Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported) July 30, 2024

DENNY’S CORPORATION

(Exact name of registrant as specified in its charter)


Delaware	0-18051	13-3487402
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	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)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ☐

Item 2.02 Results of Operations and Financial Condition.

On July 30, 2024, Denny's Corporation (the "Company") issued a press release announcing financial results for the second quarter ended June 26, 2024. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

The management of the Company will conduct meetings with members of the investment community during July, August and September 2024. A copy of the investor presentation to be used during these meetings is attached to this Current Report on Form 8-K as Exhibit 99.2 and is also available at the Company's investor relations website at investor.dennys.com.

The information in this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Item 7.01 of this Current Report on Form 8-K shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

See the Exhibit Index below, which is incorporated by reference herein.

EXHIBIT INDEX


Exhibit number			Description
99.1			Press Release, dated July 30, 2024.
99.2			Investor Presentation, dated July 30, 2024.
104			Cover Page Interactive Data File (formatted as Inline XBRL)

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 hereunto duly authorized.


			Denny's Corporation


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

DENNY’S CORPORATION REPORTS RESULTS FOR SECOND QUARTER 2024

SPARTANBURG, S.C., July 30, 2024 - Denny’s Corporation (the "Company") (NASDAQ: DENN), owner and operator of Denny's Inc. ("Denny's") and Keke's Inc. ("Keke's") today reported results for its second quarter ended June 26, 2024 and provided a business update on the Company’s operations.

Kelli Valade, Chief Executive Officer, stated, "I am very pleased that for the second quarter in a row Denny's outperformed BBI Family Dining same-restaurant sales, and Keke's continued to close the gap in Florida all while navigating a very competitive environment. We are also encouraged to see these trends continuing into July, which is being bolstered by our incremental advertising investments and the expansion of our third virtual brand. Additionally, we opened our second Keke's cafe in Tennessee, as well as completed our first remodel test at our highest volume Keke's corporate location. Despite these results and staying ahead of the competition, we know the overall industry is pressured and therefore we have updated our guidance accordingly and remain confident in our strategies and initiatives.”

Second Quarter 2024 Highlights(1)

•Total operating revenue was $115.9 million compared to $116.9 million for the prior year quarter.

•Denny's domestic system-wide same-restaurant sales** were (0.6%) compared to the equivalent fiscal period in 2023, including (0.4%) at domestic franchised restaurants and (2.6%) at company restaurants.

•Opened four restaurants, including one Keke's company location.

•Operating income was $9.1 million compared to $14.9 million for the prior year quarter.

•Adjusted franchise operating margin* was $30.8 million, or 50.0% of franchise and license revenue, and Adjusted company restaurant operating margin* was $7.2 million, or 13.2% of company restaurant sales.

•Net income was $3.6 million, or $0.07 per diluted share.

•Adjusted net income* and adjusted net income per share* were $6.9 million and $0.13, respectively.

•Adjusted EBITDA* was $20.3 million.

(1) Beginning fiscal 2024, the Company has evolved its definition of non-GAAP measures. Please see the definitions, explanations, and reconciliations further in this release.

Second Quarter 2024 Results

Total operating revenue was $115.9 million compared to $116.9 million for the prior year quarter.

Franchise and license revenue was $61.6 million compared to $62.0 million for the prior year quarter. This change was driven by decreases in franchise occupancy revenue and franchise sales, partially offset by an increase in franchise advertising revenue primarily related to higher local advertising co-op contributions for the current quarter.

Company restaurant sales were $54.3 million compared to $54.9 million for the prior year quarter primarily driven by a decrease in same-restaurant sales, partially offset by three additional Keke's equivalent units for the current quarter.

Adjusted franchise operating margin* was $30.8 million, or 50.0% of franchise and license revenue, compared to $31.6 million, or 50.9% for the prior year quarter. This margin change was primarily driven by the impact of lower sales on royalty and advertising revenues and lease terminations.

Adjusted company restaurant operating margin* was $7.2 million, or 13.2% of company restaurant sales, compared to $8.5 million, or 15.4% for the prior year quarter. This margin change was primarily due to a decrease in same-restaurant sales and increases in marketing and general liability insurance costs for the current quarter.

Total general and administrative expenses were $20.5 million compared to $20.2 million in the prior year quarter. This change was primarily due to an increase in corporate administration expense.

The provision for income taxes was $1.2 million, reflecting an effective tax rate of 25.1% for the current quarter.

Net income was $3.6 million, or $0.07 per diluted share. Adjusted net income* per share was $0.13.

The Company ended the quarter with $267.4 million of total debt outstanding, including $257.5 million of borrowings under its credit facility.

Capital Allocation

The Company invested $5.0 million in cash capital expenditures, primarily related to Keke's development.

During the quarter, the Company allocated $4.7 million to share repurchases resulting in approximately $91.0 million remaining under its existing repurchase authorization.

Business Outlook

The following full year 2024 expectations reflect management's expectations that the current consumer and economic environment will not change materially.

•Denny's domestic system-wide same-restaurant sales** between (1%) and 1% (vs. between 0% and 3%).

•Consolidated restaurant openings of 30 to 40 (vs. 40 to 50), including 12 to 16 new Keke's restaurants, with a consolidated net decline of 20 to 30 (vs. 10 to 20).

•Commodity inflation between 0% and 2%.

•Labor inflation between 3% and 4% (vs. between 4% and 5%).

•Total general and administrative expenses between $82 million and $85 million (vs. between $83 million and $86 million), including approximately $11 million (vs. $12 million) related to share-based compensation expense which does not impact Adjusted EBITDA*.

•Adjusted EBITDA* between $83 million and $87 million (vs. between $87 million and $91 million).

* Please refer to the Reconciliation of Net Income to Non-GAAP Financial Measures, as well as the Reconciliation of Operating Income to Non-GAAP Financial Measures included in the tables below. The Company is not able to reconcile the forward-looking non-GAAP estimate set forth above to its most directly comparable U.S. generally accepted accounting principles (GAAP) estimates without unreasonable efforts because it is unable to predict, forecast or determine the probable significance of the items impacting these estimates, including gains, losses and other charges, with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP estimate is not provided.

** Same-restaurant sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, initial and other fees and occupancy revenue from non-consolidated franchised and licensed restaurants.

Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP.

Conference Call and Webcast Information

The Company will provide further commentary on the results for the second quarter ended June 26, 2024 on its quarterly investor conference call today, Tuesday, July 30, 2024 at 4:30 p.m. Eastern Time. Interested parties are invited to listen to a live broadcast of the conference call accessible through the Company's investor relations website at investor.dennys.com.

About Denny's Corporation

Denny’s Corporation is one of America’s largest full-service restaurant chains based on number of restaurants. As of June 26, 2024, the Company consisted of 1,603 restaurants, 1,528 of which were franchised and licensed restaurants and 75 of which were company operated.

Denny's Corporation consists of the Denny’s brand and the Keke’s brand. As of June 26, 2024, the Denny's brand consisted of 1,541 global restaurants, 1,477 of which were franchised and licensed restaurants and 64 of which were company operated. As of June 26, 2024, the Keke's brand consisted of 62 restaurants, 51 of which were franchised restaurants and 11 of which were company operated.

For further information on Denny's Corporation, including news releases, links to SEC filings, and other financial information, please visit investor.dennys.com.

Non-GAAP Definition Changes

The Company has evolved its definition of non-GAAP financial measures starting in fiscal 2024 to provide more clarity and comparability relative to peers. Denny's Corporation management uses certain non-GAAP measures in analyzing operating performance and believes that the presentation of these measures provides investors and analysts with information that is beneficial to gaining an understanding of the Company's financial results. Non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP.

The Company will begin excluding legal settlement expenses, pre-opening expenses, and other items management does not consider in the evaluation of its ongoing core operating performance from adjusted operating margin*, adjusted net income*, adjusted net income per share*, and adjusted EBITDA*. In addition, the Company will no longer deduct cash payments for restructuring and exit costs, or cash payments for share-based compensation from adjusted EBITDA*. Lastly, the Company will transition to utilizing GAAP cash flows included in its SEC filed documents in lieu of a non-GAAP financial measure.

Reconciliations of these non-GAAP measures are included in the tables of this press release and a recast of historical non-GAAP financial measures can be found on the Company's website, or its most recent investor presentation.

Cautionary Language Regarding Forward-Looking Statements

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 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 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: 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; the Company's ability to maintain adequate levels of liquidity for its cash needs, including debt obligations, payment of dividends, planned share repurchases and capital expenditures as well as the ability of its customers, suppliers, franchisees and lenders to access sources of liquidity to provide for their own cash needs; competitive pressures from within the restaurant industry; the Company's ability to integrate and derive the expected benefits from its acquisition of Keke's Breakfast Cafe; the level of success of the Company’s 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 year ended December 27, 2023 (and in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K).

Investor Contact: 877-784-7167

Media Contact: 864-597-8005


DENNY’S CORPORATION
Consolidated Balance Sheets
(Unaudited)

($ in thousands)				6/26/24		12/27/23
Assets
	Current assets
		Cash and cash equivalents		$	1,166	$	4,893
		Investments		2,796		1,281
		Receivables, net		19,784		21,391
		Inventories		1,895		2,175
		Assets held for sale		350		1,455
		Prepaid and other current assets		9,215		12,855
			Total current assets	35,206		44,050
	Property, net			96,957		93,494
	Finance lease right-of-use assets, net			5,499		6,098
	Operating lease right-of-use assets, net			110,554		116,795
	Goodwill			66,357		65,908
	Intangible assets, net			92,563		93,428
	Deferred financing costs, net			1,384		1,702

	Other noncurrent assets			51,418		43,343
			Total assets	$	459,938	$	464,818

Liabilities
	Current liabilities

		Current finance lease liabilities		$	1,372	$	1,383
		Current operating lease liabilities		14,931		14,779
		Accounts payable		17,224		24,070
		Other current liabilities		62,600		63,068
			Total current liabilities	96,127		103,300
	Long-term liabilities
		Long-term debt		257,500		255,500
		Noncurrent finance lease liabilities		8,552		9,150
		Noncurrent operating lease liabilities		107,168		114,451
		Liability for insurance claims, less current portion		7,069		6,929
		Deferred income taxes, net		7,029		6,582
		Other noncurrent liabilities		29,736		31,592
			Total long-term liabilities	417,054		424,204
			Total liabilities	513,181		527,504

Shareholders' deficit
		Common stock		533		529
		Paid-in capital		10,135		6,688
		Deficit		(13,525)		(21,784)
		Accumulated other comprehensive loss, net		(34,461)		(41,659)
		Treasury stock		(15,925)		(6,460)
			Total shareholders' deficit	(53,243)		(62,686)
			Total liabilities and shareholders' deficit	$	459,938	$	464,818

Debt Balances
	Credit facility revolver due 2026			$	257,500	$	255,500
	Finance lease liabilities			9,924		10,533
		Total debt		$	267,424	$	266,033


DENNY’S CORPORATION
Condensed Consolidated Statements of Income
(Unaudited)

			Quarter Ended
($ in thousands, except per share amounts)			6/26/24		6/28/23
Revenue:
	Company restaurant sales		$	54,348	$	54,881
	Franchise and license revenue		61,579		62,034
		Total operating revenue	115,927		116,915
Costs of company restaurant sales, excluding depreciation and amortization			47,578		46,568
Costs of franchise and license revenue, excluding depreciation and amortization			33,428		30,460
General and administrative expenses			20,486		20,160
Depreciation and amortization			3,735		3,617
Goodwill impairment charges			20		—
Operating (gains), losses and other charges, net			1,565		1,176
		Total operating costs and expenses, net	106,812		101,981
Operating income			9,115		14,934
Interest expense, net			4,573		4,402
Other nonoperating income, net			(224)		(666)
Income before income taxes			4,766		11,198
Provision for income taxes			1,198		2,660
Net income			$	3,568	$	8,538

Net income per share - basic			$	0.07	$	0.15
Net income per share - diluted			$	0.07	$	0.15

Basic weighted average shares outstanding			52,689		56,787
Diluted weighted average shares outstanding			52,787		57,051

Comprehensive income			$	4,602	$	10,557

General and Administrative Expenses
	Corporate administrative expenses		$	15,776	$	15,160
	Share-based compensation		2,624		2,519
	Incentive compensation		1,898		1,899
	Deferred compensation valuation adjustments		188		582
		Total general and administrative expenses	$	20,486	$	20,160


DENNY’S CORPORATION
Condensed Consolidated Statements of Income
(Unaudited)

			Two Quarters Ended
($ in thousands, except per share amounts)			6/26/24		6/28/23
Revenue:
	Company restaurant sales		$	106,690	$	108,333
	Franchise and license revenue		119,211		126,053
		Total operating revenue	225,901		234,386
Costs of company restaurant sales, excluding depreciation and amortization			95,696		93,060
Costs of franchise and license revenue, excluding depreciation and amortization			60,802		62,847
General and administrative expenses			41,708		40,278
Depreciation and amortization			7,316		7,273
Goodwill impairment charges			20		—
Operating (gains), losses and other charges, net			1,238		(153)
		Total operating costs and expenses, net	206,780		203,305
Operating income			19,121		31,081
Interest expense, net			8,993		8,907
Other nonoperating (income) expense, net			(861)		9,427
Income before income taxes			10,989		12,747
Provision for income taxes			2,730		3,612
Net income			$	8,259	$	9,135

Net income per share - basic			$	0.16	$	0.16
Net income per share - diluted			$	0.16	$	0.16

Basic weighted average shares outstanding			52,879		57,212
Diluted weighted average shares outstanding			53,002		57,423

Comprehensive income			$	15,457	$	11,511

General and Administrative Expenses
	Corporate administrative expenses		$	30,968	$	29,339
	Share-based compensation		5,400		5,613
	Incentive compensation		4,421		4,286
	Deferred compensation valuation adjustments		919		1,040
		Total general and administrative expenses	$	41,708	$	40,278

DENNY’S CORPORATION

Reconciliation of Net Income to Non-GAAP Financial Measures

(Unaudited)

The Company believes that, in addition to GAAP measures, certain non-GAAP financial measures are useful information to investors and analysts to assist in the evaluation of operating performance on a period-to-period basis. However, non-GAAP measures should be considered as a supplement to, not a substitute for, operating income, net income, and net income per share, or other financial performance measures prepared in accordance with GAAP. The Company uses adjusted EBITDA, adjusted net income and adjusted net income per share internally as performance measures for planning purposes, including the preparation of annual operating budgets, and for compensation purposes, including incentive compensation for certain employees. These non-GAAP measures are adjusted for certain items the Company does not consider in the evaluation of its ongoing core operating performance. These adjustments are either non-recurring in nature or vary from period to period without correlation to the Company's ongoing core operating performance.


	Quarter Ended				Two Quarters Ended
($ in thousands, except per share amounts)	6/26/24		6/28/23		6/26/24		6/28/23
Net income	$	3,568	$	8,538	$	8,259	$	9,135
Provision for income taxes	1,198		2,660		2,730		3,612
Goodwill impairment charges	20		—		20		—
Operating (gains), losses and other charges, net	1,565		1,176		1,238		(153)
Other nonoperating (income) expense, net	(224)		(666)		(861)		9,427
Share-based compensation expense	2,624		2,519		5,400		5,613
Deferred compensation plan valuation adjustments	188		582		919		1,040
Interest expense, net	4,573		4,402		8,993		8,907
Depreciation and amortization	3,735		3,617		7,316		7,273
Legal settlement expenses	208		121		1,657		230
Pre-opening expenses	191		25		557		25
Other adjustments	2,640		11		2,492		3
Adjusted EBITDA	$	20,286	$	22,985	$	38,720	$	45,112

Net income	$	3,568	$	8,538	$	8,259	$	9,135
Losses and amortization on interest rate swap derivatives, net	167		82		308		10,744
Losses (gains) on sales of assets and other charges, net	526		(522)		(94)		(2,044)
Impairment charges (1)	639		—		734		129
Legal settlement expenses	208		121		1,657		230
Pre-opening expenses	191		25		557		25
Other adjustments	2,640		11		2,492		3
Tax effect (2)	(1,086)		92		(1,402)		(2,344)
Adjusted net income	$	6,853	$	8,347	$	12,511	$	15,878

Diluted weighted average shares outstanding	52,787		57,051		53,002		57,423

Net income per share - diluted	$	0.07	$	0.15	$	0.16	$	0.16
Adjustments per share	0.06		—		0.08		0.12
Adjusted net income per share	$	0.13	$	0.15	$	0.24	$	0.28


(1)			Impairment charges include goodwill impairment charges of less than $0.1 million for the quarter and year-to-date period ended June 26, 2024.
(2)			Tax adjustments for the quarter and year-to-date period ended June 26, 2024 reflect effective tax rates of 24.8%. Tax adjustments for the quarter and year-to-date period ended June 28, 2023 reflect effective tax rates of 32.5% and 25.8%, respectively.

DENNY’S CORPORATION

Reconciliation of Operating Income to Non-GAAP Financial Measures

(Unaudited)

The Company believes that, in addition to GAAP measures, certain other non-GAAP financial measures are useful information to investors and analysts to assist in the evaluation of restaurant-level operating efficiency and performance of ongoing restaurant-level operations. However, non-GAAP measures should be considered as a supplement to, not a substitute for, operating income, net income, and net income per share, or other financial performance measures prepared in accordance with GAAP. The Company uses restaurant-level operating margin, company restaurant operating margin and franchise operating margin internally as performance measures for planning purposes, including the preparation of annual operating budgets, and for compensation purposes, including incentive compensation for certain employees.

Restaurant-level operating margin is the total of company restaurant operating margin and franchise operating margin and excludes: (i) general and administrative expenses, which include primarily non-restaurant-level costs associated with support of company and franchised restaurants and other activities at their corporate office; (ii) 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; (iii) special items, included within operating (gains), losses and other charges, net, to provide investors with a clearer perspective of its ongoing operating performance and a more relevant comparison to prior period results.

Company restaurant operating margin is defined as company restaurant sales less costs of company restaurant sales (which include product costs, company restaurant level payroll and benefits, occupancy costs, and other operating costs including utilities, repairs and maintenance, marketing and other expenses) and presents it as a percent of company restaurant sales. Adjusted company operating restaurant margin is defined as company restaurant operating margin less certain items such as legal settlement expenses, pre-opening expenses, and other items the Company does not consider in the evaluation of its ongoing core operating performance.

Franchise operating margin is defined as franchise and license revenue (which includes franchise royalties and other non-food and beverage revenue streams such as initial franchise and other fees, advertising revenue and occupancy revenue) less costs of franchise and license revenue and presents it as a percent of franchise and license revenue. Adjusted franchise operating margin is defined as franchise operating margin less certain items the Company does not consider in the evaluation of its ongoing core operating performance.

Adjusted restaurant-level operating margin is the total of adjusted company restaurant operating margin and adjusted franchise operating margin and is defined as restaurant-level operating margin adjusted for certain items the Company does not consider in the evaluation of its ongoing core operating performance. These adjustments are either non-recurring in nature or vary from period to period without correlation to the Company's ongoing core operating performance.


	Quarter Ended				Two Quarters Ended
($ in thousands)	6/26/24		6/28/23		6/26/24		6/28/23
Operating income	$	9,115	$	14,934	$	19,121	$	31,081
General and administrative expenses	20,486		20,160		41,708		40,278
Depreciation and amortization	3,735		3,617		7,316		7,273
Goodwill impairment charges	20		—		20		—
Operating (gains), losses and other charges, net	1,565		1,176		1,238		(153)
Restaurant-level operating margin	$	34,921	$	39,887	$	69,403	$	78,479

Restaurant-level operating margin consists of:
Company restaurant operating margin (1)	$	6,770	$	8,313	$	10,994	$	15,273
Franchise operating margin (2)	28,151		31,574		58,409		63,206
Restaurant-level operating margin	$	34,921	$	39,887	$	69,403	$	78,479
Adjustments (3)	3,039		157		4,706		258
Adjusted restaurant-level operating margin	$	37,960	$	40,044	$	74,109	$	78,737


(1)			Company restaurant operating margin is calculated as operating income plus general and administrative expenses; depreciation and amortization; operating (gains), losses and other charges, net; and costs of franchise and license revenue, excluding depreciation and amortization; less franchise and license revenue.
(2)			Franchise operating margin is calculated as operating income plus general and administrative expenses; depreciation and amortization; operating (gains), losses and other charges, net; and costs of company restaurant sales, excluding depreciation and amortization; less company restaurant sales.
(3)			Adjustments include legal settlement expenses, pre-opening costs, and other adjustments the Company does not consider in the evaluation of its ongoing core operating performance. Adjustments for the quarter and year-to-date period ended June 26, 2024 include a $2.6 million distribution to franchisees related to a review of advertising costs.


DENNY’S CORPORATION
Operating Margins
(Unaudited)

				Quarter Ended
($ in thousands)				6/26/24				6/28/23
Company restaurant operations: (1)
	Company restaurant sales			$	54,348	100.0	%	$	54,881	100.0	%
	Costs of company restaurant sales, excluding depreciation and amortization:
		Product costs		13,632		25.1	%	14,170		25.8	%
		Payroll and benefits		20,493		37.7	%	20,488		37.3	%
		Occupancy		4,671		8.6	%	4,080		7.4	%
		Other operating costs:
			Utilities	1,695		3.1	%	1,860		3.4	%
			Repairs and maintenance	1,008		1.9	%	782		1.4	%
			Marketing	1,876		3.5	%	1,419		2.6	%
			Legal settlements	208		0.4	%	121		0.2	%
			Pre-opening costs	191		0.4	%	25		0.0	%
			Other direct costs	3,804		7.0	%	3,623		6.6	%
	Total costs of company restaurant sales, excluding depreciation and amortization			$	47,578	87.5	%	$	46,568	84.9	%
	Company restaurant operating margin (non-GAAP) (2)			$	6,770	12.5	%	$	8,313	15.1	%
			Adjustments (3)	399		0.7	%	146		0.3	%
	Adjusted company restaurant operating margin (non-GAAP) (2)			$	7,169	13.2	%	$	8,459	15.4	%

Franchise operations: (4)
	Franchise and license revenue:
	Royalties			$	30,014	48.7	%	$	30,376	49.0	%
	Advertising revenue			20,788		33.8	%	19,853		32.0	%
	Initial and other fees			2,448		4.0	%	2,616		4.2	%
	Occupancy revenue			8,329		13.5	%	9,189		14.8	%
	Total franchise and license revenue			$	61,579	100.0	%	$	62,034	100.0	%

	Costs of franchise and license revenue, excluding depreciation and amortization:
	Advertising costs			$	20,788	33.8	%	$	19,853	32.0	%
	Occupancy costs			5,094		8.3	%	5,792		9.3	%
	Other direct costs			7,546		12.3	%	4,815		7.8	%
	Total costs of franchise and license revenue, excluding depreciation and amortization			$	33,428	54.3	%	$	30,460	49.1	%
	Franchise operating margin (non-GAAP) (2)			$	28,151	45.7	%	$	31,574	50.9	%
		Adjustments (3)		2,640		4.3	%	11		0.0	%
	Adjusted franchise operating margin (non-GAAP) (2)			$	30,791	50.0	%	$	31,585	50.9	%

Total operating revenue (5)				$	115,927	100.0	%	$	116,915	100.0	%
Total costs of operating revenue (5)				81,006		69.9	%	77,028		65.9	%
Restaurant-level operating margin (non-GAAP) (5)				$	34,921	30.1	%	$	39,887	34.1	%

(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 and adjusted operating margin are considered non-GAAP financial measures and should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with GAAP.
(3)		Adjustments include legal settlement expenses, pre-opening costs, and other adjustments the Company does not consider in the evaluation of its ongoing core operating performance. Adjustments for the quarter ended June 26, 2024 include a $2.6 million distribution to franchisees related to a review of advertising costs.
(4)		As a percentage of franchise and license revenue.
(5)		As a percentage of total operating revenue.


DENNY’S CORPORATION
Operating Margins
(Unaudited)

				Two Quarters Ended
($ in thousands)				6/26/24				6/28/23
Company restaurant operations: (1)
	Company restaurant sales			$	106,690	100.0	%	$	108,333	100.0	%
	Costs of company restaurant sales, excluding depreciation and amortization:
		Product costs		26,943		25.3	%	28,209		26.0	%
		Payroll and benefits		40,967		38.4	%	40,728		37.6	%
		Occupancy		9,244		8.7	%	8,174		7.5	%
		Other operating costs:
			Utilities	3,350		3.1	%	3,917		3.6	%
			Repairs and maintenance	2,013		1.9	%	1,671		1.5	%
			Marketing	3,480		3.3	%	2,814		2.6	%
			Legal settlements	1,657		1.6	%	230		0.2	%
			Pre-opening costs	557		0.5	%	25		0.0	%
			Other direct costs	7,485		7.0	%	7,292		6.7	%
	Total costs of company restaurant sales, excluding depreciation and amortization			$	95,696	89.7	%	$	93,060	85.9	%
	Company restaurant operating margin (non-GAAP) (2)			$	10,994	10.3	%	$	15,273	14.1	%
		Adjustments (3)		2,214		2.1	%	255		0.2	%
	Adjusted company restaurant operating margin (non-GAAP) (2)			$	13,208	12.4	%	$	15,528	14.3	%

Franchise operations: (4)
	Franchise and license revenue:
	Royalties			$	59,320	49.8	%	$	60,403	47.9	%
	Advertising revenue			38,926		32.7	%	39,521		31.4	%
	Initial and other fees			4,264		3.6	%	7,606		6.0	%
	Occupancy revenue			16,701		14.0	%	18,523		14.7	%
	Total franchise and license revenue			$	119,211	100.0	%	$	126,053	100.0	%

	Costs of franchise and license revenue, excluding depreciation and amortization:
	Advertising costs			$	38,926	32.7	%	$	39,521	31.4	%
	Occupancy costs			10,226		8.6	%	11,464		9.1	%
	Other direct costs			11,650		9.8	%	11,862		9.4	%
	Total costs of franchise and license revenue, excluding depreciation and amortization			$	60,802	51.0	%	$	62,847	49.9	%
	Franchise operating margin (non-GAAP) (2)			$	58,409	49.0	%	$	63,206	50.1	%
	Adjustments (3)			2,492		2.1	%	3		0.0	%
	Adjusted franchise operating margin (non-GAAP) (2)			$	60,901	51.1	%	$	63,209	50.1	%

Total operating revenue (5)				$	225,901	100.0	%	$	234,386	100.0	%
Total costs of operating revenue (5)				156,498		69.3	%	155,907		66.5	%
Restaurant-level operating margin (non-GAAP) (5)				$	69,403	30.7	%	$	78,479	33.5	%

(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 and adjusted operating margin are considered non-GAAP financial measures and should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with GAAP.
(3)		Adjustments include legal settlement expenses, pre-opening costs, and other adjustments the Company does not consider in the evaluation of its ongoing core operating performance. Adjustments for the year-to-date period ended June 26, 2024 include a $2.6 million distribution to franchisees related to a review of advertising costs.
(4)		As a percentage of franchise and license revenue.
(5)		As a percentage of total operating revenue.


DENNY’S CORPORATION
Statistical Data
(Unaudited)

			Denny's				Keke's
Changes in Same-Restaurant Sales (1)			Quarter Ended		Two Quarters Ended		Quarter Ended		Two Quarters Ended
(Increase (decrease) vs. prior year)			6/26/24	6/28/23	6/26/24	6/28/23	6/26/24	6/28/23	6/26/24	6/28/23
	Company Restaurants		(2.6)%	3.0%	(2.8%)	7.0%	(4.4)%	N/A	(2.7%)	N/A
	Domestic Franchise Restaurants		(0.4)%	3.0%	(0.8%)	5.5%	(4.6)%	N/A	(4.3%)	N/A
	Domestic System-wide Restaurants		(0.6)%	3.0%	(0.9%)	5.6%	(4.6)%	N/A	(4.1%)	N/A

Average Unit Sales
($ in thousands)
	Company Restaurants		$774	$786	$1,517	$1,548	$447	$459	$902	$925
	Franchised Restaurants		$473	$466	$930	$918	$457	$476	$929	$967

(1)		Same-restaurant sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, initial and other fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP.


Restaurant Unit Activity			Denny's			Keke's
				Franchised			Franchised
			Company	& Licensed	Total	Company	& Licensed	Total
Ending Units March 27, 2024			64	1,489	1,553	11	50	61
	Units Opened		—	3	3	1	—	1



	Units Refranchised		—	—	—	(1)	1	—
	Units Closed		—	(15)	(15)	—	—	—
		Net Change	—	(12)	(12)	—	1	1
Ending Units June 26, 2024			64	1,477	1,541	11	51	62

Equivalent Units
	Second Quarter 2024		64	1,485	1,549	11	51	62
	Second Quarter 2023		65	1,525	1,590	8	47	55
		Net Change	(1)	(40)	(41)	3	4	7




Ending Units December 27, 2023			65	1,508	1,573	8	50	58
	Units Opened		—	8	8	4	—	4



	Units Refranchised		—	—	—	(1)	1	—
	Units Closed		(1)	(39)	(40)	—	—	—
		Net Change	(1)	(31)	(32)	3	1	4
Ending Units June 26, 2024			64	1,477	1,541	11	51	62

Equivalent Units
	Year-to-Date 2024		64	1,493	1,557	10	50	60
	Year-to-Date 2023		65	1,527	1,592	8	46	54
		Net Change	(1)	(34)	(35)	2	4	6

D E N N Y ’ S C O R P O R AT I O N J U L Y T H R O U G H S E P T E M B E R 2 0 2 4 INVESTOR PRESENTATION

2 The Company urges caution in considering its current trends and any outlook on earnings disclosed either in this presentation or in its press releases. In addition, certain matters discussed in either this presentation or related press releases 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 this presentation was published 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; the Company's ability to maintain adequate levels of liquidity for its cash needs, including debt obligations, payment of dividends, planned share repurchases and capital expenditures as well as the ability of its customers, suppliers, franchisees and lenders to access sources of liquidity to provide for their own cash needs; competitive pressures from within the restaurant industry; the Company's ability to integrate and derive the expected benefits from its acquisition of Keke's Breakfast Cafe; the level of success of the Company’s 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 year ended December 27, 2023 (and in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). The presentation includes references to the Company’s non-GAAP financials measures. All such measures are designated by an asterisk (*). The Company believes that, in addition to GAAP measures, certain non-GAAP financial measures are useful information to investors and analysts to assist in the evaluation of operating performance on a period-to-period basis. However, non-GAAP measures should be considered as a supplement to, not a substitute for, operating income, net income, and net income per share, or other financial performance measures prepared in accordance with GAAP. The Company uses adjusted EBITDA, adjusted net income and adjusted net income per share internally as performance measures for planning purposes, including the preparation of annual operating budgets, and for compensation purposes, including incentive compensation for certain employees. These non-GAAP measures are adjusted for certain items the Company does not consider in the evaluation of its ongoing core operating performance. These adjustments are either non-recurring in nature or vary from period to period without correlation to the Company's ongoing core operating performance. See Appendix for non-GAAP reconciliations to the following GAAP measures: FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES $ Millions (except per share amounts) 2018 2019 2020 2021 2022 2023 YTD Jun 2024 Operating Income $73.6 $165.0 $6.7 $104.1 $60.6 $52.8 $19.1 Net Income (Loss) $43.7 $117.4 ($5.1) $78.1 $74.7 $19.9 $8.3 Net Income (Loss) per Share $0.67 $1.90 ($0.08) $1.19 $1.23 $0.35 $0.16

3 Q2 2024 HIGHLIGHTS 1 Same-restaurant sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, initial and other fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company’s results as reported under GAAP. * See Appendix for reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures, as well as the reconciliation of Operating Income (Loss) to Non-GAAP Financial Measures. $20.3M Adjusted EBITDA* Denny’s Domestic System-Wide Same- Restaurant Sales1 Adjusted Net Income Per Share* $0.13 Total Debt Leverage Ratio 3.7x New Openings 3 Franchise Openings 1 Second Café Outside of Florida $115.9M Total Operating Revenue (0.6%) +2.4% on a 2-year basis

4 FULL YEAR 2024 GUIDANCE 1 Same-restaurant sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, initial and other fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company’s results as reported under GAAP. 2 Share-based compensation expense does not impact Adjusted EBITDA*. * See Appendix for reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures, as well as the reconciliation of Operating Income (Loss) to Non-GAAP Financial Measures. Denny’s Domestic System-Wide Same- Restaurant Sales1 Commodity Inflation 0% - 2% Adjusted EBITDA* $83M - $87M Total G&A Expenses (1%) - 1% Labor Inflation 3% - 4% $82M - $85M Including Approximately $11M Related to Share-Based Compensation Expense2 Portfolio Consolidated Restaurant Openings of 30 to 40, Including 12 to 16 New Keke’s Cafés Consolidated Net Restaurant Decline of 20 to 30

DENNY’S

6 DENNY’S DOMESTIC SALES $9.2 $8.0 $8.1 $7.9 $7.4 $7.1 $7.6 $7.5 $7.2 $7.0 $7.6 $7.5 $7.5 $25.3 $26.2 $27.0 $25.2 $28.3 $28.1 $28.9 $29.1 $30.3 $29.6 $30.0 $29.2 $30.6 $34.5 $34.3 $35.2 $33.1 $35.7 $35.1 $36.5 $36.7 $37.5 $36.5 $37.7 $36.8 $38.1 -1% 0% 1% -2% 2% 2% 3% 8% 3% 2% 1% -1% -1% -5% -3% -1% 1% 3% 5% 7% 9% $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 D om es tic S ys te m -W id e S am e- R es ta ur an t S al es 1 A ve ra ge W ee kl y S al es ( $0 00 s) 3 Denny's On-Premises Sales Denny's Total Off-Premises Sales Denny's Total Sales Denny's Domestic System-Wide Same-Restaurant Sales 1 Same-restaurant sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, initial and other fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company’s results as reported under GAAP. 2 2021 and 2022 Denny’s domestic system-wide same-restaurant sales1 are versus 2019. 3 Domestic average weekly sales reflect sales for company and franchised restaurants on Denny’s proprietary point of sale (POS) system. 4 Data for the Fiscal Second Quarter 2024. 1, 2 68% 52% 24% 37%32% 48% 76% 63% 0% 20% 40% 60% 80% Dine In Off-Premise The Burger Den The Meltdown Sales Mix by Daypart4 Breakfast & Lunch Dinner & Late-Night 59% 63% 69% 69% 41% 37% 31% 31% 0% 20% 40% 60% 80% Dine In Off-Premise The Burger Den The Meltdown Sales Mix Weekday vs. Weekend4 Weekday Weekend Denny’s Q2 2024 Domestic Average Weekly Sales of Approximately $38,100.

7 DENNY’S VALUE AND OFF-PREMISES SALES $8.1 $7.0 $7.2 $7.0 $6.5 $6.1 $6.5 $6.5 $6.2 $6.0 $6.6 $6.5 $6.4 $1.1 $1.0 $1.0 $0.9 $0.9 $0.9 $1.1 $1.1 $1.0 $1.0 $1.1 $1.0 $1.0 27% 23% 23% 24% 21% 20% 21% 21% 19% 19% 20% 21% 20% 0% 5% 10% 15% 20% 25% 30% 35% 40% $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 To ta l O ff- P re m is es S al es a s % o f T ot al S al es A ve ra ge W ee kl y S al es ( $0 00 s) 1 Virtual Brands Off-Premises Sales Denny's Off-Premises Sales Total Off-Premises Sales as % of Total Sales The Bu r ger Den and The Me l t down a r e cu r ren t l y a c t i ve in o v e r 1 , 200 and 1 ,100 domes t i c l o c a t ions , r e spec t i ve l y . Banda Bu r r i to expanded t o o v er 300 domes t ic l o ca t ions du r ing Q2 2024 , w i th a n a t ionw ide r o l lou t expec ted t o be comple ted by f a l l 2024 . Q2 2024 v a lue messag ing h i gh l igh ted ou r r ep r i sed A l l D a y D i ner Dea l s , f e a tu r ing ou r s i gna tu re Super S l am and o t he r de l i c ious mea ls s t a r t i ng a t $5 .99 . 14% 13% 11% 11% 10% 14% 14% 15% 16% 17% 17% 19% 18% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Total Value Sales Mix 1 Domestic average weekly sales reflect sales for company and franchised restaurants on Denny’s proprietary point of sale (POS) system.

8 1 Total of 1,373 Restaurants in the U.S. with Strongest Presence in California, Texas, Florida, and Arizona 1. International Presence of 168 Restaurants in 14 Countries and U.S. Territories 1. 364 81 30 197 6 4 5 10 119 10 174 8 10 40 23 20 4 28 11 20 3 20 7 4 3 3 44 30 29 34 34 41 2 3 1 13 23 13 3 1 2 4 2 5 6 1 22 DENNY’S FOOTPRINT Denny ’ s G loba l Foo tp r i n t 1 Country Number of Restaurants United States 1,373 Canada 86 Puerto Rico 16 Philippines 16 Mexico 15 New Zealand 7 Honduras 7 United Arab Emirates 5 Guatemala 4 Costa Rica 3 El Salvador 3 Guam 2 Indonesia 2 Curaçao 1 United Kingdom 1 Total System 1,541 1 Data through Fiscal June ended June 26, 2024. 6 2

9 Well Diversified, Experienced, and Energetic Group of 203 Franchisees 1. • 33 franchisees with more than 10 restaurants each collectively comprise approximately 66% of the franchise system. • Approximately 20% of our franchisees operate multiple concepts1 providing a well-rounded perspective within the industry. Ownership o f 1 ,477 Franchisee Res taurants 1 Number of Franchised Units Number of Franchisees Franchisees as % of Total Total Franchised Units Franchised Units as % of Total 1 76 37% 76 5% 2–5 67 33% 212 14% 6–10 27 13% 211 14% 11–20 17 8% 242 16% 21–35 7 3% 195 13% >35 9 4% 541 37% Total 203 100% 1,477 100% DENNY'S STRONG PARTNERSHIP WITH FRANCHISEES 1 Data through Fiscal June ended June 26, 2024.

KEKE’S

11 KEKE’S HIGHLIGHTS Total of 62 Cafés with Heavy Concentrations in the Orlando and Tampa Areas 1. Opened Second Café Outside of Florida During Q2 2024 in Tennessee. 1 Data through Fiscal June ended June 26, 2024. 2 Keke’s data is annualized based on the reported Average Unit Volumes following acquisition. Ownersh ip o f 51 F r anch i see Res t au r an t s 1 Number of Franchised Units Number of Franchisees Franchisees as % of Total Total Franchised Units Franchised Units as % of Total 1 8 44% 8 16% 2–5 8 44% 28 55% 6–10 2 11% 15 29% Total 18 100% 51 100% $1.6 $1.2 $1.9 $1.8 $1.8 $0.0 $1.0 $2.0 $3.0 2019 2020 2021 2022 2023 $M s Keke’s System Restaurant AUVs 2 Keke ’ s Mar ke t s 1 DMA Number of Restaurants Orlando/Daytona 26 Tampa/St. Petersburg/Sarasota 20 Jacksonville 5 West Palm Beach/Ft Pierce 4 Ft Myers/Naples 3 Nashville 2 Gainesville 1 Tallahassee/Thomasville 1 Total System 62

12 GROWTH MOMENTUM DEVELOPMENT HIGHLIGHTS Hendersonville Opened January 2024 NASHVILLE, TN JACKSONVILLE, FL Oakleaf Opened March 2024 Atlantic Beach Opened February 2024 DEVELOPMENT COMMITMENTS FOR OVER 100 NEW CAFÉS1 CONTINUING EXPANSION INTO NEW STATES WITH CAFÉS OPENING IN CALIFORNIA AND TEXAS IN 2024 FOUR CAFÉS CURRENTLY UNDER CONSTRUCITON, WITH SEVERAL OTHERS IN PERMITTING AND SITE APPROVAL PHASES1 1 As of Fiscal June ended June 26, 2024. Gallatin Opened May 2024

13 NEW KEKE’S DESIGN New DesignCurrent Design

DENNY’S CORPORATION

15 $286.5 $240.0 $210.0 $170.0 $261.5 $255.5 $257.5 $30.6 $16.5 $15.4 $12.7 $11.2 $10.5 $9.9 3.0x 2.7x 2.1x 3.4x 3.3x 3.7x 0.0x 1.0x 2.0x 3.0x 4.0x 2018 2019 2020 2021 2022 2023 YTD Jun 2024 $0.0 $100.0 $200.0 $300.0 $400.0 To ta l D eb t ( $ M ill io ns ) Credit Facility Finance Leases Total Debt Leverage Ratio 3 SOLID BALANCE SHEET WITH FLEXIBILITY $25.0 $42.9 $96.2 $34.2 $30.6 $64.9 $52.1 $9.5 $67.9 2018 2019 2020 2021 2022 2023 YTD Jun 2024 ASR Open Market $ In Millions Disciplined Focus on Debt Leverage with Financial Flexibility to Make Brand Investments & Return Capital to Shareholders • During Q2 2024, allocated approximately $4.7 million to share repurchases1. • Allocated over $710 million towards share repurchases since program began in late 20102. • Repurchased approximately 69 million shares at an average of $10.36 per share resulting in a 48% net reduction in share count2. • Approximately $91 million remaining under existing repurchase authorization1. 4 1 Data through Fiscal June ended June 26, 2024. Includes 1% excise tax on the value of corporate share repurchases (net of issuance). 2 Data from November 2010 through Fiscal June ended June 26, 2024. 3 Total debt leverage ratio was waived starting in Q2 ’20 through Q1 ‘21. 4 Increased borrowings under the credit facility in 2022 were primarily due to the Keke’s acquisition.

16 OUR CRAVE STRATEGIES C rea te Lead ing Edge So lu t ions With Technology & Innova t ion Robust New Res taurant Grow th as the Franchisor o f Cho ice Assemble Bes t In Class Peop le and Teams Through Cu l tu re, Too ls & Sys tems Va l ida te & Opt imize the Bus iness Mode l to Max imize Res taurant Margins E l eva te Pro f i tab le Tra f f ic Through the Gues t Exper ience & Un iquely Craveable Food

APPENDIX

18 History of Steady Growth in Franchised and Company Average Unit Volumes1. Refranchising Strategy Benefited AUVs at Both Franchised and Company Restaurants in 2019. DENNY’S FRANCHISED AND COMPANY RESTAURANT SALES 1 Excluding pandemic-impacted years. 2 Same-restaurant sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, initial and other fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company’s results as reported under GAAP. 3 2021 and 2022 Denny’s domestic system-wide same-restaurant sales2 are versus 2019. 2% 2% -23% -1% 7% 3% 2018 2019 2020 2021 2022 2023 (37%) (4 ) 1% 2% -18% -1% 1% 4% 2018 2019 2020 2021 2022 2023 (31%) (5%)$1.6 $1.7 $1.2 $1.6 $1.7 $1.8 2018 2019 2020 2021 2022 2023 $M s $2.3 $2.5 $1.8 $2.7 $3.0 $3.1 2018 2019 2020 2021 2022 2023 $M s DENNY’S FRANCHISE RESTAURANTS AUVs DENNY’S DOMESTIC FRANCHISED SAME-RESTAURANT SALES 2,3 DENNY’S COMPANY RESTAURANT AUVs DENNY’S COMPANY SAME-RESTAURANT SALES 2,3

19 NON-GAAP FINANCIAL MEASURES * See Appendix for reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures, as well as the reconciliation of Operating Income (Loss) to Non-GAAP Financial Measures 15.4% 16.0% 2.2% 17.4% 12.3% 14.2% 12.4% 2018 2019 2020 2021 2022 2023 YTD Jun 2024 $108.8 $104.0 $38.2 $89.8 $88.8 $89.4 $38.7 2018 2019 2020 2021 2022 2023 YTD Jun 2024 $M s $45.0 $48.6 ($4.2) $33.6 $35.4 $34.8 $12.5 $0.69 $0.79 ($0.07) $0.51 $0.58 $0.62 $0.24 2018 2019 2020 2021 2022 2023 YTD Jun 2024 Adjusted Net Income (Loss)* Adjusted Net Income (Loss) Per Share* 47.7% 48.8% 47.4% 50.6% 47.3% 50.7% 51.1% 2018 2019 2020 2021 2022 2023 YTD Jun 2024 ADJUSTED COMPANY OPERATING MARGIN %* ADJUSTED FRANCHISE OPERATING MARGIN %* ADJUSTED EBITDA* ADJUSTED NET INCOME (LOSS)* $M s ex ce pt p er s ha re d at a

20 Robert P. Verostek, Executive Vice President, Chief Financial Officer. Joined Denny’s in 1999 and served in numerous leadership positions across the Finance and Accounting teams. Named Vice President of Financial Planning and Analysis in 2012 and Chief Financial Officer in 2020. Prior experience includes various accounting roles for Insignia Financial Group. Kelli F. Valade, President and Chief Executive Officer of Denny’s Corporation. Prior to joining Denny's in June 2022, served as CEO of Red Lobster, CEO of Black Box Intelligence, and held various management positions at Chili’s including Brand President, Chief Operating Officer and Senior Vice President of Human Resources. Jay C. Gilmore, Senior Vice President, Chief Accounting Officer and Corporate Controller. Joined Denny’s in 1999 as Director of Accounting and Assistant Corporate Controller and was named Senior Vice President, Chief Accounting Officer and Corporate Controller in 2021. Prior experience includes serving as a Senior Manager with KPMG LLP. Gail S. Myers, Executive Vice President, Chief Legal & Administrative Officer and Corporate Secretary. Prior to joining Denny’s in 2020, served as Executive Vice President, General Counsel, Secretary and Chief Compliance Officer for American Tire Distributors, Inc., Senior Vice President, Deputy General Counsel and Chief Compliance Counsel at U.S. Foods and Senior Vice President, General Counsel and Secretary at Snyder's-Lance, Inc. David P. Schmidt, President of Keke’s Breakfast Café. Prior to joining Keke’s in September 2022, served as CFO of Red Lobster and worked for Bloomin’ Brands where he held various leadership roles throughout his tenure including Group Vice President and CFO of Bloomin’ Brand’s Casual Dining. Stephen C. Dunn, Executive Vice President, Chief Global Development Officer. Prior to joining Denny’s in 2004, held executive-level positions with Church's Chicken, El Pollo Loco, Mr. Gatti's, and TCBY. Earned the distinction of Certified Franchise Executive by the International Franchise Association Educational Foundation. Served as an Infantry Officer in the United States Army. EXPERIENCED AND COMMITTED LEADERSHIP TEAM

21 $ Millions 2018 2019 20201 2021 2022 2023 YTD Jun 2024 Net Income (Loss) $43.7 $117.4 ($5.1) $78.1 $74.7 $19.9 $8.3 Provision for (Benefit from) Income Taxes 8.6 31.8 (2.0) 26.0 24.7 7.0 2.7 Goodwill Impairment Charges - - - - - 6.4 0.0 Operating (Gains) Losses and Other Charges, Net 2.6 (91.2) 1.8 (46.1) (1.0) 2.5 1.2 Other Nonoperating Expense (Income), Net 0.6 (2.8) (4.2) (15.2) (52.6) 8.3 (0.9) Share‐Based Compensation Expense 6.0 6.7 7.9 13.6 11.4 8.9 5.4 Deferred Compensation Plan Valuation Adjustments (1.0) 2.6 1.6 2.1 (2.2) 1.9 0.9 Interest Expense, Net 20.7 18.5 18.0 15.1 13.8 17.6 9.0 Depreciation and Amortization 27.0 19.8 16.2 15.4 14.9 14.4 7.3 Legal Settlement Expenses 0.3 1.1 0.5 2.1 4.2 2.3 1.7 Pre-Opening Expenses 0.1 0.0 - - - 0.3 0.6 COVID-19 Related Expenses - - 3.5 (1.4) - - - Leadership Transition Costs - - - - 0.3 - - Acquisition Costs - - - - 0.6 - - Other Adjustments 0.2 (0.0) 0.0 - (0.1) (0.1) 2.5 Adjusted EBITDA $108.8 $104.0 $38.2 $89.8 $88.8 $89.4 $38.7 Adjusted EBITDA Margin % 17.3% 19.2% 13.0% 22.6% 19.4% 19.3% 17.1% Net Income (Loss) $43.7 $117.4 ($5.1) $78.1 $74.7 $19.9 $8.3 (Gains) Losses and Amort. on Interest Rate Swap Derivatives, Net - - (2.2) (12.6) (55.0) 11.0 0.3 Losses (Gains) on Sales of Assets and Other, Net (0.5) (93.6) (4.7) (47.8) (3.4) (2.2) (0.1) Impairment Charges2 1.6 - 4.1 0.4 1.0 8.6 0.7 Legal Settlement Expenses 0.3 1.1 0.5 2.1 4.2 2.3 1.7 Pre-Opening Expenses 0.1 0.0 - - - 0.3 0.6 COVID-19 Related Expenses - - 3.5 (1.4) - - - Leadership Transition Costs - - - - 0.3 - - Acquisition Costs - - - - 0.6 - - Other Adjustments 0.2 (0.0) 0.0 - (0.1) (0.1) 2.5 Tax Effect3 (0.3) 23.8 (0.3) 14.8 13.0 (5.0) (1.4) Adjusted Net Income (Loss) $45.0 $48.6 ($4.2) $33.6 $35.4 $34.8 $12.5 Net Income (Loss) Per Share - Diluted $0.67 $1.90 ($0.08) $1.19 $1.23 $0.35 $0.16 Adjustments Per Share $0.02 ($1.11) $0.01 ($0.68) ($0.65) $0.27 $0.08 Adjusted Net Income (Loss) Per Share $0.69 $0.79 ($0.07) $0.51 $0.58 $0.62 $0.24 Diluted Weighted Average Shares Outstanding (000’s) 65,562 61,833 60,812 65,573 60,879 56,196 53,002 RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP FINANCIAL MEASURES 1. Includes 53 operating weeks. 2. Impairment charges include goodwill impairment charges of $6.4 million and less than $0.1 million for full year 2023 and for year-to-date period ended June 26, 2024, respectively. 3. Tax adjustments for full year 2018, 2019, 2020, 2021, 2022, 2023 and year-to- date period ended June 26, 2024 reflect an effective tax rate of 16.4%, 25.7%, 25.6%, 25.0%, 24.9%, 25.0% and 24.8%, respectively.

22 $ Millions 2018 2019 20201 2021 2022 2023 YTD Jun 2024 Operating Income $73.6 $165.0 $6.7 $104.1 $60.6 $52.8 $19.1 General and Administrative Expenses 63.8 69.0 55.0 68.7 67.2 77.8 41.7 Depreciation and Amortization 27.0 19.8 16.2 15.4 14.9 14.4 7.3 Goodwill Impairment Charges - - - - - 6.4 0.0 Operating (Gains) Losses and Other Charges, Net 2.6 (91.2) 1.8 (46.1) (1.0) 2.5 1.2 Restaurant-Level Operating Margin $167.1 $162.7 $79.7 $142.1 $141.6 $153.9 $69.4 Restaurant-Level Operating Margin Consists Of: Company Restaurant Operating Margin (2) 63.2 48.0 3.6 28.1 20.3 27.9 11.0 Franchise Operating Margin (3) 104.0 114.7 76.1 114.0 121.3 125.9 58.4 Restaurant-Level Operating Margin $167.1 $162.7 $79.7 $142.1 $141.6 $153.9 $69.4 Adjustments (4) 0.6 1.1 6.4 1.3 4.2 2.5 4.7 Adjusted Restaurant-Level Operating Margin $167.7 $163.7 $86.1 $143.4 $145.8 $156.4 $74.1 Adjusted Restaurant-Level Operating Margin Consists Of: Adjusted Company Restaurant Operating Margin 63.5 49.0 2.6 30.4 24.5 30.5 13.2 Adjusted Franchise Operating Margin 104.1 114.7 83.6 112.9 121.3 125.9 60.9 Adjusted Restaurant-Level Operating Margin $167.7 $163.7 $86.1 $143.4 $145.8 $156.4 $74.1 The Company believes that, in addition to GAAP measures, certain other non-GAAP financial measures are useful information to investors and analysts to assist in the evaluation of restaurant-level operating efficiency and performance of ongoing restaurant-level operations. However, non-GAAP measures should be considered as a supplement to, not a substitute for, operating income, net income, and net income per share, or other financial performance measures prepared in accordance with GAAP. The Company uses restaurant-level operating margin, company restaurant operating margin and franchise operating margin internally as performance measures for planning purposes, including the preparation of annual operating budgets, and for compensation purposes, including incentive compensation for certain employees. Restaurant-level operating margin is the total of company restaurant operating margin and franchise operating margin and excludes: (i) general and administrative expenses, which include primarily non-restaurant-level costs associated with support of company and franchised restaurants and other activities at their corporate office; (ii) 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; (iii) special items, included within operating (gains), losses and other charges, net, to provide investors with a clearer perspective of its ongoing operating performance and a more relevant comparison to prior period results. Company restaurant operating margin is defined as company restaurant sales less costs of company restaurant sales (which include product costs, company restaurant level payroll and benefits, occupancy costs, and other operating costs including utilities, repairs and maintenance, marketing and other expenses) and presents it as a percent of company restaurant sales. Adjusted company operating restaurant margin is defined as company restaurant operating margin less certain items such as legal settlement expenses, pre-opening expenses, and other items the Company does not consider in the evaluation of its ongoing core operating performance. Franchise operating margin is defined as franchise and license revenue (which includes franchise royalties and other non-food and beverage revenue streams such as initial franchise and other fees, advertising revenue and occupancy revenue) less costs of franchise and license revenue and presents it as a percent of franchise and license revenue. Adjusted franchise operating margin is defined as franchise operating margin less certain items the Company does not consider in the evaluation of its ongoing core operating performance. Adjusted restaurant-level operating margin is the total of adjusted company restaurant operating margin and adjusted franchise operating margin and is defined as restaurant-level operating margin adjusted for certain items the Company does not consider in the evaluation of its ongoing core operating performance. These adjustments are either non-recurring in nature or vary from period to period without correlation to the Company's ongoing core operating performance. See most recent press release for a further breakdown of adjusted restaurant-level operating margin. RECONCILIATION OF OPERATING INCOME TO NON-GAAP FINANCIAL MEASURES 1. Includes 53 operating weeks. 2. Company restaurant operating margin is calculated as operating income plus general and administrative expenses; depreciation and amortization; operating (gains), losses and other charges, net; and costs of franchise and license revenue, excluding depreciation and amortization; less franchise and license revenue. 3. Franchise operating margin is calculated as operating income plus general and administrative expenses; depreciation and amortization; operating (gains), losses and other charges, net; and costs of company restaurant sales, excluding depreciation and amortization; less company restaurant sales. 4. Adjustments include legal settlement expenses, pre-opening costs, and other adjustments the Company does not consider in the evaluation of its ongoing core operating performance. Adjustments for the quarter and year-to-date period ended June 26, 2024 include a $2.6 million distribution to franchisees related to a review of advertising costs.

Cover Page	Jul. 30, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 30, 2024
Entity Registrant Name	DENNY’S CORPORATION
Entity Central Index Key	0000852772
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity File Number	0-18051
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
Entity Information, Former Legal or Registered Name	Not Applicable
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	$.01 Par Value, Common Stock
Trading Symbol	DENN
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false