| Delaware                        |   | 13-3487402          |
|---------------------------------|--------|---------------------|
| (State or other jurisdiction of |   | (I.R.S. Employer    |
| incorporation or organization   |   | Identification No.) |

| Large accelerated filer | o      | Accelerated filer | þ | Non-accelerated filer                        | o      | Smaller reporting company | o      |
|-------------------------|--------|-------------------|--------|----------------------------------------------|--------|---------------------------|--------|
|                    |   |              |   | (Do not check if a smallerreporting company) |   |                      |   |

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|                                                                                                                  |   |  Page |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------|
| Part I - FINANCIAL INFORMATION                                                                                        |   |       |
|                                                                                                                  |   |       |
| Item 1.   Financial Statements                                                                              |   |       |
| Condensed Consolidated Statements of Operations                                                                       |   |       |
| Quarter Ended March 30, 2011 and March 31, 2010 (unaudited)                                                           |   | 3          |
| Condensed Consolidated Balance Sheets (unaudited)                                                                     |   | 4          |
| Condensed Consolidated Statement of Shareholders' Deficit and Comprehensive Income (unaudited)                        |   | 5          |
| Condensed Consolidated Statements of Cash Flows (unaudited)                                                           |   | 6          |
| Notes to Condensed Consolidated Financial Statements (unaudited)                                                      |   | 7          |
| Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations  |   | 15         |
| Item 3.   Quantitative and Qualitative Disclosures About Market Risk                                        |   | 19         |
| Item 4.   Controls and Procedures                                                                           |   | 20         |
|                                                                                                                  |   |       |
| PART II - OTHER INFORMATION                                                                                           |   |       |
|                                                                                                                  |   |       |
| Item 1.   Legal Proceedings                                                                                 |   | 20         |
|     Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds                    |   | 20         |
| Item 6.   Exhibits                                                                                               |   | 21         |
| Signatures                                                                                                            |   | 22         |
|                                                                                                                  |   |       |

----

PART I - FINANCIAL INFORMATION

Item 1.     Financial Statements

Condensed Consolidated Statements of Operations

|                                             |   | Quarter Ended                            |       |
|--------------------------------------------------|--------|------------------------------------------|------------|
|                                             |   | March 30, 2011                           |       |   | March 31, 2010 |   |
|                                             |   | (In thousands, except per share amounts) |       |
| Revenue:                                         |   |                                     |       |   |   |   |
| Company restaurant sales                         |   | $                                        | 104,555    |   |   | $ | 107,783 |   |
| Franchise and license revenue                    |   |                                     | 31,250     |   |   |   | 29,789 |   |
| Total operating revenue                          |   |                                     | 135,805    |   |   |   | 137,572 |   |
| Costs of company restaurant sales:               |   |                                     |       |   |   |   |   |   |
| Product costs                                    |   |                                     | 25,635     |   |   |   | 25,692 |   |
| Payroll and benefits                             |   |                                     | 44,196     |   |   |   | 44,176 |   |
| Occupancy                                        |   |                                     | 6,860      |   |   |   | 7,401 |   |
| Other operating expenses                         |   |                                     | 15,257     |   |   |   | 15,864 |   |
| Total costs of company restaurant sales          |   |                                     | 91,948     |   |   |   | 93,133 |   |
| Costs of franchise and license revenue           |   |                                     | 11,565     |   |   |   | 12,366 |   |
| General and administrative expenses              |   |                                     | 14,139     |   |   |   | 13,074 |   |
| Depreciation and amortization                    |   |                                     | 7,188      |   |   |   | 7,373 |   |
| Operating (gains), losses and other changes, net |   |                                     |  (529 | ) |   |   |  423 |   |
| Total operating costs and expenses               |   |                                     | 124,311    |   |   |   | 126,369 |   |
| Operating income                                 |   |                                     | 11,494     |   |   |   | 11,203 |   |
| Other expenses:                                  |   |                                     |       |   |   |   |   |   |
| Interest expense, net                            |   |                                     | 5,693      |   |   |   | 6,398 |   |
| Other nonoperating expense (income), net         |   |                                     | 1,478      |   |   |   |  (12 | ) |
| Total other expenses, net                        |   |                                     | 7,171      |   |   |   | 6,386 |   |
| Net income before income taxes                   |   |                                     | 4,323      |   |   |   | 4,817 |   |
| Provision for income taxes                       |   |                                     | 199        |   |   |   | 229 |   |
| Net income                                       |   | $                                        | 4,124      |   |   | $ | 4,588 |   |
|                                             |   |                                     |       |   |   |   |   |   |
| Basic and diluted net income per share           |   | $                                        | 0.04       |   |   | $ | 0.05 |   |
|                                             |   |                                     |       |   |   |   |   |   |
| Weighted average shares outstanding:             |   |                                     |       |   |   |   |   |   |
| Basic                                            |   |                                     | 98,980     |   |   |   | 97,095 |   |
| Diluted                                          |   |                                     | 101,362    |   |   |   | 100,153 |   |

----

Condensed Consolidated Balance Sheets

|                                                                                                     |   | March 30, 2011 |           |   | December 29, 2010 |   |
|----------------------------------------------------------------------------------------------------------|--------|----------------|----------------|--------|-------------------|--------|
|                                                                                                     |   | (In thousands) |           |
| Assets                                                                                                   |   |           |           |   |              |   |
| Current Assets:                                                                                          |   |           |           |   |              |   |
| Cash and cash equivalents                                                                                |   | $              | 19,171         |   |              | $      | 29,074 |   |
| Receivables, less allowance for doubtful accounts of $387 and $207, respectively                         |   |           | 15,266         |   |              |   | 17,280 |   |
| Inventories                                                                                              |   |           | 3,862          |   |              |   | 4,037 |   |
| Assets held for sale                                                                                     |   |           | 548            |   |              |   | 1,933 |   |
| Prepaid and other current assets                                                                         |   |           | 10,293         |   |              |   | 10,162 |   |
| Total Current Assets                                                                                     |   |           | 49,140         |   |              |   | 62,486 |   |
|                                                                                                     |   |           |           |   |              |   |   |   |
| Property, net of accumulated depreciation of $247,909 and $247,492, respectively                         |   |           | 128,274        |   |              |   | 129,518 |   |
|                                                                                                     |   |           |           |   |              |   |   |   |
| Other Assets:                                                                                            |   |           |           |   |              |   |   |   |
| Goodwill                                                                                                 |   |           | 31,308         |   |              |   | 31,308 |   |
| Intangible assets, net                                                                                   |   |           | 51,400         |   |              |   | 52,054 |   |
| Deferred financing costs, net                                                                            |   |           | 7,581          |   |              |   | 5,286 |   |
| Other noncurrent assets                                                                                  |   |           | 29,065         |   |              |   | 30,554 |   |
| Total Assets                                                                                             |   | $              | 296,768        |   |              | $      | 311,206 |   |
|                                                                                                     |   |           |           |   |              |   |   |   |
| Liabilities                                                                                              |   |           |           |   |              |   |   |   |
| Current Liabilities:                                                                                     |   |           |           |   |              |   |   |   |
| Current maturities of notes and debentures                                                               |   | $              | 2,585          |   |              | $      | 2,583 |   |
| Current maturities of capital lease obligations                                                          |   |           | 4,213          |   |              |   | 4,109 |   |
| Accounts payable                                                                                         |   |           | 20,379         |   |              |   | 25,957 |   |
| Other current liabilities                                                                                |   |           | 58,877         |   |              |   | 57,685 |   |
| Total Current Liabilities                                                                                |   |           | 86,054         |   |              |   | 90,334 |   |
|                                                                                                     |   |           |           |   |              |   |   |   |
| Long-Term Liabilities:                                                                                   |   |           |           |   |              |   |   |   |
| Notes and debentures, less current maturities, net of discount of $3,012 and $3,455, respectively        |   |           | 224,564        |   |              |   | 234,143 |   |
| Capital lease obligations, less current maturities                                                       |   |           | 19,009         |   |              |   | 18,988 |   |
| Liability for insurance claims, less current portion                                                     |   |           | 18,030         |   |              |   | 18,810 |   |
| Deferred income taxes                                                                                    |   |           | 13,351         |   |              |   | 13,339 |   |
| Other noncurrent liabilities and deferred credits                                                        |   |           | 38,017         |   |              |   | 39,304 |   |
| Total Long-Term Liabilities                                                                              |   |           | 312,971        |   |              |   | 324,584 |   |
| Total Liabilities                                                                                        |   |           | 399,025        |   |              |   | 414,918 |   |
|                                                                                                     |   |           |           |   |              |   |   |   |
| Commitments and contingencies                                                                            |   |           |           |   |              |   |   |   |
|                                                                                                     |   |           |           |   |              |   |   |   |
| Shareholders' Deficit                                                                                    |   |           |           |   |              |   |   |   |
| Common stock $0.01 par value; authorized - 135,000; issued –101,818 and 100,073, respectively |   |           |  1,018    |   |              |   |  1,001 |   |
| Paid-in capital                                                                                          |   |           | 553,383        |   |              |   |  548,490 |   |
| Deficit                                                                                                  |   |           |  (625,990 | )      |              |   |  (630,114 | ) |
| Accumulated other comprehensive loss, net of tax                                                         |   |           |  (19,199  | )      |              |   |  (19,199 | ) |
|                                                                                                     |   |           | (90,788        | )      |              |   | (99,822 | ) |
|     Treasury stock, at cost, 3,000 and 1,037 shares, respectively                    |   |           | (11,469        | )      |              |   | (3,890 | ) |
| Total Shareholders' Deficit                                                                              |   |           | (102,257       | )      |              |   | (103,712 | ) |
| Total Liabilities and Shareholders' Deficit                                                              |   | $              | 296,768        |   |              | $      | 311,206 |   |

----

Condensed Consolidated Statement of Shareholders’ Deficit and Comprehensive Income

|                                                  |   | Common Stock   |    |   | Treasury Stock |   |    | Paid-in |   |   |    |    |   | AccumulatedOtherComprehensive |    |   | TotalShareholders’ |   |
|-------------------------------------------------------|--------|----------------|---------|--------|----------------|--------|---------|---------|--------|--------|---------|---------|--------|-------------------------------|---------|--------|--------------------------|--------|
|                                                  |   | Shares         |    |   | Amount         |   |    | Shares  |   |   | Amount  |    |   | Capital                       |    |   | (Deficit)                |   |   | Loss, Net |   |   | Deficit |   |
|                                                  |   | (In thousands) |    |
| Balance, December 29, 2010                            |   |           | 100,073 |   |           | $      | 1,001   |    |   |   | (1,037  | )  |   | $                             | (3,890  | )      |                     | $      | 548,490 |   |   | $ | (630,114 | ) |   | $ | (19,199 | ) |   | $ | (103,712 | ) |
| Comprehensive income:                                 |   |           |    |   |           |   |    |    |   |   |    |    |   |                          |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                            |   |           | — |   |           |   | — |    |   |   | — |    |   |                          | — |   |                     |   | — |   |   |   | 4,124 |   |   |   | — |   |   |   | 4,124 |   |
| Comprehensive income                                  |   |           | — |   |           |   | — |    |   |   | — |    |   |                          | — |   |                     |   | — |   |   |   | 4,124 |   |   |   | — |   |   |   | 4,124 |   |
| Share-based compensation on equity classified awards  |   |           | — |   |           |   | — |    |   |   | — |    |   |                          | — |   |                     |   | 806 |   |   |   | — |   |   |   | — |   |   |   | 806 |   |
| Purchase of treasury stock                            |   |           | — |   |           |   | — |    |   |   | (1,963  | )       |   |                          | (7,579  | )      |                     |   | — |   |   |   | — |   |   |   | — |   |   |   | (7,579 | ) |
| Issuance of common stock for share-based compensation |   |           | 19      |   |           |   | — |    |   |   | — |    |   |                          | — |   |                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Exercise of common stock options                      |   |           | 1,726   |   |           |   | 17      |    |   |   | — |    |   |                          | — |   |                     |   | 4,087 |   |   |   | — |   |   |   | — |   |   |   | 4,104 |   |
| Balance, March 30, 2011                               |   |           | 101,818 |   |           | $      | 1,018   |    |   |   | (3,000  | )  |   | $                             | (11,469 | )      |                     | $      | 553,383 |   |   | $ | (625,990 | ) |   | $ | (19,199 | ) |   | $ | (102,257 | ) |

----

Condensed Consolidated Statements of Cash Flows

|                                                                                     |   | Quarter Ended  |          |
|------------------------------------------------------------------------------------------|--------|----------------|---------------|
|                                                                                     |   | March 30, 2011 |          |   | March 31, 2010 |   |
|                                                                                     |   | (In thousands) |          |
| Cash Flows from Operating Activities:                                                    |   |           |          |   |   |   |
| Net income                                                                               |   | $              | 4,124         |   |   | $ | 4,588 |   |
| Adjustments to reconcile net income to cash flows provided by operating activities: |   |           |          |   |   |   |   |   |
| Depreciation and amortization                                                            |   |           | 7,188         |   |   |   | 7,373 |   |
| Operating (gains), losses and other charges, net                                         |   |           | (529          | ) |   |   |  423 |   |
| Amortization of deferred financing costs                                                 |   |           | 292           |   |   |   | 259 |   |
| Amortization of debt discount                                                            |   |           | 144           |   |   |   | — |   |
| Loss on early extinguishment of debt                                                |   |           | 1,717         |   |   |   | 26 |   |
| Loss on interest rate swap                                                               |   |           | —       |   |   |   |  167 |   |
| Deferred income tax expense                                                              |   |           | 12            |   |   |   | 29 |   |
| Share-based compensation                                                                 |   |           | 973           |   |   |   | 1,358 |   |
| Changes in assets and liabilities, net of effects of acquisitions and dispositions:      |   |           |          |   |   |   |   |   |
| Decrease (increase) in assets:                                                           |   |           |          |   |   |   |   |   |
| Receivables                                                                              |   |           | 2,467         |   |   |   | 2,692 |   |
| Inventories                                                                              |   |           | 175           |   |   |   | 352 |   |
| Other current assets                                                                     |   |           | (131          | ) |   |   | (1,828 | ) |
| Other assets                                                                             |   |           | 984           |   |   |   | (1,380 | ) |
| Increase (decrease) in liabilities:                                                      |   |           |          |   |   |   |   |   |
| Accounts payable                                                                         |   |           | (1,333        | ) |   |   | 6,140 |   |
| Accrued salaries and vacations                                                           |   |           | 1,539         |   |   |   | (5,822 | ) |
| Accrued taxes                                                                            |   |           | (265          | ) |   |   | (275 | ) |
| Other accrued liabilities                                                                |   |           | (157          | ) |   |   | 1,390 |   |
| Other noncurrent liabilities and deferred credits                                        |   |           | (2,607        | ) |   |   | (826 | ) |
| Net cash flows provided by operating activities                                          |   |           | 14,593        |   |   |   | 14,666 |   |
|                                                                                     |   |           |          |   |   |   |   |   |
| Cash Flows from Investing Activities:                                                    |   |           |          |   |   |   |   |   |
| Purchase of property                                                                     |   |           | (5,770        | ) |   |   | (3,164 | ) |
| Proceeds from disposition of property                                                    |   |           | 2,452         |   |   |   | 4 |   |
| Collections on notes receivable                                                          |   |           | 236           |   |   |   | 1,890 |   |
| Net cash flows used in investing activities                                         |   |           | (3,082        | ) |   |   | (1,270 | ) |
|                                                                                     |   |           |          |   |   |   |   |   |
| Cash Flows from Financing Activities:                                                    |   |           |          |   |   |   |   |   |
| Long-term debt payments                                                                  |   |           |  (11,038 | ) |   |   |  (5,924 | ) |
| Proceeds from exercise of stock options                                                  |   |           | 4,104         |   |   |   | 3,116 |   |
| Debt transaction costs                                                                   |   |           | (770          | ) |   |   | — |   |
| Deferred financing costs                                                                 |   |           | (3,085        | ) |   |   | — |   |
| Purchase of treasury stock                                                               |   |           | (7,579        | ) |   |   | — |   |
| Net bank overdrafts                                                                      |   |           |  (3,046  | ) |   |   |  (3,372 | ) |
| Net cash flows used in financing activities                                              |   |           |  (21,414 | ) |   |   |  (6,180 | ) |
|                                                                                     |   |           |          |   |   |   |   |   |
| (Decrease) increase in cash and cash equivalents                                    |   |           | (9,903        | ) |   |   | 7,216 |   |
|                                                                                     |   |           |          |   |   |   |   |   |
| Cash and Cash Equivalents at:                                                            |   |           |          |   |   |   |   |   |
| Beginning of period                                                                      |   |           | 29,074        |   |   |   | 26,525 |   |
| End of period                                                                            |   | $              | 19,171        |   |   | $ | 33,741 |   |

----

Notes to Condensed Consolidated Financial Statements

|                                                                    |   | Quarter Ended  |        |
|-------------------------------------------------------------------------|--------|----------------|-------------|
|                                                                    |   | March 30, 2011 |        |   | March 31, 2010 |   |
| Company-owned restaurants, beginning of period                          |   |           | 232         |   |   |   | 233 |   |
| Units opened                                                            |   |           | 5           |   |   |   | 4 |   |
| Units sold to franchisees                                               |   |           | (9          | ) |   |   | — |   |
| Units closed                                                            |   |           | (2          | ) |   |   |  — |   |
| End of period                                                           |   |           | 226         |   |   |   | 237 |   |
|                                                                    |   |           |        |   |   |   |   |   |
| Franchised and licensed restaurants, beginning of period                |   |           | 1,426       |   |   |   | 1,318 |   |
| Units opened                                                       |   |           | 13          |   |   |   | 6 |   |
| Units purchased from Company                                            |   |           | 9           |   |   |   | — |   |
| Units closed                                                            |   |           | (9          | ) |   |   | (2 | ) |
| End of period                                                           |   |           | 1,439       |   |   |   | 1,322 |   |
| Total company-owned, franchised and licensed restaurants, end of period |   |           |  1,665 |   |   |   |  1,559 |   |

----

|                                                                                             |   | March 30, 2011 |   |   | December 29, 2010 |   |
|--------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                                                             |   | (In thousands) |   |
| Current assets:                                                                                  |   |           |   |   |              |   |
| Receivables:                                                                                     |   |           |   |   |              |   |
| Trade accounts receivable from franchisees                                                       |   | $              | 10,859 |   |              | $      | 11,538 |   |
| Notes receivable from franchisees and third parties                                              |   |           | 1,474  |   |              |   | 1,020 |   |
| Vendor receivables                                                                               |   |           | 1,067  |   |              |   | 2,571 |   |
| Credit card receivables                                                                          |   |           | 977    |   |              |   | 1,206 |   |
| Other                                                                                            |   |           | 1,276  |   |              |   | 1,152 |   |
| Allowance for doubtful accounts                                                                  |   |           | (387   | )      |              |   | (207 | ) |
|                                                                                             |   | $              | 15,266 |   |              | $      | 17,280 |   |
| Direct financing lease receivables (included as a component of prepaid and other current assets) |   | $              | 74     |   |              | $      | 74 |   |
|                                                                                             |   |           |   |   |              |   |   |   |
| Noncurrent assets (included as a component of other noncurrent assets):                     |   |           |   |   |              |   |   |   |
| Notes receivable from franchisees and third parties                                              |   | $              | 1,140  |   |              | $      | 1,329 |   |
| Direct financing lease receivables                                                               |   |           | 5,318  |   |              |   | 5,119 |   |
|                                                                                             |   | $              | 6,458  |   |              | $      | 6,448 |   |

|                                            |   | March 30, 2011 |   |
|-------------------------------------------------|--------|----------------|--------|
|                                            |   | (In thousands) |
| Balance, beginning of year                      |   | $              | 31,308 |   |
| Adjustments associated with sale of restaurants |   |           | 16     |   |
| Reclassification to assets held for sale        |   |           | (16    | ) |
| Balance, end of period                          |   | $              | 31,308 |   |

----

|                                     |   | March 30, 2011        |   |   | December 29, 2010        |   |
|------------------------------------------|--------|-----------------------|--------|--------|--------------------------|--------|
|                                     |   | Gross Carrying Amount |   |   | Accumulated Amortization |   |   | Gross Carrying Amount |   |   | Accumulated Amortization |   |
|                                     |   | (In thousands)        |   |
| Goodwill                                 |   | $                     | 31,308 |   |                     | $      | — |   |   | $ | 31,308 |   |   | $ | — |   |
|                                     |   |                  |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Intangible assets with indefinite lives: |   |                  |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Trade names                              |   | $                     | 42,495 |   |                     | $      | — |   |   | $ | 42,493 |   |   | $ | — |   |
| Liquor licenses                          |   |                  | 164    |   |                     |   | — |   |   |   | 164 |   |   |   | — |   |
| Intangible assets with definite lives:   |   |                  |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Franchise and license agreements         |   |                  | 43,155 |   |                     |   | 34,489 |   |   |   | 46,088 |   |   |   | 36,769 |   |
| Foreign license agreements               |   |                  | 241    |   |                     |   | 166 |   |   |   | 241 |   |   |   | 163 |   |
| Intangible assets                        |   | $                     | 86,055 |   |                     | $      | 34,655 |   |   | $ | 88,986 |   |   | $ | 36,932 |   |
|                                     |   |                  |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other assets with definite lives:        |   |                  |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Software development costs               |   | $                     | 33,742 |   |                     |   | 30,957 |   |   | $ | 33,673 |   |   | $ | 30,426 |   |

|                                             | Quarter Ended  |   |
|--------------------------------------------------|----------------|--------|
|                                             | March 30, 2011 |   | March 31, 2010 |   |
|                                             | (In thousands) |   |
| Gains on sales of assets and other, net          |           | $      | (996 | ) |   | $ | (210 | ) |
| Restructuring charges and exit costs        |           |   | 467 |   |   |   | 633 |   |
| Impairment charges                               |           |   | — |   |   |   | — |   |
| Operating (gains), losses and other charges, net |           | $      | (529 | ) |   | $ | 423 |   |

|                                      | Quarter Ended  |   |
|-------------------------------------------|----------------|--------|
|                                      | March 30, 2011 |   | March 31, 2010 |   |
|                                      | (In thousands) |   |
| Exit costs                                |           | $      | 362 |   |   | $ | 628 |   |
| Severance and other restructuring charges |           |   | 105 |   |   |   | 5 |   |
| Total restructuring and exit costs        |           | $      | 467 |   |   | $ | 633 |   |

|                                                       |   | (In thousands) |   |
|------------------------------------------------------------|--------|----------------|--------|
| Balance at December 29, 2010                               |   | $              | 4,948  |   |
| Provisions for units closed during the year (1)            |   |           | 20     |   |
| Changes in estimates of accrued exit costs, net (1)   |   |           | 342    |   |
| Payments, net of sublease receipts                         |   |           | (585   | ) |
| Interest accretion                                         |   |           | 115    |   |
| Balance at March 30, 2011                                  |   |           | 4,840  |   |
| Less current portion included in other current liabilities |   |           | 1,519  |   |
| Long-term portion included in other noncurrent liabilities |   | $              | 3,321  |   |

| (1) |  Included as a component of operating (gains), losses and other charges, net. |
|-----|------------------------------------------------------------------------------------|

----

|                                   |   | (In thousands) |   |
|----------------------------------------|--------|----------------|--------|
| Remainder of 2011                      |   | $              | 1,204  |   |
| 2012                                   |   |           | 1,260  |   |
| 2013                                   |   |           | 771    |   |
| 2014                                   |   |           | 634    |   |
| 2015                                   |   |           | 342    |   |
| Thereafter                             |   |           | 1,204  |   |
| Total                                  |   |           | 5,415  |   |
| Less imputed interest                  |   |           | 575    |   |
| Present value of exit cost liabilities |   | $              | 4,840  |   |

|                                         |   | Fair Value Measurements as of March 30, 2011 |
|----------------------------------------------|--------|----------------------------------------------|
|                                         |   | Total                                        |   |   | Quoted Prices in Active Markets for Identical Assets/Liabilities(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   | Valuation Technique |
|                                         |   | (In thousands)                               |   |   |
| Deferred compensation plan investments  |   | $                                            | 4,791 |   |   | $ | 4,791 |   |   | $ | — |   |   | $ | — |   | market approach |
| Total                                        |   | $                                            | 4,791 |   |   | $ | 4,791 |   |   | $ | — |   |   | $ |  — |   |   |

|                                         |   | Fair Value Measurements as of March 31, 2010 |
|----------------------------------------------|--------|----------------------------------------------|
|                                         |   | Total                                        |   |   | Quoted Prices in Active Markets for Identical Assets/Liabilities(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   | Valuation Technique |
|                                         |   | (In thousands)                               |   |   |
| Deferred compensation plan investments  |   | $                                            | 6,374 |   |   | $ | 6,374 |   |   | $ | — |   |   | $ | — |   | market approach |
| Total                                        |   | $                                            |  6,374 |   |   | $ |  6,374 |   |   | $ | — |   |   | $ |  — |   |   |

|                                               |   | March 30, 2011 |    |   | December 29, 2010 |   |
|----------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                               |   | (In thousands) |    |
| Book value:                                        |   |           |    |   |              |   |
| Fixed rate long-term debt                          |   | $              | 161     |   |              | $      | 181 |   |
| Variable rate long-term debt                       |   |           | 230,000 |   |              |   | 240,000 |   |
| Long term debt excluding capital lease obligations |   | $              | 230,161 |   |              | $      | 240,181 |   |
|                                               |   |           |    |   |              |   |   |   |
| Estimate fair value:                               |   |           |    |   |              |   |   |   |
| Fixed rate long-term debt                          |   | $              | 161     |   |              | $      | 181 |   |
| Variable rate long-term debt                       |   |           | 231,150 |   |              |   | 243,000 |   |
| Long term debt excluding capital lease obligations |   | $              | 231,311 |   |              | $      | 243,181 |   |

----

|                           | Pension Plan   |   | Other Defined Benefit Plans |   |
|--------------------------------|----------------|--------|-----------------------------|--------|
|                           | Quarter Ended  |   | Quarter Ended               |   |
|                           | March 30, 2011 |   | March 31, 2010              |   | March 30, 2011 |   | March 31, 2010 |   |
|                           | (In thousands) |   |
| Service cost                   |           | $      | 94                          |   |   | $ | 94 |   |   | $ | — |   |   | $ | — |   |
| Interest cost                  |           |   | 832                         |   |   |   | 858 |   |   |   | 32 |   |   |   | 35 |   |
| Expected return on plan assets |           |   | (1,045                      | )      |   |   | (985 | ) |   |   | — |   |   |   | — |   |
| Amortization of net loss       |           |   | 239                         |   |   |   | 217 |   |   |   | 8 |   |   |   | 5 |   |
| Net periodic benefit cost      |           | $      | 120                         |   |   | $ | 184 |   |   | $ | 40 |   |   | $ | 40 |   |

----

|                                                                            |   | Quarter Ended  |   |
|---------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                            |   | March 30, 2011 |   |   | March 31, 2010 |   |
|                                                                            |   | (In thousands) |   |
| Share-based compensation related to liability classified restricted stock units |   | $              | 167    |   |   | $ | 724 |   |
| Share-based compensation related to equity classified awards:                   |   |           |   |   |   |   |   |   |
| Stock options                                                                   |   | $              | 258    |   |   | $ | 310 |   |
| Restricted stock units                                                          |   |           | 440    |   |   |   | 303 |   |
| Board deferred stock units                                                      |   |           | 108    |   |   |   | 21 |   |
| Total share-based compensation related to equity classified awards              |   |           | 806    |   |   |   | 634 |   |
| Total share-based compensation                                                  |   | $              | 973    |   |   | $ | 1,358 |   |

| Dividend yield                 |   |      | 0.0  | % |
|--------------------------------|--------|-----------|------|---|
| Expected volatility            |   |      | 60.3 | % |
| Risk-free interest rate        |   |      | 2.02 | % |
| Weighted average expected term |   | 4.7 years |

|                                         |   | March 30, 2011 |   |   | December 29, 2010 |   |
|----------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                         |   | (In thousands) |   |
| Liability classified restricted stock units: |   |           |   |   |              |   |
| Other current liabilities                    |   | $              | 665    |   |              | $      | 414 |   |
| Other noncurrent liabilities                 |   | $              | 281    |   |              | $      | 365 |   |
|                                         |   |           |   |   |              |   |   |   |
| Equity classified restricted stock units:    |   |           |   |   |              |   |   |   |
| Additional paid-in capital                   |   | $              | 4,699  |   |              | $      | 4,259 |   |

----

|                                                                                                                           |   | Quarter Ended                            |    |
|--------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|
|                                                                                                                           |   | March 30, 2011                           |    |   | March 31, 2010 |   |
|                                                                                                                           |   | (In thousands, except per share amounts) |    |
| Numerator:                                                                                                                     |   |                                     |    |   |   |   |
| Numerator for basic and diluted net income per share - net income                                                         |   | $                                        | 4,124   |   |   | $ | 4,588 |   |
|                                                                                                                           |   |                                     |    |   |   |   |   |   |
| Denominator:                                                                                                                   |   |                                     |    |   |   |   |   |   |
| Denominator for basic net income per share - weighted average shares                                                           |   |                                     | 98,980  |   |   |   | 97,095 |   |
| Effect of dilutive securities:                                                                                                 |   |                                     |    |   |   |   |   |   |
| Options                                                                                                                        |   |                                     | 1,273   |   |   |   | 1,877 |   |
| Restricted stock units and awards                                                                                              |   |                                     | 1,109   |   |   |   | 1,181 |   |
| Denominator for diluted net income per share - adjusted weighted average shares and assumed conversions of dilutive securities |   |                                     | 101,362 |   |   |   | 100,153 |   |
|                                                                                                                           |   |                                     |    |   |   |   |   |   |
| Basic and diluted net income per share                                                                                         |   | $                                        | 0.04    |   |   | $ | 0.05 |   |
|                                                                                                                           |   |                                     |    |   |   |   |   |   |
| Stock options excluded (1)                                                                                                     |   |                                     | 2,088   |   |   |   | 3,068 |   |
| Restricted stock units and awards excluded (1)                                                                                 |   |                                     | 843     |   |   |   | — |   |

| (1) | Excluded from diluted weighted-average shares outstanding as the impact would have been antidilutive. |
|-----|-------------------------------------------------------------------------------------------------------|

----

|                                                                 |   | Quarter Ended  |   |
|----------------------------------------------------------------------|--------|----------------|--------|
|                                                                 |   | March 30, 2011 |   |   | March 31, 2010 |   |
|                                                                 |   | (In thousands) |   |
| Income taxes paid, net                                               |   | $              | 163    |   |   | $ | 380 |   |
| Interest paid                                                        |   | $              | 8,031  |   |   | $ | 1,971 |   |
|                                                                 |   |           |   |   |   |   |   |   |
| Noncash investing activities:                                        |   |           |   |   |   |   |   |   |
| Notes received in connection with disposition of property            |   | $              | 500    |   |   | $ | — |   |
| Execution of direct financing leases                                 |   | $              | 218    |   |   | $ | — |   |
|                                                                 |   |           |   |   |   |   |   |   |
| Noncash financing activities:                                        |   |           |   |   |   |   |   |   |
| Issuance of common stock, pursuant to share-based compensation plans |   | $              | 40     |   |   | $ | 438 |   |
| Execution of capital leases                                          |   | $              | 1,220  |   |   | $ | 760 |   |
| Accrued deferred financing costs and debt transaction costs          |   | $              | 150    |   |   | $ | — |   |

----

Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

|                                                             |   | Quarter Ended          |    |
|------------------------------------------------------------------|--------|------------------------|---------|
|                                                   |   | March 30, 2011         |    |   | March 31, 2010 |   |
|                                                             |   | (Dollars in thousands) |    |
| Revenue:                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |
| Company restaurant sales                                         |   | $                      | 104,555 |   |   |   | 77.0 | % |   | $ | 107,783 |   |   |   | 78.3 | % |
| Franchise and license revenue                                    |   |                   | 31,250  |   |   |   | 23.0 | % |   |   | 29,789 |   |   |   | 21.7 | % |
| Total operating revenue                                          |   |                   | 135,805 |   |   |   | 100.0 | % |   |   | 137,572 |   |   |   | 100.0 | % |
|                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs of company restaurant sales (a):                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product costs                                                    |   |                   | 25,635  |   |   |   | 24.5 | % |   |   | 25,692 |   |   |   | 23.8 | % |
| Payroll and benefits                                             |   |                   | 44,196  |   |   |   | 42.3 | % |   |   | 44,176 |   |   |   | 41.0 | % |
| Occupancy                                                        |   |                   | 6,860   |   |   |   | 6.6 | % |   |   | 7,401 |   |   |   | 6.9 | % |
| Other operating expenses                                         |   |                   | 15,257  |   |   |   | 14.6 | % |   |   | 15,864 |   |   |   | 14.7 | % |
| Total costs of company restaurant sales                          |   |                   | 91,948  |   |   |   | 87.9 | % |   |   | 93,133 |   |   |   | 86.4 | % |
|                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs of franchise and license revenue (a)                       |   |                   | 11,565  |   |   |   | 37.0 | % |   |   | 12,366 |   |   |   | 41.5 | % |
|                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses                              |   |                   | 14,139  |   |   |   | 10.4 | % |   |   | 13,074 |   |   |   | 9.5 | % |
| Depreciation and amortization                                    |   |                   | 7,188   |   |   |   | 5.3 | % |   |   | 7,373 |   |   |   | 5.4 | % |
| Operating, (gains), losses and other charges, net                |   |                   | (529    | ) |   |   | (0.4 | %) |   |   | 423 |   |   |   | 0.3 | % |
| Total operating costs and expenses                               |   |                   | 124,311 |   |   |   | 91.5 | % |   |   | 126,369 |   |   |   | 91.9 | % |
| Operating income                                                 |   |                   | 11,494  |   |   |   | 8.5 | % |   |   | 11,203 |   |   |   | 8.1 | % |
| Other expenses:                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                                            |   |                   | 5,693   |   |   |   | 4.2 | % |   |   | 6,398 |   |   |   | 4.7 | % |
| Other nonoperating expense (income), net                         |   |                   | 1,478   |   |   |   | 1.1 | % |   |   | (12 | ) |   |   | (0.0 | %) |
| Total other expenses, net                                        |   |                   | 7,171   |   |   |   | 5.3 | % |   |   | 6,386 |   |   |   | 4.6 | % |
| Net income before income taxes                                   |   |                   | 4,323   |   |   |   | 3.2 | % |   |   | 4,817 |   |   |   | 3.5 | % |
| Provision for income taxes                                       |   |                   | 199     |   |   |   | 0.1 | % |   |   | 229 |   |   |   | 0.2 | % |
| Net income                                                       |   | $                      | 4,124   |   |   |   | 3.0 | % |   | $ | 4,588 |   |   |   | 3.3 | % |
|                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Data:                                                      |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company-owned average unit sales                                 |   | $                      | 452     |   |   |   |   |   |   | $ | 458 |   |   |   |   |   |
| Franchise average unit sales                                     |   | $                      | 339     |   |   |   |   |   |   | $ | 342 |   |   |   |   |   |
| Company-owned equivalent units (b)                               |   |                   | 231     |   |   |   |   |   |   |   | 235 |   |   |   |   |   |
| Franchise equivalent units (b)                                   |   |                   | 1,430   |   |   |   |   |   |   |   | 1,320 |   |   |   |   |   |
| Same-store sales decrease (company-owned) (c)(d)            |   |                   | (1.3    | %) |   |   |   |   |   |   | (5.5 | %) |   |   |   |   |
| Guest check average (decrease) increase (d)                 |   |                   | (0.1    | %) |   |   |   |   |   |   | 0.1 | % |   |   |   |   |
| Guest count decrease (d)                                         |   |                   | (1.1    | %) |   |   |   |   |   |   | (5.6 | %) |   |   |   |   |
| Same-store sales decrease (franchised and licensed units) (c)(d) |   |                   | (1.7    | %) |   |   |   |   |   |   | (6.3 | %) |   |   |   |   |

| (a)    | Costs of company restaurant sales percentages are as a percentage of company restaurant sales. Costs of franchise and license revenue percentages are as a percentage of franchise and license revenue. All other percentages are as a percentage of total operating revenue. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                          |
| (b)    | Equivalent units are calculated as the weighted average number of units outstanding during a defined time period.                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                          |
| (c)    | Same-store sales include sales from restaurants that were open the same period in the prior year.                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                          |
| (d)    | Prior year amounts have not been restated for 2011 comparable units.                                                                                                                                                                                                          |

----

|                                                                    |   | Quarter Ended  |        |
|-------------------------------------------------------------------------|--------|----------------|-------------|
|                                                                    |   | March 30, 2011 |        |   | March 31, 2010 |   |
| Company-owned restaurants, beginning of period                          |   |           | 232         |   |   |   | 233 |   |
| Units opened                                                            |   |           | 5           |   |   |   | 4 |   |
| Units sold to franchisees                                               |   |           | (9          | ) |   |   | — |   |
| Units closed                                                            |   |           | (2          | ) |   |   |  — |   |
| End of period                                                           |   |           | 226         |   |   |   | 237 |   |
|                                                                    |   |           |        |   |   |   |   |   |
| Franchised and licensed restaurants, beginning of period                |   |           | 1,426       |   |   |   | 1,318 |   |
| Units opened                                                       |   |           | 13          |   |   |   | 6 |   |
| Units purchased from Company                                            |   |           | 9           |   |   |   | — |   |
| Units closed                                                            |   |           | (9          | ) |   |   | (2 | ) |
| End of period                                                           |   |           | 1,439       |   |   |   | 1,322 |   |
| Total company-owned, franchised and licensed restaurants, end of period |   |           |  1,665 |   |   |   |  1,559 |   |

|                     |   | Quarter Ended          |   |
|--------------------------|--------|------------------------|--------|
|                     |   | March 30, 2011         |   |   | March 31, 2010 |   |
|                     |   | (Dollars in thousands) |   |
| Utilities                |   | $                      | 4,389  |   |   |   | 4.2 | % |   | $ | 4,651 |   |   |   | 4.3 | % |
| Repairs and maintenance  |   |                   | 1,842  |   |   |   | 1.8 | % |   |   | 1,944 |   |   |   | 1.8 | % |
| Marketing                |   |                   | 3,841  |   |   |   | 3.7 | % |   |   | 4,302 |   |   |   | 4.0 | % |
| Legal settlement costs   |   |                   | 77     |   |   |   | 0.1 | % |   |   | 123 |   |   |   | 0.1 | % |
| Other direct costs       |   |                   | 5,108  |   |   |   | 4.9 | % |   |   | 4,844 |   |   |   | 4.5 | % |
| Other operating expenses |   | $                      | 15,257 |   |   |   | 14.6 | % |   | $ | 15,864 |   |   |   | 14.7 | % |

|                                         |   | Quarter Ended          |   |
|----------------------------------------------|--------|------------------------|--------|
|                                         |   | March 30, 2011         |   |   | March 31, 2010 |   |
|                                         |   | (Dollars in thousands) |   |
| Royalties                          |   | $                      | 19,294 |   |   |   | 61.7 | % |   | $ | 17,994 |   |   |   | 60.4 | % |
| Initial and other fees                       |   |                   | 905    |   |   |   | 2.9 | % |   |   | 433 |   |   |   | 1.5 | % |
| Occupancy revenue                       |   |                   | 11,051 |   |   |   | 35.4 | % |   |   | 11,362 |   |   |   | 38.1 | % |
| Franchise and license revenue           |   |                   | 31,250 |   |   |   | 100.0 | % |   |   | 29,789 |   |   |   | 100.0 | % |
|                                         |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy costs                         |   |                   | 8,560  |   |   |   | 27.4 | % |   |   | 8,678 |   |   |   | 29.1 | % |
| Other direct costs                      |   |                   | 3,005  |   |   |   | 9.6 | % |   |   | 3,688 |   |   |   | 12.4 | % |
| Costs of franchise and license revenue  |   | $                      | 11,565 |   |   |   | 37.0 | % |   | $ | 12,366 |   |   |   | 41.5 | % |

----

|                                      | Quarter Ended  |   |
|-------------------------------------------|----------------|--------|
|                                      | March 30, 2011 |   | March 31, 2010 |   |
|                                      | (In thousands) |   |
| Share-based compensation                  |           | $      | 973 |   |   | $ | 1,358 |   |
| Other general and administrative expenses |           |   | 13,166 |   |   |   | 11,716 |   |
| Total general and administrative expenses |           | $      | 14,139 |   |   | $ | 13,074 |   |

|                                        | Quarter Ended  |   |
|---------------------------------------------|----------------|--------|
|                                        | March 30, 2011 |   | March 31, 2010 |   |
|                                        | (In thousands) |   |
| Depreciation of property and equipment      |           | $      | 5,281 |   |   | $ | 5,468 |   |
| Amortization of capital lease assets        |           |   | 719 |   |   |   | 654 |   |
| Amortization of intangible assets           |           |   | 1,188 |   |   |   | 1,251 |   |
| Total depreciation and amortization expense |           | $      | 7,188 |   |   | $ | 7,373 |   |

|                                             | Quarter Ended  |   |
|--------------------------------------------------|----------------|--------|
|                                             | March 30, 2011 |   | March 31, 2010 |   |
|                                             | (In thousands) |   |
| Gains on sales of assets and other, net          |           | $      | (996 | ) |   | $ | (210 | ) |
| Restructuring charges and exit costs             |           |   | 467 |   |   |   | 633 |   |
| Impairment charges                               |           |   | — |   |   |   | — |   |
| Operating (gains), losses and other charges, net |           | $      | (529 | ) |   | $ | 423 |   |

|                                      | Quarter Ended  |   |
|-------------------------------------------|----------------|--------|
|                                      | March 30 2011  |   | March 31, 2010 |   |
|                                      | (In thousands) |   |
| Exit costs                                |           | $      | 362 |   |   | $ | 628 |   |
| Severance and other restructuring charges |           |   | 105 |   |   |   | 5 |   |
| Total restructuring and exit costs        |           | $      | 467 |   |   | $ | 633 |   |

----

|                                     |   | Quarter Ended  |    |
|------------------------------------------|--------|----------------|---------|
|                                     |   | March 30, 2011 |    |   | March 31, 2010 |   |
|                                     |   | (In thousands) |    |
| Interest on credit facilities            |   | $              | 3,715   |   |   | $ | 483 |   |
| Interest on senior notes                 |   |           | — |   |   |   | 4,363 |   |
| Interest on capital lease liabilities    |   |           | 1,008   |   |   |   | 933 |   |
| Letters of credit and other fees         |   |           | 553     |   |   |   | 389 |   |
| Interest income                          |   |           | (302    | ) |   |   | (450 | ) |
| Total cash interest                      |   |           | 4,974   |   |   |   | 5,718 |   |
| Amortization of deferred financing costs |   |           | 292     |   |   |   | 259 |   |
| Amortization of debt discount            |   |           | 144     |   |   |   | — |   |
| Interest accretion on other liabilities  |   |           | 283     |   |   |   | 421 |   |
| Total interest expense, net              |   | $              | 5,693   |   |   | $ | 6,398 |   |

|                                                      |   | Quarter Ended  |    |
|-----------------------------------------------------------|--------|----------------|---------|
|                                                      |   | March 30, 2011 |    |   | March 31, 2010 |   |
|                                                      |   | (In thousands) |    |
| Net cash provided by operating activities                 |   | $              | 14,593  |   |   | $ | 14,666 |   |
| Net cash used in investing activities                     |   |           | (3,082  | ) |   |   | (1,270 | ) |
| Net cash used in financing activities                |   |           | (21,414 | ) |   |   | (6,180 | ) |
| Net (decrease) increase in cash and cash equivalents |   | $              | (9,903  | ) |   | $ | 7,216 |   |

|                   |   | Quarter Ended  |   |
|------------------------|--------|----------------|--------|
|                   |   | March 30, 2011 |   |   | March 31, 2010 |   |
|                   |   | (In thousands) |   |
| Facilities             |   | $              | 1,158  |   |   | $ | 1,142 |   |
| New construction  |   |           | 4,106  |   |   |   | 1,140 |   |
| Remodeling             |   |           | 301    |   |   |   | 136 |   |
| Information technology |   |           | 50     |   |   |   | 380 |   |
| Strategic initiatives  |   |           | 4      |   |   |   | 9 |   |
| Other                  |   |           | 151    |   |   |   | 357 |   |
| Capital expenditures   |   | $              | 5,770  |   |   | $ | 3,164 |   |

----

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

----

Item 4.     Controls and Procedures

PART II - OTHER INFORMATION

Item 1.     Legal Proceedings

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

| Period                               |   |   Total Number of Shares Purchased  |      |   |     Average Price Paid Per Share (1) |   |       | Total Number of Shares Purchased as Part of Publicly Announced Programs (2)(3) |   |   | Maximum Number of Shares that May Yet be Purchased Under the Program (3) |   |
|--------------------------------------|--------|------------------------------------------|-----------|--------|------------------------------------------------|--------|------------|--------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------|--------|
|                                 |   | (In thousands, except per share amounts) |      |   |
| December 30, 2010 - January 26, 2011 |   |                                     | 1,000     |   |                                           | $      | 3.75       |                                                                           |   |   | 1,000                                                                         |   |   |   | 963 |   |
| January 27, 2011 - February 23, 2011 |   |                                     |  231 |   |                                           |   |  3.86 |                                                                           |   |   |  231                                                                     |   |   |   |  732 |   |
| February 24, 2011 - March 30, 2011   |   |                                     | 732       |   |                                           |   | 3.93       |                                                                           |   |   | 732                                                                           |   |   |   | — |   |
|    Total 2011         |   |                                     | 1,963     |   |                                           | $      | 3.83       |                                                                           |   |   | 1,963                                                                         |   |   |   | — |   |

| (1) | Average price paid per share excludes commissions.                                                                                                                                                                                                                                                                                                                                                                           |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | On November 9, 2010, we announced that our Board of Directors had approved the repurchase of 3 million shares of Common Stock, which may take place from time to time on the open market (including in pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934) or through negotiated transactions, subject to market and business conditions. |
| (3) | During the quarter ended March 30, 2011, we purchased 1,963,200 shares of Common Stock for an aggregate consideration of approximately $7.6 million, pursuant to the share repurchase program. This brought the total purchased under the previously-announced program to 3,000,000 shares of Common Stock for an aggregate consideration of approximately $11.5 million, completing the purchases under the program.   |

----

Item 6.     Exhibits

|  Exhibit No. |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.1              |   | Form of the 2011 Long-Term Performance Incentive Program Performance Shares and Target Cash Opportunity Award Certificate                                                                                                                                                                                                                                                                                                                                               |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.2              |   | Written Description of the Denny's 2011 Long-Term Performance Incentive Program                                                                                                                                                                                                                                                                                                                                                                                         |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.3              |   | Employment offer letter dated January 6, 2011 between Denny’s Corporation and John C. Miller                                                                                                                                                                                                                                                                                                                                                                      |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.4              |   | First Amendment to the Second Amended and Restated Credit Agreement, dated as of March 1, 2011, among Denny's Inc. and Denny's Realty, LLC as the Borrowers, Denny's Corporation and DFO, LLC as Guarantors, each lender from time to time party hererto, and Bank of America, N.A., as Administrative Agent and L/C Issuer (incorporated by reference to Exhibit 10.31 to the Annual Report on Form 10-K of Denny's Corporation for the year ended December 29, 2010). |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.1              |   | Certification of John C. Miller, President and Chief Executive Officer of Denny’s Corporation, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                  |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.2              |   | Certification of F. Mark Wolfinger, Executive Vice President, Chief Administrative Officer and Chief Financial Officer of Denny’s Corporation, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                             |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 32.1              |   | Certification of John C. Miller, President and Chief Executive Officer of Denny’s Corporation and F. Mark Wolfinger, Executive Vice President, Chief Administrative Officer and Chief Financial Officer of Denny’s Corporation, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                   |

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SIGNATURES

|                    | DENNY'S CORPORATION         |                                                                             |
|-------------------------|-----------------------------|----------------------------------------------------------------------------------|
|                    |                        |                                                                             |   |
| Date:  May 3, 2011 | By:     | /s/  F. Mark Wolfinger                                                      |   |
|                    |                        | F. Mark Wolfinger                                                                |   |
|                    |                        | Executive Vice President,Chief Administrative Officer andChief Financial Officer |   |

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