(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large Accelerated Filer | ☐ | ý | Non-Accelerated Filer | ☐ | Smaller Reporting Company | Emerging Growth Company |
Page | |||||
June 25, 2025 | December 25, 2024 | ||||||||||
(In thousands, except per share amounts) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Investments | |||||||||||
Receivables, net | |||||||||||
Inventories | |||||||||||
Assets held for sale | |||||||||||
Prepaid and other current assets | |||||||||||
Total current assets | |||||||||||
Property, net of accumulated depreciation of $ | |||||||||||
Finance lease right-of-use assets, net of accumulated amortization of $ | |||||||||||
Operating lease right-of-use assets, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred financing costs, net | |||||||||||
Other noncurrent assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Current liabilities: | |||||||||||
Current finance lease liabilities | $ | $ | |||||||||
Current operating lease liabilities | |||||||||||
Accounts payable | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term liabilities: | |||||||||||
Long-term debt | |||||||||||
Noncurrent finance lease liabilities | |||||||||||
Noncurrent operating lease liabilities | |||||||||||
Liability for insurance claims, less current portion | |||||||||||
Deferred income taxes, net | |||||||||||
Other noncurrent liabilities | |||||||||||
Total long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Shareholders' deficit | |||||||||||
Common stock $ | $ | $ | |||||||||
Paid-in capital | |||||||||||
Retained earnings (deficit) | ( | ||||||||||
Accumulated other comprehensive loss, net | ( | ( | |||||||||
Treasury stock, at cost, | ( | ||||||||||
Total shareholders' deficit | ( | ( | |||||||||
Total liabilities and shareholders' deficit | $ | $ |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Company restaurant sales | $ | $ | $ | $ | |||||||||||||||||||
Franchise and license revenue | |||||||||||||||||||||||
Total operating revenue | |||||||||||||||||||||||
Costs of company restaurant sales, excluding depreciation and amortization: | |||||||||||||||||||||||
Product costs | |||||||||||||||||||||||
Payroll and benefits | |||||||||||||||||||||||
Occupancy | |||||||||||||||||||||||
Other operating expenses | |||||||||||||||||||||||
Total costs of company restaurant sales, excluding depreciation and amortization | |||||||||||||||||||||||
Costs of franchise and license revenue, excluding depreciation and amortization | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Goodwill impairment charges | |||||||||||||||||||||||
Operating (gains), losses and other charges, net | |||||||||||||||||||||||
Total operating costs and expenses, net | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Other nonoperating income, net | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per share - basic | $ | $ | $ | $ | |||||||||||||||||||
Net income per share - diluted | $ | $ | $ | $ | |||||||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||||||||
Diluted weighted average shares outstanding |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Minimum pension liability adjustment, net of tax of $ | |||||||||||||||||||||||
Changes in the fair value of cash flow hedges, net of tax of $( | ( | ( | |||||||||||||||||||||
Reclassification of cash flow hedges to interest expense, net of tax of $( | ( | ( | ( | ( | |||||||||||||||||||
Amortization of unrealized losses related to interest rate swaps to interest expense, net of tax of $ | |||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Total comprehensive income (loss) | $ | ( | $ | $ | ( | $ |
Common Stock | Treasury Stock | Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss, Net | Total Shareholders’ Deficit | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 26, 2025 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation on equity classified awards, net of withholding tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock, including excise tax | — | — | ( | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock for share-based compensation | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance, June 25, 2025 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( |
Common Stock | Treasury Stock | Paid-in Capital | Deficit | Accumulated Other Comprehensive Loss, Net | Total Shareholders’ Deficit | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 27, 2024 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Share-based compensation on equity classified awards, net of withholding tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock, including excise tax | — | — | ( | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock for share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Balance, June 26, 2024 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( |
Common Stock | Treasury Stock | Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss, Net | Total Shareholders’ Deficit | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 25, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation on equity classified awards, net of withholding tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock, including excise tax | — | — | ( | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock for share-based compensation | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance, June 25, 2025 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( |
Common Stock | Treasury Stock | Paid-in Capital | Deficit | Accumulated Other Comprehensive Loss, Net | Total Shareholders’ Deficit | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 27, 2023 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Share-based compensation on equity classified awards, net of withholding tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock, including excise tax | — | — | ( | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock for share-based compensation | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance, June 26, 2024 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( |
Two Quarters Ended | |||||||||||
June 25, 2025 | June 26, 2024 | ||||||||||
(In thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to cash flows provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Goodwill impairment charges | |||||||||||
Operating (gains), losses and other charges, net | |||||||||||
Amortization on interest rate swaps, net | |||||||||||
Amortization of deferred financing costs | |||||||||||
Gains on investments | ( | ( | |||||||||
(Gains) losses on early termination of debt and leases | ( | ||||||||||
Deferred income tax benefit | ( | ( | |||||||||
Increase of tax valuation allowance | |||||||||||
Share-based compensation expense | |||||||||||
Changes in assets and liabilities, excluding acquisitions and dispositions: | |||||||||||
Receivables | |||||||||||
Inventories | ( | ||||||||||
Prepaids and other current assets | |||||||||||
Other noncurrent assets | ( | ||||||||||
Operating lease assets and liabilities | ( | ||||||||||
Accounts payable | ( | ||||||||||
Other accrued liabilities | ( | ( | |||||||||
Other noncurrent liabilities | ( | ( | |||||||||
Net cash flows provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Acquisition of restaurants | ( | ||||||||||
Proceeds from asset sales | |||||||||||
Investment purchases | ( | ||||||||||
Proceeds from sale of investments | |||||||||||
Collections on notes receivable | |||||||||||
Issuance of notes receivable | ( | ( | |||||||||
Net cash flows used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Revolver borrowings | |||||||||||
Revolver payments | ( | ( | |||||||||
Repayments of finance leases | ( | ( | |||||||||
Tax withholding on share-based payments | ( | ( | |||||||||
Purchase of treasury stock | ( | ( | |||||||||
Net bank overdrafts | ( | ||||||||||
Net cash flows provided by (used in) financing activities | ( | ||||||||||
Decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
June 25, 2025 | December 25, 2024 | ||||||||||
(In thousands) | |||||||||||
Receivables, net: | |||||||||||
Trade accounts receivable from franchisees | $ | $ | |||||||||
Notes and loan receivables from franchisees | |||||||||||
Vendor receivables | |||||||||||
Credit card receivables | |||||||||||
Other | |||||||||||
Allowance for credit losses | ( | ( | |||||||||
Total receivables, net | $ | $ | |||||||||
June 25, 2025 | |||||||||||
(In thousands) | |||||||||||
Balance, beginning of year | $ | ||||||||||
Additions related to the acquisition of five Keke’s franchise units | |||||||||||
Additions related to the acquisition of a Denny’s franchise unit | |||||||||||
Write-offs and reclassifications associated with the sale of Keke's units | ( | ||||||||||
Balance, end of period | $ | ||||||||||
Goodwill by segment consisted of the following: | |||||||||||
June 25, 2025 | December 25, 2024 | ||||||||||
(In thousands) | |||||||||||
Denny’s | $ | $ | |||||||||
Other | |||||||||||
Total goodwill | $ | $ |
June 25, 2025 | December 25, 2024 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Intangible assets with indefinite lives: | |||||||||||||||||||||||
Trade names | $ | $ | — | $ | $ | — | |||||||||||||||||
Liquor licenses | — | — | |||||||||||||||||||||
Intangible assets with definite lives: | |||||||||||||||||||||||
Reacquired franchise rights | |||||||||||||||||||||||
Franchise agreements | |||||||||||||||||||||||
Intangible assets, net | $ | $ | $ | $ |
June 25, 2025 | December 25, 2024 | ||||||||||
(In thousands) | |||||||||||
Accrued payroll | $ | $ | |||||||||
Current portion of liability for insurance claims | |||||||||||
Accrued taxes | |||||||||||
Accrued advertising | |||||||||||
Gift cards | |||||||||||
Accrued legal settlements | |||||||||||
Accrued interest | |||||||||||
Other | |||||||||||
Other current liabilities | $ | $ |
Total | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Fair value measurements as of June 25, 2025: | |||||||||||||||||||||||
Deferred compensation plan investments (1) | $ | $ | $ | $ | |||||||||||||||||||
Interest rate swaps (2) | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Fair value measurements as of December 25, 2024: | |||||||||||||||||||||||
Deferred compensation plan investments (1) | $ | $ | $ | $ | |||||||||||||||||||
Interest rate swaps (2) | |||||||||||||||||||||||
Investments (3) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Significant Unobservable Inputs (Level 3) | Impairment Charges | ||||||||||||||||
(In thousands) | |||||||||||||||||
Fair value measurements as of June 25, 2025: | |||||||||||||||||
Assets held and used(1)(2) | $ | $ | |||||||||||||||
(1) | As of June 25, 2025, impaired assets were written down to their estimated fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods. | ||||||||||||||||
(2) | Assets held and used that are measured at fair value on a non-recurring basis include property, operating lease right-of-use assets, finance lease right-of-use assets, goodwill and intangible assets. |
Trade Date | Effective Date | Maturity Date | Notional Amount | Fair Value | Fixed Rate | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
October 1, 2015 | March 29, 2018 | March 31, 2026 | $ | $ | % | |||||||||||||||||||||||||||
February 15, 2018 | March 31, 2020 | December 31, 2033 | $ | (1) | $ | % | ||||||||||||||||||||||||||
Total | $ | $ |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Company restaurant sales | $ | $ | $ | $ | |||||||||||||||||||
Franchise and license revenue: | |||||||||||||||||||||||
Royalties | |||||||||||||||||||||||
Advertising revenue | |||||||||||||||||||||||
Initial and other fees | |||||||||||||||||||||||
Occupancy revenue | |||||||||||||||||||||||
Franchise and license revenue | |||||||||||||||||||||||
Total operating revenue | $ | $ | $ | $ |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Operating lease revenue | $ | $ | $ | $ | |||||||||||||||||||
Variable lease revenue | |||||||||||||||||||||||
Total occupancy revenue | $ | $ | $ | $ |
(In thousands) | |||||
Balance, December 25, 2024 | $ | ||||
Fees received from franchisees | |||||
Revenue recognized (1) | ( | ||||
Balance, June 25, 2025 | |||||
Less current portion included in other current liabilities | |||||
Deferred franchise revenue included in other noncurrent liabilities | $ |
(In thousands) | |||||
Balance, December 25, 2024 | $ | ||||
Franchisee deferred costs | |||||
Contract asset amortization | ( | ||||
Balance, June 25, 2025 | |||||
Less current portion included in other current assets | |||||
Contract assets included in other noncurrent assets | $ |
(In thousands) | |||||
Remainder of 2025 | $ | ||||
2026 | |||||
2027 | |||||
2028 | |||||
2029 | |||||
Thereafter | |||||
Deferred franchise revenue, net | $ |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
(Gains) losses on sales of assets and other, net | $ | $ | $ | ( | $ | ( | |||||||||||||||||
Impairment charges | |||||||||||||||||||||||
Restructuring charges and exit costs | |||||||||||||||||||||||
Operating (gains), losses and other charges, net | $ | $ | $ | $ |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Exit costs | $ | $ | $ | $ | |||||||||||||||||||
Severance and other restructuring charges | |||||||||||||||||||||||
Total restructuring charges and exit costs | $ | $ | $ | $ |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Employee share awards | $ | $ | $ | $ | |||||||||||||||||||
Restricted stock units for board members | |||||||||||||||||||||||
Total share-based compensation | $ | $ | $ | $ |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding - basic | |||||||||||||||||||||||
Effect of dilutive share-based compensation awards | |||||||||||||||||||||||
Weighted average shares outstanding - diluted | |||||||||||||||||||||||
Net income per share - basic | $ | $ | $ | $ | |||||||||||||||||||
Net income per share - diluted | $ | $ | $ | $ | |||||||||||||||||||
Anti-dilutive share-based compensation awards |
Defined Benefit Plans | Derivatives | Accumulated Other Comprehensive Loss, Net | |||||||||||||||
(In thousands) | |||||||||||||||||
Balance as of December 25, 2024 | $ | ( | $ | ( | $ | ( | |||||||||||
Amortization of net loss (1) | — | ||||||||||||||||
Settlement loss recognized (1) | — | ||||||||||||||||
Changes in the fair value of cash flow hedges | — | ( | ( | ||||||||||||||
Reclassification of cash flow hedges to interest expense, net (2) | — | ( | ( | ||||||||||||||
Amortization of unrealized losses related to interest rate swaps to interest expense, net | — | ||||||||||||||||
Income tax expense related to items of other comprehensive income (loss) | ( | ||||||||||||||||
Balance as of June 25, 2025 | $ | ( | $ | ( | $ | ( |
Two Quarters Ended | |||||||||||
June 25, 2025 | June 26, 2024 | ||||||||||
(In thousands) | |||||||||||
Income taxes paid, net | $ | $ | |||||||||
Interest paid | $ | $ | |||||||||
Noncash investing and financing activities: | |||||||||||
Restaurant acquisition payable | $ | $ | |||||||||
Accrued purchase of property | $ | $ | |||||||||
Issuance of common stock, pursuant to share-based compensation plans | $ | $ | |||||||||
Execution of finance leases | $ | $ | |||||||||
Treasury stock payable | $ | $ | |||||||||
Treasury stock excise tax payable | $ | $ | |||||||||
Receivables included in acquisition of restaurants | $ | $ | |||||||||
Quarter Ended June 25, 2025 | Two Quarters Ended June 25, 2025 | ||||||||||||||||||||||||||||||||||
Denny's | Other | Total | Denny's | Other | Total | ||||||||||||||||||||||||||||||
Revenues | (In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||
Company restaurant sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Franchise and license revenue: | |||||||||||||||||||||||||||||||||||
Royalties | |||||||||||||||||||||||||||||||||||
Advertising revenue | |||||||||||||||||||||||||||||||||||
Initial and other fees | |||||||||||||||||||||||||||||||||||
Occupancy revenue | |||||||||||||||||||||||||||||||||||
Total franchise and license revenue | |||||||||||||||||||||||||||||||||||
Total operating revenue | |||||||||||||||||||||||||||||||||||
Cost and expenses | |||||||||||||||||||||||||||||||||||
Costs of company restaurant sales, excluding depreciation and amortization: | |||||||||||||||||||||||||||||||||||
Product costs | |||||||||||||||||||||||||||||||||||
Payroll and benefits | |||||||||||||||||||||||||||||||||||
Occupancy costs | |||||||||||||||||||||||||||||||||||
Other operating expenses: | |||||||||||||||||||||||||||||||||||
Utilities | |||||||||||||||||||||||||||||||||||
Repairs and maintenance | |||||||||||||||||||||||||||||||||||
Marketing | |||||||||||||||||||||||||||||||||||
Legal settlements | ( | ||||||||||||||||||||||||||||||||||
Pre-opening costs | |||||||||||||||||||||||||||||||||||
Other direct costs | |||||||||||||||||||||||||||||||||||
Total costs of company restaurant sales, excluding depreciation and amortization | |||||||||||||||||||||||||||||||||||
Costs of franchise and license revenue, excluding depreciation and amortization: | |||||||||||||||||||||||||||||||||||
Advertising costs | |||||||||||||||||||||||||||||||||||
Occupancy costs | |||||||||||||||||||||||||||||||||||
Other direct costs | |||||||||||||||||||||||||||||||||||
Total costs of franchise and license revenue, excluding depreciation and amortization | |||||||||||||||||||||||||||||||||||
Total restaurant-level operating margin | |||||||||||||||||||||||||||||||||||
Reconciliation of restaurant-level operating margin to net income | |||||||||||||||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||
Operating (gains), losses and other charges, net | |||||||||||||||||||||||||||||||||||
Total other operating expenses | |||||||||||||||||||||||||||||||||||
Operating income | |||||||||||||||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||||||||||||||
Other nonoperating income, net | ( | ( | |||||||||||||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||||||||||||||
Net income | $ | $ |
Quarter Ended June 26, 2024 | Two Quarters Ended June 26, 2024 | ||||||||||||||||||||||||||||||||||
Denny's | Other | Total | Denny's | Other | Total | ||||||||||||||||||||||||||||||
Revenues | (In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||
Company restaurant sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Franchise and license revenue: | |||||||||||||||||||||||||||||||||||
Royalties | |||||||||||||||||||||||||||||||||||
Advertising revenue | |||||||||||||||||||||||||||||||||||
Initial and other fees | |||||||||||||||||||||||||||||||||||
Occupancy revenue | |||||||||||||||||||||||||||||||||||
Total franchise and license revenue | |||||||||||||||||||||||||||||||||||
Total operating revenue | |||||||||||||||||||||||||||||||||||
Cost and expenses | |||||||||||||||||||||||||||||||||||
Costs of company restaurant sales, excluding depreciation and amortization: | |||||||||||||||||||||||||||||||||||
Product costs | |||||||||||||||||||||||||||||||||||
Payroll and benefits | |||||||||||||||||||||||||||||||||||
Occupancy costs | |||||||||||||||||||||||||||||||||||
Other operating expenses: | |||||||||||||||||||||||||||||||||||
Utilities | |||||||||||||||||||||||||||||||||||
Repairs and maintenance | |||||||||||||||||||||||||||||||||||
Marketing | |||||||||||||||||||||||||||||||||||
Legal settlements | |||||||||||||||||||||||||||||||||||
Pre-opening costs | |||||||||||||||||||||||||||||||||||
Other direct costs | |||||||||||||||||||||||||||||||||||
Total costs of company restaurant sales, excluding depreciation and amortization | |||||||||||||||||||||||||||||||||||
Costs of franchise and license revenue, excluding depreciation and amortization: | |||||||||||||||||||||||||||||||||||
Advertising costs | |||||||||||||||||||||||||||||||||||
Occupancy costs | |||||||||||||||||||||||||||||||||||
Other direct costs | |||||||||||||||||||||||||||||||||||
Total costs of franchise and license revenue, excluding depreciation and amortization | |||||||||||||||||||||||||||||||||||
Total restaurant-level operating margin | |||||||||||||||||||||||||||||||||||
Reconciliation of restaurant-level operating margin to net income | |||||||||||||||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||
Goodwill impairment charges | |||||||||||||||||||||||||||||||||||
Operating (gains), losses and other charges, net | |||||||||||||||||||||||||||||||||||
Total other operating expenses | |||||||||||||||||||||||||||||||||||
Operating income | |||||||||||||||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||||||||||||||
Other nonoperating income, net | ( | ( | |||||||||||||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||||||||||||||
Net income | $ | $ |
June 25, 2025 | December 25, 2024 | ||||||||||
Segment assets: | (In thousands) | ||||||||||
Denny’s | $ | $ | |||||||||
Other | |||||||||||
Total assets | $ | $ |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Company restaurant sales | $ | 58,395 | 49.6 | % | $ | 54,348 | 46.9 | % | $ | 112,295 | 49.0 | % | $ | 106,690 | 47.2 | % | |||||||||||||||||||||||||||||||
Franchise and license revenue | 59,262 | 50.4 | % | 61,579 | 53.1 | % | 116,999 | 51.0 | % | 119,211 | 52.8 | % | |||||||||||||||||||||||||||||||||||
Total operating revenue | 117,657 | 100.0 | % | 115,927 | 100.0 | % | 229,294 | 100.0 | % | 225,901 | 100.0 | % | |||||||||||||||||||||||||||||||||||
Costs of company restaurant sales, excluding depreciation and amortization (a): | |||||||||||||||||||||||||||||||||||||||||||||||
Product costs | 15,086 | 25.8 | % | 13,632 | 25.1 | % | 29,297 | 26.1 | % | 26,943 | 25.3 | % | |||||||||||||||||||||||||||||||||||
Payroll and benefits | 21,869 | 37.5 | % | 20,493 | 37.7 | % | 42,965 | 38.3 | % | 40,967 | 38.4 | % | |||||||||||||||||||||||||||||||||||
Occupancy | 5,181 | 8.9 | % | 4,671 | 8.6 | % | 10,240 | 9.1 | % | 9,244 | 8.7 | % | |||||||||||||||||||||||||||||||||||
Other operating expenses | 10,209 | 17.5 | % | 8,782 | 16.2 | % | 19,868 | 17.7 | % | 18,542 | 17.4 | % | |||||||||||||||||||||||||||||||||||
Total costs of company restaurant sales, excluding depreciation and amortization | 52,345 | 89.6 | % | 47,578 | 87.5 | % | 102,370 | 91.2 | % | 95,696 | 89.7 | % | |||||||||||||||||||||||||||||||||||
Costs of franchise and license revenue, excluding depreciation and amortization (a) | 29,217 | 49.3 | % | 33,428 | 54.3 | % | 57,571 | 49.2 | % | 60,802 | 51.0 | % | |||||||||||||||||||||||||||||||||||
General and administrative expenses | 21,445 | 18.2 | % | 20,486 | 17.7 | % | 41,475 | 18.1 | % | 41,708 | 18.5 | % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 4,378 | 3.7 | % | 3,735 | 3.2 | % | 8,485 | 3.7 | % | 7,316 | 3.2 | % | |||||||||||||||||||||||||||||||||||
Goodwill impairment charges | — | 0.0 | % | 20 | 0.0 | % | — | 0.0 | % | 20 | 0.0 | % | |||||||||||||||||||||||||||||||||||
Operating (gains), losses and other charges, net | 1,700 | 1.4 | % | 1,565 | 1.3 | % | 5,611 | 2.4 | % | 1,238 | 0.5 | % | |||||||||||||||||||||||||||||||||||
Total operating costs and expenses, net | 109,085 | 92.7 | % | 106,812 | 92.1 | % | 215,512 | 94.0 | % | 206,780 | 91.5 | % | |||||||||||||||||||||||||||||||||||
Operating income | 8,572 | 7.3 | % | 9,115 | 7.9 | % | 13,782 | 6.0 | % | 19,121 | 8.5 | % | |||||||||||||||||||||||||||||||||||
Interest expense, net | 5,374 | 4.6 | % | 4,573 | 3.9 | % | 9,802 | 4.3 | % | 8,993 | 4.0 | % | |||||||||||||||||||||||||||||||||||
Other nonoperating income, net | (563) | (0.5) | % | (224) | (0.2) | % | (401) | (0.2) | % | (861) | (0.4) | % | |||||||||||||||||||||||||||||||||||
Income before income taxes | 3,761 | 3.2 | % | 4,766 | 4.1 | % | 4,381 | 1.9 | % | 10,989 | 4.9 | % | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 1,291 | 1.1 | % | 1,198 | 1.0 | % | 1,585 | 0.7 | % | 2,730 | 1.2 | % | |||||||||||||||||||||||||||||||||||
Net income | $ | 2,470 | 2.1 | % | $ | 3,568 | 3.1 | % | $ | 2,796 | 1.2 | % | $ | 8,259 | 3.7 | % |
Statistical Data | Quarter Ended | Two Quarters Ended | |||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Denny's | |||||||||||||||||||||||
Company average unit sales | $789 | $774 | $1,547 | $1,517 | |||||||||||||||||||
Franchise average unit sales | $479 | $473 | $930 | $930 | |||||||||||||||||||
Company equivalent units (a) | 61 | 64 | 61 | 64 | |||||||||||||||||||
Franchise equivalent units (a) | 1,426 | 1,485 | 1,430 | 1,493 | |||||||||||||||||||
Company same-store sales decrease vs. prior year (b)(c) | 0.0% | (2.6)% | (0.4)% | (2.8)% | |||||||||||||||||||
Domestic franchise same-store sales decrease vs. prior year (b)(c) | (1.4)% | (0.4)% | (2.3)% | (0.8)% | |||||||||||||||||||
Keke's | |||||||||||||||||||||||
Company average unit sales | $433 | $447 | $845 | $902 | |||||||||||||||||||
Franchise average unit sales | $484 | $457 | $996 | $929 | |||||||||||||||||||
Company equivalent units (a) | 23 | 11 | 21 | 10 | |||||||||||||||||||
Franchise equivalent units (a) | 48 | 51 | 47 | 50 | |||||||||||||||||||
Company same-store sales increase (decrease) vs. prior year (b)(c) | 3.4% | (4.4)% | 2.0% | (2.7)% | |||||||||||||||||||
Franchise same-store sales increase (decrease) vs. prior year (b)(c) | 4.2% | (4.6)% | 4.2% | (4.3)% |
Unit Activity | Quarter Ended | Two Quarters Ended | |||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
Denny's | |||||||||||||||||||||||
Company restaurants, beginning of period | 61 | 64 | 61 | 65 | |||||||||||||||||||
Units acquired from franchisees | 1 | — | 1 | — | |||||||||||||||||||
Units closed | — | — | — | (1) | |||||||||||||||||||
End of period | 62 | 64 | 62 | 64 | |||||||||||||||||||
Franchised and licensed restaurants, beginning of period | 1,430 | 1,489 | 1,438 | 1,508 | |||||||||||||||||||
Units opened | 3 | 3 | 9 | 8 | |||||||||||||||||||
Units acquired by Company | (1) | — | (1) | — | |||||||||||||||||||
Units closed | (10) | (15) | (24) | (39) | |||||||||||||||||||
End of period | 1,422 | 1,477 | 1,422 | 1,477 | |||||||||||||||||||
Total restaurants, end of period | 1,484 | 1,541 | 1,484 | 1,541 |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
Keke's | |||||||||||||||||||||||
Company restaurants, beginning of period | 21 | 11 | 14 | 8 | |||||||||||||||||||
Units opened | 4 | 1 | 6 | 4 | |||||||||||||||||||
Units acquired from franchisees | — | — | 5 | — | |||||||||||||||||||
Units sold to franchisees | (3) | (1) | (3) | (1) | |||||||||||||||||||
End of period | 22 | 11 | 22 | 11 | |||||||||||||||||||
Franchised restaurants, beginning of period | 45 | 50 | 55 | 50 | |||||||||||||||||||
Units opened | 4 | — | 5 | — | |||||||||||||||||||
Units purchased from Company | 3 | 1 | 3 | 1 | |||||||||||||||||||
Units acquired by Company | — | — | (5) | — | |||||||||||||||||||
Units closed | — | — | (6) | — | |||||||||||||||||||
End of period | 52 | 51 | 52 | 51 | |||||||||||||||||||
Total restaurants, end of period | 74 | 62 | 74 | 62 |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Utilities | $ | 1,829 | 3.1 | % | $ | 1,695 | 3.1 | % | $ | 3,523 | 3.1 | % | $ | 3,350 | 3.1 | % | |||||||||||||||||||||||||||||||
Repairs and maintenance | 847 | 1.5 | % | 1,008 | 1.9 | % | 1,683 | 1.5 | % | 2,013 | 1.9 | % | |||||||||||||||||||||||||||||||||||
Marketing | 2,386 | 4.1 | % | 1,876 | 3.5 | % | 4,414 | 3.9 | % | 3,480 | 3.3 | % | |||||||||||||||||||||||||||||||||||
Legal settlements | 391 | 0.7 | % | 208 | 0.4 | % | 796 | 0.7 | % | 1,657 | 1.6 | % | |||||||||||||||||||||||||||||||||||
Pre-opening costs | 645 | 1.1 | % | 191 | 0.4 | % | 1,354 | 1.2 | % | 557 | 0.5 | % | |||||||||||||||||||||||||||||||||||
Other direct costs | 4,111 | 7.0 | % | 3,804 | 7.0 | % | 8,098 | 7.2 | % | 7,485 | 7.0 | % | |||||||||||||||||||||||||||||||||||
Other operating expenses | $ | 10,209 | 17.5 | % | $ | 8,782 | 16.2 | % | $ | 19,868 | 17.7 | % | $ | 18,542 | 17.4 | % |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Royalties | $ | 29,091 | 49.1 | % | $ | 30,014 | 48.7 | % | $ | 56,928 | 48.7 | % | $ | 59,320 | 49.7 | % | |||||||||||||||||||||||||||||||
Advertising revenue | 19,490 | 32.9 | % | 20,788 | 33.8 | % | 38,563 | 33.0 | % | 38,926 | 32.7 | % | |||||||||||||||||||||||||||||||||||
Initial and other fees | 2,804 | 4.7 | % | 2,448 | 4.0 | % | 5,678 | 4.9 | % | 4,264 | 3.6 | % | |||||||||||||||||||||||||||||||||||
Occupancy revenue | 7,877 | 13.3 | % | 8,329 | 13.5 | % | 15,830 | 13.5 | % | 16,701 | 14.0 | % | |||||||||||||||||||||||||||||||||||
Franchise and license revenue | $ | 59,262 | 100.0 | % | $ | 61,579 | 100.0 | % | $ | 116,999 | 100.0 | % | $ | 119,211 | 100.0 | % | |||||||||||||||||||||||||||||||
Advertising costs | $ | 19,490 | 32.9 | % | $ | 20,788 | 33.8 | % | $ | 38,563 | 33.0 | % | $ | 38,926 | 32.7 | % | |||||||||||||||||||||||||||||||
Occupancy costs | 4,872 | 8.2 | % | 5,094 | 8.3 | % | 9,805 | 8.4 | % | 10,226 | 8.6 | % | |||||||||||||||||||||||||||||||||||
Other direct franchise costs | 4,855 | 8.2 | % | 7,546 | 12.3 | % | 9,203 | 7.9 | % | 11,650 | 9.8 | % | |||||||||||||||||||||||||||||||||||
Costs of franchise and license revenue | $ | 29,217 | 49.3 | % | $ | 33,428 | 54.3 | % | $ | 57,571 | 49.2 | % | $ | 60,802 | 51.0 | % |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Corporate administrative expenses | $ | 15,226 | $ | 15,776 | $ | 30,470 | $ | 30,968 | |||||||||||||||
Share-based compensation | 2,982 | 2,624 | 5,767 | 5,400 | |||||||||||||||||||
Incentive compensation | 2,759 | 1,898 | 5,016 | 4,421 | |||||||||||||||||||
Deferred compensation valuation adjustments | 478 | 188 | 222 | 919 | |||||||||||||||||||
Total general and administrative expenses | $ | 21,445 | $ | 20,486 | $ | 41,475 | $ | 41,708 |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Depreciation of property and equipment | $ | 3,545 | $ | 2,823 | $ | 6,815 | $ | 5,478 | |||||||||||||||
Amortization of finance lease ROU assets | 299 | 348 | 607 | 700 | |||||||||||||||||||
Amortization of intangible and other assets | 534 | 564 | 1,063 | 1,138 | |||||||||||||||||||
Total depreciation and amortization expense | $ | 4,378 | $ | 3,735 | $ | 8,485 | $ | 7,316 |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
(Gains) losses on sales of assets and other, net | $ | 425 | $ | 526 | $ | (1,317) | $ | (94) | |||||||||||||||
Impairment charges | 49 | 619 | 3,265 | 714 | |||||||||||||||||||
Restructuring charges and exit costs | 1,226 | 420 | 3,663 | 618 | |||||||||||||||||||
Operating (gains), losses and other charges, net | $ | 1,700 | $ | 1,565 | $ | 5,611 | $ | 1,238 |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Exit costs | $ | 9 | $ | 49 | $ | 49 | $ | 91 | |||||||||||||||
Severance and other restructuring charges | 1,217 | 371 | 3,614 | 527 | |||||||||||||||||||
Total restructuring and exit costs | $ | 1,226 | $ | 420 | $ | 3,663 | $ | 618 |
Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||
June 25, 2025 | June 26, 2024 | June 25, 2025 | June 26, 2024 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Interest on credit facility | $ | 4,666 | $ | 5,167 | $ | 9,213 | $ | 10,224 | |||||||||||||||
Interest income on interest rate swaps | (840) | (1,536) | (1,915) | (3,044) | |||||||||||||||||||
Interest on finance lease liabilities | 463 | 497 | 933 | 1,006 | |||||||||||||||||||
Letters of credit and other fees | 102 | 179 | 214 | 311 | |||||||||||||||||||
Interest income | (56) | (61) | (100) | (132) | |||||||||||||||||||
Total cash interest, net | 4,335 | 4,246 | 8,345 | 8,365 | |||||||||||||||||||
Amortization of deferred financing costs | 159 | 159 | 318 | 318 | |||||||||||||||||||
Amortization of interest rate swap losses | 879 | 167 | 1,138 | 309 | |||||||||||||||||||
Interest accretion on other liabilities | 1 | 1 | 1 | 1 | |||||||||||||||||||
Total interest expense, net | $ | 5,374 | $ | 4,573 | $ | 9,802 | $ | 8,993 |
Two Quarters Ended | |||||||||||
June 25, 2025 | June 26, 2024 | ||||||||||
(In thousands) | |||||||||||
Net cash provided by operating activities | $ | 14,368 | $ | 14,396 | |||||||
Net cash used in investing activities | (17,536) | (10,349) | |||||||||
Net cash provided by (used in) financing activities | 2,636 | (7,774) | |||||||||
Decrease in cash and cash equivalents | $ | (532) | $ | (3,727) |
Two Quarters Ended | |||||||||||
June 25, 2025 | June 26, 2024 | ||||||||||
(In thousands) | |||||||||||
Facilities | $ | 3,365 | $ | 2,182 | |||||||
New construction | 9,044 | 5,427 | |||||||||
Remodeling | 3,128 | 510 | |||||||||
Information technology | 297 | 861 | |||||||||
Other | 550 | 968 | |||||||||
Capital expenditures | $ | 16,384 | $ | 9,948 |
Trade Date | Effective Date | Maturity Date | Notional Amount | Fair Value | Fixed Rate | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
October 1, 2015 | March 29, 2018 | March 31, 2026 | $ | 50,000 | $ | 614 | 2.37 | % | ||||||||||||||||||||||||
February 15, 2018 | March 31, 2020 | December 31, 2033 | $ | 189,000 | (1) | $ | 11,131 | 3.09 | % | |||||||||||||||||||||||
Total | $ | 239,000 | $ | 11,745 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Programs (2) | Dollar Value of Shares that May Yet be Purchased Under the Programs (2) | |||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||
March 27, 2025 - April 23, 2025 | 143 | $ | 3.34 | 143 | $ | 87,736 | |||||||||||||||||
April 24, 2025 - May 21, 2025 | 37 | 3.56 | 37 | $ | 87,602 | ||||||||||||||||||
May 22, 2025 - June 25, 2025 | — | — | — | $ | 87,602 | ||||||||||||||||||
Total | 180 | $ | 3.39 | 180 |
Exhibit No. | Description | |||||||
10.1 | Denny's Corporation Amended and Restated 2021 Omnibus Incentive Plan (incorporated by reference to Appendix B to the Company's Definitive Proxy Statement filed with the Securities and Exchange Commission on April 3, 2025). | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
DENNY'S CORPORATION | ||||||||||||||
Date: | August 4, 2025 | By: | /s/ Robert P. Verostek | |||||||||||
Robert P. Verostek | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
Date: | August 4, 2025 | By: | /s/ Jay C. Gilmore | |||||||||||
Jay C. Gilmore | ||||||||||||||
Senior Vice President, Chief Accounting Officer and Corporate Controller |
Date: | August 4, 2025 | By: | /s/ Kelli F. Valade | |||||||||||
Kelli F. Valade | ||||||||||||||
Chief Executive Officer | ||||||||||||||
Date: | August 4, 2025 | By: | /s/ Robert P. Verostek | |||||||||||
Robert P. Verostek | ||||||||||||||
Executive Vice President and | ||||||||||||||
Chief Financial Officer |
Date: | August 4, 2025 | By: | /s/ Kelli F. Valade | |||||||||||
Kelli F. Valade | ||||||||||||||
Chief Executive Officer |
Date: | August 4, 2025 | By: | /s/ Robert P. Verostek | |||||||||||
Robert P. Verostek | ||||||||||||||
Executive Vice President and | ||||||||||||||
Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 25, 2025 |
Dec. 25, 2024 |
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Assets | ||
Accumulated depreciation | $ 162,101 | $ 159,588 |
Accumulated amortization | $ 6,813 | $ 6,783 |
Shareholders' deficit | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 135,000,000 | 135,000,000 |
Common stock, shares issued (in shares) | 51,893,000 | 51,329,000 |
Common stock, shares outstanding (in shares) | 51,495,000 | 51,329,000 |
Treasury stock, at cost (in shares) | 398,000 | 0 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,470 | $ 3,568 | $ 2,796 | $ 8,259 |
Other comprehensive income (loss), net of tax: | ||||
Minimum pension liability adjustment, net of tax of $2, $13, $5 and $19, respectively | 9 | 41 | 17 | 51 |
Changes in the fair value of cash flow hedges, net of tax of $(898), $680, $(1,810) and $3,103, respectively | (2,665) | 2,017 | (5,372) | 9,192 |
Reclassification of cash flow hedges to interest expense, net of tax of $(212), $(387), $(483) and $(768), respectively | (628) | (1,149) | (1,432) | (2,276) |
Amortization of unrealized losses related to interest rate swaps to interest expense, net of tax of $222, $42, $287 and $78, respectively | 657 | 125 | 851 | 231 |
Other comprehensive income (loss) | (2,627) | 1,034 | (5,936) | 7,198 |
Total comprehensive income (loss) | $ (157) | $ 4,602 | $ (3,140) | $ 15,457 |
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
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Statement of Comprehensive Income [Abstract] | ||||
Tax effect of minimum pension liability adjustment | $ 2 | $ 13 | $ 5 | $ 19 |
Changes in fair value of cash flow derivatives, tax | (898) | 680 | (1,810) | 3,103 |
Reclassification of cash flow derivatives to interest expense, tax | (212) | (387) | (483) | (768) |
Reclassification of unrealized losses related to derivatives to interest expense, tax | $ 222 | $ 42 | $ 287 | $ 78 |
Introduction and Basis of Presentation |
6 Months Ended |
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Jun. 25, 2025 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Introduction and Basis of Presentation | Introduction and Basis of Presentation Introduction Denny’s Corporation, or the Company, is one of America’s largest full-service restaurant chains based on number of restaurants. As of June 25, 2025, the Company consisted of 1,558 restaurants, 1,474 of which were franchised/licensed restaurants and 84 of which were company operated. The Company consists of the Denny’s brand ("Denny's") and the Keke’s Breakfast Cafe brand (“Keke’s”). As of June 25, 2025, the Denny's brand consisted of 1,484 restaurants, 1,422 of which were franchised/licensed restaurants and 62 of which were company operated. As of June 25, 2025, the Keke's brand consisted of 74 restaurants, 52 of which were franchised restaurants and 22 of which were company operated. Basis of Presentation Our unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted. In our opinion, all adjustments considered necessary for a fair presentation of the interim periods presented have been included. Such adjustments are of a normal and recurring nature. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions; however, we believe that our estimates are reasonable. These interim consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto as of and for the fiscal year ended December 25, 2024 which are contained in our audited Annual Report on Form 10-K for the fiscal year ended December 25, 2024. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 31, 2025. Our significant interim accounting policies include the recognition of advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective rate. Change in Presentation Certain reclassifications have been made in the 2024 interim consolidated financial statements and notes to conform to the 2025 presentation. These reclassifications did not affect total revenues or net income.
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Summary of Significant Accounting Policies |
6 Months Ended |
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Jun. 25, 2025 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Accounting Standards to be Adopted In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The new guidance requires enhanced effective tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial statements and will add necessary disclosures upon adoption. In November 2024, the FASB issued ASU 2024-03, “Disaggregation of Income Statement Expenses (Subtopic 220-40)”. The new guidance requires disaggregation of certain relevant expenses included in the consolidated statements of income. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 (our fiscal 2027) and interim periods beginning after December 15, 2027 (our fiscal 2028). We are currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial statements and will add necessary disclosures upon adoption. We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption.
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Receivables |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | Receivables Receivables consisted of the following:
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table reflects the changes in carrying amounts of goodwill and goodwill by segment:
Intangible assets consisted of the following:
Amortization expense for intangible assets with definite lives totaled $0.4 million and $0.7 million for the quarter and year-to-date periods ended June 25, 2025, respectively. Amortization expense for intangible assets with definite lives totaled $0.4 million and $0.8 million for the quarter and year-to-date periods ended June 26, 2024, respectively.
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Other Current Liabilities |
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Other Current Liabilities | Other Current Liabilities Other current liabilities consisted of the following:
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
(1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments and are included in other noncurrent assets in our Consolidated Balance Sheets. (2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates, forward yield curves and credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For disclosures about the fair value measurements of our derivative instruments, see Note 7. (3) The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments. Those assets and liabilities measured at fair value on a non-recurring basis are summarized below:
During the quarter and year-to-date periods ended June 25, 2025, we recognized impairment charges of less than $0.1 million and $3.3 million related to certain of these assets, respectively. See Note 9. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are deemed to approximate fair value due to the immediate or short-term maturity of these instruments. The fair value of notes receivable approximates the carrying value after consideration of recorded allowances and related risk-based interest rates. The liabilities under our credit facility are carried at historical cost, which approximates fair value. The fair value of our senior secured revolver approximates its carrying value since it is a variable rate facility (Level 2).
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt The Company and certain of its subsidiaries have a credit facility consisting of a five-year $400 million senior secured revolver (with a $25 million letter of credit sublimit). The credit facility includes an accordion feature that would allow us to increase the size of the facility to $450 million. Borrowings bear a tiered interest rate, which is based on the Company's consolidated leverage ratio. The maturity date for the credit facility is August 26, 2026. The credit facility is available for working capital, capital expenditures and other general corporate purposes. The credit facility is guaranteed by the Company and its material subsidiaries and is secured by assets of the Company and its subsidiaries, including the stock of its subsidiaries (other than its insurance captive subsidiary). It includes negative covenants that are usual for facilities and transactions of this type. The credit facility also includes certain financial covenants, including a maximum consolidated leverage ratio of 4.0 times and a minimum consolidated fixed charge coverage ratio of 1.5 times. As of June 25, 2025, our consolidated leverage ratio was 3.98 times and our consolidated fixed charge coverage ratio was 2.05 times. We were in compliance with all financial covenants as of June 25, 2025, and we expect to remain in compliance throughout the remainder of 2025. As of June 25, 2025, we had outstanding revolver loans of $268.6 million and outstanding letters of credit under the credit facility of $15.9 million. These balances resulted in unused commitments of $115.5 million as of June 25, 2025 under the credit facility. As of June 25, 2025, borrowings under the credit facility bore interest at a rate of Adjusted Daily Simple SOFR plus 2.25%. Letters of credit under the credit facility bore interest at a rate of 2.38%. The commitment fee, paid on the unused portion of the credit facility, was set to 0.35%. Prior to considering the impact of our interest rate swaps, described below, the weighted-average interest rate on outstanding revolver loans was 6.67% and 6.98% as of June 25, 2025 and December 25, 2024, respectively. Taking into consideration our interest rate swaps that are designated as cash flow hedges, the weighted-average interest rate of outstanding revolver loans was 5.36% and 5.01% as of June 25, 2025 and December 25, 2024, respectively. Interest Rate Hedges We have receive-variable, pay-fixed interest rate swaps to hedge the forecasted cash flows of our floating rate debt. A summary of our interest rate swaps designated as cash flow hedges as of June 25, 2025 is as follows:
(1) The notional amounts of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $335 million on August 31, 2033. Changes in Fair Value of Interest Rate Swaps To the extent the swaps are highly effective in offsetting the variability of the hedged cash flows, changes in the fair value of the swaps are not included in the Consolidated Statements of Income but are reported as a component of other comprehensive income (loss). Our interest rate swaps are designated as cash flow hedges with unrealized gains and losses recorded as a component of accumulated other comprehensive loss, net. As of June 25, 2025, the fair value of the swaps designated as cash flow hedges was an asset of $11.7 million, recorded as a component of other noncurrent assets. The designated swaps have an offsetting amount (before taxes) recorded as a component of accumulated other comprehensive loss, net in our Consolidated Balance Sheets. See Note 13 for amounts recorded in accumulated other comprehensive loss related to interest rate swaps. During the year-to-date period ended June 25, 2025, we reclassified $1.9 million from accumulated other comprehensive loss, net as a reduction to interest expense, net. We expect to reclassify $3.6 million from accumulated other comprehensive loss, net as a reduction to interest expense, net in our Consolidated Statements of Income related to swaps designated as cash flow hedges during the next 12 months. Amortization of Certain Amounts Included in Accumulated Other Comprehensive Loss, Net At June 25, 2025, we had a total of $62.3 million (before taxes) included in accumulated other comprehensive loss, net related to (i) the discontinuance of hedge accounting treatment related to certain cash flow hedges in prior years and (ii) the fair value of certain swaps at the date of designation as cash flow hedges that are being amortized into our Consolidated Statements of Income as a component of interest expense, net over the remaining term of the related swap. For the quarter and year-to-date periods ended June 25, 2025, we recorded unrealized losses of $0.9 million and $1.1 million to interest expense, net, respectively. For the quarter and year-to-date periods ended June 26, 2024, we recorded unrealized losses of $0.2 million and $0.3 million to interest expense, net, respectively. We expect to amortize $4.2 million from accumulated other comprehensive loss, net to interest expense, net in our Consolidated Statements of Income related to dedesignated interest rate swaps during the next 12 months.
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Revenues |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues The following table disaggregates our revenue by sales channel and type of good or service:
Franchise occupancy revenue consisted of the following:
Balances related to contracts with customers consist of receivables, contract assets, deferred franchise revenue and deferred gift card revenue. See Note 3 for details on our receivables. Deferred franchise revenue consists primarily of the unamortized portion of initial franchise fees that are currently being amortized into revenue and amounts related to development agreements and unopened restaurants that will begin amortizing into revenue when the related restaurants are opened. Deferred franchise revenue represents our remaining performance obligations to our franchisees, excluding amounts of variable consideration related to sales-based royalties and advertising. The components of the change in deferred franchise revenue are as follows:
(1) Of this amount $1.4 million was included in the deferred franchise revenue balance as of December 25, 2024. We record contract assets related to incentives and subsidies provided to franchisees related to new unit openings and/or equipment upgrades. These amounts will be recognized as a component of franchise and license revenue over the remaining term of the related franchise agreements. The components of the change in contract assets are as follows:
The Company purchases equipment related to various programs for franchise restaurants. We bill our franchisees and recognize revenue when the related equipment is installed, less amounts contributed from the Company, which have been deferred as contract assets in the table above. We recognized $0.4 million and $1.0 million of revenue, recorded as a component of initial and other fees, related to the sale of equipment to franchisees during the quarter and year-to-date periods ended June 25, 2025, respectively. We recognized $0.2 million and $0.5 million of revenue, recorded as a component of initial and other fees, related to the sale of equipment to franchisees during the quarter and year-to-date periods ended June 26, 2024, respectively. As of June 25, 2025, we had $0.5 million in inventory and $0.4 million in receivables related to the purchased equipment. As of December 25, 2024, we had $0.2 million in inventory and $0.4 million in receivables related to the purchased equipment. As of June 25, 2025, deferred franchise revenue, net of contract asset amortization, expected to be recognized in the future is as follows:
Deferred gift card liabilities consist of the unredeemed portion of gift cards sold in company restaurants and at third party locations. The balance of deferred gift card liabilities represents our remaining performance obligations to our customers. The balance of deferred gift card liabilities as of June 25, 2025 and December 25, 2024 was $6.8 million and $8.4 million, respectively. During the year-to-date period ended June 25, 2025, we recognized revenue of $0.4 million from gift card redemptions at company restaurants.
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Operating (Gains), Losses and Other Charges, Net |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating (Gains), Losses and Other Charges, Net | Operating (Gains), Losses and Other Charges, Net Operating (gains), losses and other charges, net consisted of the following:
During the quarters and year-to-date periods ended June 25, 2025 and June 26, 2024, (gains) losses on sales of assets and other, net were primarily related to the sales of real estate and restaurants. As of June 25, 2025, we had recorded assets held for sale at their carrying amount of $1.1 million (consisting of property of $0.7 million and goodwill of $0.4 million) related to one parcel of real estate and two restaurants. As of December 25, 2024, we had recorded assets held for sale at their carrying amount of $0.4 million (consisting of property) related to two parcels of real estate. We recorded impairment charges of less than $0.1 million and $3.3 million for the quarter and year-to-date periods ended June 25, 2025, respectively. The impairment charge for the quarter related to an operating lease right-of-use asset. The $3.3 million charge for the year-to-date period ended June 25, 2025 included $2.0 million related to franchise agreements for closed units. Additionally, $0.4 million of property and $0.9 million of operating lease right-of-use assets were impaired related to the relocation of certain support functions. Restructuring charges and exit costs consisted of the following:
Exit costs primarily consist of costs related to closed restaurants. Exit cost liabilities related to lease costs are included as a component of operating lease liabilities in our Consolidated Balance Sheets. Severance and other restructuring charges for the quarter and year-to-date periods ended June 25, 2025 primarily consisted of severance costs resulting from the elimination of 26 positions during the quarter and 66 positions year-to-date, as part of a cost savings initiative. As of June 25, 2025 and December 25, 2024, we had accrued severance and other restructuring charges of $2.0 million and $0.3 million, respectively. The balance as of June 25, 2025 is expected to be paid during the next 12 months.
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Share-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation Total share-based compensation included as a component of general and administrative expenses was as follows:
Employee Share Awards During the year-to-date period ended June 25, 2025, we granted certain employees 0.9 million performance share units (“PSUs”) with a weighted average grant date fair value of $6.73 per share that vest based on the total shareholder return (“TSR”) of our common stock compared to the TSRs of a group of peer companies. Half of these PSUs will be settled in cash, net of taxes (liability-classified awards) and half will be settled in shares of stock, net of shares withheld for taxes (equity-classified awards). As the TSR based PSUs contain a market condition, a Monte Carlo valuation was used to determine the grant date fair value. The performance period for these PSUs is the three-year fiscal period beginning December 26, 2024 and ending December 29, 2027. The PSUs will vest and be earned at the end of the performance period at which point the relative TSR achievement percentages will be applied to the vested units (from 0% to 150% of the target award). During the year-to-date period ended June 25, 2025, we also granted certain employees 1.4 million restricted stock units ("RSUs") with a weighted average grant date fair value of $6.08 per share. These RSUs generally vest evenly over the three-year fiscal period beginning December 26, 2024 and ending December 29, 2027. We recognize compensation cost associated with these RSU awards on a straight-line basis over the entire performance period of the award. During the year-to-date period ended June 25, 2025, we issued 0.3 million shares of common stock related to vested PSUs and RSUs for employees. In addition, 0.2 million shares of common stock were withheld in lieu of taxes related to vested PSUs and RSUs. As of June 25, 2025, we had $19.2 million of unrecognized compensation cost related to unvested PSU awards and RSU awards outstanding, which have a weighted average remaining contractual term of 2.0 years. Restricted Stock Units for Board Members During the quarter and year-to-date periods ended June 25, 2025, we granted 0.2 million RSUs (which are equity classified) with a weighted average grant date fair value of $4.44 per unit to non-employee members of our Board of Directors. The RSUs vest after a one-year service period. A director may elect to convert these awards to shares of common stock either on a specific date in the future (while still serving as a member of our Board of Directors), upon termination as a member of our Board of Directors, or in three equal annual installments commencing after termination of service as a member of our Board of Directors. During the quarter and year-to-date periods ended June 25, 2025, 0.2 million RSUs were converted into shares of common stock and fewer than 0.1 million RSUs were converted to cash. As of June 25, 2025, we had $0.6 million of unrecognized compensation cost related to unvested RSU awards outstanding, which have a weighted average remaining contractual term of 0.9 years.
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Income Taxes |
6 Months Ended |
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Jun. 25, 2025 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate was 34.3% for the quarter and 36.2% for the year-to-date period ended June 25, 2025, compared to 25.1% and 24.8% for the prior year periods, respectively. The effective income tax rate for the quarter and year-to-date periods ended June 25, 2025 included discrete items relating to share-based compensation of 9.0% and 11.5%, respectively. We did not have similar discrete items for the quarter and year-to-date periods ended June 26, 2024. On July 4, 2025, H.R. 1, the budget bill known as the One Big Beautiful Bill Act ("OBBBA") was enacted. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing its impact on our consolidated financial statements.
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Net Income Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share | Net Income Per Share The amounts used for the basic and diluted net income per share calculations are summarized below:
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Shareholders' Deficit |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Deficit | Shareholders' Deficit Share Repurchases Our credit facility permits the repurchase of the Company's stock and the payment of cash dividends subject to certain limitations. Our Board of Directors approves share repurchases of our common stock. Under these authorizations, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions, subject to market and business conditions. Currently, we are operating under a $250 million share repurchase authorization approved by the Board of Directors in December 2019. During the year-to-date period ended June 25, 2025, we repurchased a total of 0.4 million shares of our common stock for $1.6 million, including excise taxes. This brings the total amount repurchased under the current authorization to $162.4 million, including excise taxes, leaving $87.6 million that can be used to repurchase our common stock under this authorization as of June 25, 2025. Repurchased shares are included as treasury stock in our Consolidated Balance Sheets and our Consolidated Statements of Shareholders' Deficit. In the fourth quarter of fiscal 2024, the Board approved the retirement of 2.0 million shares of treasury stock at a weighted average share price of $8.78, including excise taxes. As of June 25, 2025, 0.4 million shares were held in treasury stock. Accumulated Other Comprehensive Loss, Net The components of the change in accumulated other comprehensive loss, net were as follows:
(1) Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss, net and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Income during the quarter ended June 25, 2025. (2) Amounts reclassified from accumulated other comprehensive loss, net into interest expense, net in our Consolidated Statements of Income represent payments either (received from) or made to the counterparty for the interest rate hedges. See Note 7 for additional details.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 25, 2025 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings There are various claims and pending legal actions against or indirectly involving us, incidental to and arising out of the ordinary course of the business. In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect our consolidated results of operations or financial position.
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Information | Supplemental Cash Flow Information
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Segment Information |
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We manage our business by brand and as a result have identified two operating segments, Denny’s and Keke’s. In addition, we have identified Denny’s as a reportable segment. The Denny’s reportable segment includes the results of all company and franchised and licensed Denny’s restaurants. Our Keke’s operating segment, which includes the results of all company and franchised Keke's restaurants, is included in Other. The primary sources of revenues for all operating segments are the sale of food and beverages at our company restaurants and the collection of royalties, advertising revenue, initial and other fees, including occupancy revenue, from restaurants operated by our franchisees. We do not rely on any major customer as a source of sales and the customers and assets of all operating segments are located predominantly in the United States. There are no material transactions between segments. Management’s measure of segment income is restaurant-level operating margin. The Company defines restaurant-level operating margin as operating income excluding the following four items: general and administrative expenses, depreciation and amortization, goodwill impairment charges and operating (gains), losses and other charges, net. The Company excludes general and administrative expenses, which include primarily non restaurant-level costs associated with the support of company and franchised restaurants and other activities at their corporate office. The Company excludes depreciation and amortization expense, substantially all of which is related to company restaurant-level assets, because such expenses represent historical sunk costs which do not reflect current cash outlays for the restaurants. The Company excludes goodwill impairment charges and operating (gains), losses and other charges, net, to provide a clearer perspective of its ongoing operating performance and more relevant comparison to prior period results. The Company's chief operating decision maker (“CODM”) is our Chief Executive Officer. Restaurant-level operating margin is used by our CODM to evaluate restaurant-level operating efficiency and performance and make key operating decisions. The following tables present revenues by segment and a reconciliation of restaurant-level operating margin to net income:
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
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Pay vs Performance Disclosure | ||||
Net income | $ 2,470 | $ 3,568 | $ 2,796 | $ 8,259 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 25, 2025 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 25, 2025 | |
Accounting Policies [Abstract] | |
Basis of Presentation/ Change in Presentation | Basis of Presentation Our unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted. In our opinion, all adjustments considered necessary for a fair presentation of the interim periods presented have been included. Such adjustments are of a normal and recurring nature. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions; however, we believe that our estimates are reasonable. These interim consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto as of and for the fiscal year ended December 25, 2024 which are contained in our audited Annual Report on Form 10-K for the fiscal year ended December 25, 2024. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 31, 2025. Our significant interim accounting policies include the recognition of advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective rate.
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Change in Presentation | Change in Presentation Certain reclassifications have been made in the 2024 interim consolidated financial statements and notes to conform to the 2025 presentation. These reclassifications did not affect total revenues or net income.
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Accounting Standards to be Adopted | Accounting Standards to be Adopted In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The new guidance requires enhanced effective tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial statements and will add necessary disclosures upon adoption. In November 2024, the FASB issued ASU 2024-03, “Disaggregation of Income Statement Expenses (Subtopic 220-40)”. The new guidance requires disaggregation of certain relevant expenses included in the consolidated statements of income. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 (our fiscal 2027) and interim periods beginning after December 15, 2027 (our fiscal 2028). We are currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial statements and will add necessary disclosures upon adoption. We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption.
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Receivables (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Receivables | Receivables consisted of the following:
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Goodwill and Intangible Assets (Tables) |
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill by Segment | The following table reflects the changes in carrying amounts of goodwill and goodwill by segment:
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Schedule of Indefinite-Lived Intangible Assets | Intangible assets consisted of the following:
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Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following:
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Other Current Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Liabilities | Other current liabilities consisted of the following:
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Fair Value of Financial Instruments (Tables) |
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
(1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments and are included in other noncurrent assets in our Consolidated Balance Sheets. (2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates, forward yield curves and credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For disclosures about the fair value measurements of our derivative instruments, see Note 7. (3) The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments.
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Schedule of Financial Assets and Liabilities Measured at Fair Value on a Non - Recurring Basis | Those assets and liabilities measured at fair value on a non-recurring basis are summarized below:
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Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Swaps | A summary of our interest rate swaps designated as cash flow hedges as of June 25, 2025 is as follows:
(1) The notional amounts of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $335 million on August 31, 2033.
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Revenues (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following table disaggregates our revenue by sales channel and type of good or service:
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Schedule of Components of Lease Income | Franchise occupancy revenue consisted of the following:
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Schedule of Components of the Change in Contract Asset and Contract Liability | The components of the change in deferred franchise revenue are as follows:
(1) Of this amount $1.4 million was included in the deferred franchise revenue balance as of December 25, 2024. The components of the change in contract assets are as follows:
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Schedule of Deferred Franchise Revenue Recognition | As of June 25, 2025, deferred franchise revenue, net of contract asset amortization, expected to be recognized in the future is as follows:
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Operating (Gains), Losses and Other Charges, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Gains Losses and Other Charges, Net | Operating (gains), losses and other charges, net consisted of the following:
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Schedule of Restructuring Charges and Exit Costs | Restructuring charges and exit costs consisted of the following:
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Share-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Share-based Compensation | Total share-based compensation included as a component of general and administrative expenses was as follows:
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Net Income Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Net Income Per Share | The amounts used for the basic and diluted net income per share calculations are summarized below:
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Shareholders' Deficit (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The components of the change in accumulated other comprehensive loss, net were as follows:
(1) Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss, net and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Income during the quarter ended June 25, 2025. (2) Amounts reclassified from accumulated other comprehensive loss, net into interest expense, net in our Consolidated Statements of Income represent payments either (received from) or made to the counterparty for the interest rate hedges. See Note 7 for additional details.
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Supplemental Cash Flow Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Cash Flow Information |
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following tables present revenues by segment and a reconciliation of restaurant-level operating margin to net income:
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Receivables - Schedule of Receivables, Net (Details) - USD ($) $ in Thousands |
Jun. 25, 2025 |
Dec. 25, 2024 |
---|---|---|
Receivables, net: | ||
Trade accounts receivable from franchisees | $ 13,564 | $ 15,798 |
Notes and loan receivables from franchisees | 417 | 490 |
Allowance for credit losses | (302) | (442) |
Total receivables, net | 19,074 | 24,433 |
Vendor receivables | ||
Receivables, net: | ||
Other receivables, gross, current | 1,703 | 3,632 |
Credit card receivables | ||
Receivables, net: | ||
Other receivables, gross, current | 822 | 1,815 |
Other | ||
Receivables, net: | ||
Other receivables, gross, current | $ 2,870 | $ 3,140 |
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 25, 2025
USD ($)
| |
Goodwill [Roll Forward] | |
Balance, beginning of year | $ 66,357 |
Write-offs and reclassifications associated with the sale of Keke's units | (392) |
Balance, end of period | 68,526 |
Total goodwill | 68,526 |
Denny’s | |
Goodwill [Roll Forward] | |
Balance, beginning of year | 37,507 |
Balance, end of period | 37,911 |
Total goodwill | 37,911 |
Other | |
Goodwill [Roll Forward] | |
Balance, beginning of year | 28,850 |
Balance, end of period | 30,615 |
Total goodwill | 30,615 |
Keke's | |
Goodwill [Roll Forward] | |
Addition related to the acquisition | 2,157 |
Franchise Unit | |
Goodwill [Roll Forward] | |
Addition related to the acquisition | $ 404 |
Goodwill and Intangible Assets - Schedule of Finite-Lived and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands |
Jun. 25, 2025 |
Dec. 25, 2024 |
---|---|---|
Intangible assets with indefinite lives: | ||
Trade names | $ 79,687 | $ 79,687 |
Liquor licenses | 120 | 120 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | 8,116 | 7,806 |
Intangible assets, net | 97,746 | 99,545 |
Reacquired franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 9,722 | 9,135 |
Accumulated Amortization | 6,599 | 6,188 |
Franchise agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,217 | 10,603 |
Accumulated Amortization | $ 1,517 | $ 1,618 |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense for intangible assets | $ 0.4 | $ 0.4 | $ 0.7 | $ 0.8 |
Other Current Liabilities (Details) - USD ($) $ in Thousands |
Jun. 25, 2025 |
Dec. 25, 2024 |
---|---|---|
Other Liabilities, Current [Abstract] | ||
Accrued payroll | $ 14,516 | $ 15,434 |
Current portion of liability for insurance claims | 4,433 | 4,494 |
Accrued taxes | 4,808 | 4,432 |
Accrued advertising | 6,686 | 11,785 |
Gift cards | 6,786 | 8,382 |
Accrued legal settlements | 3,859 | 4,114 |
Accrued interest | 4,402 | 4,368 |
Other | 8,211 | 5,833 |
Other current liabilities | $ 53,701 | $ 58,842 |
Fair Value of Financial Instruments - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Non - Recurring Basis (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets held and used, impairment charges | $ 49 | $ 619 | $ 3,265 | $ 714 |
Fair Value, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets held and used, impairment charges | 49 | |||
Significant Unobservable Inputs (Level 3) | Fair Value, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets held and used, including goodwill and other intangible assets | $ 0 | $ 0 |
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
|
Fair Value Disclosures [Abstract] | ||||
Impairment charges | $ 49 | $ 619 | $ 3,265 | $ 714 |
Long-Term Debt - Schedule of Interest Rate Swaps (Details) |
Jun. 25, 2025
USD ($)
|
---|---|
Derivative [Line Items] | |
Notional Amount | $ 239,000,000 |
Fair Value | 11,745,000 |
Interest Rate Swap 2018-2026 | |
Derivative [Line Items] | |
Notional Amount | 50,000,000 |
Fair Value | $ 614,000 |
Fixed Rate | 2.37% |
Interest Rate Swap 2020-2033 | |
Derivative [Line Items] | |
Notional Amount | $ 189,000,000 |
Fair Value | $ 11,131,000 |
Fixed Rate | 3.09% |
Interest Rate Swap 2020-2033 | Maximum | |
Derivative [Line Items] | |
Notional Amount | $ 335,000,000 |
Revenues - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
|
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | $ 117,657 | $ 115,927 | $ 229,294 | $ 225,901 |
Company restaurant sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 58,395 | 54,348 | 112,295 | 106,690 |
Royalties | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 29,091 | 30,014 | 56,928 | 59,320 |
Advertising revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 19,490 | 20,788 | 38,563 | 38,926 |
Initial and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 2,804 | 2,448 | 5,678 | 4,264 |
Occupancy revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 7,877 | 8,329 | 15,830 | 16,701 |
Franchise and license revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | $ 59,262 | $ 61,579 | $ 116,999 | $ 119,211 |
Revenues - Schedule of Components of Lease Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
|
Revenue from Contract with Customer [Abstract] | ||||
Operating lease revenue | $ 5,848 | $ 6,071 | $ 11,834 | $ 12,199 |
Variable lease revenue | 2,029 | 2,258 | 3,996 | 4,502 |
Total occupancy revenue | $ 7,877 | $ 8,329 | $ 15,830 | $ 16,701 |
Revenues - Schedule of Components of the Change in Deferred Franchise Revenue (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 25, 2025
USD ($)
| |
Movement In Deferred Revenue Roll Forward | |
Balance, December 25, 2024 | $ 16,968 |
Fees received from franchisees | 589 |
Revenue recognized | (1,654) |
Balance, June 25, 2025 | 15,903 |
Less current portion included in other current liabilities | 1,985 |
Deferred franchise revenue included in other noncurrent liabilities | 13,918 |
Deferred revenue recognized | $ 1,400 |
Revenues - Schedule of Change In Contract Assets (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 25, 2025
USD ($)
| |
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward] | |
Balance, December 25, 2024 | $ 6,706 |
Franchisee deferred costs | 4,604 |
Contract asset amortization | (712) |
Balance, June 25, 2025 | 10,598 |
Less current portion included in other current assets | 1,264 |
Contract assets included in other noncurrent assets | $ 9,334 |
Revenues - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
Dec. 25, 2024 |
|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue recognized | $ 117,657 | $ 115,927 | $ 229,294 | $ 225,901 | |
Contract with customer | 19,074 | 19,074 | $ 24,433 | ||
Liability balance | 1,985 | 1,985 | |||
Deferred revenue recognized | 1,400 | ||||
Gift Card Redemption | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Liability balance | 6,800 | 6,800 | 8,400 | ||
Deferred revenue recognized | 400 | ||||
Franchise Equipment Programs | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue recognized | 400 | $ 200 | 1,000 | $ 500 | |
Inventory related to franchise equipment programs | 500 | 500 | 200 | ||
Contract with customer | $ 400 | $ 400 | $ 400 |
Operating (Gains), Losses and Other Charges, Net - Schedule of Operating Gains Losses and Other Charges, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
|
Other Income and Expenses [Abstract] | ||||
(Gains) losses on sales of assets and other, net | $ 425 | $ 526 | $ (1,317) | $ (94) |
Impairment charges | 49 | 619 | 3,265 | 714 |
Restructuring charges and exit costs | 1,226 | 420 | 3,663 | 618 |
Operating (gains), losses and other charges, net | $ 1,700 | $ 1,565 | $ 5,611 | $ 1,238 |
Operating (Gains), Losses and Other Charges, Net - Schedule of Restructuring Charges and Exit Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
|
Restructuring charges and exit costs [Abstract] | ||||
Exit costs | $ 9 | $ 49 | $ 49 | $ 91 |
Severance and other restructuring charges | 1,217 | 371 | 3,614 | 527 |
Total restructuring charges and exit costs | $ 1,226 | $ 420 | $ 3,663 | $ 618 |
Share-Based Compensation - Schedule of Total Share-based Compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | $ 2,982 | $ 2,624 | $ 5,767 | $ 5,400 |
Certain employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | 2,772 | 2,409 | 5,324 | 4,980 |
Non-employee members of the board of directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | $ 210 | $ 215 | $ 443 | $ 420 |
Income Taxes (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate expense (benefit), percent | 34.30% | 25.10% | 36.20% | 24.80% |
Share-based compensation, percent | 9.00% | 0.00% | 11.50% | 0.00% |
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2025 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 2,470 | $ 3,568 | $ 2,796 | $ 8,259 |
Weighted average shares outstanding - basic (in shares) | 52,059 | 52,689 | 52,191 | 52,879 |
Effect of dilutive share-based compensation awards (in shares) | 72 | 98 | 103 | 123 |
Weighted average shares outstanding - diluted (in shares) | 52,131 | 52,787 | 52,294 | 53,002 |
Net income per share - basic (in dollars per share) | $ 0.05 | $ 0.07 | $ 0.05 | $ 0.16 |
Net income per share - diluted (in dollars per share) | $ 0.05 | $ 0.07 | $ 0.05 | $ 0.16 |
Anti-dilutive share-based compensation awards (in shares) | 1,133 | 686 | 1,225 | 828 |
Shareholders' Deficit - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 25, 2025 |
Dec. 25, 2024 |
Jun. 26, 2024 |
Jun. 25, 2025 |
Jun. 26, 2024 |
Dec. 25, 2019 |
|
Equity, Class of Treasury Stock [Line Items] | ||||||
Purchase of treasury stock (in shares) | 400 | |||||
Purchase of treasury stock | $ 614 | $ 4,702 | $ 1,595 | $ 9,465 | ||
Retirement of shares (in shares) | 2,000 | |||||
Weighted average share price (in dollars per share) | $ 8.78 | |||||
Treasury stock, at cost (in shares) | 398 | 0 | 398 | |||
Share Repurchase Program 2019 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Share repurchase, authorized amount | $ 250,000 | |||||
Purchase of treasury stock | $ 162,400 | |||||
Remaining shares to be repurchased | $ 87,600 | $ 87,600 |
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 25, 2025 |
Jun. 26, 2024 |
|
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid, net | $ 2,250 | $ 3,668 |
Interest paid | 8,411 | 8,185 |
Noncash investing and financing activities: | ||
Restaurant acquisition payable | 300 | 0 |
Accrued purchase of property | 549 | 229 |
Issuance of common stock, pursuant to share-based compensation plans | 2,385 | 3,793 |
Execution of finance leases | 191 | 119 |
Treasury stock payable | 0 | 137 |
Treasury stock excise tax payable | 0 | 511 |
Receivables included in acquisition of restaurants | $ 224 | $ 0 |
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