Denny's Corporation (NASDAQ:DENN) Q1 2022 Earnings Conference Call May 3, 2022 4:30 PM ET Company Participants Curt Nichols – Vice President-Investor Relations and Financial Planning and Analysis John Miller – Chief Executive Officer Robert Verostek – Executive Vice President and Chief Financial Officer Conference Call Participants Michael Tamas – Oppenheimer Nick Setyan – Wedbush Securities Jake Bartlett – Truist Securities Todd Brooks – The Benchmark Company Eric Gonzalez – KeyBanc Capital Markets Operat ...

Revenue and Sales Performance - Company restaurant sales increased by $10.4 million, or 31.0%, for the quarter ended March 30, 2022, compared to the prior year period, primarily due to easing dine-in restrictions related to COVID-19[78] - Total operating revenue reached $103.1 million for the quarter, up from $80.6 million in the prior year, with franchise and license revenue contributing $59.1 million, a 25.8% increase[75][84] - Company same-store sales increased by 30.6% for the current year quarter compared to the prior year period, while domestic franchise same-store sales increased by 22.8%[78][84] - Franchise and license revenue increased by $12.1 million, or 25.8%, for the quarter compared to the prior year, with royalties increasing by $5.7 million, or 27.3%[84] Costs and Expenses - Total costs of company restaurant sales as a percentage of sales decreased to 87.8% from 89.9% in the prior year, with product costs at 25.6% compared to 24.6%[79] - Payroll and benefits accounted for 38.9% of company restaurant sales, slightly up from 38.6% in the prior year, primarily due to labor inflation[80] - Costs of franchise and license revenue rose by $6.9 million, or 29.1%, driven by increased advertising costs, with total costs reaching 51.9% of franchise revenue[86] - Total general and administrative expenses for the quarter ended March 30, 2022, were $16.96 million, slightly up from $16.95 million in the prior year period, with corporate administrative expenses increasing by $0.5 million due to prior year cost reductions related to COVID-19[89] Income and Profitability - Operating income for the quarter was $13.3 million, representing 12.9% of total operating revenue, compared to $5.5 million, or 6.8%, in the prior year[75] - Operating income increased to $13.3 million for the quarter ended March 30, 2022, compared to $5.5 million for the same quarter in the prior year[93] - Net income for the quarter was $21.9 million, or 21.2% of total operating revenue, down from $23.2 million, or 28.8%, in the prior year[75] - Net income for the quarter ended March 30, 2022, was $21.9 million, down from $23.2 million in the prior year period[97] Cash Flow and Investments - Net cash used in operating activities was $7.1 million for the quarter ended March 30, 2022, compared to net cash provided of $10.2 million for the same quarter in the prior year[101] - The company reported net cash flows used in investing activities of $3.8 million for the quarter ended March 30, 2022, primarily due to capital expenditures of $2.8 million[102] - Net cash flows used in financing activities were $13.7 million for the quarter ended March 30, 2022, which included stock repurchases of $12.5 million[103] - The company is investing approximately $18.3 million in kitchen equipment upgrades for franchise restaurants, with $5.7 million in commitments from the company[111] - The company has committed to investing approximately $10 million towards kitchen equipment and technology platform costs in domestic franchise restaurants[113] Debt and Interest Rate Swaps - As of March 30, 2022, the company had outstanding revolver loans of $171.5 million and unused commitments of $212.8 million under its credit facility[107] - As of March 30, 2022, the total notional amount of interest rate swaps was $290 million, exceeding 100% of the company's floating rate debt[120] - A hypothetical change of 100 basis points in LIBOR would result in an annual cash flow change of approximately $1.2 million[120] - The fair value of the swaps designated as cash flow hedges included a fair value of $104,000 for one swap and a negative fair value of $(59,000) for another[119] - The dedesignated swap from February 15, 2018, had a fair value of $(23,309,000) and a fixed rate of 3.19%[119] - The notional amounts of the swaps from February 15, 2018, will increase periodically, reaching a maximum of $425 million by September 28, 2029[119] - The total fair value of all interest rate swaps as of March 30, 2022, was $(23,264,000)[119] - The company continues to monitor market considerations that could affect the fair values of its interest rate swaps[120] - Additional information regarding interest rate swaps can be found in Notes 6, 7, and 13 of the unaudited Consolidated Financial Statements[120] Technology and Future Plans - A new cloud-based restaurant technology platform rollout is expected to begin in the second half of 2022 and be substantially complete by the end of 2023[112]

Sales Performance - Denny's reported that off-premise sales, including delivery and virtual brands, represented approximately 27% of total sales in 2021[8]. - The average daily sales breakdown by daypart was 28% for breakfast, 37% for lunch, 22% for dinner, and 13% for late night[8]. - In 2021, 36% of an average week of sales occurred from Friday late night through Sunday lunch[8]. - The company experienced improving sales performance in 2021, although many restaurants had not returned to full operating hours, particularly during the late night daypart[10]. - The domestic contractual royalty rate averaged approximately 4.35% during 2021[12]. - The restaurant sales are generally higher in the second and third calendar quarters (April through September) compared to the first and fourth quarters (October through March)[61]. Restaurant Operations - As of December 29, 2021, Denny's had 1,640 total restaurants, with 65 company restaurants and 1,575 franchised and licensed restaurants[22]. - The company opened 20 franchised and licensed restaurants in 2021, while closing 30[22]. - Denny's achieved a restaurant portfolio mix of 96% franchised and 4% company restaurants[20]. - Denny's has potential to develop approximately 126 international franchised restaurants over the next ten years[18]. - The company had approximately 92 domestic development commitments as of December 29, 2021, following the refranchising and development strategy implemented during 2018 and 2019[17]. - Denny's opened eight international franchised locations in 2021, including five in Canada and one each in Guatemala, Mexico, and the Philippines[18]. - As of December 29, 2021, 36.2% of franchisees owned one restaurant, while 38.7% of total restaurants were owned by franchisees with 31 or more locations[22]. Franchise Relations - Approximately 80% of franchised restaurants operated under traditional agreements with a royalty payment of up to 4.5% of gross sales[12]. - The company provided direct financial relief to franchise partners, including deferrals of remodels and royalty fees during the pandemic[23]. - As of December 29, 2021, trade accounts receivable from franchisees included $0.6 million related to fee deferrals from fiscal 2020[23]. - The total number of company restaurants at the end of the period was 65, unchanged from the previous year, while franchised and licensed restaurants decreased to 1,575 from 1,585[22]. Workforce and Diversity - As of December 29, 2021, Denny's employed approximately 3,300 individuals, with around 3,000 working in company-owned restaurants and 300 in corporate roles[38]. - 75% of Denny's total workforce and 80% of restaurant management are from diverse backgrounds, with 58% of restaurants owned by diverse franchisees[38]. - Denny's has established six business resource leadership groups to enhance inclusivity and support professional development among employees[38]. Technology and Innovation - Denny's has invested in technology to enhance operations and guest experience, including a cloud-based ERP platform for financial and operational management[56]. - The company has a robust digital ordering platform, Denny's on Demand, which allows guests to order food for takeout or delivery through a mobile app[44]. - The company has enhanced its technology infrastructure in response to the COVID-19 pandemic, focusing on digital and in-restaurant systems[58]. - The company has implemented cybersecurity measures to protect against unauthorized access and data loss, maintaining PCI Data Security Standard compliance[57]. - The company employs integrated marketing strategies to promote its brand and menu offerings, utilizing various advertising channels[52]. Compliance and Regulations - The company is subject to various regulations affecting restaurant operations, including health, safety, and labor standards[68]. - The company is in material compliance with applicable laws and regulations, but future regulatory changes may impact operations[76].

Denny's Corporation (NASDAQ:DENN) Q4 2021 Earnings Conference Call February 15, 2022 4:30 PM ET Company Participants Curt Nichols - VP, IR & Financial Planning & Analysis John Miller - CEO Mark Wolfinger - President Robert Verostek - EVP and CFO Conference Call Participants Michael Tamas - Oppenheimer & Company Jake Bartlett - Truist Securities James Rutherford - Stephens Nick Setyan - Wedbush Securities Todd Brooks - The Benchmark Company Eric Gonzalez - KeyBanc Capital Markets Brett Levy - MKM Partners Op ...

Denny's Corporation (NASDAQ:DENN) Q3 2021 Results Earnings Conference Call November 3, 2021 4:30 PM ET Company Participants Curt Nichols - Vice President, Investor Relations & Financial Planning & Analysis John Miller - Chief Executive Officer Mark Wolfinger - President Robert Verostek - Executive Vice President and Chief Financial Officer Conference Call Participants Michael Tamas - Oppenheimer & Company James Rutherford - Stephens, Inc. Nick Setyan - Wedbush Securities Jon Tower - Wells Fargo Jake Bartlet ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 29, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ________________ Commission File Number 0-18051 DENNY'S CORPORATION (Exact name of registrant as specified in its charter) Delaware 13- ...

Denny's Corporation (NASDAQ:DENN) Q2 2021 Earnings Conference Call August 3, 2021 4:30 PM ET Company Participants Curt Nichols - Vice President, Investor Relations & Financial Planning & Analysis John Miller - Chief Executive Officer Mark Wolfinger - President Robert Verostek - Senior Vice President & Chief Financial Officer Conference Call Participants Nick Setyan - Wedbush Securities Michael Tamas - Oppenheimer & Company Jon Tower - Wells Fargo James Rutherford - Stephens Eric Gonzalez - KeyBanc Capital M ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ________________ Commission File Number 0-18051 DENNY'S CORPORATION (Exact name of registrant as specified in its charter) | --- | --- | --- ...

Denny's Corporation (NASDAQ:DENN) Q1 2021 Earnings Conference Call May 4, 2021 4:30 PM ET Company Participants Curt Nichols - Vice President, Investor Relations & Financial Planning & Analysis John Miller - Chief Executive Officer Mark Wolfinger - President Robert Verostek - Executive Vice President & Chief Financial Officer Conference Call Participants James Rutherford - Stephens Inc. Nick Setyan - Wedbush Securities Todd Brooks - CL King & Associates Michael Tamas - Oppenheimer and Company Jake Bartlett - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ________________ Commission File Number 0-18051 DENNY'S CORPORATION (Exact name of registrant as specified in its charter) Delaware 13-3487 ...