|   | SPARTANBURG, S.C., November 1, 2011 – Denny’s Corporation (NASDAQ: DENN), one of America’s largest full-service family restaurant chains, today reported results for its third quarter ended September 28, 2011. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | System-wide same-store sales grew 0.9% with a 0.8% increase at franchised units and a 1.1% increase at company-owned units marking the second consecutive quarter that both franchise and company same-store sales have been positive. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Same-store guest counts decreased 0.2% at company-owned units with two-year same-store guest counts of positive 2.1%. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | Opened 11 system-wide units, including three Flying J Travel Center conversion sites, three university units, and one international unit. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Franchise operating margin of $21.3 million grew $0.5 million, compared to the prior year quarter. Franchise operating margin, as a percentage of franchise and license revenue, increased 3.1 percentage points to 66.4%, compared with the prior year quarter. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net income of $8.0 million, or $0.08 per diluted share, was impacted by $2.2 million in impairment expense. |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | Adjusted income before taxes* increased 28% to $12.0 million compared with the prior year quarter adjusted income of $9.4 million. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Reduced outstanding debt by $10 million bringing total term loan debt repayment to $40 million since October 2010 refinancing. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | Repurchased 1.3 million shares in the third quarter bringing total shares repurchased to 6.1 million in last 10 months. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

----

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| Component – Full Year 2011   | Previous Guidance**                                                                   | Updated Guidance                                                                                    |
|------------------------------------|---------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|
| Company Same-Store Sales           | (1.0%) to 1.0%                                                                        | 0.0% to 1.0%                                                                                        |
| Franchise Same-Store Sales         | (1.0%) to 1.0%                                                                        | (0.5%) to 0.5%                                                                                      |
| New Company Units                  | 7 - 12 (includes 5-10 Flying J units and 2 Denny’s Fast Casual test units) | 8(all Flying J conversion units)                                                                    |
| New Franchise Units                | 63 (includes 15 -20 Flying J units and 10 university units)                      | 52 – 54(includes 15 Flying J conversion units, 5 university units, and 3 international units) |
| Total New Unit Openings            | 70 – 75(includes 25 Flying J units)                                             | 60 – 62(includes 23 Flying J units)                                                           |
| Adjusted EBITDA* ($M)              | $80 to $85                                                                            | $80 to $83                                                                                          |
| Adjusted Income Before Taxes* ($M) | $38 to $42                                                                            | $36 to $39                                                                                          |
| Cash Interest Expense ($M)         | $17                                                                                   | No Change                                                                                           |
| Cash Capital Expenditure ($M)      | $18                                                                                   | $17                                                                                                 |

| * | Please refer to the historical reconciliation of net income to adjusted income before taxes and adjusted EBITDA included in the tables below. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ** | As announced in Second Quarter 2011 Earnings Release on August 2, 2011. |
|----|-------------------------------------------------------------------------|

----

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

----

| DENNY’S CORPORATION                        |   |
|--------------------------------------------------|--------|
| Condensed Consolidated Statements of Operations  |   |
| (Unaudited)                                      |   |
|                                             |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |
|                                             |   | Quarter |   |   | Quarter |   |
|                                             |   | Ended |   |   | Ended |   |
| (In thousands, except per share amounts)         |   | 9/28/11 |   |   | 9/29/10 |   |
|                                             |   |   |   |   |   |   |
| Revenue:                                         |   |   |   |   |   |   |
| Company restaurant sales                         |   | $ | 104,659 |   |   | $ | 107,171 |   |
| Franchise and license revenue                    |   |   | 32,023 |   |   |   | 32,761 |   |
| Total operating revenue                          |   |   | 136,682 |   |   |   | 139,932 |   |
| Costs of company restaurant sales                |   |   | 89,887 |   |   |   | 91,193 |   |
| Costs of franchise and license revenue           |   |   | 10,747 |   |   |   | 12,009 |   |
| General and administrative expenses              |   |   | 13,335 |   |   |   | 14,375 |   |
| Depreciation and amortization                    |   |   | 6,955 |   |   |   | 7,320 |   |
| Operating (gains), losses and other charges, net |   |   | 1,791 |   |   |   | (1,900 | ) |
| Total operating costs and expenses               |   |   | 122,715 |   |   |   | 122,997 |   |
| Operating income                                 |   |   | 13,967 |   |   |   | 16,935 |   |
| Other expenses:                                  |   |   |   |   |   |   |   |   |
| Interest expense, net                            |   |   | 4,796 |   |   |   | 6,394 |   |
| Other nonoperating expense, net                  |   |   | 780 |   |   |   | 188 |   |
| Total other expenses, net                        |   |   | 5,576 |   |   |   | 6,582 |   |
| Income before income taxes                       |   |   | 8,391 |   |   |   | 10,353 |   |
| Provision for income taxes                       |   |   | 406 |   |   |   | 419 |   |
| Net income                                       |   | $ | 7,985 |   |   | $ | 9,934 |   |
|                                             |   |   |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   |   |
| Basic and diluted net income per share           |   | $ | 0.08 |   |   | $ | 0.10 |   |
|                                             |   |   |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding:             |   |   |   |   |   |   |   |   |
| Basic                                            |   |   | 96,997 |   |   |   | 99,579 |   |
| Diluted                                          |   |   | 98,746 |   |   |   | 101,305 |   |

----

| DENNY’S CORPORATION                        |   |
|--------------------------------------------------|--------|
| Condensed Consolidated Statements of Operations  |   |
| (Unaudited)                                      |   |
|                                             |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |
|                                             |   | Three Quarters |   |   | Three Quarters |   |
|                                             |   | Ended |   |   | Ended |   |
| (In thousands, except per share amounts)         |   | 9/28/11 |   |   | 9/29/10 |   |
|                                             |   |   |   |   |   |   |
| Revenue:                                         |   |   |   |   |   |   |
| Company restaurant sales                         |   | $ | 313,235 |   |   | $ | 320,255 |   |
| Franchise and license revenue                    |   |   | 95,105 |   |   |   | 92,326 |   |
| Total operating revenue                          |   |   | 408,340 |   |   |   | 412,581 |   |
| Costs of company restaurant sales                |   |   | 271,989 |   |   |   | 275,091 |   |
| Costs of franchise and license revenue           |   |   | 33,397 |   |   |   | 35,498 |   |
| General and administrative expenses              |   |   | 41,566 |   |   |   | 40,560 |   |
| Depreciation and amortization                    |   |   | 21,377 |   |   |   | 21,984 |   |
| Operating (gains), losses and other charges, net |   |   | 843 |   |   |   | (1,594 | ) |
| Total operating costs and expenses               |   |   | 369,172 |   |   |   | 371,539 |   |
| Operating income                                 |   |   | 39,168 |   |   |   | 41,042 |   |
| Other expenses:                                  |   |   |   |   |   |   |   |   |
| Interest expense, net                            |   |   | 15,390 |   |   |   | 19,306 |   |
| Other nonoperating expense, net                  |   |   | 2,526 |   |   |   | 746 |   |
| Total other expenses, net                        |   |   | 17,916 |   |   |   | 20,052 |   |
| Income before income taxes                       |   |   | 21,252 |   |   |   | 20,990 |   |
| Provision for income taxes                       |   |   | 1,013 |   |   |   | 1,010 |   |
| Net income                                       |   | $ | 20,239 |   |   | $ | 19,980 |   |
|                                             |   |   |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   |   |
| Net income per share:                            |   |   |   |   |   |   |   |   |
| Basic                                            |   | $ | 0.21 |   |   | $ | 0.20 |   |
| Diluted                                          |   | $ | 0.20 |   |   | $ | 0.20 |   |
|                                             |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding:             |   |   |   |   |   |   |   |   |
| Basic                                            |   |   | 98,132 |   |   |   | 98,646 |   |
| Diluted                                          |   |   | 100,203 |   |   |   | 101,264 |   |

----

| DENNY’S CORPORATION                                                               |   |
|-----------------------------------------------------------------------------------------|--------|
| Condensed Consolidated Balance Sheets                                                   |   |
| (Unaudited)                                                                             |   |
|                                                                                    |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |
| (In thousands)                                                                          |   | 9/28/11 |   |   | 12/29/10 |   |
|                                                                                    |   |   |   |   |   |   |
| ASSETS                                                                                  |   |   |   |   |   |   |
| Current Assets                                                                          |   |   |   |   |   |   |
| Cash and cash equivalents                                                               |   | $ | 14,947 |   |   | $ | 29,074 |   |
| Receivables, net                                                                        |   |   | 13,523 |   |   |   | 17,280 |   |
| Assets held for sale                                                                    |   |   | 2,380 |   |   |   | 1,933 |   |
| Other                                                                                   |   |   | 13,499 |   |   |   | 14,199 |   |
|                                                                                    |   |   | 44,349 |   |   |   | 62,486 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Property, net                                                                           |   |   | 120,652 |   |   |   | 129,518 |   |
| Goodwill                                                                                |   |   | 31,023 |   |   |   | 31,308 |   |
| Intangible assets, net                                                                  |   |   | 50,092 |   |   |   | 52,054 |   |
| Other assets                                                                            |   |   | 34,520 |   |   |   | 35,840 |   |
| Total Assets                                                                            |   | $ | 280,636 |   |   | $ | 311,206 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ DEFICIT                                             |   |   |   |   |   |   |   |   |
| Current Liabilities                                                                     |   |   |   |   |   |   |   |   |
| Current maturities of long-term debt                                                    |   | $ | 2,589 |   |   | $ | 2,583 |   |
| Current maturities of capital lease obligations                                         |   |   | 4,548 |   |   |   | 4,109 |   |
| Accounts payable                                                                        |   |   | 20,280 |   |   |   | 25,957 |   |
| Other current liabilities                                                               |   |   | 57,040 |   |   |   | 57,685 |   |
|                                                                                    |   |   | 84,457 |   |   |   | 90,334 |   |
| Long-Term Liabilities                                                                   |   |   |   |   |   |   |   |   |
| Long-term debt, less current maturities                                                 |   |   | 205,023 |   |   |   | 234,143 |   |
| Capital lease obligations, less current maturities                                      |   |   | 19,269 |   |   |   | 18,988 |   |
| Other                                                                                   |   |   | 67,366 |   |   |   | 71,453 |   |
|                                                                                    |   |   | 291,658 |   |   |   | 324,584 |   |
| Total Liabilities                                                                       |   |   | 376,115 |   |   |   | 414,918 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Shareholders' Deficit                                                                   |   |   |   |   |   |   |   |   |
| Common stock                                                                            |   |   | 1,026 |   |   |   | 1,001 |   |
| Paid-in capital                                                                         |   |   | 555,852 |   |   |   | 548,490 |   |
| Deficit                                                                                 |   |   | (609,875 | ) |   |   | (630,114 | ) |
| Accumulated other comprehensive loss, net of tax                                        |   |   | (19,199 | ) |   |   | (19,199 | ) |
| Treasury stock                                                                          |   |   | (23,283 | ) |   |   | (3,890 | ) |
| Total Shareholders' Deficit                                                             |   |   | (95,479 | ) |   |   | (103,712 | ) |
| Total Liabilities and Shareholders' Deficit                                             |   | $ | 280,636 |   |   | $ | 311,206 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Debt Balances                                                                           |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| (In thousands)                                                                          |   | 9/28/11 |   |   | 12/29/10 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Credit facility revolver loans due 2015                                                 |   | $ | - |   |   | $ | - |   |
| Credit facility term loans due 2016, net of discount of $2,509 and $3,455, respectively |   |   | 207,491 |   |   |   | 236,545 |   |
| Capital leases and other debt                                                           |   |   | 23,938 |   |   |   | 23,278 |   |
| Total Debt                                                                              |   | $ | 231,429 |   |   | $ | 259,823 |   |

----

| DENNY’S CORPORATION                              |   |
|--------------------------------------------------------|--------|
| Income, EBITDA and G&A Reconciliations             |   |
| (Unaudited)                                            |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   | Quarter |   |   | Quarter |   |   | Three Quarters |   | Three Quarters |   |
| Income and EBITDA Reconciliation                       |   | Ended |   |   | Ended |   |   | Ended |   |   | Ended |   |
| (In millions)                                          |   | 9/28/11 |   |   | 9/29/10 |   |   | 9/28/11 |   |   | 9/29/10 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                             |   | $ | 8.0 |   |   | $ | 9.9 |   |   | $ | 20.2 |   |   | $ | 20.0 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                             |   |   | 0.4 |   |   |   | 0.4 |   |   |   | 1.0 |   |   |   | 1.0 |   |
| Operating (gains), losses and other charges, net       |   |   | 1.8 |   |   |   | (1.9 | ) |   |   | 0.8 |   |   |   | (1.6 | ) |
| Other nonoperating expense, net                        |   |   | 0.8 |   |   |   | 0.2 |   |   |   | 2.5 |   |   |   | 0.7 |   |
| Share-based compensation                               |   |   | 1.0 |   |   |   | 0.8 |   |   |   | 3.2 |   |   |   | 2.0 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted income before taxes (1)                       |   | $ | 12.0 |   |   | $ | 9.4 |   |   | $ | 27.8 |   |   | $ | 22.2 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                                  |   |   | 4.8 |   |   |   | 6.4 |   |   |   | 15.4 |   |   |   | 19.3 |   |
| Depreciation and amortization                          |   |   | 7.0 |   |   |   | 7.3 |   |   |   | 21.4 |   |   |   | 22.0 |   |
| Cash payments for restructuring charges and exit costs |   |   | (0.6 | ) |   |   | (1.1 | ) |   |   | (2.1 | ) |   |   | (3.4 | ) |
| Cash payments for share-based compensation             |   |   | (0.5 | ) |   |   | (0.6 | ) |   |   | (0.6 | ) |   |   | (1.6 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted EBITDA (1)                                    |   | $ | 22.6 |   |   | $ | 21.4 |   |   | $ | 61.9 |   |   | $ | 58.5 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   | Quarter |   |   | Quarter |   |   | Three Quarters |   | Three Quarters |   |
| General and Administrative Expenses Reconciliation     |   | Ended |   |   | Ended |   |   | Ended |   |   | Ended |   |
| (In millions)                                          |   | 9/28/11 |   |   | 9/29/10 |   |   | 9/28/11 |   |   | 9/29/10 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share-based compensation                               |   | $ | 1.0 |   |   | $ | 0.8 |   |   | $ | 3.2 |   |   | $ | 2.0 |   |
| Other general and administrative expenses              |   |   | 12.3 |   |   |   | 13.6 |   |   |   | 38.4 |   |   |   | 38.6 |   |
| Total general and administrative expenses              |   | $ | 13.3 |   |   | $ | 14.4 |   |   | $ | 41.6 |   |   | $ | 40.6 |   |

|  (1) | We believe that, in addition to other financial measures, Adjusted Income Before Taxes and Adjusted EBITDA are appropriate indicators to assist in the evaluation of our operating performance on a period-to-period basis.  We also use Adjusted Income and Adjusted EBITDA internally as performance measures for planning purposes, including the preparation of annual operating budgets, and for compensation purposes, including bonuses for certain employees.  Adjusted EBITDA is also used to evaluate our ability to service debt because the excluded charges do not have an impact on our prospective debt servicing capability and these adjustments are contemplated in our credit facility for the computation of our debtcovenant ratios.  However, Adjusted Income and Adjusted EBITDA should be considered as a supplement to, not a substitute for, operating income, net income or other financial performance measures prepared in accordance with U.S. generally accepted accounting principles. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| DENNY’S CORPORATION                       |   |
|-------------------------------------------------|--------|
| Operating Margins                               |   |
| (Unaudited)                                     |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   | Quarter |   |   | Quarter |   |
|                                            |   | Ended |   |   | Ended |   |
| (In millions)                                   |   | 9/28/11 |   |   | 9/29/10 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Company restaurant operations: (2)              |   |   |   |   |   |   |   |   |   |   |   |   |
| Company restaurant sales                        |   | $ | 104.7 |   |   |   | 100.0 | % |   | $ | 107.2 |   |   |   | 100.0 | % |
| Costs of company restaurant sales:              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product costs                                   |   |   | 25.8 |   |   |   | 24.7 | % |   |   | 25.4 |   |   |   | 23.7 | % |
| Payroll and benefits                            |   |   | 41.3 |   |   |   | 39.4 | % |   |   | 41.5 |   |   |   | 38.8 | % |
| Occupancy                                       |   |   | 6.9 |   |   |   | 6.6 | % |   |   | 7.1 |   |   |   | 6.6 | % |
| Other operating costs:                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Utilities                                       |   |   | 4.8 |   |   |   | 4.6 | % |   |   | 4.9 |   |   |   | 4.6 | % |
| Repairs and maintenance                         |   |   | 1.8 |   |   |   | 1.7 | % |   |   | 1.8 |   |   |   | 1.6 | % |
| Marketing                                       |   |   | 3.9 |   |   |   | 3.8 | % |   |   | 4.6 |   |   |   | 4.3 | % |
| Legal settlements                               |   |   | 0.6 |   |   |   | 0.6 | % |   |   | 0.6 |   |   |   | 0.6 | % |
| Other                                           |   |   | 4.8 |   |   |   | 4.6 | % |   |   | 5.2 |   |   |   | 4.9 | % |
| Total costs of company restaurant sales         |   | $ | 89.9 |   |   |   | 85.9 | % |   | $ | 91.2 |   |   |   | 85.1 | % |
| Company restaurant operating margin (3)         |   | $ | 14.8 |   |   |   | 14.1 | % |   | $ | 16.0 |   |   |   | 14.9 | % |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Franchise operations: (4)                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Franchise and license revenue                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Royalty and license revenue   |   | $ | 20.4 |   |   |   | 63.9 | % |   | $ | 18.7 |   |   |   | 57.0 | % |
|    Initial and other fee revenue |   |   | 0.4 |   |   |   | 1.4 | % |   | $ | 2.8 |   |   |   | 8.4 | % |
|    Occupancy revenue             |   |   | 11.1 |   |   |   | 34.8 | % |   | $ | 11.3 |   |   |   | 34.6 | % |
| Total franchise and license revenue             |   | $ | 32.0 |   |   |   | 100.0 | % |   | $ | 32.8 |   |   |   | 100.0 | % |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs of franchise and license revenue          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Direct franchise costs        |   | $ | 2.4 |   |   |   | 7.5 | % |   | $ | 3.3 |   |   |   | 10.0 | % |
|    Occupancy costs               |   |   | 8.3 |   |   |   | 26.1 | % |   | $ | 8.7 |   |   |   | 26.7 | % |
| Total costs of franchise and license revenue    |   | $ | 10.7 |   |   |   | 33.6 | % |   | $ | 12.0 |   |   |   | 36.7 | % |
| Franchise operating margin (3)                  |   | $ | 21.3 |   |   |   | 66.4 | % |   | $ | 20.8 |   |   |   | 63.3 | % |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating revenue (1)                     |   | $ | 136.7 |   |   |   | 100.0 | % |   | $ | 139.9 |   |   |   | 100.0 | % |
| Total costs of operating revenue (1)            |   |   | 100.6 |   |   |   | 73.6 | % |   |   | 103.2 |   |   |   | 73.8 | % |
| Total operating margin (1)(3)                   |   | $ | 36.0 |   |   |   | 26.4 | % |   | $ | 36.7 |   |   |   | 26.2 | % |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other operating expenses: (1)(3)                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses             |   | $ | 13.3 |   |   |   | 9.8 | % |   | $ | 14.4 |   |   |   | 10.3 | % |
| Depreciation and amortization                   |   |   | 7.0 |   |   |   | 5.1 | % |   |   | 7.3 |   |   |   | 5.2 | % |
| Operating gains, losses and other charges, net  |   |   | 1.8 |   |   |   | 1.3 | % |   |   | (1.9 | ) |   |   | (1.4 | %) |
| Total other operating expenses                  |   | $ | 22.1 |   |   |   | 16.2 | % |   | $ | 19.8 |   |   |   | 14.1 | % |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (1)                            |   | $ | 14.0 |   |   |   | 10.2 | % |   | $ | 16.9 |   |   |   | 12.1 | % |

| (1) | As a percentage of total operating revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | As a percentage of company restaurant sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (3) | Other operating expenses such as general and administrative expenses and depreciation and amortization relate to both company and franchise operations and are not allocated to costs of company restaurant sales and costs of franchise and license revenue.  As such, operating margin is considered a non-GAAP financial measure.  Operating margins should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with U.S. generally accepted accounting principles. |
| (4) | As a percentage of franchise and license revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

| DENNY’S CORPORATION                       |   |
|-------------------------------------------------|--------|
| Operating Margins                               |   |
| (Unaudited)                                     |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   | Three Quarters |   |   | Three Quarters |   |
|                                            |   | Ended |   |   | Ended |   |
| (In millions)                                   |   | 9/28/11 |   |   | 9/29/10 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Company restaurant operations: (2)              |   |   |   |   |   |   |   |   |   |   |   |   |
| Company restaurant sales                        |   | $ | 313.2 |   |   |   | 100.0 | % |   | $ | 320.3 |   |   |   | 100.0 | % |
| Costs of company restaurant sales:              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product costs                                   |   |   | 77.1 |   |   |   | 24.6 | % |   |   | 75.6 |   |   |   | 23.6 | % |
| Payroll and benefits                            |   |   | 127.9 |   |   |   | 40.8 | % |   |   | 129.1 |   |   |   | 40.3 | % |
| Occupancy                                       |   |   | 20.6 |   |   |   | 6.6 | % |   |   | 21.4 |   |   |   | 6.7 | % |
| Other operating costs:                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Utilities                                       |   |   | 13.7 |   |   |   | 4.4 | % |   |   | 14.0 |   |   |   | 4.4 | % |
| Repairs and maintenance                         |   |   | 5.5 |   |   |   | 1.8 | % |   |   | 5.7 |   |   |   | 1.8 | % |
| Marketing                                       |   |   | 11.7 |   |   |   | 3.7 | % |   |   | 13.5 |   |   |   | 4.2 | % |
| Legal settlements                               |   |   | 0.7 |   |   |   | 0.2 | % |   |   | 0.8 |   |   |   | 0.3 | % |
| Other                                           |   |   | 14.8 |   |   |   | 4.7 | % |   |   | 15.1 |   |   |   | 4.7 | % |
| Total costs of company restaurant sales         |   | $ | 272.0 |   |   |   | 86.8 | % |   | $ | 275.1 |   |   |   | 85.9 | % |
| Company restaurant operating margin (3)         |   | $ | 41.2 |   |   |   | 13.2 | % |   | $ | 45.2 |   |   |   | 14.1 | % |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Franchise operations: (4)                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Franchise and license revenue                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Royalty and license revenue   |   | $ | 59.7 |   |   |   | 62.7 | % |   | $ | 54.5 |   |   |   | 59.0 | % |
|    Initial and other fee revenue |   |   | 2.1 |   |   |   | 2.2 | % |   |   | 3.9 |   |   |   | 4.2 | % |
|    Occupancy revenue             |   |   | 33.4 |   |   |   | 35.1 | % |   |   | 34.0 |   |   |   | 36.8 | % |
| Total franchise and license revenue             |   | $ | 95.1 |   |   |   | 100.0 | % |   | $ | 92.3 |   |   |   | 100.0 | % |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs of franchise and license revenue          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Direct franchise costs        |   | $ | 7.8 |   |   |   | 8.2 | % |   | $ | 9.4 |   |   |   | 10.2 | % |
|    Occupancy costs               |   |   | 25.6 |   |   |   | 26.9 | % |   |   | 26.1 |   |   |   | 28.2 | % |
| Total costs of franchise and license revenue    |   | $ | 33.4 |   |   |   | 35.1 | % |   | $ | 35.5 |   |   |   | 38.4 | % |
| Franchise operating margin (3)                  |   | $ | 61.7 |   |   |   | 64.9 | % |   | $ | 56.8 |   |   |   | 61.6 | % |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating revenue (1)                     |   | $ | 408.3 |   |   |   | 100.0 | % |   | $ | 412.6 |   |   |   | 100.0 | % |
| Total costs of operating revenue (1)            |   |   | 305.4 |   |   |   | 74.8 | % |   |   | 310.6 |   |   |   | 75.3 | % |
| Total operating margin (1)(3)                   |   | $ | 103.0 |   |   |   | 25.2 | % |   | $ | 102.0 |   |   |   | 24.7 | % |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other operating expenses: (1)(3)                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses             |   | $ | 41.6 |   |   |   | 10.2 | % |   | $ | 40.6 |   |   |   | 9.8 | % |
| Depreciation and amortization                   |   |   | 21.4 |   |   |   | 5.2 | % |   |   | 22.0 |   |   |   | 5.3 | % |
| Operating gains, losses and other charges, net  |   |   | 0.8 |   |   |   | 0.2 | % |   |   | (1.6 | ) |   |   | (0.4 | %) |
| Total other operating expenses                  |   | $ | 63.8 |   |   |   | 15.6 | % |   | $ | 61.0 |   |   |   | 14.8 | % |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (1)                            |   | $ | 39.2 |   |   |   | 9.6 | % |   | $ | 41.0 |   |   |   | 9.9 | % |

| (1) | As a percentage of total operating revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | As a percentage of company restaurant sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (3) | Other operating expenses such as general and administrative expenses and depreciation and amortization relate to both company and franchise operations and are not allocated to costs of company restaurant sales and costs of franchise and license revenue.  As such, operating margin is considered a non-GAAP financial measure.  Operating margins should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with U.S. generally accepted accounting principles. |
| (4) | As a percentage of franchise and license revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

| DENNY’S CORPORATION                |   |
|------------------------------------------|--------|
| Statistical Data                         |   |
| (Unaudited)                              |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | Quarter |   |   | Quarter |   |   | Three Quarters |   |   | Three Quarters |   |
| Same-Store Sales                         |   | Ended |   |   | Ended |   |   | Ended |   |   | Ended |   |
| (increase/(decrease) vs. prior year)     |   | 9/28/11 |   |   | 9/29/10 |   |   | 9/28/11 |   |   | 9/29/10 |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Same-Store Sales                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Company Restaurants                      |   |   | 1.1 | % |   |   | (0.7 | %) |   |   | 0.7 | % |   |   | (4.2 | %) |
| Franchised Restaurants                   |   |   | 0.8 | % |   |   | (1.2 | %) |   |   | 0.3 | % |   |   | (4.5 | %) |
| System-wide Restaurants                  |   |   | 0.9 | % |   |   | (1.1 | %) |   |   | 0.4 | % |   |   | (4.4 | %) |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company Restaurant Sales Detail          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Guest Check Average                      |   |   | 1.3 | % |   |   | (2.9 | %) |   |   | 0.8 | % |   |   | (1.8 | %) |
| Guest Counts                             |   |   | (0.2 | %) |   |   | 2.3 | % |   |   | 0.0 | % |   |   | (2.4 | %) |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | Quarter |   |   | Quarter |   |   | Three Quarters |   |   | Three Quarters |   |
| Average Unit Sales                       |   | Ended |   |   | Ended |   |   | Ended |   |   | Ended |   |
| ($ in thousands)                         |   | 9/28/11 |   |   | 9/29/10 |   |   | 9/28/11 |   |   | 9/29/10 |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company Restaurants                      |   | $ | 468 |   |   | $ | 462 |   |   | $ | 1,383 |   |   | $ | 1,368 |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Franchised Restaurants                   |   | $ | 355 |   |   | $ | 348 |   |   | $ | 1,043 |   |   | $ | 1,029 |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   | Franchised |   |   |   |   |   |   |   |   |   |
| Restaurant Unit Activity                 |   | Company |   |   | & Licensed |   |   | Total |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Units 6/29/11                     |   |   | 225 |   |   |   | 1,452 |   |   |   | 1,677 |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Units Opened                             |   |   | 2 |   |   |   | 9 |   |   |   | 11 |   |   |   |   |   |
| Units Relocated                          |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   |   |   |
| Units Refranchised                       |   |   | (3 | ) |   |   | 3 |   |   |   | 0 |   |   |   |   |   |
| Units Closed (Including Units Relocated) |   |   | (1 | ) |   |   | (10 | ) |   |   | (11 | ) |   |   |   |   |
| Net Change                               |   |   | (2 | ) |   |   | 2 |   |   |   | 0 |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Units 9/28/11                     |   |   | 223 |   |   |   | 1,454 |   |   |   | 1,677 |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equivalent Units                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Third Quarter 2011                       |   |   | 224 |   |   |   | 1,451 |   |   |   | 1,675 |   |   |   |   |   |
| Third Quarter 2010                       |   |   | 232 |   |   |   | 1,348 |   |   |   | 1,580 |   |   |   |   |   |
|                                     |   |   | (8 | ) |   |   | 103 |   |   |   | 95 |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   | Franchised |   |   |   |   |   |   |   |   |   |
| Restaurant Unit Activity                 |   | Company |   |   | & Licensed |   |   | Total |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Units 12/29/10                    |   |   | 232 |   |   |   | 1,426 |   |   |   | 1,658 |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Units Opened                             |   |   | 8 |   |   |   | 39 |   |   |   | 47 |   |   |   |   |   |
| Units Relocated                          |   |   | 0 |   |   |   | 1 |   |   |   | 1 |   |   |   |   |   |
| Units Refranchised                       |   |   | (13 | ) |   |   | 13 |   |   |   | 0 |   |   |   |   |   |
| Units Closed (Including Units Relocated) |   |   | (4 | ) |   |   | (25 | ) |   |   | (29 | ) |   |   |   |   |
| Net Change                               |   |   | (9 | ) |   |   | 28 |   |   |   | 19 |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Units 9/28/11                     |   |   | 223 |   |   |   | 1,454 |   |   |   | 1,677 |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equivalent Units                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year-to-Date 2011                        |   |   | 226 |   |   |   | 1,441 |   |   |   | 1,667 |   |   |   |   |   |
| Year-to-Date 2010                        |   |   | 234 |   |   |   | 1,330 |   |   |   | 1,564 |   |   |   |   |   |
|                                     |   |   | (8 | ) |   |   | 111 |   |   |   | 103 |   |   |   |   |   |