’s voluntary resignation or termination of employment without Cause on or after attainment of age 55, provided that the sum of Grantee’s age and years of service with the Company is equal to or greater than 70. 6. Limitation of Rights. The Award does not confer to Grantee or Grantee’s beneficiary any rights of a stockholder of the Company unless and until Shares are in fact issued to such person in connection with the Award. Nothing in this Award Certificate shall interfere with or limit in any way the right of the Company or any Affiliate to terminate Grantee’s employment at any time, nor confer upon Grantee any right to continue in employment of the Company or any Affiliate. 7. Payment of Taxes. Grantee will owe federal, state, and local taxes in connection with the Award (the “Taxes”)). The withholding of Taxes shall be mandatorily satisfied by withholding from the settlement of the PSUs a number of Shares having a fair market value equal to the amount

4 required to be withheld for the Taxes (provided, however, that if Grantee has elected to defer 100% of the Grantee’s Award as provided in Section 15 herein (or a lesser amount but the remaining number of Shares are insufficient to cover the applicable FICA obligation), any Grantee FICA obligation will be separately payable to the Company by cash or check). Grantee’s acceptance of the Award constitutes Grantee’s acknowledgement that the Company will withhold on Grantee’s behalf a number of Shares sufficient to satisfy the Taxes. The obligations of the Company under this Award Certificate will be conditional on such payment of the Taxes by Grantee. Notwithstanding anything to the contrary contained in this Section 7, Section 15, Section 17, or otherwise, the Company (i) makes no representations or undertakings regarding the treatment of Taxes in connection with any aspect of this Award, and (ii) does not commit to structure the terms of the Award to reduce or eliminate Grantee’s liability for Taxes. 8. Restrictions on Issuance of Shares. If at any time the Compensation and Incentives Committee of the Board (the “Compensation Committee”) shall determine, in its discretion, that registration, listing or qualification of the Shares underlying the PSUs upon any securities exchange or similar self-regulatory organization or under any foreign, federal, or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition to the settlement of the PSUs, the Shares will not be paid unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Compensation Committee. 9. Plan Controls. The terms contained in the Plan are incorporated into and made a part of this Award Certificate and this Award Certificate shall be governed by and construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Award Certificate, the provisions of the Plan shall be controlling and determinative. 10. Successors. This Award Certificate shall be binding upon any successor of the Company, in accordance with the terms of this Award Certificate and the Plan. 11. Severability. If any one or more of the provisions contained in this Award Certificate is deemed to be invalid, illegal or unenforceable, the other provisions of this Award Certificate will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included. 12. Notice. Notices and communications under this Award Certificate must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to Denny’s Corporation, 203 East Main Street, Spartanburg, SC 29319-0001, Attn: Secretary, or any other address designated by the Company in a written notice to Grantee. Notices to Grantee will be directed to the address of Grantee then currently on file with the Company, or at any other address given by Grantee in a written notice to the Company. 13. Compensation Recovery (Clawback) Policies. (a) Dodd-Frank Clawback Policy. The Award is subject to the requirements of (i) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding

5 recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder (the “Dodd-Frank Clawback Rules”), and (ii) the Company’s Dodd-Frank Clawback Policy and any other policies adopted by the Company to implement such requirements, all to the extent determined by the Company in its discretion to be applicable to Grantee. For the avoidance of doubt, if the Dodd-Frank Clawback Rules and any implementing policy apply to Grantee, then the Company may take action against this Award or any proceeds the Grantee receives from it to recover any erroneously awarded compensation the Grantee may have received from the Company (whether related to this Award or otherwise), all in accordance with the Dodd-Frank Clawback Rules and the applicable implementing policy and subject to the requirements of applicable law. This Section 13(a) is in addition to, and not in lieu of, Section 15.7 of the Plan. (b) Other Clawback Policies. In addition to the provisions of Section 13(a) and in consideration for the grant of the Award, Grantee agrees to be subject to the “Other Clawback Policies,” which consist of: (i) any compensation, clawback, recoupment or similar policies of the Company or its Affiliates that may be in effect from time to time, whether adopted before or after the Grant Date (including, but not limited to, the Company’s Incentive Compensation Clawback Policy), and (ii) to such other clawback provisions and policies as may be required by applicable law, regulation or exchange listing standard. Grantee understands that the Other Clawback Policies are not limited in their application to the Award, or to equity or cash received in connection with the Award. To the extent that any Other Clawback Policies are now or in the future applicable to Grantee, Grantee agrees that Grantee is hereby bound by such Other Clawback Policies in its entirety. This Section 13(b) is in addition to, and not in lieu of, Section 15.7 of the Plan. 14. Other Company Policies. Grantee agrees, in consideration for the grant of the PSUs, to be subject to any policies of the Company and its Affiliates regarding securities trading, and the hedging or pledging of securities, that may be in effect from time to time, or as may otherwise be required by applicable law, regulation or exchange listing standard. 15. Deferral Election. Notwithstanding anything contained herein to the contrary, Grantee will be permitted to make deferral elections with respect to the Award pursuant to the Denny’s Deferred Compensation Plan, as amended and restated (the “DC Plan”). Any deferral election shall be made in accordance with Section 409A of the Code, the DC Plan terms and pursuant to a Deferral Agreement (as defined in the DC Plan) and may be credited with Dividend Equivalents as set forth in the DC Plan. 16. Governing Law. This Award Certificate shall be governed by the laws of the State of Delaware, excluding any conflicts or choice of law, rule or principle that might otherwise refer construction or interpretation of this Award Certificate to the substantive law of another jurisdiction. 17. Section 409A Compliance. This Award Certificate is intended to be exempt from or otherwise comply with the provisions of Section 409A of the Code. The Company may change or modify the terms of this Award Certificate without Grantee’s consent or signature if the Company determines, in its sole discretion, provided that such change or modification is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any regulations or other guidance issued thereunder.

6 18. Electronic Delivery of Documents. Grantee authorizes the Company to deliver electronically any prospectuses or other documentation related to the Award and any other compensation or benefit plan or arrangement in effect from time to time (including, without limitation, reports, proxy statements or other documents that are required to be delivered to participants in such arrangements pursuant to federal or state laws, rules or regulations). For this purpose, electronic delivery will include, without limitation, delivery by means of e-mail or e-mail notification that such documentation is available on the Company’s Intranet site. Upon written request, the Company will provide to Grantee a paper copy of any document also delivered to Grantee electronically. The authorization described in this paragraph may be revoked by Grantee at any time by written notice to the Company. 19. Further Assurances. Grantee agrees, upon demand of the Company or the Compensation Committee, to do all acts and execute, deliver, and perform all additional documents, instruments, and agreements that may be reasonably required by the Company or the Compensation Committee, as the case may be, to implement the provisions and purposes of this Award and the Plan.

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Kelli F. Valade, certify that:

1. I have reviewed this report on Form 10-Q of Denny’s Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date:	April 30, 2024	By:	/s/ Kelli F. Valade
			Kelli F. Valade
			Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Robert P. Verostek, certify that:

1. I have reviewed this report on Form 10-Q of Denny’s Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date:	April 30, 2024	By:	/s/ Robert P. Verostek
			Robert P. Verostek
			Executive Vice President and
			Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

Kelli F. Valade

Chief Executive Officer

of Denny’s Corporation

and

Robert P. Verostek

Executive Vice President and Chief Financial Officer

of Denny's Corporation

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Denny’s Corporation (the “Company”) on Form 10-Q for the quarter ended March 27, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kelli F. Valade, Chief Executive Officer of the Company, and I, Robert P. Verostek, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 30, 2024	By:	/s/ Kelli F. Valade
			Kelli F. Valade
			Chief Executive Officer

Date:	April 30, 2024	By:	/s/ Robert P. Verostek
			Robert P. Verostek
			Executive Vice President and
			Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Denny’s Corporation and will be retained by Denny’s Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	3 Months Ended
	Mar. 27, 2024	Apr. 25, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 27, 2024
Document Transition Report	false
Entity File Number	0-18051
Entity Registrant Name	DENNY’S CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3487402
Entity Address, Address Line One	203 East Main Street
Entity Address, City or Town	Spartanburg,
Entity Address, State or Province	SC
Entity Address, Postal Zip Code	29319-0001
City Area Code	864
Local Phone Number	597-8000
Title of 12(b) Security	$.01 Par Value, Common Stock
Trading Symbol	DENN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		52,018,583
Entity Central Index Key	0000852772
Current Fiscal Year End Date	--12-25
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 27, 2024	Dec. 27, 2023
Current assets:
Cash and cash equivalents	$ 1,164	$ 4,893
Investments	2,787	1,281
Receivables, net	17,288	21,391
Inventories	2,073	2,175
Assets held for sale	1,060	1,455
Prepaid and other current assets	9,646	12,855
Total current assets	34,018	44,050
Property, net of accumulated depreciation of $161,735 and $159,879, respectively	94,985	93,494
Finance lease right-of-use assets, net of accumulated amortization of $7,393 and $8,220, respectively	5,785	6,098
Operating lease right-of-use assets, net	114,912	116,795
Goodwill	65,908	65,908
Intangible assets, net	93,046	93,428
Deferred financing costs, net	1,543	1,702
Other noncurrent assets	50,214	43,343
Total assets	460,411	464,818
Current liabilities:
Current finance lease liabilities	1,363	1,383
Current operating lease liabilities	15,547	14,779
Accounts payable	15,076	24,070
Other current liabilities	56,986	63,068
Total current liabilities	88,972	103,300
Long-term liabilities:
Long-term debt	261,200	255,500
Noncurrent finance lease liabilities	8,845	9,150
Noncurrent operating lease liabilities	111,553	114,451
Liability for insurance claims, less current portion	7,550	6,929
Deferred income taxes, net	7,864	6,582
Other noncurrent liabilities	30,171	31,592
Total long-term liabilities	427,183	424,204
Total liabilities	516,155	527,504
Shareholders' deficit
Common stock $0.01 par value; 135,000 shares authorized; March 27, 2024: 53,262 shares issued and 52,119 outstanding; December 27, 2023: 52,906 shares issued and 52,239 shares outstanding	533	529
Paid-in capital	7,534	6,688
Deficit	(17,093)	(21,784)
Accumulated other comprehensive loss, net	(35,495)	(41,659)
Treasury stock, at cost, 1,143 and 667 shares, respectively	(11,223)	(6,460)
Total shareholders' deficit	(55,744)	(62,686)
Total liabilities and shareholders' deficit	$ 460,411	$ 464,818

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 27, 2024	Dec. 27, 2023
Assets
Accumulated depreciation	$ 161,735	$ 159,879
Accumulated amortization	$ 7,393	$ 8,220
Shareholders' deficit
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	135,000,000	135,000,000
Common stock, shares issued (in shares)	53,262,000	52,906,000
Common stock, shares outstanding (in shares)	52,119,000	52,239,000
Treasury stock, at cost (in shares)	1,143,000	667,000

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Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Revenue:
Total operating revenue	$ 109,974	$ 117,471
Costs of company restaurant sales, excluding depreciation and amortization:
Product costs	13,311	14,039
Payroll and benefits	20,474	20,240
Occupancy	4,573	4,094
Other operating expenses	9,760	8,119
Total costs of company restaurant sales, excluding depreciation and amortization	48,118	46,492
Costs of franchise and license revenue, excluding depreciation and amortization	27,374	32,387
General and administrative expenses	21,222	20,118
Depreciation and amortization	3,581	3,656
Operating (gains), losses and other charges, net	(327)	(1,329)
Total operating costs and expenses, net	99,968	101,324
Operating income	10,006	16,147
Interest expense, net	4,420	4,505
Other nonoperating (income) expense, net	(637)	10,093
Income before income taxes	6,223	1,549
Provision for income taxes	1,532	952
Net income	$ 4,691	$ 597
Net income per share - basic (in dollars per share)	$ 0.09	$ 0.01
Net income per share - diluted (in dollars per share)	$ 0.09	$ 0.01
Basic weighted average shares outstanding (in shares)	53,068	57,638
Diluted weighted average shares outstanding (in shares)	53,214	57,840
Company restaurant sales
Revenue:
Total operating revenue	$ 52,342	$ 53,452
Franchise and license revenue
Revenue:
Total operating revenue	$ 57,632	$ 64,019

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 4,691	$ 597
Other comprehensive income (loss), net of tax:
Minimum pension liability adjustment, net of tax of $6 and $22, respectively	10	67
Changes in the fair value of cash flow hedges, net of tax of $2,423 and $321, respectively	7,175	942
Reclassification of cash flow hedges to interest expense, net of tax of $(381) and $(236), respectively	(1,127)	(694)
Amortization of unrealized losses related to interest rate swaps to interest expense, net of tax of $36 and $14, respectively	106	42
Other comprehensive income	6,164	357
Total comprehensive income	$ 10,855	$ 954

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Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Statement of Comprehensive Income [Abstract]
Tax effect of minimum pension liability adjustment	$ 6	$ 22
Changes in fair value of cash flow derivatives, tax	2,423	321
Reclassification of cash flow derivatives to interest expense, tax	(381)	(236)
Reclassification of unrealized losses related to derivatives to interest expense, tax	$ 36	$ 14

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Consolidated Statements of Shareholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Paid-in Capital	Deficit	Accumulated Other Comprehensive Loss, Net
Balance as of beginning of period (in shares) at Dec. 28, 2022		64,998
Balance as of beginning of period at Dec. 28, 2022	$ (37,116)	$ 650	$ (95,476)	$ 142,136	$ (41,729)	$ (42,697)
Balance as of beginning of period, treasury stock (in shares) at Dec. 28, 2022			(8,270)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	597				597
Other comprehensive income	357					357
Share-based compensation on equity classified awards, net of withholding tax	127			127
Purchase of treasury stock, including excise tax (in shares)			(806)
Purchase of treasury stock, including excise tax	(8,967)		$ (8,967)
Issuance of common stock for share-based compensation (in shares)		470
Issuance of common stock for share-based compensation	0	$ 5		(5)
Balance as of end of period (in shares) at Mar. 29, 2023		65,468
Balance as of end of period at Mar. 29, 2023	$ (45,002)	$ 655	$ (104,443)	142,258	(41,132)	(42,340)
Balance as of end of period, treasury stock (in shares) at Mar. 29, 2023			(9,076)
Balance as of beginning of period (in shares) at Dec. 27, 2023	52,906	52,906
Balance as of beginning of period at Dec. 27, 2023	$ (62,686)	$ 529	$ (6,460)	6,688	(21,784)	(41,659)
Balance as of beginning of period, treasury stock (in shares) at Dec. 27, 2023	(667)		(667)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 4,691				4,691
Other comprehensive income	6,164					6,164
Share-based compensation on equity classified awards, net of withholding tax	$ 850			850
Purchase of treasury stock, including excise tax (in shares)	(500)		(476)
Purchase of treasury stock, including excise tax	$ (4,763)		$ (4,763)
Issuance of common stock for share-based compensation (in shares)		356
Issuance of common stock for share-based compensation	$ 0	$ 4		(4)
Balance as of end of period (in shares) at Mar. 27, 2024	53,262	53,262
Balance as of end of period at Mar. 27, 2024	$ (55,744)	$ 533	$ (11,223)	$ 7,534	$ (17,093)	$ (35,495)
Balance as of end of period, treasury stock (in shares) at Mar. 27, 2024	(1,143)		(1,143)

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Cash flows from operating activities:
Net income	$ 4,691	$ 597
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation and amortization	3,581	3,656
Operating (gains), losses and other charges, net	(327)	(1,329)
Losses and amortization on interest rate swaps, net	141	10,662
Amortization of deferred financing costs	159	159
Gains on investments	(6)	(5)
Losses on early termination of debt and leases	123	0
Deferred income tax (benefit) expense	(768)	133
Decrease of tax valuation allowance	(26)	0
Share-based compensation expense	2,776	3,094
Changes in assets and liabilities, excluding acquisitions and dispositions:
Receivables	4,011	1,814
Inventories	102	2,284
Prepaids and other current assets	3,208	2,652
Other noncurrent assets	860	1,119
Operating lease assets and liabilities	(164)	(246)
Accounts payable	(11,037)	(1,131)
Other accrued liabilities	(6,408)	(6,534)
Other noncurrent liabilities	(701)	(772)
Net cash flows provided by operating activities	215	16,153
Cash flows from investing activities:
Capital expenditures	(4,905)	(1,304)
Proceeds from sales of real estate and other assets	986	1,715
Investment purchases	(1,500)	(1,300)
Collections on notes receivable	171	320
Issuance of notes receivable	(79)	0
Net cash flows used in investing activities	(5,327)	(569)
Cash flows from financing activities:
Revolver borrowings	52,200	35,000
Revolver payments	(46,500)	(32,500)
Repayments of finance leases	(370)	(506)
Tax withholding on share-based payments	(1,872)	(2,846)
Purchase of treasury stock	(4,774)	(9,041)
Net bank overdrafts	2,699	(319)
Net cash flows provided by (used in) financing activities	1,383	(10,212)
(Decrease) increase in cash and cash equivalents	(3,729)	5,372
Cash and cash equivalents at beginning of period	4,893	3,523
Cash and cash equivalents at end of period	$ 1,164	$ 8,895

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Introduction and Basis of Presentation

3 Months Ended

Mar. 27, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Introduction and Basis of Presentation

Introduction and Basis of Presentation

Denny’s Corporation, or the Company, is one of America’s largest full-service restaurant chains based on number of restaurants. As of March 27, 2024, the Company consisted of 1,614 restaurants, 1,539 of which were franchised/licensed restaurants and 75 of which were company operated.

The Company consists of the Denny’s brand ("Denny's") and the Keke’s Breakfast Café brand (“Keke’s”). As of March 27, 2024, the Denny's brand consisted of 1,553 restaurants, 1,489 of which were franchised/licensed restaurants and 64 of which were company operated. At March 27, 2024, the Keke's brand consisted of 61 restaurants, 50 of which were franchised restaurants and 11 of which were company operated.

Our unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been 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 are reasonable.

These interim consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto as of and for the fiscal year ended December 27, 2023 which are contained in our audited Annual Report on Form 10-K for the fiscal year ended December 27, 2023. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 25, 2024. Our significant interim accounting policies include the recognition of advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective rate.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 27, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Newly Adopted Accounting Standards

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which was later clarified in January 2021 by ASU 2021-01, “Reference Rate Reform (Topic 848): Scope”. Additionally, in December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which allows ASU 2020-04 to be adopted and applied prospectively to contract modifications made on or before December 31, 2024. The guidance provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The Company adopted ASU 2020-04 on March 12, 2020. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on the Company’s consolidated financial position or results of operations. The guidance is effective through December 31, 2024.

Accounting Standards to be Adopted

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The new guidance requires enhanced reportable segment disclosures to include significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 (our fiscal 2024) and interim periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our Consolidated Financial Statements and will add necessary disclosures upon adoption.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The new guidance requires enhanced effective tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our Consolidated Financial Statements and will add necessary disclosures upon adoption.

We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption.

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Receivables

3 Months Ended

Mar. 27, 2024

Receivables [Abstract]

Receivables

Receivables

Receivables consisted of the following:

	March 27, 2024		December 27, 2023
	(In thousands)
Receivables, net:
Trade accounts receivable from franchisees	$	12,181	$	14,092
Notes and loan receivables from franchisees	340		584
Vendor receivables	2,154		4,059
Credit card receivables	784		995
Other	2,134		1,862
Allowance for credit losses	(305)		(201)
Total receivables, net	$	17,288	$	21,391

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Goodwill and Intangible Assets

3 Months Ended

Mar. 27, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill by segment consisted of the following:
	March 27, 2024		December 27, 2023
	(In thousands)
Denny’s	$	37,527	$	37,527
Other	28,381		28,381
Total goodwill	$	65,908	$	65,908

Intangible assets consisted of the following:

	March 27, 2024				December 27, 2023
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(In thousands)
Intangible assets with indefinite lives:
Trade names	$	79,687	$	—	$	79,687	$	—
Liquor licenses	120		—		120		—
Intangible assets with definite lives:
Reacquired franchise rights	9,470		5,820		9,470		5,614
Franchise agreements	10,700		1,111		10,700		935
Intangible assets, net	$	99,977	$	6,931	$	99,977	$	6,549

Amortization expense for intangible assets with definite lives totaled $0.4 million for each of the quarters ended March 27, 2024 and March 29, 2023.

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Other Current Liabilities

3 Months Ended

Mar. 27, 2024

Other Liabilities, Current [Abstract]

Other Current Liabilities

Other Current Liabilities

Other current liabilities consisted of the following:

	March 27, 2024		December 27, 2023
	(In thousands)
Accrued payroll	$	11,896	$	16,400
Current portion of liability for insurance claims	3,977		3,758
Accrued taxes	4,062		4,699
Accrued advertising	9,827		10,664
Gift cards	6,398		7,838
Accrued legal settlements	8,436		7,488
Accrued interest	4,714		4,530
Other	7,676		7,691
Other current liabilities	$	56,986	$	63,068

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Fair Value of Financial Instruments

3 Months Ended

Mar. 27, 2024

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Financial assets and liabilities measured at fair value on a recurring basis are summarized below: 

	Total		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Fair value measurements as of March 27, 2024:
Deferred compensation plan investments (1)	$	11,378	$	11,378	$	—	$	—
Interest rate swaps (2)	16,978		—		16,978		—
Investments (3)	2,787		—		2,787		—
Total	$	31,143	$	11,378	$	19,765	$	—
Fair value measurements as of December 27, 2023:
Deferred compensation plan investments (1)	$	12,225	$	12,225	$	—	$	—
Interest rate swaps (2)	8,888		—		8,888		—
Investments (3)	1,281		—		1,281		—
Total	$	22,394	$	12,225	$	10,169	$	—

(1)    The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments and are included in other noncurrent assets in our Consolidated Balance Sheets.

(2)    The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates, forward yield curves and credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For disclosures about the fair value measurements of our derivative instruments, see Note 7.

(3)    The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments.

Those assets and liabilities measured at fair value on a non-recurring basis are summarized below:

		Significant Unobservable Inputs (Level 3)		Impairment Charges
		(In thousands)
Fair value measurements as of March 27, 2024:
Assets held and used (1)		$	—	$	95
(1)	As of March 27, 2024, impaired assets were written down to their fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods.

Assets that are measured at fair value on a non-recurring basis include property, operating lease right-of-use assets, finance lease right-of-use assets, goodwill and intangible assets. During the quarter ended March 27, 2024, we recognized impairment charges of $0.1 million related to certain of these assets. See Note 9.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are deemed to approximate fair value due to the immediate or short-term maturity of these instruments. The fair value of notes receivable approximates the carrying value after consideration of recorded allowances and related risk-based interest rates. The liabilities under our credit facility are carried at historical cost, which approximates fair value. The fair value of our senior secured revolver approximates its carrying value since it is a variable rate facility (Level 2).

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Long-Term Debt

3 Months Ended

Mar. 27, 2024

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

The Company and certain of its subsidiaries have a credit facility consisting of a five-year $400 million senior secured revolver (with a $25 million letter of credit sublimit). The credit facility includes an accordion feature that would allow us to increase the size of the facility to $450 million. Borrowings bear a tiered interest rate, which is based on the Company's consolidated leverage ratio. The maturity date for the credit facility is August 26, 2026.

The credit facility is available for working capital, capital expenditures and other general corporate purposes. The credit facility is guaranteed by the Company and its material subsidiaries and is secured by assets of the Company and its subsidiaries, including the stock of its subsidiaries (other than its insurance captive subsidiary). It includes negative covenants that are usual for facilities and transactions of this type. The credit facility also includes certain financial covenants with respect to a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. We were in compliance with all financial covenants as of March 27, 2024.

As of March 27, 2024, we had outstanding revolver loans of $261.2 million and outstanding letters of credit under the credit facility of $17.0 million. These balances resulted in unused commitments of $121.8 million as of March 27, 2024 under the credit facility.

As of March 27, 2024, borrowings under the credit facility bore interest at a rate of Adjusted Daily Simple SOFR plus 2.25%. Letters of credit under the credit facility bore interest at a rate of 2.38%. The commitment fee, paid on the unused portion of the credit facility, was set to 0.35%.

Prior to considering the impact of our interest rate swaps, described below, the weighted-average interest rate on outstanding revolver loans was 7.69% and 7.41% as of March 27, 2024 and December 27, 2023, respectively. Taking into consideration our interest rate swaps that are designated as cash flow hedges, the weighted-average interest rate of outstanding revolver loans was 5.30% and 5.04% as of March 27, 2024 and December 27, 2023, respectively.

Interest Rate Hedges

We have receive-variable, pay-fixed interest rate swaps to hedge the forecasted cash flows of our floating rate debt. A summary of our interest rate swaps as of March 27, 2024 is as follows:

Trade Date	Effective Date	Maturity Date	Notional Amount			Fair Value		Fixed Rate
			(In thousands)
Swaps designated as cash flow hedges
March 20, 2015	March 29, 2018	March 31, 2025	$	120,000		$	3,040	2.34	%
October 1, 2015	March 29, 2018	March 31, 2026	$	50,000		$	1,980	2.37	%
February 15, 2018	March 31, 2020	December 31, 2033	$	44,000	(1)	$	11,958	3.09	%
Total			$	214,000		$	16,978

(1)     The notional amounts of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $335 million on August 31, 2033.

Termination and Designation of Certain Interest Rate Swaps

During the quarter ended March 29, 2023, we terminated a portion of our hedging relationship entered into in 2018 (“2018 Swaps”), reducing the previous maximum notional amount of $425 million on August 31, 2033 to $335 million. We received $1.5 million of cash as a result of the termination which is recorded as a component of operating activities in our Consolidated Statement of Cash Flows for the quarter ended March 29, 2023.

In addition, during the quarter ended March 29, 2023, we designated the remaining 2018 Swaps as cash flow hedges of our exposure to variability in future cash flows attributable to variable rate interest payments due on forecasted notional amounts.

Changes in Fair Value of Interest Rate Swaps

To the extent the swaps are highly effective in offsetting the variability of the hedged cash flows, changes in the fair value of the swaps are not included in the Consolidated Statements of Income but are reported as a component of other comprehensive income (loss). Our interest rate swaps are designated as cash flow hedges with unrealized gains and losses recorded as a component of accumulated other comprehensive loss, net.

As of March 27, 2024, the fair value of the swaps designated as cash flow hedges was an asset of $17.0 million, recorded as a component of other noncurrent assets. The designated swaps have an offsetting amount (before taxes) recorded as a component of accumulated other comprehensive loss, net in our Consolidated Balance Sheets. See Note 13 for amounts recorded in accumulated other comprehensive loss related to interest rate swaps. For the quarter ended March 27, 2024, we reclassified $1.5 million from accumulated other comprehensive loss, net as a reduction to interest expense, net. We expect to reclassify $6.2 million from accumulated other comprehensive loss, net as a reduction to interest expense, net in our Consolidated Statements of Income related to swaps designated as cash flow hedges during the next 12 months.

For the periods prior to their designation as cash flow hedges, changes in the fair value of the 2018 Swaps were recorded as a component of other nonoperating (income) expense, net in our Consolidated Statements of Income. For the quarter ended March 29, 2023, we recorded expense of $10.6 million as a component of other nonoperating (income) expense, net related to the 2018 Swaps resulting from changes in fair value.

Amortization of Certain Amounts Included in Accumulated Other Comprehensive Loss, Net

At March 27, 2024, we had a total of $64.0 million (before taxes) included in accumulated other comprehensive loss, net related to (i) the discontinuance of hedge accounting treatment related to certain cash flow hedges in prior years and (ii) the fair value of certain swaps at the date of designation as cash flow hedges that are being amortized into our Consolidated Statements of Income as a component of interest expense, net over the remaining term of the related swap.

For the quarter ended March 27, 2024, we recorded unrealized losses of $0.1 million to interest expense, net. For the quarter ended March 29, 2023, we recorded unrealized losses of less than $0.1 million to interest expense, net. We expect to amortize $0.9 million from accumulated other comprehensive loss, net to interest expense, net in our Consolidated Statements of Income related to dedesignated interest rate swaps during the next 12 months.

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Revenues

3 Months Ended

Mar. 27, 2024

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

The following table disaggregates our revenue by sales channel and type of good or service:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Company restaurant sales	$	52,342	$	53,452
Franchise and license revenue:
Royalties	29,306		30,027
Advertising revenue	18,138		19,668
Initial and other fees	1,816		4,990
Occupancy revenue	8,372		9,334
Franchise and license revenue	57,632		64,019
Total operating revenue	$	109,974	$	117,471

Franchise occupancy revenue consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Operating lease revenue	$	6,128	$	6,871
Variable lease revenue	2,244		2,463
Total occupancy revenue	$	8,372	$	9,334

Balances related to contracts with customers consist of receivables, contract assets, deferred franchise revenue and deferred gift card revenue. See Note 3 for details on our receivables.

Deferred franchise revenue consists primarily of the unamortized portion of initial franchise fees that are currently being amortized into revenue and amounts related to development agreements and unopened restaurants that will begin amortizing into revenue when the related restaurants are opened. Deferred franchise revenue represents our remaining performance obligations to our franchisees, excluding amounts of variable consideration related to sales-based royalties and advertising.

The components of the change in deferred franchise revenue are as follows:

	(In thousands)
Balance, December 27, 2023	$	19,150
Fees received from franchisees	220
Revenue recognized (1)	(779)
Balance, March 27, 2024	18,591
Less current portion included in other current liabilities	2,132
Deferred franchise revenue included in other noncurrent liabilities	$	16,459

(1)    Of this amount $0.7 million was included in the deferred franchise revenue balance as of December 27, 2023.

We record contract assets related to incentives and subsidies provided to franchisees related to new unit openings and/or equipment upgrades. These amounts will be recognized as a component of franchise and license revenue over the remaining term of the related franchise agreements.

The components of the change in contract assets are as follows:

	(In thousands)
Balance, December 27, 2023	$	6,608
Franchisee deferred costs	27
Contract asset amortization	(347)
Balance, March 27, 2024	6,288
Less current portion included in other current assets	1,005
Contract assets included in other noncurrent assets	$	5,283

The Company purchases equipment related to various programs for franchise restaurants, including kitchen and point-of-sale system equipment. We bill our franchisees and recognize revenue when the related equipment is installed, less amounts contributed from the Company, which have been deferred as contract assets in the table above. We recognized $0.3 million of revenue, recorded as a component of initial and other fees, related to the sale of equipment to franchisees during the quarter ended March 27, 2024. We recognized $2.4 million of revenue, recorded as a component of initial and other fees, related to the sale of equipment to franchisees during the quarter ended March 29, 2023. As of March 27, 2024, we had $0.5 million in inventory and $0.1 million in receivables related to the purchased equipment. As of December 27, 2023, we had $0.6 million in inventory and $0.3 million in receivables related to the purchased equipment.

As of March 27, 2024, deferred franchise revenue, net of contract asset amortization, expected to be recognized in the future is as follows:

	(In thousands)
Remainder of 2024	$	859
2025	1,131
2026	1,131
2027	1,100
2028	973
Thereafter	7,109
Deferred franchise revenue, net	$	12,303

Deferred gift card liabilities consist of the unredeemed portion of gift cards sold in company restaurants and at third party locations. The balance of deferred gift card liabilities represents our remaining performance obligations to our customers. The balance of deferred gift card liabilities as of March 27, 2024 and December 27, 2023 was $6.4 million and $7.8 million, respectively. During the quarter ended March 27, 2024, we recognized revenue of $0.2 million from gift card redemptions at company restaurants.

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Operating (Gains), Losses and Other Charges, Net

3 Months Ended

Mar. 27, 2024

Other Income and Expenses [Abstract]

Operating (Gains), Losses and Other Charges, Net

Operating (Gains), Losses and Other Charges, Net

Operating (gains), losses and other charges, net consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Gains on sales of assets and other, net	$	(620)	$	(1,522)
Restructuring charges and exit costs	198		64
Impairment charges	95		129
Operating (gains), losses and other charges, net	$	(327)	$	(1,329)

During the quarters ended March 27, 2024 and March 29, 2023, gains on sales of assets and other, net were primarily related to the sales of real estate.

As of March 27, 2024, we had recorded assets held for sale at the lesser of the carrying value or fair value amount of $1.1 million (consisting of property of $0.6 million and goodwill of $0.5 million) related to three Keke's restaurants. As of December 27, 2023, we had recorded assets held for sale at their carrying amount of $1.5 million (consisting of property of $0.9 million, goodwill of $0.5 million and other assets of $0.1 million) related to one parcel of real estate and three Keke's restaurants.

Restructuring charges and exit costs consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Exit costs	$	42	$	—
Severance and other restructuring charges	156		64
Total restructuring charges and exit costs	$	198	$	64

Exit costs primarily consist of costs related to closed restaurants. Exit cost liabilities related to lease costs are included as a component of operating lease liabilities in our Consolidated Balance Sheets.

As of March 27, 2024 and December 27, 2023, we had accrued severance and other restructuring charges of $1.0 million and $1.4 million, respectively. The balance as of March 27, 2024 is expected to be paid during the next 12 months.

We recorded impairment charges of $0.1 million related to property for the quarter ended March 27, 2024, resulting from our assessment of closed units.

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Share-Based Compensation

3 Months Ended

Mar. 27, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

Share-Based Compensation

Total share-based compensation included as a component of general and administrative expenses was as follows:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Employee share awards	$	2,571	$	2,847
Restricted stock units for board members	205		247
Total share-based compensation	$	2,776	$	3,094

Employee Share Awards

During the quarter ended March 27, 2024, we granted certain employees 0.6 million performance share units ("PSUs") with a weighted average grant date fair value of $15.48 per share that vest based on the total shareholder return (“TSR”) of our common stock compared to the TSRs of a group of peer companies. As the TSR based PSUs contain a market condition, a Monte Carlo valuation was used to determine the grant date fair value. The performance period for these PSUs is the three-year fiscal period beginning December 28, 2023 and ending December 30, 2026. The PSUs will vest and be earned at the end of the performance period at which point the relative TSR achievement percentages will be applied to the vested units (from 0% to 200% of the target award).

During the quarter ended March 27, 2024, we also granted certain employees 0.7 million restricted stock units ("RSUs") with a weighted average grant date fair value of $10.81 per share. These RSUs generally vest evenly over the three-year fiscal period beginning December 28, 2023 and ending December 30, 2026. We recognize compensation cost associated with these RSU awards on a straight-line basis over the entire performance period of the award.

During the quarter ended March 27, 2024, we issued 0.4 million shares of common stock related to vested PSUs and RSUs. In addition, 0.2 million shares of common stock were withheld in lieu of taxes related to vested PSUs and RSUs.

As of March 27, 2024, we had $24.0 million of unrecognized compensation cost related to unvested PSU awards and RSU awards outstanding, which have a weighted average remaining contractual term of 2.4 years.

Restricted Stock Units for Board Members

As of March 27, 2024, we had $0.1 million of unrecognized compensation cost related to unvested RSU awards outstanding, which have a weighted average remaining contractual term of 0.1 years.

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Income Taxes

3 Months Ended

Mar. 27, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective income tax rate was 24.6% for the quarter ended March 27, 2024, compared to 61.5% for the prior year period. The effective income tax rate for the quarter ended March 29, 2023 included discrete items relating to share-based compensation of 36.6%. We did not have a similar discrete item for the quarter ended March 27, 2024.

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Net Income Per Share

3 Months Ended

Mar. 27, 2024

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

The amounts used for the basic and diluted net income per share calculations are summarized below:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands, except per share amounts)
Net income	$	4,691	$	597
Weighted average shares outstanding - basic	53,068		57,638
Effect of dilutive share-based compensation awards	146		202
Weighted average shares outstanding - diluted	53,214		57,840
Net income per share - basic	$	0.09	$	0.01
Net income per share - diluted	$	0.09	$	0.01
Anti-dilutive share-based compensation awards	970		807

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Shareholders' Deficit

3 Months Ended

Mar. 27, 2024

Equity [Abstract]

Shareholders' Deficit

Shareholders' Deficit

Share Repurchases

Our credit facility permits the repurchase of the Company's stock and the payment of cash dividends subject to certain limitations. Our Board of Directors approves share repurchases of our common stock. Under these authorizations, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions, subject to market and business conditions. Currently, we are operating under a $250 million share repurchase authorization approved by the Board of Directors in December 2019.

During the quarter ended March 27, 2024, we repurchased a total of 0.5 million shares of our common stock for $4.8 million, including excise taxes. This brings the total amount repurchased under the current authorization to $154.3 million, leaving $95.7 million that can be used to repurchase our common stock under this authorization as of March 27, 2024. Repurchased shares are included as treasury stock in our Consolidated Balance Sheets and our Consolidated Statements of Shareholders' Deficit.

In the fourth quarter of fiscal 2023, the Board approved the retirement of 12.8 million shares of treasury stock at a weighted average share price of $11.02, including excise taxes. As of March 27, 2024, 1.1 million shares were held in treasury stock.

Accumulated Other Comprehensive Loss, Net

The components of the change in accumulated other comprehensive loss, net were as follows:

	Defined Benefit Plans		Derivatives		Accumulated Other Comprehensive Loss, Net
	(In thousands)
Balance as of December 27, 2023	$	(337)	$	(41,322)	$	(41,659)
Amortization of net loss (1)	16		—		16
Changes in the fair value of cash flow hedges	—		9,598		9,598
Reclassification of cash flow hedges to interest expense, net (2)	—		(1,508)		(1,508)
Amortization of unrealized losses related to interest rate swaps to interest expense, net	—		142		142
Income tax expense related to items of other comprehensive income (loss)	(6)		(2,078)		(2,084)
Balance as of March 27, 2024	$	(327)	$	(35,168)	$	(35,495)

(1)    Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss, net and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Income during the quarter ended March 27, 2024.

(2)    Amounts reclassified from accumulated other comprehensive loss, net into interest expense, net in our Consolidated Statements of Income represent payments either (received from) or made to the counterparty for the interest rate hedges. See Note 7 for additional details.

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Commitments and Contingencies

3 Months Ended

Mar. 27, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Proceedings

There are various claims and pending legal actions against or indirectly involving us, incidental to and arising out of the ordinary course of the business. In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect our consolidated results of operations or financial position.

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Supplemental Cash Flow Information

3 Months Ended

Mar. 27, 2024

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Income taxes paid, net	$	355	$	489
Interest paid	$	4,006	$	4,253
Noncash investing and financing activities:
Accrued purchase of property	$	100	$	—
Issuance of common stock, pursuant to share-based compensation plans	$	3,793	$	5,257
Execution of finance leases	$	42	$	14
Treasury stock payable	$	552	$	468

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Segment Information

3 Months Ended

Mar. 27, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

We 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 the 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 net income:

	Quarter Ended
	March 27, 2024		March 29, 2023
Revenues by operating segment:	(In thousands)
Denny’s	$	104,011	$	112,230
Other	5,963		5,241
Total operating revenue	$	109,974	$	117,471
Segment income:
Denny’s	$	33,660	$	36,640
Other	822		1,952
Total restaurant-level operating margin	$	34,482	$	38,592
General and administrative expenses	$	21,222	$	20,118
Depreciation and amortization	3,581		3,656
Operating (gains), losses and other charges, net	(327)		(1,329)
Total other operating expenses	24,476		22,445
Operating income	10,006		16,147
Interest expense, net	4,420		4,505
Other nonoperating expense (income), net	(637)		10,093
Income before income taxes	6,223		1,549
Provision for income taxes	1,532		952
Net income	$	4,691	$	597

	March 27, 2024		December 27, 2023
Segment assets:	(In thousands)
Denny’s	$	336,143	$	340,136
Other	124,268		124,682
Total assets	$	460,411	$	464,818

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Pay vs Performance Disclosure
Net income	$ 4,691	$ 597

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Insider Trading Arrangements	3 Months Ended
	Mar. 27, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 27, 2024

Accounting Policies [Abstract]

Newly Adopted Accounting Standards and Accounting Standards to be Adopted

Newly Adopted Accounting Standards

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which was later clarified in January 2021 by ASU 2021-01, “Reference Rate Reform (Topic 848): Scope”. Additionally, in December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which allows ASU 2020-04 to be adopted and applied prospectively to contract modifications made on or before December 31, 2024. The guidance provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The Company adopted ASU 2020-04 on March 12, 2020. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on the Company’s consolidated financial position or results of operations. The guidance is effective through December 31, 2024.

Accounting Standards to be Adopted

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The new guidance requires enhanced reportable segment disclosures to include significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 (our fiscal 2024) and interim periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our Consolidated Financial Statements and will add necessary disclosures upon adoption.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The new guidance requires enhanced effective tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our Consolidated Financial Statements and will add necessary disclosures upon adoption.

We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption.

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Receivables (Tables)

3 Months Ended

Mar. 27, 2024

Receivables [Abstract]

Schedule of Receivables, Net

Receivables consisted of the following:

	March 27, 2024		December 27, 2023
	(In thousands)
Receivables, net:
Trade accounts receivable from franchisees	$	12,181	$	14,092
Notes and loan receivables from franchisees	340		584
Vendor receivables	2,154		4,059
Credit card receivables	784		995
Other	2,134		1,862
Allowance for credit losses	(305)		(201)
Total receivables, net	$	17,288	$	21,391

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 27, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill by Segment

Goodwill by segment consisted of the following:
	March 27, 2024		December 27, 2023
	(In thousands)
Denny’s	$	37,527	$	37,527
Other	28,381		28,381
Total goodwill	$	65,908	$	65,908

Schedule of Indefinite-Lived Intangible Assets

Intangible assets consisted of the following:

	March 27, 2024				December 27, 2023
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(In thousands)
Intangible assets with indefinite lives:
Trade names	$	79,687	$	—	$	79,687	$	—
Liquor licenses	120		—		120		—
Intangible assets with definite lives:
Reacquired franchise rights	9,470		5,820		9,470		5,614
Franchise agreements	10,700		1,111		10,700		935
Intangible assets, net	$	99,977	$	6,931	$	99,977	$	6,549

Schedule of Finite-Lived Intangible Assets

Intangible assets consisted of the following:

	March 27, 2024				December 27, 2023
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(In thousands)
Intangible assets with indefinite lives:
Trade names	$	79,687	$	—	$	79,687	$	—
Liquor licenses	120		—		120		—
Intangible assets with definite lives:
Reacquired franchise rights	9,470		5,820		9,470		5,614
Franchise agreements	10,700		1,111		10,700		935
Intangible assets, net	$	99,977	$	6,931	$	99,977	$	6,549

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Other Current Liabilities (Tables)

3 Months Ended

Mar. 27, 2024

Other Liabilities, Current [Abstract]

Schedule of Other Current Liabilities

Other current liabilities consisted of the following:

	March 27, 2024		December 27, 2023
	(In thousands)
Accrued payroll	$	11,896	$	16,400
Current portion of liability for insurance claims	3,977		3,758
Accrued taxes	4,062		4,699
Accrued advertising	9,827		10,664
Gift cards	6,398		7,838
Accrued legal settlements	8,436		7,488
Accrued interest	4,714		4,530
Other	7,676		7,691
Other current liabilities	$	56,986	$	63,068

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 27, 2024

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis are summarized below: 

	Total		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Fair value measurements as of March 27, 2024:
Deferred compensation plan investments (1)	$	11,378	$	11,378	$	—	$	—
Interest rate swaps (2)	16,978		—		16,978		—
Investments (3)	2,787		—		2,787		—
Total	$	31,143	$	11,378	$	19,765	$	—
Fair value measurements as of December 27, 2023:
Deferred compensation plan investments (1)	$	12,225	$	12,225	$	—	$	—
Interest rate swaps (2)	8,888		—		8,888		—
Investments (3)	1,281		—		1,281		—
Total	$	22,394	$	12,225	$	10,169	$	—

(1)    The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments and are included in other noncurrent assets in our Consolidated Balance Sheets.

(2)    The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates, forward yield curves and credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For disclosures about the fair value measurements of our derivative instruments, see Note 7.

(3)    The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments.

Schedule of Financial Assets and Liabilities Measured at Fair Value on a Non - Recurring Basis

Those assets and liabilities measured at fair value on a non-recurring basis are summarized below:

		Significant Unobservable Inputs (Level 3)		Impairment Charges
		(In thousands)
Fair value measurements as of March 27, 2024:
Assets held and used (1)		$	—	$	95
(1)	As of March 27, 2024, impaired assets were written down to their fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods.

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Long-Term Debt (Tables)

3 Months Ended

Mar. 27, 2024

Debt Disclosure [Abstract]

Schedule of Interest Rate Swaps

A summary of our interest rate swaps as of March 27, 2024 is as follows:

Trade Date	Effective Date	Maturity Date	Notional Amount			Fair Value		Fixed Rate
			(In thousands)
Swaps designated as cash flow hedges
March 20, 2015	March 29, 2018	March 31, 2025	$	120,000		$	3,040	2.34	%
October 1, 2015	March 29, 2018	March 31, 2026	$	50,000		$	1,980	2.37	%
February 15, 2018	March 31, 2020	December 31, 2033	$	44,000	(1)	$	11,958	3.09	%
Total			$	214,000		$	16,978

(1)     The notional amounts of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $335 million on August 31, 2033.

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Revenues (Tables)

3 Months Ended

Mar. 27, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following table disaggregates our revenue by sales channel and type of good or service:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Company restaurant sales	$	52,342	$	53,452
Franchise and license revenue:
Royalties	29,306		30,027
Advertising revenue	18,138		19,668
Initial and other fees	1,816		4,990
Occupancy revenue	8,372		9,334
Franchise and license revenue	57,632		64,019
Total operating revenue	$	109,974	$	117,471

Schedule of Components of Lease Income

Franchise occupancy revenue consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Operating lease revenue	$	6,128	$	6,871
Variable lease revenue	2,244		2,463
Total occupancy revenue	$	8,372	$	9,334

Schedule of Components of the Change in Contract Asset and Contract Liability

The components of the change in deferred franchise revenue are as follows:

	(In thousands)
Balance, December 27, 2023	$	19,150
Fees received from franchisees	220
Revenue recognized (1)	(779)
Balance, March 27, 2024	18,591
Less current portion included in other current liabilities	2,132
Deferred franchise revenue included in other noncurrent liabilities	$	16,459

(1)    Of this amount $0.7 million was included in the deferred franchise revenue balance as of December 27, 2023.

The components of the change in contract assets are as follows:

	(In thousands)
Balance, December 27, 2023	$	6,608
Franchisee deferred costs	27
Contract asset amortization	(347)
Balance, March 27, 2024	6,288
Less current portion included in other current assets	1,005
Contract assets included in other noncurrent assets	$	5,283

Schedule of Deferred Franchise Revenue Recognition

As of March 27, 2024, deferred franchise revenue, net of contract asset amortization, expected to be recognized in the future is as follows:

	(In thousands)
Remainder of 2024	$	859
2025	1,131
2026	1,131
2027	1,100
2028	973
Thereafter	7,109
Deferred franchise revenue, net	$	12,303

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Operating (Gains), Losses and Other Charges, Net (Tables)

3 Months Ended

Mar. 27, 2024

Other Income and Expenses [Abstract]

Schedule of Operating Gains Losses and Other Charges, Net

Operating (gains), losses and other charges, net consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Gains on sales of assets and other, net	$	(620)	$	(1,522)
Restructuring charges and exit costs	198		64
Impairment charges	95		129
Operating (gains), losses and other charges, net	$	(327)	$	(1,329)

Schedule of Restructuring Charges and Exit Costs

Restructuring charges and exit costs consisted of the following:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Exit costs	$	42	$	—
Severance and other restructuring charges	156		64
Total restructuring charges and exit costs	$	198	$	64

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Share-Based Compensation (Tables)

3 Months Ended

Mar. 27, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Total Share-based Compensation

Total share-based compensation included as a component of general and administrative expenses was as follows:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Employee share awards	$	2,571	$	2,847
Restricted stock units for board members	205		247
Total share-based compensation	$	2,776	$	3,094

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Net Income Per Share (Tables)

3 Months Ended

Mar. 27, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Income Per Share

The amounts used for the basic and diluted net income per share calculations are summarized below:

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands, except per share amounts)
Net income	$	4,691	$	597
Weighted average shares outstanding - basic	53,068		57,638
Effect of dilutive share-based compensation awards	146		202
Weighted average shares outstanding - diluted	53,214		57,840
Net income per share - basic	$	0.09	$	0.01
Net income per share - diluted	$	0.09	$	0.01
Anti-dilutive share-based compensation awards	970		807

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Shareholders' Deficit (Tables)

3 Months Ended

Mar. 27, 2024

Equity [Abstract]

Schedule of Components of Accumulated Other Comprehensive Income (Loss)

The components of the change in accumulated other comprehensive loss, net were as follows:

	Defined Benefit Plans		Derivatives		Accumulated Other Comprehensive Loss, Net
	(In thousands)
Balance as of December 27, 2023	$	(337)	$	(41,322)	$	(41,659)
Amortization of net loss (1)	16		—		16
Changes in the fair value of cash flow hedges	—		9,598		9,598
Reclassification of cash flow hedges to interest expense, net (2)	—		(1,508)		(1,508)
Amortization of unrealized losses related to interest rate swaps to interest expense, net	—		142		142
Income tax expense related to items of other comprehensive income (loss)	(6)		(2,078)		(2,084)
Balance as of March 27, 2024	$	(327)	$	(35,168)	$	(35,495)

(1)    Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss, net and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Income during the quarter ended March 27, 2024.

(2)    Amounts reclassified from accumulated other comprehensive loss, net into interest expense, net in our Consolidated Statements of Income represent payments either (received from) or made to the counterparty for the interest rate hedges. See Note 7 for additional details.

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Supplemental Cash Flow Information (Tables)

3 Months Ended

Mar. 27, 2024

Supplemental Cash Flow Information [Abstract]

Schedule of Supplemental Cash Flow Information

	Quarter Ended
	March 27, 2024		March 29, 2023
	(In thousands)
Income taxes paid, net	$	355	$	489
Interest paid	$	4,006	$	4,253
Noncash investing and financing activities:
Accrued purchase of property	$	100	$	—
Issuance of common stock, pursuant to share-based compensation plans	$	3,793	$	5,257
Execution of finance leases	$	42	$	14
Treasury stock payable	$	552	$	468

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Segment Information (Tables)

3 Months Ended

Mar. 27, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables present revenues by segment and a reconciliation of restaurant-level operating margin to net income:

	Quarter Ended
	March 27, 2024		March 29, 2023
Revenues by operating segment:	(In thousands)
Denny’s	$	104,011	$	112,230
Other	5,963		5,241
Total operating revenue	$	109,974	$	117,471
Segment income:
Denny’s	$	33,660	$	36,640
Other	822		1,952
Total restaurant-level operating margin	$	34,482	$	38,592
General and administrative expenses	$	21,222	$	20,118
Depreciation and amortization	3,581		3,656
Operating (gains), losses and other charges, net	(327)		(1,329)
Total other operating expenses	24,476		22,445
Operating income	10,006		16,147
Interest expense, net	4,420		4,505
Other nonoperating expense (income), net	(637)		10,093
Income before income taxes	6,223		1,549
Provision for income taxes	1,532		952
Net income	$	4,691	$	597

	March 27, 2024		December 27, 2023
Segment assets:	(In thousands)
Denny’s	$	336,143	$	340,136
Other	124,268		124,682
Total assets	$	460,411	$	464,818

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Introduction and Basis of Presentation (Details)	Mar. 27, 2024 restaurant
Franchisor Disclosure [Line Items]
Number of restaurants	1,614
Denny's Brand
Franchisor Disclosure [Line Items]
Number of restaurants	1,553
Keke's
Franchisor Disclosure [Line Items]
Number of restaurants	61
Franchised/licensed Restaurants
Franchisor Disclosure [Line Items]
Number of restaurants	1,539
Franchised/licensed Restaurants | Denny's Brand
Franchisor Disclosure [Line Items]
Number of restaurants	1,489
Franchised/licensed Restaurants | Keke's
Franchisor Disclosure [Line Items]
Number of restaurants	50
Company Restaurants
Franchisor Disclosure [Line Items]
Number of restaurants	75
Company Restaurants | Denny's Brand
Franchisor Disclosure [Line Items]
Number of restaurants	64
Company Restaurants | Keke's
Franchisor Disclosure [Line Items]
Number of restaurants	11

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Receivables - Receivables, Net (Details) - USD ($) $ in Thousands	Mar. 27, 2024	Dec. 27, 2023
Receivables, net:
Trade accounts receivable from franchisees	$ 12,181	$ 14,092
Notes and loan receivables from franchisees	340	584
Allowance for credit losses	(305)	(201)
Total receivables, net	17,288	21,391
Vendor receivables
Receivables, net:
Other receivables, gross, current	2,154	4,059
Credit card receivables
Receivables, net:
Other receivables, gross, current	784	995
Other
Receivables, net:
Other receivables, gross, current	$ 2,134	$ 1,862

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Goodwill and Intangible Assets - Schedule of Goodwill by Segment (Details) - USD ($) $ in Thousands	Mar. 27, 2024	Dec. 27, 2023
Goodwill [Line Items]
Total goodwill	$ 65,908	$ 65,908
Denny’s
Goodwill [Line Items]
Total goodwill	37,527	37,527
Other
Goodwill [Line Items]
Total goodwill	$ 28,381	$ 28,381

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Goodwill and Intangible Assets - Finite-Lived and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 27, 2024	Dec. 27, 2023
Intangible Assets
Trade names	$ 79,687	$ 79,687
Liquor licenses	120	120
Finite-Lived Intangible Assets [Line Items]
Accumulated Amortization	6,931	6,549
Intangible assets, net	99,977	99,977
Reacquired franchise rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	9,470	9,470
Accumulated Amortization	5,820	5,614
Franchise agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	10,700	10,700
Accumulated Amortization	$ 1,111	$ 935

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Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for intangible assets	$ 0.4	$ 0.4

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Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 27, 2024	Dec. 27, 2023
Other Liabilities, Current [Abstract]
Accrued payroll	$ 11,896	$ 16,400
Current portion of liability for insurance claims	3,977	3,758
Accrued taxes	4,062	4,699
Accrued advertising	9,827	10,664
Gift cards	6,398	7,838
Accrued legal settlements	8,436	7,488
Accrued interest	4,714	4,530
Other	7,676	7,691
Other current liabilities	$ 56,986	$ 63,068

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Fair Value of Financial Instruments - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Mar. 27, 2024	Dec. 27, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	$ 11,378	$ 12,225
Interest rate swaps	16,978	8,888
Investments	2,787	1,281
Total	31,143	22,394
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	11,378	12,225
Interest rate swaps	0	0
Investments	0	0
Total	11,378	12,225
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	0	0
Interest rate swaps	16,978	8,888
Investments	2,787	1,281
Total	19,765	10,169
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	0	0
Interest rate swaps	0	0
Investments	0	0
Total	$ 0	$ 0

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Fair Value of Financial Instruments - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Non - Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment Charges	$ 95	$ 129
Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment Charges	100
Significant Unobservable Inputs (Level 3) | Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements	0
Impairment Charges	$ 95

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Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charges	$ 95	$ 129
Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charges	$ 100

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Long-Term Debt - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023	Dec. 27, 2023	Mar. 28, 2023	Dec. 28, 2022
Line of Credit Facility [Line Items]
Notional Amount	$ 214,000,000
Total shareholders' deficit	(55,744,000)	$ (45,002,000)	$ (62,686,000)		$ (37,116,000)
Derivatives
Line of Credit Facility [Line Items]
Reclassification	(1,508,000)
Total shareholders' deficit	(35,168,000)		$ (41,322,000)
Amortization of unrealized losses related to interest rate swaps to interest expense, net
Line of Credit Facility [Line Items]
Reclassification	142,000
Interest Rate Swap 2020-2033
Line of Credit Facility [Line Items]
Notional Amount	44,000,000
Termination fee		1,500,000
Interest Rate Swap 2020-2033 | Maximum
Line of Credit Facility [Line Items]
Notional Amount	335,000,000	335,000,000		$ 425,000,000
Effective Interest Rate Swaps
Line of Credit Facility [Line Items]
Derivative asset	17,000,000
Reclassification	1,500,000
Expected reclassification within next twelve months	6,200,000
Dedesignated Interest Rate Swaps | Other Nonoperating Income (Expense)
Line of Credit Facility [Line Items]
Unrealized gain (loss) on derivatives		10,600,000
Dedesignated Interest Rate Swaps | Derivatives
Line of Credit Facility [Line Items]
Total shareholders' deficit	64,000,000
Dedesignated Interest Rate Swaps | Amortization of unrealized losses related to interest rate swaps to interest expense, net
Line of Credit Facility [Line Items]
Reclassification	100,000	$ 100,000
Dedesignated Interest Rate Swaps | Derivatives
Line of Credit Facility [Line Items]
Expected reclassification within next twelve months	$ 900,000
Senior Secured Revolver
Line of Credit Facility [Line Items]
Line of credit facility, term (in years)	5 years
Line of credit facility, current borrowing capacity	$ 400,000,000
Line of credit facility, accordion feature, increase limit	450,000,000
Outstanding amount under credit facility	261,200,000
Availability under the credit facility	$ 121,800,000
Commitment fee, percent	0.35%
Weighted-average interest rate	7.69%		7.41%
Senior Secured Revolver | Interest Rate Swap
Line of Credit Facility [Line Items]
Weighted-average interest rate	5.30%		5.04%
Senior Secured Revolver | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate debt (as a percent)	2.25%
Letter of Credit
Line of Credit Facility [Line Items]
Line of credit facility, current borrowing capacity	$ 25,000,000
Outstanding amount of letters of credit	$ 17,000,000
Interest rate	2.38%

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Long-Term Debt - Interest Rate Swaps (Details) - USD ($)	Mar. 27, 2024	Mar. 29, 2023	Mar. 28, 2023
Derivative [Line Items]
Notional Amount	$ 214,000,000
Fair Value	16,978,000
Interest Rate Swap 2018-2025
Derivative [Line Items]
Notional Amount	120,000,000
Fair Value	$ 3,040,000
Fixed Rate	2.34%
Interest Rate Swap 2018-2026
Derivative [Line Items]
Notional Amount	$ 50,000,000
Fair Value	$ 1,980,000
Fixed Rate	2.37%
Interest Rate Swap 2020-2033
Derivative [Line Items]
Notional Amount	$ 44,000,000
Fair Value	$ 11,958,000
Fixed Rate	3.09%
Interest Rate Swap 2020-2033 | Maximum
Derivative [Line Items]
Notional Amount	$ 335,000,000	$ 335,000,000	$ 425,000,000

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Revenues - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Disaggregation of Revenue [Line Items]
Total operating revenue	$ 109,974	$ 117,471
Company restaurant sales
Disaggregation of Revenue [Line Items]
Total operating revenue	52,342	53,452
Royalties
Disaggregation of Revenue [Line Items]
Total operating revenue	29,306	30,027
Advertising revenue
Disaggregation of Revenue [Line Items]
Total operating revenue	18,138	19,668
Initial and other fees
Disaggregation of Revenue [Line Items]
Total operating revenue	1,816	4,990
Occupancy revenue
Disaggregation of Revenue [Line Items]
Total operating revenue	8,372	9,334
Franchise and license revenue
Disaggregation of Revenue [Line Items]
Total operating revenue	$ 57,632	$ 64,019

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Revenues - Schedule of Components of Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Revenue from Contract with Customer [Abstract]
Operating lease revenue	$ 6,128	$ 6,871
Variable lease revenue	2,244	2,463
Total occupancy revenue	$ 8,372	$ 9,334

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Revenues - Schedule of Components of the Change in Deferred Franchise Revenue (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 27, 2024	Dec. 27, 2023
Movement In Deferred Revenue Roll Forward
Balance, December 27, 2023	$ 19,150
Fees received from franchisees	220
Revenue recognized	(779)
Balance, March 27, 2024	18,591	$ 19,150
Less current portion included in other current liabilities	2,132
Deferred franchise revenue included in other noncurrent liabilities	$ 16,459
Deferred revenue recognized		$ 700

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Revenues - Change In Contract Assets (Details) $ in Thousands	3 Months Ended
	Mar. 27, 2024 USD ($)
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward]
Balance, December 27, 2023	$ 6,608
Franchisee deferred costs	27
Contract asset amortization	(347)
Balance, March 27, 2024	6,288
Less current portion included in other current assets	1,005
Contract assets included in other noncurrent assets	$ 5,283

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Revenues - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 27, 2024	Mar. 29, 2023	Dec. 27, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue recognized	$ 109,974	$ 117,471
Contract with customer	17,288		$ 21,391
Liability balance	2,132
Deferred revenue recognized			700
Gift Card Redemption
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Liability balance	6,400		7,800
Deferred revenue recognized	200
Franchise Equipment Programs
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue recognized	300	$ 2,400
Inventory related to franchise equipment programs	500
Contract with customer	$ 100
Kitchen Modernization Program For Franchise Restaurants
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Inventory related to franchise equipment programs			600
Contract with customer			$ 300

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Revenues - Deferred Revenue (Details) $ in Thousands	Mar. 27, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 12,303
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 859
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-26
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 1,131
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 1,131
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 1,100
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-12-30
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 973
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-12-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 7,109
Revenue, remaining performance obligation, expected timing of satisfaction, period

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Operating (Gains), Losses and Other Charges, Net - Schedule of Operating Gains Losses and Other Charges, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Other Income and Expenses [Abstract]
Gains on sales of assets and other, net	$ (620)	$ (1,522)
Restructuring charges and exit costs	198	64
Impairment charges	95	129
Operating (gains), losses and other charges, net	$ (327)	$ (1,329)

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Operating (Gains), Losses and Other Charges, Net - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 27, 2024 USD ($) restaurant	Mar. 29, 2023 USD ($)	Dec. 27, 2023 USD ($) parcel restaurant
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale	$ 1,060		$ 1,455
Number of restaurants | restaurant	1,614
Severance and other restructuring charges	$ 1,000		1,400
Impairment charges	95	$ 129
Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale	1,100		1,500
Property	600		900
Goodwill	$ 500		$ 500
Number of restaurants | restaurant	3		3
Other assets			$ 100
Number of real estate properties | parcel			1

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Operating (Gains), Losses and Other Charges, Net - Schedule of Restructuring Charges and Exit Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Restructuring charges and exit costs [Abstract]
Exit costs	$ 42	$ 0
Severance and other restructuring charges	156	64
Total restructuring charges and exit costs	$ 198	$ 64

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Share-Based Compensation - Schedule of Total Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	$ 2,776	$ 3,094
Employee share awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	2,571	2,847
Restricted stock units for board members
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	$ 205	$ 247

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Share-Based Compensation - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 27, 2024 USD ($) $ / shares shares
Certain Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $	$ 24.0
Unrecognized contractual term (in years)	2 years 4 months 24 days
PSUs, TSR | Certain Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in periods (in shares)	0.6
Fair value of units granted (in dollars per share) | $ / shares	$ 15.48
Performance Shares | Certain Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of performance	3 years
Performance Shares | Certain Employee | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target achievement	0.00%
Performance Shares | Certain Employee | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target achievement	200.00%
Restricted Stock Units | Certain Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in periods (in shares)	0.7
Fair value of units granted (in dollars per share) | $ / shares	$ 10.81
Period of performance	3 years
Restricted Stock Units | Board Members
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $	$ 0.1
Unrecognized contractual term (in years)	1 month 6 days
PSUs and RSUs | Certain Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares issued (in shares)	0.4
Shares paid for tax withholding (in shares)	0.2

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Income Taxes (Details)	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Income Tax Disclosure [Abstract]
Effective tax rate expense (benefit), percent	24.60%	61.50%
Share-based compensation, percent		36.60%

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Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Earnings Per Share [Abstract]
Net income	$ 4,691	$ 597
Weighted average shares outstanding - basic (in shares)	53,068	57,638
Effect of dilutive share-based compensation awards (in shares)	146	202
Weighted average shares outstanding - diluted (in shares)	53,214	57,840
Net income per share - basic (in dollars per share)	$ 0.09	$ 0.01
Net income per share - diluted (in dollars per share)	$ 0.09	$ 0.01
Anti-dilutive share-based compensation awards (in shares)	970	807

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Shareholders' Deficit - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended
	Mar. 27, 2024	Dec. 27, 2023	Mar. 29, 2023	Dec. 30, 2020
Equity, Class of Treasury Stock [Line Items]
Purchase of treasury stock (in shares)	500
Purchase of treasury stock	$ 4,763,000		$ 8,967,000
Retirement of shares (in shares)		12,800
Weighted average share price (in dollars per share)		$ 11.02
Treasury stock, at cost (in shares)	1,143	667
Share Repurchase Program 2019
Equity, Class of Treasury Stock [Line Items]
Share repurchase, authorized amount				$ 250,000,000
Purchase of treasury stock	$ 154,300,000
Remaining shares to be repurchased	$ 95,700,000

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Shareholders' Deficit - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of beginning of period	$ (62,686)	$ (37,116)
Income tax expense related to items of other comprehensive income (loss)	(2,084)
Balance as of end of period	(55,744)	(45,002)
Defined Benefit Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of beginning of period	(337)
Income tax expense related to items of other comprehensive income (loss)	(6)
Balance as of end of period	(327)
Amortization of net loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification	16
Derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of beginning of period	(41,322)
Reclassification	(1,508)
Changes in the fair value of cash flow hedges	9,598
Income tax expense related to items of other comprehensive income (loss)	(2,078)
Balance as of end of period	(35,168)
Amortization of unrealized losses related to interest rate swaps to interest expense, net
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification	142
Accumulated Other Comprehensive Loss, Net
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of beginning of period	(41,659)	(42,697)
Balance as of end of period	$ (35,495)	$ (42,340)

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Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2024	Mar. 29, 2023
Supplemental Cash Flow Information [Abstract]
Income taxes paid, net	$ 355	$ 489
Interest paid	4,006	4,253
Noncash investing and financing activities:
Accrued purchase of property	100	0
Issuance of common stock, pursuant to share-based compensation plans	3,793	5,257
Execution of finance leases	42	14
Treasury stock payable	$ 552	$ 468

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Segment Information (Details) $ in Thousands	3 Months Ended
	Mar. 27, 2024 USD ($) segment	Mar. 29, 2023 USD ($)	Dec. 27, 2023 USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment	2
Segment Reporting Information [Line Items]
Total operating revenue	$ 109,974	$ 117,471
General and administrative expenses	21,222	20,118
Depreciation and amortization	3,581	3,656
Operating (gains), losses and other charges, net	(327)	(1,329)
Total other operating expenses	24,476	22,445
Operating income	10,006	16,147
Interest expense, net	4,420	4,505
Other nonoperating expense (income), net	(637)	10,093
Income before income taxes	6,223	1,549
Provision for income taxes	1,532	952
Net income	4,691	597
Total assets	460,411		$ 464,818
Operating Segments
Segment Reporting Information [Line Items]
Total operating revenue	109,974	117,471
Total restaurant-level operating margin	34,482	38,592
Total assets	460,411		464,818
Operating Segments | Denny’s
Segment Reporting Information [Line Items]
Total operating revenue	104,011	112,230
Total restaurant-level operating margin	33,660	36,640
Total assets	336,143		340,136
Operating Segments | Other
Segment Reporting Information [Line Items]
Total operating revenue	5,963	5,241
Total restaurant-level operating margin	822	$ 1,952
Total assets	$ 124,268		$ 124,682