Denny's Corporation Reports Results for Third Quarter 2014

- Domestic System-Wide Same-Store Sales Increases 2.4% with Company Same-Store Sales Growing 4.1% -
- Generated $12.8 million of Free Cash Flow* and Repurchased 1.2 Million Shares -
- Raises 2014 Annual Guidance -

SPARTANBURG, S.C., Oct. 27, 2014 (GLOBE NEWSWIRE) -- Denny's Corporation (Nasdaq:DENN), franchisor and operator of one of America's largest franchised full-service restaurant chains, today reported results for its third quarter ended September 24, 2014.

Third Quarter Summary

  • Domestic system-wide same-store sales increased 2.4%, comprised of a 4.1% increase at company restaurants and 2.1% increase at domestic franchised restaurants.
  • Opened nine franchised restaurants including one non-traditional and two international locations.
  • Completed 35 remodels including five at company restaurants.
  • Adjusted EBITDA* of $20.6 million, or 17.6% of total operating revenue, increased $1.4 million compared with the prior year quarter.
  • Net Income of $8.3 million, or $0.10 per diluted share, increased 18.7% compared with the prior year.
  • Adjusted Net Income per Share* of $0.10 increased 29.2% compared with the prior year quarter.
  • Generated $12.8 million of Free Cash Flow* after remodel investments at company restaurants.
  • Repurchased 1.2 million shares for $8.0 million with 4.3 million authorized shares remaining.

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

John Miller, President and Chief Executive Officer, stated, "We are pleased to achieve our strongest quarter of system-wide same-store sales in the last two and a half years. In addition, our company restaurants achieved the highest quarterly same-store sales increase in the last eight years. Given the strength of our results and the solid start to the fourth quarter, we are positioned to produce our highest annual system-wide same-store sales growth since 2006. Our brand revitalization continues to drive improvements in our menu, service and atmosphere as we evolve the business to meet the expectations of our guests. The impact of our newly launched Heritage remodel program contributed to our company restaurants ability to grow sustainable same-store guest traffic for a third consecutive quarter. As we look to the balance of the year, we remain focused on driving long-term shareholder value through our brand revitalization strategy and are energized about growing the Denny's brand."

Third Quarter Results

Denny's total operating revenue, including company restaurant sales and franchise and license revenue, was $117.0 million resulting from a reduction in company restaurant sales offset by higher franchise and license revenue. Franchise and license revenue was $34.2 million compared with $33.9 million due to an increase in royalty revenue resulting from the increase in same-store sales and twelve additional equivalent franchised restaurants, partially offset by a decrease in occupancy revenue. Company restaurant sales were $82.8 million compared with $83.4 million due to four fewer equivalent company restaurants. The reduction in equivalent company restaurants includes the impact of the previously announced temporary closure for the reconstruction of the highest volume restaurant located in Las Vegas and temporary closures for remodeling restaurants. The decrease in company restaurant sales was partially offset by a 4.1% increase in same-store sales during the quarter.

Denny's opened nine franchised restaurants in the third quarter of this year, including two international locations and one non-traditional location. Denny's closed thirteen franchised restaurants bringing the total restaurant count to 1,689, comprised of 160 company restaurants and 1,529 franchised restaurants.

Franchise operating margin was $22.9 million, or 66.9% of franchise and license revenue, an increase of 1.1 percentage points. This improvement was primarily due to an increase in royalties. Company restaurant operating margin of $11.0 million, or 13.3% of company restaurant sales, increased 1.0 percentage point. The increase in company margin was primarily driven by a reduction in payroll and benefits and product costs, which were partially offset by an increase in other operating costs and the previously mentioned temporary restaurant closure in Las Vegas. In the third quarter of 2013, this high volume restaurant generated pre-tax operating income of $0.7 million on sales of $2.1 million.

Total general and administrative expenses of $13.4 million improved by $0.3 million compared to the prior year. Depreciation and amortization expense of $5.2 million was flat to the prior year. Net operating gains, losses and other charges, which include restructuring charges, exit costs, impairment charges and gains or losses on the sale of assets, increased $0.4 million in the quarter. Interest expense of $2.3 million decreased $0.2 million primarily due to the expiration of capital leases. In the third quarter, the provision for income taxes was $4.1 million, reflecting an effective tax rate of 33.0%. Due to the use of net operating loss and tax credit carryforwards, the Company paid $1.4 million in cash taxes during the third quarter.

Denny's third quarter net income of $8.3 million, or $0.10 per diluted share, increased 18.7% compared to prior year quarter net income of $7.0 million, or $0.08 per diluted share. Adjusted net income* of $8.5 million grew 22.2% compared to prior year quarter adjusted net income* of $7.0 million. Adjusted Net Income per Share* of $0.10 increased 29.2% compared with the prior year quarter Adjusted Net Income per Share* of $0.08.

Denny's generated $12.8 million of Free Cash Flow* in the third quarter, after spending $4.4 million on capital expenditures, including five remodels at company restaurants. During the quarter, the Company repurchased 1.2 million shares for $8.0 million. At the end of the third quarter, the Company had 4.3 million shares under the current authorized share repurchase program remaining to be purchased. Denny's ended the third quarter with $171.7 million of total debt outstanding, including $97.0 million of borrowings under the revolving line of credit and $55.5 million of term loan debt outstanding.

Business Outlook

Mark Wolfinger, Executive Vice President, Chief Administrative Officer and Chief Financial Officer, commented, "We are pleased with our ability to grow our earnings per share as we overcame the temporary closing of our highest volume restaurant. The revitalization of our highly franchised business has enabled us to grow profitability while generating significant Free Cash Flow* to support reinvestment in the brand and our company restaurants, as well as return value to our shareholders. The Company has repurchased 20.7 million shares since initiating its share repurchase strategy in November 2010. We look forward to continuing to accelerate remodels in our company restaurants as well as reopening our highest volume restaurant on the Las Vegas Strip. Due to our strong performance, we are raising our annual guidance again for company same-store sales and Adjusted EBITDA. "

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

  • 53 operating weeks (14 in the fourth quarter) compared to 52 operating weeks in 2013.
  • The highest volume company operated restaurant, located on the Las Vegas Strip, is closed for reconstruction and is expected to reopen by the end of 2014. During the year ended December 25, 2013, this restaurant generated $7.9 million of sales and $2.9 million of pre-tax operating income.

Based on year-to-date results and management's expectations at this time, Denny's is updating the Company's financial guidance for full year 2014, including increasing expectations for Company Same-Store Sales and Adjusted EBITDA*, in addition to updating expectations for other selected components.

Component Full Year 2014 Guidance
Previous** Current
Domestic Franchise Same-Store Sales 1.0% to 2.0% 1.5% to 2.0%
Company Same-Store Sales 2.5% to 3.5% 3.5% to 4.0%
New Restaurant Openings 40 - 45 (All Franchised) Low End of Range
Net Restaurant Growth 5 - 15 Low End of Range
Total General and Administrative Expenses (includes Share-Based Compensation) $56M to $58M No Change
Adjusted EBITDA* $78M to $80M $79M to $81M
Cash Capital Expenditures $20M to $22M $21M to $22M
Depreciation and Amortization Expense $20.5M to $21.5M No Change
Interest Expense, net $9.0M to $9.5M No Change
Effective Income Tax Rate 34% to 38% 34% to 36%
(Cash Taxes) ($3.5M to $4.5M) ($3.5M to $4.5M)
Free Cash Flow* $45M to $48M $46M to $48M
* Please refer to the historical reconciliation of Net Income to Adjusted Net Income, Adjusted Net Income per Share, Adjusted EBITDA and Free Cash Flow included in the following tables.
** As announced in Second Quarter 2014 Earnings Release on July 28, 2014.

Conference Call and Webcast Information

Denny's will provide further commentary on the results for the third quarter ended September 24, 2014 on its quarterly investor conference call today, Monday, October 27, 2014 at 4:30 p.m. ET. Interested parties are invited to listen to a live broadcast of the conference call accessible through the investor relations section of Denny's website at investor.dennys.com. A replay of the call may be accessed at the same location later in the day and will remain available for 30 days.

About Denny's

Denny's is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. Denny's currently has 1,689 franchised, licensed, and company restaurants around the world with combined sales of $2.5 billion including 1,586 restaurants in the United States and 103 restaurants in Canada, Costa Rica, Mexico, Honduras, Guam, Curaçao, Puerto Rico, Dominican Republic, El Salvador, Chile and New Zealand. As of September 24, 2014, 1,529 of Denny's restaurants were franchised and 160 restaurants were company operated. For further information on Denny's, including news releases, links to SEC filings and other financial information, please visit the Denny's investor relations website at investor.dennys.com.

The Company urges caution in considering its current trends and any outlook on earnings disclosed in this press release. In addition, certain matters discussed in this release may constitute forward-looking statements. These forward-looking statements, which reflect its best judgment based on factors currently known, are intended to speak only as of the date such statements are made and involve risks, uncertainties, and other factors that may cause the actual performance of Denny's Corporation, its subsidiaries and underlying restaurants to be materially different from the performance indicated or implied by such statements. Words such as "expects", "anticipates", "believes", "intends", "plans", "hopes", and variations of such words and similar expressions are intended to identify such forward-looking statements. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Factors that could cause actual performance to differ materially from the performance indicated by these forward-looking statements include, among others: the competitive pressures from within the restaurant industry; the level of success of the Company's strategic and operating initiatives; advertising and promotional efforts; adverse publicity; changes in business strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general economy, particularly at the retail level; political environment (including acts of war and terrorism); and other factors from time to time set forth in the Company's SEC reports and other filings, including but not limited to the discussion in Management's Discussion and Analysis and the risks identified in Item 1A. Risk Factors contained in the Company's Annual Report on Form 10-K for the year ended December 25, 2013 (and in the Company's subsequent quarterly reports on Form 10-Q).

DENNY'S CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands) 9/24/2014 12/25/2013
Assets
Current assets
Cash and cash equivalents $ 1,450 $ 2,943
Receivables 14,759 17,321
Current deferred tax asset 22,021 23,264
Other current assets 9,072 10,298
Total current assets 47,302 53,826
Property, net 109,268 105,620
Goodwill 31,451 31,451
Intangible assets, net 46,683 47,925
Noncurrent deferred tax asset 21,604 28,290
Other noncurrent assets 27,971 28,665
Total assets $ 284,279 $ 295,777
Liabilities
Current liabilities
Current maturities of long-term debt $ 3,750 $ 3,000
Current maturities of capital lease obligations 3,802 4,150
Accounts payable 16,408 14,237
Other current liabilities 50,220 52,698
Total current liabilities 74,180 74,085
Long-term liabilities
Long-term debt, less current maturities 148,750 150,000
Capital lease obligations, less current maturities 15,422 15,923
Other 43,500 47,338
Total long-term liabilities 207,672 213,261
Total liabilities 281,852 287,346
Shareholders' equity
Common stock 1,055 1,050
Paid-in capital 570,705 567,505
Deficit (447,899) (470,946)
Accumulated other comprehensive loss, net of tax (17,138) (16,842)
Treasury stock (104,296) (72,336)
Total shareholders' equity 2,427 8,431
Total liabilities and shareholders' equity $ 284,279 $ 295,777
Debt Balances
(In thousands) 9/24/2014 12/25/2013
Credit facility term loan and revolver due 2018 $ 152,500 $ 153,000
Capital leases 19,224 20,073
Total debt $ 171,724 $ 173,073

DENNY'S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
Quarter Ended
(In thousands, except per share amounts) 9/24/2014 9/25/2013
Revenue:
Company restaurant sales $ 82,827 $ 83,371
Franchise and license revenue 34,205 33,904
Total operating revenue 117,032 117,275
Costs of company restaurant sales 71,803 73,088
Costs of franchise and license revenue 11,309 11,599
General and administrative expenses 13,439 13,704
Depreciation and amortization 5,185 5,198
Operating (gains), losses and other charges, net 587 161
Total operating costs and expenses, net 102,323 103,750
Operating income 14,709 13,525
Interest expense, net 2,284 2,452
Other nonoperating income, net (33) (276)
Net income before income taxes 12,458 11,349
Provision for income taxes 4,115 4,318
Net income $ 8,343 $ 7,031
Basic net income per share $ 0.10 $ 0.08
Diluted net income per share $ 0.10 $ 0.08
Basic weighted average shares outstanding 85,061 90,035
Diluted weighted average shares outstanding 86,983 91,967
Comprehensive income $ 8,643 $ 6,574
General and Administrative Expenses Quarter Ended
(In thousands) 9/24/2014 9/25/2013
Share-based compensation $ 649 $ 1,053
Other general and administrative expenses 12,790 12,651
Total general and administrative expenses $ 13,439 $ 13,704

DENNY'S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
Three Quarters Ended
(In thousands, except per share amounts) 9/24/2014 9/25/2013
Revenue:
Company restaurant sales $ 243,269 $ 247,242
Franchise and license revenue 100,297 101,094
Total operating revenue 343,566 348,336
Costs of company restaurant sales 211,625 213,659
Costs of franchise and license revenue 32,639 34,586
General and administrative expenses 41,623 42,948
Depreciation and amortization 15,704 15,774
Operating (gains), losses and other charges, net 1,049 1,779
Total operating costs and expenses, net 302,640 308,746
Operating income 40,926 39,590
Interest expense, net 6,880 7,800
Other nonoperating (income) expense, net (465) 1,056
Net income before income taxes 34,511 30,734
Provision for income taxes 11,464 10,424
Net income $ 23,047 $ 20,310
Basic net income per share $ 0.27 $ 0.22
Diluted net income per share $ 0.26 $ 0.22
Basic weighted average shares outstanding 86,882 91,348
Diluted weighted average shares outstanding 88,844 93,377
Comprehensive income $ 22,751 $ 22,702
General and Administrative Expenses Three Quarters Ended
(In thousands) 9/24/2014 9/25/2013
Share-based compensation $ 2,993 $ 3,434
Other general and administrative expenses 38,630 39,514
Total general and administrative expenses $ 41,623 $ 42,948

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) 9/24/2014 9/25/2013 9/24/2014 9/25/2013
Net income $ 8,343 $ 7,031 $ 23,047 $ 20,310
Provision for income taxes 4,115 4,318 11,464 10,424
Operating (gains), losses and other charges, net 587 161 1,049 1,779
Other nonoperating (income) expense, net (33) (276) (465) 1,056
Share-based compensation 649 1,053 2,993 3,434
Adjusted Income Before Taxes (1) $ 13,661 $ 12,287 $ 38,088 $ 37,003
Interest expense, net 2,284 2,452 6,880 7,800
Depreciation and amortization 5,185 5,198 15,704 15,774
Cash payments for restructuring charges and exit costs (541) (771) (1,557) (2,168)
Cash payments for share-based compensation (1,083) (900)
Adjusted EBITDA (1) $ 20,589 $ 19,166 $ 58,032 $ 57,509
Cash interest expense, net (2,028) (2,156) (6,090) (6,890)
Cash paid for income taxes, net (1,430) (496) (3,070) (1,831)
Cash paid for capital expenditures (4,354) (4,897) (17,880) (13,441)
Free Cash Flow (1) $ 12,777 $ 11,617 $ 30,992 $ 35,347
Net Income Reconciliation Quarter Ended Quarter Ended
(In thousands) 9/24/2014 9/25/2013 9/24/2014 9/25/2013
Net income $ 8,343 $ 7,031 $ 23,047 $ 20,310
(Gains) losses on sales of assets and other, net (33) (68) (74) (83)
Impairment charges 320 348 857
Loss on debt refinancing 1,187
Tax effect (2) (95) 23 (91) (665)
Adjusted Net Income (1) $ 8,535 $ 6,986 $ 23,230 $ 21,606
Diluted weighted-average shares outstanding 86,983 91,967 88,844 93,377
Adjusted Net Income Per Share (1) $ 0.10 $ 0.08 $ 0.26 $ 0.23
(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 24, 2014 are calculated using the Company's year-to-date effective tax rate of 33.2%. Tax adjustments for the three and nine months ended September 25, 2013 are calculated using the Company's year-to-date effective tax rate of 33.9%.

DENNY'S CORPORATION
Operating Margins
(Unaudited)
Quarter Ended
(In thousands) 9/24/2014 9/25/2013
Company restaurant operations: (1)
Company restaurant sales $ 82,827 100.0% $ 83,371 100.0%
Costs of company restaurant sales:
Product costs 21,364 25.8% 21,722 26.1%
Payroll and benefits 32,507 39.2% 33,746 40.5%
Occupancy 5,418 6.5% 5,598 6.7%
Other operating costs:
Utilities 3,728 4.5% 3,592 4.3%
Repairs and maintenance 1,496 1.8% 1,550 1.9%
Marketing 3,141 3.8% 3,116 3.7%
Legal settlements 454 0.5% 157 0.2%
Other 3,695 4.5% 3,607 4.3%
Total costs of company restaurant sales $ 71,803 86.7% $ 73,088 87.7%
Company restaurant operating margin (2) $ 11,024 13.3% $ 10,283 12.3%
Franchise operations: (3)
Franchise and license revenue:
Royalties $ 22,705 66.4% $ 21,777 64.2%
Initial fees 391 1.1% 434 1.3%
Occupancy revenue 11,109 32.5% 11,693 34.5%
Total franchise and license revenue $ 34,205 100.0% $ 33,904 100.0%
Costs of franchise and license revenue:
Occupancy costs $ 8,292 24.3% $ 8,616 25.4%
Other direct costs 3,017 8.8% 2,983 8.8%
Total costs of franchise and license revenue $ 11,309 33.1% $ 11,599 34.2%
Franchise operating margin (2) $ 22,896 66.9% $ 22,305 65.8%
Total operating revenue (4) $ 117,032 100.0% $ 117,275 100.0%
Total costs of operating revenue (4) 83,112 71.0% 84,687 72.2%
Total operating margin (4)(2) $ 33,920 29.0% $ 32,588 27.8%
Other operating expenses: (4)(2)
General and administrative expenses $ 13,439 11.5% $ 13,704 11.7%
Depreciation and amortization 5,185 4.4% 5,198 4.4%
Operating gains, losses and other charges, net 587 0.5% 161 0.1%
Total other operating expenses $ 19,211 16.4% $ 19,063 16.3%
Operating income (4) $ 14,709 12.6% $ 13,525 11.5%
(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) 9/24/2014 9/25/2013
Company restaurant operations: (1)
Company restaurant sales $ 243,269 100.0% $ 247,242 100.0%
Costs of company restaurant sales:
Product costs 63,274 26.0% 64,270 26.0%
Payroll and benefits 97,584 40.1% 98,512 39.8%
Occupancy 15,445 6.3% 16,339 6.6%
Other operating costs:
Utilities 10,385 4.3% 9,897 4.0%
Repairs and maintenance 4,428 1.8% 4,423 1.8%
Marketing 9,003 3.7% 9,245 3.7%
Legal settlements 708 0.3% 671 0.3%
Other 10,798 4.4% 10,302 4.2%
Total costs of company restaurant sales $ 211,625 87.0% $ 213,659 86.4%
Company restaurant operating margin (2) $ 31,644 13.0% $ 33,583 13.6%
Franchise operations: (3)
Franchise and license revenue:
Royalties $ 66,311 66.1% $ 64,205 63.5%
Initial fees 840 0.9% 1,164 1.2%
Occupancy revenue 33,146 33.0% 35,725 35.3%
Total franchise and license revenue $ 100,297 100.0% $ 101,094 100.0%
Costs of franchise and license revenue:
Occupancy costs $ 24,773 24.7% $ 26,235 25.9%
Other direct costs 7,866 7.8% 8,351 8.3%
Total costs of franchise and license revenue $ 32,639 32.5% $ 34,586 34.2%
Franchise operating margin (2) $ 67,658 67.5% $ 66,508 65.8%
Total operating revenue (4) $ 343,566 100.0% $ 348,336 100.0%
Total costs of operating revenue (4) 244,264 71.1% 248,245 71.3%
Total operating margin (4)(2) $ 99,302 28.9% $ 100,091 28.7%
Other operating expenses: (4)(2)
General and administrative expenses $ 41,623 12.1% $ 42,948 12.3%
Depreciation and amortization 15,704 4.6% 15,774 4.5%
Operating gains, losses and other charges, net 1,049 0.3% 1,779 0.5%
Total other operating expenses $ 58,376 17.0% $ 60,501 17.4%
Operating income (4) $ 40,926 11.9% $ 39,590 11.4%
(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 / (decrease) vs. prior year) 9/24/2014 9/25/2013 9/24/2014 9/25/2013
Company Restaurants 4.1% 0.7% 3.7% (0.4)%
Domestic Franchised Restaurants 2.1% 1.3% 1.8% 0.5%
Domestic System-wide Restaurants 2.4% 1.2% 2.0% 0.4%
System-wide Restaurants 2.4% 1.0% 1.8% 0.3%
Average Unit Sales Quarter Ended Three Quarters Ended
(In thousands) 9/24/2014 9/25/2013 9/24/2014 9/25/2013
Company Restaurants $ 519 $ 510 $ 1,528 $ 1,509
Franchised Restaurants $ 375 $ 365 $ 1,097 $ 1,073
Franchised
Restaurant Unit Activity Company & Licensed Total
Ending Units 6/25/14 160 1,533 1,693
Units Opened 9 9
Units Closed (13) (13)
Net Change (4) (4)
Ending Units 9/24/14 160 1,529 1,689
Equivalent Units
Third Quarter 2014 159 1,532 1,691
Third Quarter 2013 163 1,520 1,683
(4) 12 8
Franchised
Restaurant Unit Activity Company & Licensed Total
Ending Units 12/25/13 163 1,537 1,700
Units Opened 16 16
Units Closed (3) (24) (27)
Net Change (3) (8) (11)
Ending Units 9/24/14 160 1,529 1,689
Equivalent Units
Year-to-Date 2014 159 1,534 1,693
Year-to-Date 2013 164 1,524 1,688
(5) 10 5

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

Source:Denny's Corporation