Denny’s Corporation Reports Results for Third Quarter 2015

–  6.1% Growth in Domestic System-Wide Same-Store Sales –

–  Adjusted Net Income per Share* Grows 11.6%  – 

–  Increases Financial Capacity and Flexibility with Amended Credit Facility  –

–  Plans to Accelerate Share Repurchase Program  –

SPARTANBURG, S.C., Nov. 03, 2015 (GLOBE NEWSWIRE) — Denny’s Corporation (NASDAQ:DENN), franchisor and operator of one of America’s largest franchised full-service restaurant chains, today reported results for its third quarter ended September 30, 2015.

Third Quarter Summary

  • Domestic system-wide same-store sales growth of 6.1%, comprised of a 7.0% increase at company restaurants and 5.9% increase at domestic franchised restaurants.
  • Opened nine franchised restaurants including one international location in Dubai.
  • Completed 63 remodels including 13 at company restaurants.
  • Company restaurant margin increased $3.2 million, or 2.6 percentage points.
  • Franchise and licensing margin increased $1.0 million, or 2.2 percentage points.
  • Adjusted EBITDA* of $23.6 million, or 19.0% of total operating revenue, grew 14.4%.
  • Net Income of $9.0 million, or $0.11 per diluted share, increased 7.3%.
  • Adjusted Net Income* of $9.3 million, or $0.11 per diluted share, increased 9.2%.
  • Generated $12.4 million of Free Cash Flow*, which includes acceleration of remodels at company restaurants and the purchase of one franchised restaurant.
  • Allocated $17.7 million to repurchase 1.5 million shares during the quarter.

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

John Miller, President and Chief Executive Officer, stated, “Throughout the third quarter, brand momentum continued as we generated strong same-store sales growth at both franchised and company restaurants.  This includes growth in guest traffic over the past year for the system and since 2013 at company restaurants.  We are benefiting from the execution of our brand revitalization efforts focused on enhancing our food, service and atmosphere.  With only 30% of the system expected to reflect the successful Heritage image by the end of this year, we are thrilled to have the opportunity to build on our progress.  We are also encouraged by the results we are realizing from the ongoing investments made in our brand, in our team members and in our company restaurants.  Based on our improved operations, we expect to continue to invest in our strategies to further elevate the Denny’s experience, and build on our momentum in the coming years.”

Third Quarter Results

Denny’s total operating revenue grew 5.8% to $123.8 million resulting from growth in both company restaurant sales and franchise and license revenue.  Franchise and license revenue grew 0.9% to $34.5 million.  Company restaurant sales expanded 7.8% to $89.3 million, primarily due to the increase in same-store sales and the reopening of the Las Vegas Casino Royale restaurant in November 2014.

In the quarter, Denny’s opened nine franchised restaurants, including one international location, and closed five franchised restaurants, bringing the total number of restaurants to 1,700.  Domestic system-wide same-store sales grew 6.1%, including a 7.0% increase at company restaurants and a 5.9% increase at domestic franchised restaurants.

Franchise operating margin was $23.9 million, or 69.1% of franchise and license revenue.  The $1.0 million improvement was primarily due to an increase in royalties.  Company restaurant operating margin increased $3.2 million, or 2.6 percentage points, to $14.2 million, or 15.9% of company restaurant sales, primarily due to the leveraging effect from the growth in same-store sales, partially offset by higher product costs and higher incentive compensation.

Total general and administrative expenses were $16.0 million compared to $13.4 million in the prior year quarter primarily due to increases in share-based compensation and payroll and benefits.  Depreciation and amortization expense of $5.4 million increased $0.2 million.  Interest expense of $2.3 million was flat compared to the prior year quarter.  The provision for income taxes was $3.9 million, reflecting an effective tax rate of 30.1%.  Due to the use of net operating loss and tax credit carryforwards, the Company paid $0.8 million in cash taxes during the quarter.

Denny’s net income of $9.0 million increased 7.3% compared to prior year quarter net income of $8.3 million, with net income per diluted share of $0.11 growing 9.7% compared to $0.10 per diluted share in the prior year quarter.  Adjusted Net Income per Share* grew 11.6% to $0.11 compared to the prior year quarter.

Denny’s generated $12.4 million of Free Cash Flow* in the quarter, after investing $8.4 million on capital expenditures, primarily used to remodel 13 company restaurants and to acquire a franchised restaurant.

Credit Facility Amendment

On October 30, 2015, the Company completed an amendment to its existing revolving credit facility increasing the credit facility to $325 million from $250 million.  The maturity date remains March 2020.  There was no change to the interest rates for the facility.  Borrowings under the credit facility bear a tiered interest rate based, which is based on the Company’s consolidated ratio and is currently set at LIBOR plus 150 basis points.  Denny’s ended the third quarter with $169.7 million of total debt outstanding, including $150.0 million of borrowings under its revolving credit facility.

Capital Allocation

During the third quarter, the Company repurchased 1.5 million shares for $17.7 million.  Through the first three quarters of the year, $38.9 million has been allocated to repurchase 3.5 million shares.  Subsequent to the quarter, the Company completed the 10 million share repurchase program announced April 25, 2013.  As of October 30, 2015, the Company had approximately $92 million remaining under the $100 million authorized share repurchase program.  In addition to open market repurchases or transactions conducted under the terms of a Rule 10b5-1 plan, Denny’s intends to enter into a $50 million accelerated share repurchase program in the near term.

Business Outlook

Mark Wolfinger, Denny’s Executive Vice President, Chief Administrative Officer and Chief Financial Officer, commented, “Our continued strong performance has enabled us to grow year-to-date Adjusted Net Income per Share* by 24%.  Through the first three quarters, we have generated $35 million of Free Cash Flow*, after remodels and acquisitions, with our year-to-date allocation towards share repurchases exceeding all of 2014.  Going forward, we remain focused on enhancing the growth of our highly franchised business with ongoing investments in our company restaurants while also returning value to our shareholders through our share repurchase program.”

The following full year 2015 estimates are based on management’s expectations at this time.  A key consideration impacting the Company’s outlook for 2015 is having 52 operating weeks in the year compared to 53 operating weeks in 2014.

  • Company same-store sales growth between 6.0% and 6.5% (vs. 5.5% to 6.5%**) with domestic franchise same-store sales growth between 5.2% and 5.7% (vs. 5.0% to 6.0%**).
  • 44 to 46 new restaurant openings (vs. 40 to 45**), including four company operated openings in partnership with Kwik TripTM convenience stores, with net restaurant growth of 4 to 8 restaurants.
  • Total operating revenue between $489 and $492 million with franchise and licensing revenue between $137 and $138 million.
  • Company margin between 16.5% and 17.0% with franchise margin between 67.5% and 68.0%, including $10 million in franchise occupancy margin.
  • Total general and administrative expenses between $66 and $67 million (vs. $64 to $67 million**), including approximately $7 million of share-based compensation expense.
  • Adjusted EBITDA* between $86 and $88 million.
  • Depreciation and amortization expense of approximately $21 million.
  • Net interest expense between $9.0 and $9.5 million.
  • Effective income tax rate between 34% and 35% with $5.5 to $6.5 million of cash taxes.
  • Cash capital expenditures between $31 and $33 million (vs. $26 to $28 million**) including completion of approximately 50 remodels at company restaurants, opening of four new company restaurants, acquisition of three franchised restaurants and purchase of real estate.
  • Free Cash Flow* between $40 and $42 million (vs. $44 to $46 million**).

* Please refer to the historical reconciliation of Net Income to Adjusted Net Income, Adjusted Net Income per Share, Adjusted EBITDA and Free Cash Flow included in the following tables.
** As announced in Second Quarter 2015 Earnings Release on August 3, 2015.

Conference Call and Webcast Information

Denny’s will provide further commentary on the results for the third quarter ended September 30, 2015 on its quarterly investor conference call today, Tuesday, November 3, 2015 at 5:00 p.m. Eastern Time.  Interested parties are invited to listen to a live broadcast of the conference call accessible through the investor relations section of Denny’s website at investor.dennys.com.  A replay of the call may be accessed at the same location later in the day and will remain available for 30 days.

About Denny’s

Denny’s is the franchisor and operator of one of America’s largest franchised full-service restaurant chains, based on the number of restaurants.  As of September 30, 2015, Denny’s had 1,700 franchised, licensed, and company restaurants around the world with combined sales of $2.7 billion including 109 restaurants in Canada, Costa Rica, Mexico, Honduras, Guam, Curaçao, Puerto Rico, Dominican Republic, El Salvador, Chile, New Zealand and the United Arab Emirates, and 161 company operated restaurants in the United States.  For further information on Denny’s, including news releases, links to SEC filings and other financial information, please visit the Denny’s investor relations website at investor.dennys.com.

The Company urges caution in considering its current trends and any outlook on earnings disclosed in this press release.  In addition, certain matters discussed in this release may constitute forward-looking statements.  These forward-looking statements, which reflect its best judgment based on factors currently known, are intended to speak only as of the date such statements are made and involve risks, uncertainties, and other factors that may cause the actual performance of Denny’s Corporation, its subsidiaries and underlying restaurants to be materially different from the performance indicated or implied by such statements.  Words such as “expects”, “anticipates”, “believes”, “intends”, “plans”, “hopes”, and variations of such words and similar expressions are intended to identify such forward-looking statements.  Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.  Factors that could cause actual performance to differ materially from the performance indicated by these forward-looking statements include, among others:  the competitive pressures from within the restaurant industry; the level of success of the Company’s strategic and operating initiatives; advertising and promotional efforts; adverse publicity; changes in business strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general economy, particularly at the retail level; political environment (including acts of war and terrorism); and other factors from time to time set forth in the Company’s SEC reports and other filings, including but not limited to the discussion in Management’s Discussion and Analysis and the risks identified in Item 1A. Risk Factors contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (and in the Company’s subsequent quarterly reports on Form 10-Q).  

     

DENNY’S CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
             
(In thousands) 9/30/15   12/31/14
Assets      
  Current assets      
    Cash and cash equivalents $ 8,601     $ 3,074  
    Receivables 13,187     18,059  
    Assets held for sale 75      
    Current deferred income taxes 23,097     24,310  
    Other current assets 10,943     10,628  
      Total current assets 55,903     56,071  
  Property, net 117,402     109,777  
  Goodwill 31,898     31,451  
  Intangible assets, net 46,211     46,278  
  Noncurrent deferred income taxes 12,247     19,252  
  Other noncurrent assets 26,046     27,029  
      Total assets $ 289,707     $ 289,858  
             
Liabilities      
  Current liabilities      
    Current maturities of long-term debt $     $ 4,125  
    Current maturities of capital lease obligations 3,313     3,609  
    Accounts payable 13,749     13,250  
    Other current liabilities 57,121     59,432  
      Total current liabilities 74,183     80,416  
  Long-term liabilities      
    Long-term debt, less current maturities 150,000     135,875  
    Capital lease obligations, less current maturities 16,392     15,204  
    Other 56,680     56,780  
      Total long-term liabilities 223,072     207,859  
      Total liabilities 297,255     288,275  
             
Shareholders’ equity      
    Common stock 1,064     1,058  
    Paid-in capital 575,506     571,674  
    Deficit (411,004 )   (438,221 )
    Accumulated other comprehensive loss, net of tax (25,846 )   (24,602 )
    Treasury stock (147,268 )   (108,326 )
      Total shareholders’ (deficit) equity (7,548 )   1,583  
      Total liabilities and shareholders’ equity $ 289,707     $ 289,858  
             
Debt Balances
(In thousands) 9/30/15   12/31/14
Credit facility revolver due 2020 $ 150,000     $  
Credit facility term loan and revolver due 2018     140,000  
Capital leases 19,705     18,813  
  Total debt $ 169,705     $ 158,813  


DENNY’S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
           
      Quarter Ended
(In thousands, except per share amounts) 9/30/15   9/24/14
Revenue:      
  Company restaurant sales $ 89,279     $ 82,827  
  Franchise and license revenue 34,499     34,205  
    Total operating revenue 123,778     117,032  
Costs of company restaurant sales 75,090     71,803  
Costs of franchise and license revenue 10,649     11,309  
General and administrative expenses 16,008     13,439  
Depreciation and amortization 5,422     5,185  
Operating (gains), losses and other charges, net 886     587  
    Total operating costs and expenses, net 108,055     102,323  
Operating income 15,723     14,709  
Interest expense, net 2,327     2,284  
Other nonoperating income (expense), net 592     (33 )
Net income before income taxes 12,804     12,458  
Provision for income taxes 3,854     4,115  
Net income $ 8,950     $ 8,343  
           
           
Basic net income per share $ 0.11     $ 0.10  
Diluted net income per share $ 0.11     $ 0.10  
           
Basic weighted average shares outstanding 82,923     85,061  
Diluted weighted average shares outstanding 85,056     86,983  
           
Comprehensive income $ 5,673     $ 8,643  
           
General and Administrative Expenses Quarter Ended
(In thousands) 9/30/15   9/24/14
Share-based compensation $ 1,941     $ 649  
Other general and administrative expenses 14,067     12,790  
  Total general and administrative expenses $ 16,008     $ 13,439  


DENNY’S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
           
      Three Quarters Ended
(In thousands, except per share amounts) 9/30/15   9/24/14
Revenue:      
  Company restaurant sales $ 263,890     $ 243,269  
  Franchise and license revenue 103,378     100,297  
    Total operating revenue 367,268     343,566  
Costs of company restaurant sales 218,718     211,625  
Costs of franchise and license revenue 32,843     32,639  
General and administrative expenses 49,771     41,623  
Depreciation and amortization 15,760     15,704  
Operating (gains), losses and other charges, net 1,722     1,049  
    Total operating costs and expenses, net 318,814     302,640  
Operating income 48,454     40,926  
Interest expense, net 6,678     6,880  
Other nonoperating income (expense), net 538     (465 )
Net income before income taxes 41,238     34,511  
Provision for income taxes 14,021     11,464  
Net income $ 27,217     $ 23,047  
           
           
Basic net income per share $ 0.32     $ 0.27  
Diluted net income per share $ 0.32     $ 0.26  
           
Basic weighted average shares outstanding 83,952     86,882  
Diluted weighted average shares outstanding 86,067     88,844  
           
Comprehensive income $ 25,973     $ 22,751  
       
General and Administrative Expenses Three Quarters Ended
(In thousands) 9/30/15   9/24/14
Share-based compensation $ 5,505     $ 2,993  
Other general and administrative expenses 44,266     38,630  
  Total general and administrative expenses $ 49,771     $ 41,623  


DENNY’S CORPORATION
Income, EBITDA, Free Cash Flow, and Net Income Reconciliations
(Unaudited)
                           
Income, EBITDA and Free Cash Flow Reconciliation Quarter Ended   Three Quarters Ended
(In thousands) 9/30/15   9/24/14   9/30/15   9/24/14
Net income $ 8,950     $ 8,343     $ 27,217     $ 23,047  
Provision for income taxes 3,854     4,115     14,021     11,464  
Operating (gains), losses and other charges, net 886     587     1,722     1,049  
Other nonoperating income (expense), net 592     (33 )   538     (465 )
Share-based compensation 1,941     649     5,505     2,993  
Adjusted Income Before Taxes (1) $ 16,223     $ 13,661     $ 49,003     $ 38,088  
               
Interest expense, net 2,327     2,284     6,678     6,880  
Depreciation and amortization 5,422     5,185     15,760     15,704  
Cash payments for restructuring charges and exit costs (417 )   (541 )   (1,216 )   (1,557 )
Cash payments for share-based compensation         (3,440 )   (1,083 )
Adjusted EBITDA (1) $ 23,555     $ 20,589     $ 66,785     $ 58,032  
               
Cash interest expense, net (2,086 )   (2,028 )   (5,951 )   (6,090 )
Cash paid for income taxes, net (756 )   (1,430 )   (4,916 )   (3,070 )
Cash paid for capital expenditures (8,361 )   (4,354 )   (20,762 )   (17,880 )
Free Cash Flow (1) $ 12,352     $ 12,777     $ 35,156     $ 30,992  
               
Net Income Reconciliation Quarter Ended   Three Quarters Ended
(In thousands) 9/30/15   9/24/14   9/30/15   9/24/14
Net income $ 8,950     $ 8,343     $ 27,217     $ 23,047  
Gains on sales of assets and other, net (23 )   (33 )   (43 )   (74 )
Impairment charges 577     320     671     348  
Loss on debt refinancing         293      
Tax effect (2) (188 )   (95 )   (313 )   (91 )
Adjusted Net Income (1) $ 9,316     $ 8,535     $ 27,825     $ 23,230  
               
Diluted weighted-average shares outstanding 85,056     86,983     86,067     88,844  
               
Adjusted Net Income Per Share (1) $ 0.11     $ 0.10     $ 0.32     $ 0.26  
                                           
(1) The Company believes that, in addition to other financial measures, Adjusted Income Before Taxes, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income and Adjusted Net Income Per Share are appropriate indicators to assist in the evaluation of its operating performance on a period-to-period basis. The Company also uses Adjusted Income, Adjusted EBITDA and Free Cash Flow internally as performance measures for planning purposes, including the preparation of annual operating budgets, and for compensation purposes, including bonuses for certain employees. Adjusted EBITDA is also used to evaluate its ability to service debt because the excluded charges do not have an impact on its prospective debt servicing capability and these adjustments are contemplated in its credit facility for the computation of its debt covenant ratios. Free Cash Flow, defined as Adjusted EBITDA less cash portion of interest expense net of interest income, capital expenditures, and cash taxes, is used to evaluate operating effectiveness and decisions regarding the allocation of resources. However, Adjusted Income, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income and Adjusted Net Income Per Share should be considered as a supplement to, not a substitute for, operating income, net income or other financial performance measures prepared in accordance with U.S. generally accepted accounting principles.
 
(2) Tax adjustments for the three and nine months ended September 30, 2015 are calculated using the Company’s year-to-date effective tax rate of 34.0%. Tax adjustments for the three and nine months ended September 24, 2014 are calculated using the Company’s 2014 year-to-date effective tax rate of 33.2%.

DENNY’S CORPORATION
Operating Margins
(Unaudited)
             
        Quarter Ended
(In thousands) 9/30/15   9/24/14
Company restaurant operations: (1)          
  Company restaurant sales $ 89,279   100.0 %   $ 82,827   100.0 %
  Costs of company restaurant sales:          
    Product costs 23,289   26.1 %   21,364   25.8 %
    Payroll and benefits 34,249   38.4 %   32,507   39.2 %
    Occupancy 5,164   5.8 %   5,418   6.5 %
    Other operating costs:          
      Utilities 3,517   3.9 %   3,728   4.5 %
      Repairs and maintenance 1,549   1.7 %   1,496   1.8 %
      Marketing 3,383   3.8 %   3,141   3.8 %
      Other 3,939   4.4 %   4,149   5.0 %
  Total costs of company restaurant sales $ 75,090   84.1 %   $ 71,803   86.7 %
  Company restaurant operating margin (2) $ 14,189   15.9 %   $ 11,024   13.3 %
                 
Franchise operations: (3)          
  Franchise and license revenue:          
    Royalties $ 23,922   69.3 %   $ 22,705   66.4 %
    Initial fees 558   1.6 %   391   1.1 %
    Occupancy revenue 10,019   29.1 %   11,109   32.5 %
  Total franchise and license revenue $ 34,499   100.0 %   $ 34,205   100.0 %
                 
  Costs of franchise and license revenue:          
    Occupancy costs $ 7,620   22.1 %   $ 8,292   24.3 %
    Other direct costs 3,029   8.8 %   3,017   8.8 %
  Total costs of franchise and license revenue $ 10,649   30.9 %   $ 11,309   33.1 %
  Franchise operating margin (2) $ 23,850   69.1 %   $ 22,896   66.9 %
                 
Total operating revenue (4) $ 123,778   100.0 %   $ 117,032   100.0 %
Total costs of operating revenue (4) 85,739   69.3 %   83,112   71.0 %
Total operating margin (4)(2) $ 38,039   30.7 %   $ 33,920   29.0 %
                 
Other operating expenses: (4)(2)          
  General and administrative expenses $ 16,008   12.9 %   $ 13,439   11.5 %
  Depreciation and amortization 5,422   4.4 %   5,185   4.4 %
  Operating gains, losses and other charges, net 886   0.7 %   587   0.5 %
  Total other operating expenses $ 22,316   18.0 %   $ 19,211   16.4 %
                 
Operating income (4) $ 15,723   12.7 %   $ 14,709   12.6 %
                 
  (1 ) As a percentage of company restaurant sales.
  (2 ) Other operating expenses such as general and administrative expenses and depreciation and amortization relate to both company and franchise operations and are not allocated to costs of company restaurant sales and costs of franchise and license revenue.  As such, operating margin is considered a non-GAAP financial measure.  Operating margins should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with U.S. generally accepted accounting principles.
  (3 ) As a percentage of franchise and license revenue.
  (4 ) As a percentage of total operating revenue.


DENNY’S CORPORATION
Operating Margins
(Unaudited)
             
        Three Quarters Ended
(In thousands) 9/30/15   9/24/14
Company restaurant operations: (1)          
  Company restaurant sales $ 263,890   100.0 %   $ 243,269   100.0 %
  Costs of company restaurant sales:          
    Product costs 66,609   25.2 %   63,274   26.0 %
    Payroll and benefits 101,118   38.3 %   97,584   40.1 %
    Occupancy 14,972   5.7 %   15,445   6.3 %
    Other operating costs:          
      Utilities 9,825   3.7 %   10,385   4.3 %
      Repairs and maintenance 4,496   1.7 %   4,428   1.8 %
      Marketing 9,848   3.7 %   9,003   3.7 %
      Other 11,850   4.5 %   11,506   4.7 %
  Total costs of company restaurant sales $ 218,718   82.9 %   $ 211,625   87.0 %
  Company restaurant operating margin (2) $ 45,172   17.1 %   $ 31,644   13.0 %
                 
Franchise operations: (3)          
  Franchise and license revenue:          
    Royalties $ 70,859   68.5 %   $ 66,311   66.1 %
    Initial fees 1,659   1.6 %   840   0.9 %
    Occupancy revenue 30,860   29.9 %   33,146   33.0 %
  Total franchise and license revenue $ 103,378   100.0 %   $ 100,297   100.0 %
                 
  Costs of franchise and license revenue:          
    Occupancy costs $ 23,244   22.5 %   $ 24,773   24.7 %
    Other direct costs 9,599   9.3 %   7,866   7.8 %
  Total costs of franchise and license revenue $ 32,843   31.8 %   $ 32,639   32.5 %
  Franchise operating margin (2) $ 70,535   68.2 %   $ 67,658   67.5 %
                 
Total operating revenue (4) $ 367,268   100.0 %   $ 343,566   100.0 %
Total costs of operating revenue (4) 251,561   68.5 %   244,264   71.1 %
Total operating margin (4)(2) $ 115,707   31.5 %   $ 99,302   28.9 %
                 
Other operating expenses: (4)(2)          
  General and administrative expenses $ 49,771   13.6 %   $ 41,623   12.1 %
  Depreciation and amortization 15,760   4.3 %   15,704   4.6 %
  Operating gains, losses and other charges, net 1,722   0.5 %   1,049   0.3 %
  Total other operating expenses $ 67,253   18.3 %   $ 58,376   17.0 %
                 
Operating income (4) $ 48,454   13.2 %   $ 40,926   11.9 %
                 
  (1 ) As a percentage of company restaurant sales.
  (2 ) Other operating expenses such as general and administrative expenses and depreciation and amortization relate to both company and franchise operations and are not allocated to costs of company restaurant sales and costs of franchise and license revenue.  As such, operating margin is considered a non-GAAP financial measure.  Operating margins should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with U.S. generally accepted accounting principles.
  (3 ) As a percentage of franchise and license revenue.
  (4 ) As a percentage of total operating revenue.


DENNY’S CORPORATION
Statistical Data
(Unaudited)
                   
Same-Store Sales Quarter Ended   Three Quarters Ended
(increase vs. prior year) 9/30/15   9/24/14   9/30/15   9/24/14
  Company Restaurants 7.0 %   4.1 %   7.5 %   3.7 %
  Domestic Franchised Restaurants 5.9 %   2.1 %   6.7 %   1.8 %
  Domestic System-wide Restaurants 6.1 %   2.4 %   6.8 %   2.0 %
  System-wide Restaurants 5.0 %   2.4 %   6.0 %   1.8 %
                   
Average Unit Sales Quarter Ended   Three Quarters Ended
(In thousands) 9/30/15   9/24/14   9/30/15   9/24/14
  Company Restaurants $ 563     $ 519     $ 1,660     $ 1,528  
  Franchised Restaurants $ 397     $ 375     $ 1,185     $ 1,097  
                   
          Franchised        
Restaurant Unit Activity Company   & Licensed   Total    
Ending Units July 1, 2015 160     1,536     1,696      
  Units Opened     9     9      
  Units Reacquired 1     (1 )        
  Units Closed     (5 )   (5 )    
    Net Change 1     3     4      
Ending Units September 30, 2015 161     1,539     1,700      
                   
Equivalent Units              
  Third Quarter 2015 159     1,536     1,695      
  Third Quarter 2014 159     1,532     1,691      
    Net Change     4     4      
                   
          Franchised        
Restaurant Unit Activity Company   & Licensed   Total    
Ending Units December 31, 2014 161     1,541     1,702      
  Units Opened     31     31      
  Units Reacquired 2     (2 )        
  Units Closed (2 )   (31 )   (33 )    
    Net Change     (2 )   (2 )    
Ending Units September 30, 2015 161     1,539     1,700      
                   
Equivalent Units              
  Year-to-Date 2015 159     1,536     1,695      
  Year-to-Date 2014 159     1,534     1,693      
    Net Change     2     2      

 

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