# EDGAR Filing Document

**Accession Number:** 0000852772
**File Stem:** 0000852772-25-000108
**Filing Date:** 2025-8
**Character Count:** 128504
**Document Hash:** 975108937e24187fbd70bfebba8a5a24
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000852772-25-000108.hdr.sgml**: 20250804

**ACCESSION NUMBER**: 0000852772-25-000108

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 84

**CONFORMED PERIOD OF REPORT**: 20250625

**FILED AS OF DATE**: 20250804

**DATE AS OF CHANGE**: 20250804

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DENNY'S Corp
- **CENTRAL INDEX KEY:** 0000852772
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-EATING PLACES [5812]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 133487402
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-18051
- **FILM NUMBER:** 251181255

**BUSINESS ADDRESS:**
- **STREET 1:** 203 EAST MAIN STREET
- **CITY:** SPARTANBURG
- **STATE:** SC
- **ZIP:** 29319
- **BUSINESS PHONE:** 8645978000

**MAIL ADDRESS:**
- **STREET 1:** 203 EAST MAIN STREET
- **CITY:** SPARTANBURG
- **STATE:** SC
- **ZIP:** 29319

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DENNYS CORP
- **DATE OF NAME CHANGE:** 20020801

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ADVANTICA RESTAURANT GROUP INC
- **DATE OF NAME CHANGE:** 19980107

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FLAGSTAR COMPANIES INC
- **DATE OF NAME CHANGE:** 19930722

?xml version='1.0' encoding='ASCII'? denn-20250625

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q** 

(Mark One)

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended <u>June 25, 2025</u>** 

**or**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from** _______________ to ________________

**Commission File Number 0-18051**![Dennys.gif](denn-20250625_g1.gif)

**DENNY'S CORPORATION** 

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **Delaware** | **13-3487402** |
| (State or other jurisdiction of incorporation or organization) | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| **203 East Main Street** | **203 East Main Street** | |
| **Spartanburg,** | **South Carolina** | **29319-0001** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) |

---

**(864) 597-8000** 

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| $.01 Par Value, Common Stock | DENN | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes 🗷 No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes 🗷 No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☐ Accelerated Filer 🗷 Non-Accelerated Filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐ No 🗷

As of July 30, 2025, 51,498,994 shares of the registrant's common stock, par value $0.01 per share, were outstanding.

------

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| | Page |
| **<u>[PART I - FINANCIAL INFORMATION](#ia662548dab3f4990a9c359e05a2d2df4_10)</u>** |  |
| &nbsp;&nbsp;<u>[Item 1. Financial Statements (Unaudited)](#ia662548dab3f4990a9c359e05a2d2df4_13)</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Balance Sheets](#ia662548dab3f4990a9c359e05a2d2df4_16)</u> | <u>[3](#ia662548dab3f4990a9c359e05a2d2df4_16)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Income](#ia662548dab3f4990a9c359e05a2d2df4_19)</u> | <u>[4](#ia662548dab3f4990a9c359e05a2d2df4_19)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Comprehensive Income (Loss)](#ia662548dab3f4990a9c359e05a2d2df4_22)</u> | <u>[5](#ia662548dab3f4990a9c359e05a2d2df4_22)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Shareholders' Deficit](#ia662548dab3f4990a9c359e05a2d2df4_25)</u> | <u>[6](#ia662548dab3f4990a9c359e05a2d2df4_25)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows](#ia662548dab3f4990a9c359e05a2d2df4_31)</u> | <u>[8](#ia662548dab3f4990a9c359e05a2d2df4_31)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements](#ia662548dab3f4990a9c359e05a2d2df4_34)</u> | <u>[9](#ia662548dab3f4990a9c359e05a2d2df4_34)</u> |
| &nbsp;&nbsp;<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#ia662548dab3f4990a9c359e05a2d2df4_94)</u> | <u>[23](#ia662548dab3f4990a9c359e05a2d2df4_94)</u> |
| &nbsp;&nbsp;<u>[Item 3. Quantitative and Qualitative Disclosures About Market Risk](#ia662548dab3f4990a9c359e05a2d2df4_112)</u> | <u>[32](#ia662548dab3f4990a9c359e05a2d2df4_112)</u> |
| &nbsp;&nbsp;<u>[Item 4. Controls and Procedures](#ia662548dab3f4990a9c359e05a2d2df4_115)</u> | <u>[33](#ia662548dab3f4990a9c359e05a2d2df4_115)</u> |
| **<u>[PART II - OTHER INFORMATION](#ia662548dab3f4990a9c359e05a2d2df4_118)</u>** |  |
| &nbsp;&nbsp;<u>[Item 1. Legal Proceedings](#ia662548dab3f4990a9c359e05a2d2df4_121)</u> | <u>[33](#ia662548dab3f4990a9c359e05a2d2df4_121)</u> |
| &nbsp;&nbsp;<u>[Item 1A. Risk Factors](#ia662548dab3f4990a9c359e05a2d2df4_124)</u> | <u>[33](#ia662548dab3f4990a9c359e05a2d2df4_124)</u> |
| &nbsp;&nbsp;<u>[Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#ia662548dab3f4990a9c359e05a2d2df4_127)</u> | <u>[34](#ia662548dab3f4990a9c359e05a2d2df4_127)</u> |
| &nbsp;&nbsp;<u>[Item 5. Other Information](#ia662548dab3f4990a9c359e05a2d2df4_130)</u> | <u>[34](#ia662548dab3f4990a9c359e05a2d2df4_130)</u> |
| &nbsp;&nbsp;<u>[Item 6. Exhibits](#ia662548dab3f4990a9c359e05a2d2df4_133)</u> | <u>[35](#ia662548dab3f4990a9c359e05a2d2df4_133)</u> |
| &nbsp;&nbsp;<u>[Signatures](#ia662548dab3f4990a9c359e05a2d2df4_136)</u> | <u>[36](#ia662548dab3f4990a9c359e05a2d2df4_136)</u> |

---

------

**PART I - FINANCIAL INFORMATION**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements**

**Denny's Corporation and Subsidiaries**

**Consolidated Balance Sheets**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **June 25, 2025** | **December 25, 2024** |
| | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** |
| **Assets** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $1166 | $1698 |
| &nbsp;&nbsp;&nbsp;Investments |  | 1106 |
| &nbsp;&nbsp;&nbsp;Receivables, net | 19074 | 24433 |
| &nbsp;&nbsp;&nbsp;Inventories | 2129 | 1747 |
| &nbsp;&nbsp;&nbsp;Assets held for sale | 1096 | 381 |
| &nbsp;&nbsp;&nbsp;Prepaid and other current assets | 8866 | 10628 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 32331 | 39993 |
| Property, net of accumulated depreciation of $162,101 and $159,588, respectively | 118601 | 111417 |
| Finance lease right-of-use assets, net of accumulated amortization of $6,813 and $6,783, respectively | 5695 | 6200 |
| Operating lease right-of-use assets, net | 126457 | 124738 |
| Goodwill | 68526 | 66357 |
| Intangible assets, net | 89630 | 91739 |
| Deferred financing costs, net | 748 | 1066 |
| Other noncurrent assets | 49162 | 54764 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $491150 | $496274 |
| **Liabilities** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Current finance lease liabilities | $1306 | $1284 |
| &nbsp;&nbsp;&nbsp;Current operating lease liabilities | 16676 | 15487 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 16299 | 19985 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 53701 | 58842 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 87982 | 95598 |
| Long-term liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Long-term debt | 268600 | 261300 |
| &nbsp;&nbsp;&nbsp;Noncurrent finance lease liabilities | 8729 | 9284 |
| &nbsp;&nbsp;&nbsp;Noncurrent operating lease liabilities | 122108 | 120841 |
| &nbsp;&nbsp;&nbsp;Liability for insurance claims, less current portion | 5750 | 5866 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes, net | 6276 | 9964 |
| &nbsp;&nbsp;&nbsp;Other noncurrent liabilities | 26284 | 27446 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total long-term liabilities | 437747 | 434701 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 525729 | 530299 |
| **Shareholders' deficit** |  |  |
| &nbsp;&nbsp;Common stock $0.01 par value; 135,000 shares authorized; June 25, 2025: 51,893 shares issued and 51,495 outstanding; December 25, 2024: 51,329 shares issued and outstanding | $519 | $513 |
| &nbsp;&nbsp;&nbsp;Paid-in capital | 4175 |  |
| &nbsp;&nbsp;&nbsp;Retained earnings (deficit) | 297 | (2499) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net | (37975) | (32039) |
| &nbsp;&nbsp;Treasury stock, at cost, 398 and 0 shares, respectively | (1595) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' deficit | (34579) | (34025) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' deficit | $491150 | $496274 |

---

See accompanying notes

------

**Denny's Corporation and Subsidiaries**

**Consolidated Statements of Income**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Company restaurant sales | $58395 | $54348 | $112295 | $106690 |
| &nbsp;&nbsp;&nbsp;Franchise and license revenue | 59262 | 61579 | 116999 | 119211 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | 117657 | 115927 | 229294 | 225901 |
| Costs of company restaurant sales, excluding depreciation and amortization: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Product costs | 15086 | 13632 | 29297 | 26943 |
| &nbsp;&nbsp;&nbsp;Payroll and benefits | 21869 | 20493 | 42965 | 40967 |
| &nbsp;&nbsp;&nbsp;Occupancy | 5181 | 4671 | 10240 | 9244 |
| &nbsp;&nbsp;&nbsp;Other operating expenses | 10209 | 8782 | 19868 | 18542 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total costs of company restaurant sales, excluding depreciation and amortization | 52345 | 47578 | 102370 | 95696 |
| Costs of franchise and license revenue, excluding depreciation and amortization | 29217 | 33428 | 57571 | 60802 |
| General and administrative expenses | 21445 | 20486 | 41475 | 41708 |
| Depreciation and amortization | 4378 | 3735 | 8485 | 7316 |
| Goodwill impairment charges |  | 20 |  | 20 |
| Operating (gains), losses and other charges, net | 1700 | 1565 | 5611 | 1238 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses, net | 109085 | 106812 | 215512 | 206780 |
| Operating income | 8572 | 9115 | 13782 | 19121 |
| Interest expense, net | 5374 | 4573 | 9802 | 8993 |
| Other nonoperating income, net | (563) | (224) | (401) | (861) |
| Income before income taxes | 3761 | 4766 | 4381 | 10989 |
| Provision for income taxes | 1291 | 1198 | 1585 | 2730 |
| Net income | $2470 | $3568 | $2796 | $8259 |
| Net income per share - basic | $0.05 | $0.07 | $0.05 | $0.16 |
| Net income per share - diluted | $0.05 | $0.07 | $0.05 | $0.16 |
| Basic weighted average shares outstanding | 52059 | 52689 | 52191 | 52879 |
| Diluted weighted average shares outstanding | 52131 | 52787 | 52294 | 53002 |

---

See accompanying notes

------

**Denny's Corporation and Subsidiaries**

**Consolidated Statements of Comprehensive Income (Loss)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Net income | $2470 | $3568 | $2796 | $8259 |
| Other comprehensive income (loss), net of tax: |  |  |  |  |
| &nbsp;&nbsp;Minimum pension liability adjustment, net of tax of $2, $13, $5 and $19, respectively | 9 | 41 | 17 | 51 |
| &nbsp;&nbsp;Changes in the fair value of cash flow hedges, net of tax of $(898), $680, $(1810) and $3,103, respectively | (2665) | 2017 | (5372) | 9192 |
| &nbsp;&nbsp;Reclassification of cash flow hedges to interest expense, net of tax of $(212), $(387), $(483) and $(768), respectively | (628) | (1149) | (1432) | (2276) |
| &nbsp;&nbsp;Amortization of unrealized losses related to interest rate swaps to interest expense, net of tax of $222, $42, $287 and $78, respectively | 657 | 125 | 851 | 231 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) | (2627) | 1034 | (5936) | 7198 |
| Total comprehensive income (loss) | $(157) | $4602 | $(3140) | $15457 |

---

See accompanying notes

------

**Denny's Corporation and Subsidiaries**

**Consolidated Statements of Shareholders' Deficit**

**For the Quarters Ended June 25, 2025 and June 26, 2024** 

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Treasury Stock** | **Treasury Stock** | **Paid-in Capital** | **Retained Earnings (Deficit)** | **Accumulated<br>Other<br>Comprehensive Loss, Net** | **Total<br>Shareholders'<br>Deficit** |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Paid-in Capital** | **Retained Earnings (Deficit)** | **Accumulated<br>Other<br>Comprehensive Loss, Net** | **Total<br>Shareholders'<br>Deficit** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Balance, March 26, 2025 | 51649 | $516 | (218) | $(981) | $1566 | $(2173) | $(35348) | $(36420) |
| Net income |  |  |  |  |  | 2470 |  | 2470 |
| Other comprehensive loss |  |  |  |  |  |  | (2627) | (2627) |
| Share-based compensation on equity classified awards, net of withholding tax |  |  |  |  | 2612 |  |  | 2612 |
| Purchase of treasury stock, including excise tax |  |  | (180) | (614) |  |  |  | (614) |
| Issuance of common stock for share-based compensation | 244 | 3 |  |  | (3) |  |  |  |
| Balance, June 25, 2025 | 51893 | $519 | (398) | $(1595) | $4175 | $297 | $(37975) | $(34579) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Treasury Stock** | **Treasury Stock** | **Paid-in Capital** | **Deficit** | **Accumulated<br>Other<br>Comprehensive Loss, Net** | **Total<br>Shareholders'<br>Deficit** |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Paid-in Capital** | **Deficit** | **Accumulated<br>Other<br>Comprehensive Loss, Net** | **Total<br>Shareholders'<br>Deficit** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Balance, March 27, 2024 | 53262 | $533 | (1143) | $(11223) | $7534 | $(17093) | $(35495) | $(55744) |
| Net income |  |  |  |  |  | 3568 |  | 3568 |
| Other comprehensive income |  |  |  |  |  |  | 1034 | 1034 |
| Share-based compensation on equity classified awards, net of withholding tax |  |  |  |  | 2601 |  |  | 2601 |
| Purchase of treasury stock, including excise tax |  |  | (627) | (4702) |  |  |  | (4702) |
| Issuance of common stock for share-based compensation | 77 |  |  |  |  |  |  |  |
| Balance, June 26, 2024 | 53339 | $533 | (1770) | $(15925) | $10135 | $(13525) | $(34461) | $(53243) |

---

See accompanying notes

------

**Denny's Corporation and Subsidiaries**

**Consolidated Statements of Shareholders' Deficit**

**For the Two Quarters Ended June 25, 2025 and June 26, 2024** 

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Treasury Stock** | **Treasury Stock** | **Paid-in Capital** | **Retained Earnings (Deficit)** | **Accumulated<br>Other<br>Comprehensive Loss, Net** | **Total<br>Shareholders'<br>Deficit** |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Paid-in Capital** | **Retained Earnings (Deficit)** | **Accumulated<br>Other<br>Comprehensive Loss, Net** | **Total<br>Shareholders'<br>Deficit** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Balance, December 25, 2024 | 51329 | $513 |  | $— | $— | $(2499) | $(32039) | $(34025) |
| Net income |  |  |  |  |  | 2796 |  | 2796 |
| Other comprehensive loss |  |  |  |  |  |  | (5936) | (5936) |
| Share-based compensation on equity classified awards, net of withholding tax |  |  |  |  | 4181 |  |  | 4181 |
| Purchase of treasury stock, including excise tax |  |  | (398) | (1595) |  |  |  | (1595) |
| Issuance of common stock for share-based compensation | 564 | 6 |  |  | (6) |  |  |  |
| Balance, June 25, 2025 | 51893 | $519 | (398) | $(1595) | $4175 | $297 | $(37975) | $(34579) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Treasury Stock** | **Treasury Stock** | **Paid-in Capital** | **Deficit** | **Accumulated<br>Other<br>Comprehensive Loss, Net** | **Total<br>Shareholders'<br>Deficit** |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Paid-in Capital** | **Deficit** | **Accumulated<br>Other<br>Comprehensive Loss, Net** | **Total<br>Shareholders'<br>Deficit** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Balance, December 27, 2023 | 52906 | $529 | (667) | $(6460) | $6688 | $(21784) | $(41659) | $(62686) |
| Net income |  |  |  |  |  | 8259 |  | 8259 |
| Other comprehensive income |  |  |  |  |  |  | 7198 | 7198 |
| Share-based compensation on equity classified awards, net of withholding tax |  |  |  |  | 3451 |  |  | 3451 |
| Purchase of treasury stock, including excise tax |  |  | (1103) | (9465) |  |  |  | (9465) |
| Issuance of common stock for share-based compensation | 433 | 4 |  |  | (4) |  |  |  |
| Balance, June 26, 2024 | 53339 | $533 | (1770) | $(15925) | $10135 | $(13525) | $(34461) | $(53243) |

---

See accompanying notes

------

**Denny's Corporation and Subsidiaries**

**Consolidated Statements of Cash Flows**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $2796 | $8259 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to cash flows provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 8485 | 7316 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment charges |  | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating (gains), losses and other charges, net | 5611 | 1238 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization on interest rate swaps, net | 1138 | 308 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 318 | 318 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains on investments | (36) | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gains) losses on early termination of debt and leases | (126) | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax benefit | (1874) | (2144) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase of tax valuation allowance | 193 | 179 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 5767 | 5400 |
| &nbsp;&nbsp;&nbsp;Changes in assets and liabilities, excluding acquisitions and dispositions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables | 5256 | 1509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (293) | 280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaids and other current assets | 1762 | 3639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent assets | (4060) | 622 |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease assets and liabilities | 120 | (806) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 122 | (8524) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities | (9494) | (1836) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | (1317) | (1500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows provided by operating activities | 14368 | 14396 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (16384) | (9948) |
| &nbsp;&nbsp;&nbsp;Acquisition of restaurants | (4082) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from asset sales | 1910 | 1000 |
| &nbsp;&nbsp;&nbsp;Investment purchases |  | (1500) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of investments | 1142 |  |
| &nbsp;&nbsp;&nbsp;Collections on notes receivable | 518 | 252 |
| &nbsp;&nbsp;&nbsp;Issuance of notes receivable | (640) | (153) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows used in investing activities | (17536) | (10349) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Revolver borrowings | 62100 | 70000 |
| &nbsp;&nbsp;&nbsp;Revolver payments | (54800) | (68000) |
| &nbsp;&nbsp;&nbsp;Repayments of finance leases | (613) | (726) |
| &nbsp;&nbsp;&nbsp;Tax withholding on share-based payments | (1000) | (1872) |
| &nbsp;&nbsp;&nbsp;Purchase of treasury stock | (1668) | (9380) |
| &nbsp;&nbsp;&nbsp;Net bank overdrafts | (1383) | 2204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows provided by (used in) financing activities | 2636 | (7774) |
| Decrease in cash and cash equivalents | (532) | (3727) |
| Cash and cash equivalents at beginning of period | 1698 | 4893 |
| Cash and cash equivalents at end of period | $1166 | $1166 |

---

See accompanying notes

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**Denny's Corporation and Subsidiaries**

**Notes to Consolidated Financial Statements**

**(Unaudited)**

**Note 1.&nbsp;&nbsp;&nbsp;&nbsp; Introduction and Basis of Presentation**

***Introduction***

Denny's Corporation, or the Company, is one of America's largest full-service restaurant chains based on number of restaurants. As of June 25, 2025, the Company consisted of 1,558 restaurants, 1,474 of which were franchised/licensed restaurants and 84 of which were company operated.

The Company consists of the Denny's brand ("Denny's") and the Keke's Breakfast Cafe brand ("Keke's"). As of June 25, 2025, the Denny's brand consisted of 1,484 restaurants, 1,422 of which were franchised/licensed restaurants and 62 of which were company operated. As of June 25, 2025, the Keke's brand consisted of 74 restaurants, 52 of which were franchised restaurants and 22 of which were company operated.

***Basis of Presentation***

Our unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been omitted. In our opinion, all adjustments considered necessary for a fair presentation of the interim periods presented have been included. Such adjustments are of a normal and recurring nature. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions; however, we believe that our estimates are reasonable.

These interim consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto as of and for the fiscal year ended December 25, 2024 which are contained in our audited Annual Report on Form 10-K for the fiscal year ended December 25, 2024. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 31, 2025. Our significant interim accounting policies include the recognition of advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective rate.

***Change in Presentation***

Certain reclassifications have been made in the 2024 interim consolidated financial statements and notes to conform to the 2025 presentation. These reclassifications did not affect total revenues or net income.

**Note 2.&nbsp;&nbsp;&nbsp;&nbsp; Summary of Significant Accounting Policies**

***Accounting Standards to be Adopted***

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". The new guidance requires enhanced effective tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial statements and will add necessary disclosures upon adoption.

In November 2024, the FASB issued ASU 2024-03, "Disaggregation of Income Statement Expenses (Subtopic 220-40)". The new guidance requires disaggregation of certain relevant expenses included in the consolidated statements of income. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 (our fiscal 2027) and interim periods beginning after December 15, 2027 (our fiscal 2028). We are currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial statements and will add necessary disclosures upon adoption.

We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption.

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**Note 3.&nbsp;&nbsp;&nbsp;&nbsp; Receivables**

Receivables consisted of the following:

---

| | | |
|:---|:---|:---|
| | **June 25, 2025** | **December 25, 2024** |
| | **(In thousands)** | **(In thousands)** |
| Receivables, net: |  |  |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable from franchisees | $13564 | $15798 |
| &nbsp;&nbsp;&nbsp;Notes and loan receivables from franchisees | 417 | 490 |
| &nbsp;&nbsp;&nbsp;Vendor receivables | 1703 | 3632 |
| &nbsp;&nbsp;&nbsp;Credit card receivables | 822 | 1815 |
| &nbsp;&nbsp;&nbsp;Other | 2870 | 3140 |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses | (302) | (442) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total receivables, net | $19074 | $24433 |

---

**Note 4.&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and Intangible Assets**

The following table reflects the changes in carrying amounts of goodwill and goodwill by segment:

---

| | | |
|:---|:---|:---|
| | | **June 25, 2025** |
| | | **(In thousands)** |
| Balance, beginning of year |  | $66357 |
| Additions related to the acquisition of five Keke's franchise units |  | 2157 |
| Additions related to the acquisition of a Denny's franchise unit |  | 404 |
| Write-offs and reclassifications associated with the sale of Keke's units |  | (392) |
| &nbsp;&nbsp;&nbsp;Balance, end of period |  | $68526 |
| Goodwill by segment consisted of the following: |  |  |
|  | **June 25, 2025** | **December 25, 2024** |
|  | **(In thousands)** | **(In thousands)** |
| Denny's | $37911 | $37507 |
| Other | 30615 | 28850 |
| &nbsp;&nbsp;&nbsp;Total goodwill | $68526 | $66357 |

---

Intangible assets consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 25, 2025** | **June 25, 2025** | **December 25, 2024** | **December 25, 2024** |
| | **Gross Carrying Amount** | **Accumulated Amortization** | **Gross Carrying Amount** | **Accumulated Amortization** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Intangible assets with indefinite lives: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Trade names | $79687 | $— | $79687 | $— |
| &nbsp;&nbsp;&nbsp;Liquor licenses | 120 |  | 120 |  |
| Intangible assets with definite lives: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Reacquired franchise rights | 9722 | 6599 | 9135 | 6188 |
| &nbsp;&nbsp;&nbsp;Franchise agreements | 8217 | 1517 | 10603 | 1618 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | $97746 | $8116 | $99545 | $7806 |

---

Amortization expense for intangible assets with definite lives totaled $0.4 million and $0.7 million for the quarter and year-to-date periods ended June 25, 2025, respectively. Amortization expense for intangible assets with definite lives totaled $0.4 million and $0.8 million for the quarter and year-to-date periods ended June 26, 2024, respectively.

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**Note 5.&nbsp;&nbsp;&nbsp;&nbsp; Other Current Liabilities**

Other current liabilities consisted of the following:

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| | | |
|:---|:---|:---|
| | **June 25, 2025** | **December 25, 2024** |
| | **(In thousands)** | **(In thousands)** |
| Accrued payroll | $14516 | $15434 |
| Current portion of liability for insurance claims | 4433 | 4494 |
| Accrued taxes | 4808 | 4432 |
| Accrued advertising | 6686 | 11785 |
| Gift cards | 6786 | 8382 |
| Accrued legal settlements | 3859 | 4114 |
| Accrued interest | 4402 | 4368 |
| Other | 8211 | 5833 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | $53701 | $58842 |

---

**Note 6.&nbsp;&nbsp;&nbsp;&nbsp; Fair Value of Financial Instruments**

Financial assets and liabilities measured at fair value on a recurring basis are summarized below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Total** | **Quoted Prices in Active Markets for Identical Assets/Liabilities<br>(Level 1)** | **Significant Other Observable Inputs<br>(Level 2)** | **Significant Unobservable Inputs<br>(Level 3)** |
| | **(In thousands**) | **(In thousands**) | **(In thousands**) | **(In thousands**) |
| Fair value measurements as of June 25, 2025: |  |  |  |  |
| &nbsp;&nbsp;Deferred compensation plan investments <sup>(1)</sup> | $10227 | $10227 | $— | $— |
| &nbsp;&nbsp;Interest rate swaps <sup>(2)</sup> | 11745 |  | 11745 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $21972 | $10227 | $11745 | $— |
| Fair value measurements as of December 25, 2024: |  |  |  |  |
| &nbsp;&nbsp;Deferred compensation plan investments <sup>(1)</sup> | $10400 | $10400 | $— | $— |
| &nbsp;&nbsp;Interest rate swaps <sup>(2)</sup> | 20841 |  | 20841 |  |
| &nbsp;&nbsp;Investments <sup>(3)</sup> | 1106 |  | 1106 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $32347 | $10400 | $21947 | $— |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments and are included in other noncurrent assets in our Consolidated Balance Sheets.

(2)&nbsp;&nbsp;&nbsp;&nbsp;The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates, forward yield curves and credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For disclosures about the fair value measurements of our derivative instruments, see Note 7.

(3)&nbsp;&nbsp;&nbsp;&nbsp;The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments.

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Those assets and liabilities measured at fair value on a non-recurring basis are summarized below:

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| | | | |
|:---|:---|:---|:---|
| | | **Significant Unobservable Inputs <br>(Level 3)** | **Impairment Charges** |
| | | **(In thousands)** | **(In thousands)** |
| Fair value measurements as of June 25, 2025: | Fair value measurements as of June 25, 2025: |  |  |
| &nbsp;&nbsp;Assets held and used<sup>(1)(2)</sup> | &nbsp;&nbsp;Assets held and used<sup>(1)(2)</sup> | $— | $49 |
| (1) | As of June 25, 2025, impaired assets were written down to their estimated fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods. | As of June 25, 2025, impaired assets were written down to their estimated fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods. | As of June 25, 2025, impaired assets were written down to their estimated fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods. |
| (2) | Assets held and used that are measured at fair value on a non-recurring basis include property, operating lease right-of-use assets, finance lease right-of-use assets, goodwill and intangible assets. | Assets held and used that are measured at fair value on a non-recurring basis include property, operating lease right-of-use assets, finance lease right-of-use assets, goodwill and intangible assets. | Assets held and used that are measured at fair value on a non-recurring basis include property, operating lease right-of-use assets, finance lease right-of-use assets, goodwill and intangible assets. |

---

During the quarter and year-to-date periods ended June 25, 2025, we recognized impairment charges of less than $0.1 million and $3.3 million related to certain of these assets, respectively. See Note 9.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are deemed to approximate fair value due to the immediate or short-term maturity of these instruments. The fair value of notes receivable approximates the carrying value after consideration of recorded allowances and related risk-based interest rates. The liabilities under our credit facility are carried at historical cost, which approximates fair value. The fair value of our senior secured revolver approximates its carrying value since it is a variable rate facility (Level 2).

 **Note 7.&nbsp;&nbsp;&nbsp;&nbsp; Long-Term Debt**

The Company and certain of its subsidiaries have a credit facility consisting of a five-year $400 million senior secured revolver (with a $25 million letter of credit sublimit). The credit facility includes an accordion feature that would allow us to increase the size of the facility to $450 million. Borrowings bear a tiered interest rate, which is based on the Company's consolidated leverage ratio. The maturity date for the credit facility is August 26, 2026.

The credit facility is available for working capital, capital expenditures and other general corporate purposes. The credit facility is guaranteed by the Company and its material subsidiaries and is secured by assets of the Company and its subsidiaries, including the stock of its subsidiaries (other than its insurance captive subsidiary). It includes negative covenants that are usual for facilities and transactions of this type. The credit facility also includes certain financial covenants, including a maximum consolidated leverage ratio of 4.0 times and a minimum consolidated fixed charge coverage ratio of 1.5 times. As of June 25, 2025, our consolidated leverage ratio was 3.98 times and our consolidated fixed charge coverage ratio was 2.05 times. We were in compliance with all financial covenants as of June 25, 2025, and we expect to remain in compliance throughout the remainder of 2025.

As of June 25, 2025, we had outstanding revolver loans of $268.6 million and outstanding letters of credit under the credit facility of $15.9 million. These balances resulted in unused commitments of $115.5 million as of June 25, 2025 under the credit facility.

As of June 25, 2025, borrowings under the credit facility bore interest at a rate of Adjusted Daily Simple SOFR plus 2.25%. Letters of credit under the credit facility bore interest at a rate of 2.38%. The commitment fee, paid on the unused portion of the credit facility, was set to 0.35%.

Prior to considering the impact of our interest rate swaps, described below, the weighted-average interest rate on outstanding revolver loans was 6.67% and 6.98% as of June 25, 2025 and December 25, 2024, respectively. Taking into consideration our interest rate swaps that are designated as cash flow hedges, the weighted-average interest rate of outstanding revolver loans was 5.36% and 5.01% as of June 25, 2025 and December 25, 2024, respectively.

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***Interest Rate Hedges***

We have receive-variable, pay-fixed interest rate swaps to hedge the forecasted cash flows of our floating rate debt. A summary of our interest rate swaps designated as cash flow hedges as of June 25, 2025 is as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Trade Date** | **Effective Date** | **Maturity Date** | **Notional Amount** | | **Fair Value** | **Fixed Rate** |
| | | | **(In thousands)** | **(In thousands)** | **(In thousands)** | |
| October 1, 2015 | March 29, 2018 | March 31, 2026 | $50000 |  | $614 | 2.37% |
| February 15, 2018 | March 31, 2020 | December 31, 2033 | $189000 | (1) | $11131 | 3.09% |
| **Total** |  |  | $239000 |  | $11745 |  |

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(1) &nbsp;&nbsp;&nbsp;&nbsp;The notional amounts of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $335 million on August 31, 2033.

***Changes in Fair Value of Interest Rate Swaps***

To the extent the swaps are highly effective in offsetting the variability of the hedged cash flows, changes in the fair value of the swaps are not included in the Consolidated Statements of Income but are reported as a component of other comprehensive income (loss). Our interest rate swaps are designated as cash flow hedges with unrealized gains and losses recorded as a component of accumulated other comprehensive loss, net.

As of June 25, 2025, the fair value of the swaps designated as cash flow hedges was an asset of $11.7 million, recorded as a component of other noncurrent assets. The designated swaps have an offsetting amount (before taxes) recorded as a component of accumulated other comprehensive loss, net in our Consolidated Balance Sheets. See Note 13 for amounts recorded in accumulated other comprehensive loss related to interest rate swaps. During the year-to-date period ended June 25, 2025, we reclassified $1.9 million from accumulated other comprehensive loss, net as a reduction to interest expense, net. We expect to reclassify $3.6 million from accumulated other comprehensive loss, net as a reduction to interest expense, net in our Consolidated Statements of Income related to swaps designated as cash flow hedges during the next 12 months.

***Amortization of Certain Amounts Included in Accumulated Other Comprehensive Loss, Net***

At June 25, 2025, we had a total of $62.3 million (before taxes) included in accumulated other comprehensive loss, net related to (i) the discontinuance of hedge accounting treatment related to certain cash flow hedges in prior years and (ii) the fair value of certain swaps at the date of designation as cash flow hedges that are being amortized into our Consolidated Statements of Income as a component of interest expense, net over the remaining term of the related swap.

For the quarter and year-to-date periods ended June 25, 2025, we recorded unrealized losses of $0.9 million and $1.1 million to interest expense, net, respectively. For the quarter and year-to-date periods ended June 26, 2024, we recorded unrealized losses of $0.2 million and $0.3 million to interest expense, net, respectively. We expect to amortize $4.2 million from accumulated other comprehensive loss, net to interest expense, net in our Consolidated Statements of Income related to dedesignated interest rate swaps during the next 12 months.

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**Note 8.&nbsp;&nbsp;&nbsp;&nbsp; Revenues**

The following table disaggregates our revenue by sales channel and type of good or service:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Company restaurant sales | $58395 | $54348 | $112295 | $106690 |
| Franchise and license revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Royalties | 29091 | 30014 | 56928 | 59320 |
| &nbsp;&nbsp;&nbsp;Advertising revenue | 19490 | 20788 | 38563 | 38926 |
| &nbsp;&nbsp;&nbsp;Initial and other fees | 2804 | 2448 | 5678 | 4264 |
| &nbsp;&nbsp;&nbsp;Occupancy revenue | 7877 | 8329 | 15830 | 16701 |
| &nbsp;&nbsp;Franchise and license revenue  | 59262 | 61579 | 116999 | 119211 |
| Total operating revenue | $117657 | $115927 | $229294 | $225901 |

---

Franchise occupancy revenue consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Operating lease revenue | $5848 | $6071 | $11834 | $12199 |
| Variable lease revenue | 2029 | 2258 | 3996 | 4502 |
| &nbsp;&nbsp;Total occupancy revenue | $7877 | $8329 | $15830 | $16701 |

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Balances related to contracts with customers consist of receivables, contract assets, deferred franchise revenue and deferred gift card revenue. See Note 3 for details on our receivables.

Deferred franchise revenue consists primarily of the unamortized portion of initial franchise fees that are currently being amortized into revenue and amounts related to development agreements and unopened restaurants that will begin amortizing into revenue when the related restaurants are opened. Deferred franchise revenue represents our remaining performance obligations to our franchisees, excluding amounts of variable consideration related to sales-based royalties and advertising.

The components of the change in deferred franchise revenue are as follows:

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| | |
|:---|:---|
| | **(In thousands)** |
| Balance, December 25, 2024 | $16968 |
| Fees received from franchisees | 589 |
| Revenue recognized <sup>(1)</sup> | (1654) |
| &nbsp;&nbsp;&nbsp;Balance, June 25, 2025 | 15903 |
| Less current portion included in other current liabilities | 1985 |
| &nbsp;&nbsp;&nbsp;Deferred franchise revenue included in other noncurrent liabilities | $13918 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Of this amount $1.4 million was included in the deferred franchise revenue balance as of December 25, 2024.

We record contract assets related to incentives and subsidies provided to franchisees related to new unit openings and/or equipment upgrades. These amounts will be recognized as a component of franchise and license revenue over the remaining term of the related franchise agreements.

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The components of the change in contract assets are as follows:

---

| | |
|:---|:---|
| | **(In thousands)** |
| Balance, December 25, 2024 | $6706 |
| Franchisee deferred costs | 4604 |
| Contract asset amortization | (712) |
| &nbsp;&nbsp;&nbsp;Balance, June 25, 2025 | 10598 |
| Less current portion included in other current assets | 1264 |
| &nbsp;&nbsp;&nbsp;Contract assets included in other noncurrent assets | $9334 |

---

The Company purchases equipment related to various programs for franchise restaurants. We bill our franchisees and recognize revenue when the related equipment is installed, less amounts contributed from the Company, which have been deferred as contract assets in the table above. We recognized $0.4 million and $1.0 million of revenue, recorded as a component of initial and other fees, related to the sale of equipment to franchisees during the quarter and year-to-date periods ended June 25, 2025, respectively. We recognized $0.2 million and $0.5 million of revenue, recorded as a component of initial and other fees, related to the sale of equipment to franchisees during the quarter and year-to-date periods ended June 26, 2024, respectively. As of June 25, 2025, we had $0.5 million in inventory and $0.4 million in receivables related to the purchased equipment. As of December 25, 2024, we had $0.2 million in inventory and $0.4 million in receivables related to the purchased equipment.

As of June 25, 2025, deferred franchise revenue, net of contract asset amortization, expected to be recognized in the future is as follows:

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| | |
|:---|:---|
| | **(In thousands)** |
| Remainder of 2025 | $301 |
| 2026 | 833 |
| 2027 | 808 |
| 2028 | 687 |
| 2029 | 589 |
| Thereafter | 2087 |
| &nbsp;&nbsp;Deferred franchise revenue, net | $5305 |

---

Deferred gift card liabilities consist of the unredeemed portion of gift cards sold in company restaurants and at third party locations. The balance of deferred gift card liabilities represents our remaining performance obligations to our customers. The balance of deferred gift card liabilities as of June 25, 2025 and December 25, 2024 was $6.8 million and $8.4 million, respectively. During the year-to-date period ended June 25, 2025, we recognized revenue of $0.4 million from gift card redemptions at company restaurants.

**Note 9.&nbsp;&nbsp;&nbsp;&nbsp; Operating (Gains), Losses and Other Charges, Net**

Operating (gains), losses and other charges, net consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| (Gains) losses on sales of assets and other, net | $425 | $526 | $(1317) | $(94) |
| Impairment charges | 49 | 619 | 3265 | 714 |
| Restructuring charges and exit costs | 1226 | 420 | 3663 | 618 |
| &nbsp;&nbsp;Operating (gains), losses and other charges, net | $1700 | $1565 | $5611 | $1238 |

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During the quarters and year-to-date periods ended June 25, 2025 and June 26, 2024, (gains) losses on sales of assets and other, net were primarily related to the sales of real estate and restaurants.

As of June 25, 2025, we had recorded assets held for sale at their carrying amount of $1.1 million (consisting of property of $0.7 million and goodwill of $0.4 million) related to one parcel of real estate and two restaurants. As of December 25, 2024, we

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had recorded assets held for sale at their carrying amount of $0.4 million (consisting of property) related to two parcels of real estate.

We recorded impairment charges of less than $0.1 million and $3.3 million for the quarter and year-to-date periods ended June 25, 2025, respectively. The impairment charge for the quarter related to an operating lease right-of-use asset. The $3.3 million charge for the year-to-date period ended June 25, 2025 included $2.0 million related to franchise agreements for closed units. Additionally, $0.4 million of property and $0.9 million of operating lease right-of-use assets were impaired related to the relocation of certain support functions.

Restructuring charges and exit costs consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Exit costs | $9 | $49 | $49 | $91 |
| Severance and other restructuring charges | 1217 | 371 | 3614 | 527 |
| &nbsp;&nbsp;Total restructuring charges and exit costs | $1226 | $420 | $3663 | $618 |

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Exit costs primarily consist of costs related to closed restaurants. Exit cost liabilities related to lease costs are included as a component of operating lease liabilities in our Consolidated Balance Sheets.

Severance and other restructuring charges for the quarter and year-to-date periods ended June 25, 2025 primarily consisted of severance costs resulting from the elimination of 26 positions during the quarter and 66 positions year-to-date, as part of a cost savings initiative. As of June 25, 2025 and December 25, 2024, we had accrued severance and other restructuring charges of $2.0 million and $0.3 million, respectively. The balance as of June 25, 2025 is expected to be paid during the next 12 months.

**Note 10.&nbsp;&nbsp;&nbsp;&nbsp; Share-Based Compensation**

Total share-based compensation included as a component of general and administrative expenses was as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Employee share awards | $2772 | $2409 | $5324 | $4980 |
| Restricted stock units for board members | 210 | 215 | 443 | 420 |
| &nbsp;&nbsp;Total share-based compensation | $2982 | $2624 | $5767 | $5400 |

---

***Employee Share Awards***

During the year-to-date period ended June 25, 2025, we granted certain employees 0.9 million performance share units ("PSUs") with a weighted average grant date fair value of $6.73 per share that vest based on the total shareholder return ("TSR") of our common stock compared to the TSRs of a group of peer companies. Half of these PSUs will be settled in cash, net of taxes (liability-classified awards) and half will be settled in shares of stock, net of shares withheld for taxes (equity-classified awards). As the TSR based PSUs contain a market condition, a Monte Carlo valuation was used to determine the grant date fair value. The performance period for these PSUs is the three-year fiscal period beginning December 26, 2024 and ending December 29, 2027. The PSUs will vest and be earned at the end of the performance period at which point the relative TSR achievement percentages will be applied to the vested units (from 0% to 150% of the target award).

During the year-to-date period ended June 25, 2025, we also granted certain employees 1.4 million restricted stock units ("RSUs") with a weighted average grant date fair value of $6.08 per share. These RSUs generally vest evenly over the three-year fiscal period beginning December 26, 2024 and ending December 29, 2027. We recognize compensation cost associated with these RSU awards on a straight-line basis over the entire performance period of the award.

During the year-to-date period ended June 25, 2025, we issued 0.3 million shares of common stock related to vested PSUs and RSUs for employees. In addition, 0.2 million shares of common stock were withheld in lieu of taxes related to vested PSUs and RSUs.

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As of June 25, 2025, we had $19.2 million of unrecognized compensation cost related to unvested PSU awards and RSU awards outstanding, which have a weighted average remaining contractual term of 2.0 years.

***Restricted Stock Units for Board Members***

During the quarter and year-to-date periods ended June 25, 2025, we granted 0.2 million RSUs (which are equity classified) with a weighted average grant date fair value of $4.44 per unit to non-employee members of our Board of Directors. The RSUs vest after a one-year service period. A director may elect to convert these awards to shares of common stock either on a specific date in the future (while still serving as a member of our Board of Directors), upon termination as a member of our Board of Directors, or in three equal annual installments commencing after termination of service as a member of our Board of Directors.

During the quarter and year-to-date periods ended June 25, 2025, 0.2 million RSUs were converted into shares of common stock and fewer than 0.1 million RSUs were converted to cash.

As of June 25, 2025, we had $0.6 million of unrecognized compensation cost related to unvested RSU awards outstanding, which have a weighted average remaining contractual term of 0.9 years.

**Note 11.&nbsp;&nbsp;&nbsp;&nbsp; Income Taxes**

The effective income tax rate was 34.3% for the quarter and 36.2% for the year-to-date period ended June 25, 2025, compared to 25.1% and 24.8% for the prior year periods, respectively. The effective income tax rate for the quarter and year-to-date periods ended June 25, 2025 included discrete items relating to share-based compensation of 9.0% and 11.5%, respectively. We did not have similar discrete items for the quarter and year-to-date periods ended June 26, 2024.

On July 4, 2025, H.R. 1, the budget bill known as the One Big Beautiful Bill Act ("OBBBA") was enacted. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing its impact on our consolidated financial statements.

**Note 12.&nbsp;&nbsp;&nbsp;&nbsp; Net Income Per Share**

The amounts used for the basic and diluted net income per share calculations are summarized below:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** |
| Net income | $2470 | $3568 | $2796 | $8259 |
| Weighted average shares outstanding - basic | 52059 | 52689 | 52191 | 52879 |
| Effect of dilutive share-based compensation awards | 72 | 98 | 103 | 123 |
| Weighted average shares outstanding - diluted | 52131 | 52787 | 52294 | 53002 |
| Net income per share - basic | $0.05 | $0.07 | $0.05 | $0.16 |
| Net income per share - diluted | $0.05 | $0.07 | $0.05 | $0.16 |
| Anti-dilutive share-based compensation awards | 1133 | 686 | 1225 | 828 |

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**Note 13.&nbsp;&nbsp;&nbsp;&nbsp; Shareholders' Deficit**

***Share Repurchases***

Our credit facility permits the repurchase of the Company's stock and the payment of cash dividends subject to certain limitations. Our Board of Directors approves share repurchases of our common stock. Under these authorizations, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions, subject to market and business conditions. Currently, we are operating under a $250 million share repurchase authorization approved by the Board of Directors in December 2019.

During the year-to-date period ended June 25, 2025, we repurchased a total of 0.4 million shares of our common stock for $1.6 million, including excise taxes. This brings the total amount repurchased under the current authorization to $162.4 million, including excise taxes, leaving $87.6 million that can be used to repurchase our common stock under this authorization as of June 25, 2025. Repurchased shares are included as treasury stock in our Consolidated Balance Sheets and our Consolidated Statements of Shareholders' Deficit.

In the fourth quarter of fiscal 2024, the Board approved the retirement of 2.0 million shares of treasury stock at a weighted average share price of $8.78, including excise taxes. As of June 25, 2025, 0.4 million shares were held in treasury stock.

***Accumulated Other Comprehensive Loss, Net***

The components of the change in accumulated other comprehensive loss, net were as follows:

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| | | | |
|:---|:---|:---|:---|
| | **Defined Benefit Plans** | **Derivatives** | **Accumulated Other Comprehensive Loss, Net** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Balance as of December 25, 2024 | $(209) | $(31830) | $(32039) |
| Amortization of net loss <sup>(1)</sup> | 21 |  | 21 |
| Settlement loss recognized <sup>(1)</sup> | 1 |  | 1 |
| Changes in the fair value of cash flow hedges |  | (7182) | (7182) |
| Reclassification of cash flow hedges to interest expense, net <sup>(2)</sup> |  | (1915) | (1915) |
| Amortization of unrealized losses related to interest rate swaps to interest expense, net |  | 1138 | 1138 |
| Income tax expense related to items of other comprehensive income (loss) | (5) | 2006 | 2001 |
| &nbsp;&nbsp;&nbsp;Balance as of June 25, 2025 | $(192) | $(37783) | $(37975) |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss, net and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Income during the quarter ended June 25, 2025.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Amounts reclassified from accumulated other comprehensive loss, net into interest expense, net in our Consolidated Statements of Income represent payments either (received from) or made to the counterparty for the interest rate hedges. See Note 7 for additional details.

**Note 14.&nbsp;&nbsp;&nbsp;&nbsp; Commitments and Contingencies**

***Legal Proceedings***

There are various claims and pending legal actions against or indirectly involving us, incidental to and arising out of the ordinary course of the business. In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect our consolidated results of operations or financial position.

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**Note 15.&nbsp;&nbsp;&nbsp;&nbsp; Supplemental Cash Flow Information**

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| | | |
|:---|:---|:---|
| | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** |
| Income taxes paid, net | $2250 | $3668 |
| Interest paid | $8411 | $8185 |
| Noncash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Restaurant acquisition payable | $300 | $— |
| &nbsp;&nbsp;&nbsp;Accrued purchase of property | $549 | $229 |
| &nbsp;&nbsp;&nbsp;Issuance of common stock, pursuant to share-based compensation plans | $2385 | $3793 |
| &nbsp;&nbsp;&nbsp;Execution of finance leases | $191 | $119 |
| &nbsp;&nbsp;&nbsp;Treasury stock payable | $— | $137 |
| &nbsp;&nbsp;&nbsp;Treasury stock excise tax payable | $— | $511 |
| &nbsp;&nbsp;&nbsp;Receivables included in acquisition of restaurants | $224 | $— |

---

**Note 16. Segment Information**

We manage our business by brand and as a result have identified two operating segments, Denny's and Keke's. In addition, we have identified Denny's as a reportable segment. The Denny's reportable segment includes the results of all company and franchised and licensed Denny's restaurants. Our Keke's operating segment, which includes the results of all company and franchised Keke's restaurants, is included in Other.

The primary sources of revenues for all operating segments are the sale of food and beverages at our company restaurants and the collection of royalties, advertising revenue, initial and other fees, including occupancy revenue, from restaurants operated by our franchisees. We do not rely on any major customer as a source of sales and the customers and assets of all operating segments are located predominantly in the United States. There are no material transactions between segments.

Management's measure of segment income is restaurant-level operating margin. The Company defines restaurant-level operating margin as operating income excluding the following four items: general and administrative expenses, depreciation and amortization, goodwill impairment charges and operating (gains), losses and other charges, net. The Company excludes general and administrative expenses, which include primarily non restaurant-level costs associated with the support of company and franchised restaurants and other activities at their corporate office. The Company excludes depreciation and amortization expense, substantially all of which is related to company restaurant-level assets, because such expenses represent historical sunk costs which do not reflect current cash outlays for the restaurants. The Company excludes goodwill impairment charges and operating (gains), losses and other charges, net, to provide a clearer perspective of its ongoing operating performance and more relevant comparison to prior period results. The Company's chief operating decision maker ("CODM") is our Chief Executive Officer. Restaurant-level operating margin is used by our CODM to evaluate restaurant-level operating efficiency and performance and make key operating decisions.

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The following tables present revenues by segment and a reconciliation of restaurant-level operating margin to net income:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended June 25, 2025** | **Quarter Ended June 25, 2025** | **Quarter Ended June 25, 2025** | **Two Quarters Ended June 25, 2025** | **Two Quarters Ended June 25, 2025** | **Two Quarters Ended June 25, 2025** |
| | **Denny's** | **Other** | **Total** | **Denny's** | **Other** | **Total** |
| **Revenues** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Company restaurant sales | $48474 | $9921 | $58395 | $94180 | $18115 | $112295 |
| Franchise and license revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;Royalties | 27912 | 1179 | 29091 | 54504 | 2424 | 56928 |
| &nbsp;&nbsp;Advertising revenue | 19047 | 443 | 19490 | 37667 | 896 | 38563 |
| &nbsp;&nbsp;Initial and other fees | 2742 | 62 | 2804 | 5471 | 207 | 5678 |
| &nbsp;&nbsp;Occupancy revenue | 7844 | 33 | 7877 | 15764 | 66 | 15830 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total franchise and license revenue | 57545 | 1717 | 59262 | 113406 | 3593 | 116999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | 106019 | 11638 | 117657 | 207586 | 21708 | 229294 |
| **Cost and expenses** |  |  |  |  |  |  |
| Costs of company restaurant sales, excluding depreciation and amortization: |  |  |  |  |  |  |
| Product costs | 12301 | 2785 | 15086 | 24020 | 5277 | 29297 |
| Payroll and benefits | 17971 | 3898 | 21869 | 35664 | 7301 | 42965 |
| Occupancy costs | 3909 | 1272 | 5181 | 7906 | 2334 | 10240 |
| Other operating expenses: |  |  |  |  |  |  |
| &nbsp;&nbsp;Utilities | 1516 | 313 | 1829 | 2975 | 548 | 3523 |
| &nbsp;&nbsp;Repairs and maintenance | 742 | 105 | 847 | 1506 | 177 | 1683 |
| &nbsp;&nbsp;Marketing | 2085 | 301 | 2386 | 3898 | 516 | 4414 |
| &nbsp;&nbsp;Legal settlements | 382 | 9 | 391 | 807 | (11) | 796 |
| &nbsp;&nbsp;Pre-opening costs |  | 645 | 645 |  | 1354 | 1354 |
| &nbsp;&nbsp;Other direct costs | 3258 | 853 | 4111 | 6568 | 1530 | 8098 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total costs of company restaurant sales, excluding depreciation and amortization | 42164 | 10181 | 52345 | 83344 | 19026 | 102370 |
| Costs of franchise and license revenue, excluding depreciation and amortization: |  |  |  |  |  |  |
| &nbsp;&nbsp;Advertising costs | 19047 | 443 | 19490 | 37667 | 896 | 38563 |
| &nbsp;&nbsp;Occupancy costs | 4839 | 33 | 4872 | 9739 | 66 | 9805 |
| &nbsp;&nbsp;Other direct costs | 4580 | 275 | 4855 | 8520 | 683 | 9203 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total costs of franchise and license revenue, excluding depreciation and amortization | 28466 | 751 | 29217 | 55926 | 1645 | 57571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total restaurant-level operating margin | 35389 | 706 | 36095 | 68316 | 1037 | 69353 |
| **Reconciliation of restaurant-level operating margin to net income** |  |  |  |  |  |  |
| General and administrative expenses |  |  | 21445 |  |  | 41475 |
| Depreciation and amortization |  |  | 4378 |  |  | 8485 |
| Operating (gains), losses and other charges, net |  |  | 1700 |  |  | 5611 |
| &nbsp;&nbsp;Total other operating expenses |  |  | 27523 |  |  | 55571 |
| Operating income |  |  | 8572 |  |  | 13782 |
| Interest expense, net |  |  | 5374 |  |  | 9802 |
| Other nonoperating income, net |  |  | (563) |  |  | (401) |
| Income before income taxes |  |  | 3761 |  |  | 4381 |
| Provision for income taxes |  |  | 1291 |  |  | 1585 |
| Net income |  |  | $2470 |  |  | $2796 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended June 26, 2024** | **Quarter Ended June 26, 2024** | **Quarter Ended June 26, 2024** | **Two Quarters Ended June 26, 2024** | **Two Quarters Ended June 26, 2024** | **Two Quarters Ended June 26, 2024** |
| | **Denny's** | **Other** | **Total** | **Denny's** | **Other** | **Total** |
| **Revenues** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Company restaurant sales | $49557 | $4791 | $54348 | $97724 | $8966 | $106690 |
| Franchise and license revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;Royalties | 28781 | 1233 | 30014 | 56830 | 2490 | 59320 |
| &nbsp;&nbsp;Advertising revenue | 20339 | 449 | 20788 | 38019 | 907 | 38926 |
| &nbsp;&nbsp;Initial and other fees | 2369 | 79 | 2448 | 4112 | 152 | 4264 |
| &nbsp;&nbsp;Occupancy revenue | 8306 | 23 | 8329 | 16678 | 23 | 16701 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total franchise and license revenue | 59795 | 1784 | 61579 | 115639 | 3572 | 119211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | 109352 | 6575 | 115927 | 213363 | 12538 | 225901 |
| **Cost and expenses** |  |  |  |  |  |  |
| Costs of company restaurant sales, excluding depreciation and amortization: |  |  |  |  |  |  |
| Product costs | 12340 | 1292 | 13632 | 24544 | 2399 | 26943 |
| Payroll and benefits | 18374 | 2119 | 20493 | 37031 | 3936 | 40967 |
| Occupancy costs | 4031 | 640 | 4671 | 8044 | 1200 | 9244 |
| Other operating expenses: |  |  |  |  |  |  |
| &nbsp;&nbsp;Utilities | 1550 | 145 | 1695 | 3097 | 253 | 3350 |
| &nbsp;&nbsp;Repairs and maintenance | 947 | 61 | 1008 | 1924 | 89 | 2013 |
| &nbsp;&nbsp;Marketing | 1758 | 118 | 1876 | 3239 | 241 | 3480 |
| &nbsp;&nbsp;Legal settlements | 197 | 11 | 208 | 1646 | 11 | 1657 |
| &nbsp;&nbsp;Pre-opening costs |  | 191 | 191 |  | 557 | 557 |
| &nbsp;&nbsp;Other direct costs | 3418 | 386 | 3804 | 6648 | 837 | 7485 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total costs of company restaurant sales, excluding depreciation and amortization | 42615 | 4963 | 47578 | 86173 | 9523 | 95696 |
| Costs of franchise and license revenue, excluding depreciation and amortization: |  |  |  |  |  |  |
| &nbsp;&nbsp;Advertising costs | 20339 | 449 | 20788 | 38019 | 907 | 38926 |
| &nbsp;&nbsp;Occupancy costs | 5072 | 22 | 5094 | 10204 | 22 | 10226 |
| &nbsp;&nbsp;Other direct costs | 7251 | 295 | 7546 | 11232 | 418 | 11650 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total costs of franchise and license revenue, excluding depreciation and amortization | 32662 | 766 | 33428 | 59455 | 1347 | 60802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total restaurant-level operating margin | 34075 | 846 | 34921 | 67735 | 1668 | 69403 |
| **Reconciliation of restaurant-level operating margin to net income** |  |  |  |  |  |  |
| General and administrative expenses |  |  | 20486 |  |  | 41708 |
| Depreciation and amortization |  |  | 3735 |  |  | 7316 |
| Goodwill impairment charges |  |  | 20 |  |  | 20 |
| Operating (gains), losses and other charges, net |  |  | 1565 |  |  | 1238 |
| &nbsp;&nbsp;Total other operating expenses |  |  | 25806 |  |  | 50282 |
| Operating income |  |  | 9115 |  |  | 19121 |
| Interest expense, net |  |  | 4573 |  |  | 8993 |
| Other nonoperating income, net |  |  | (224) |  |  | (861) |
| Income before income taxes |  |  | 4766 |  |  | 10989 |
| Provision for income taxes |  |  | 1198 |  |  | 2730 |
| Net income |  |  | $3568 |  |  | $8259 |

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| | | |
|:---|:---|:---|
| | **June 25, 2025** | **December 25, 2024** |
| **Segment assets:** | **(In thousands)** | **(In thousands)** |
| Denny's | $325492 | $344986 |
| Other | 165658 | 151288 |
| &nbsp;&nbsp;&nbsp;Total assets | $491150 | $496274 |

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**Item 2.&nbsp;&nbsp;&nbsp;&nbsp; Management's Discussion and Analysis of Financial Condition and Results of Operations**

The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") should be read in conjunction with our consolidated financial statements and the notes thereto that appear elsewhere in this report and the MD&A contained in our Annual Report on Form 10-K for the fiscal year ended December 25, 2024.

**<u>Forward-Looking Statements</u>**

This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company urges caution in considering its current trends and any outlook on its operations and financial results disclosed in this report. In addition, certain matters discussed in this report may constitute forward-looking statements. These forward-looking statements, which reflect management's best judgment based on factors currently known, are intended to speak only as of the date such statements are made and involve risks, uncertainties, and other factors that may cause the actual performance of Denny's Corporation, its subsidiaries, and underlying restaurants to be materially different from the performance indicated or implied by such statements. Words such as "expect", "anticipate", "believe", "intend", "plan", "hope", "will" and variations of such words and similar expressions are intended to identify such forward-looking statements. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events. Factors that could cause actual performance to differ materially from the performance indicated by these forward-looking statements include, among others: economic, public health and political conditions that impact consumer confidence and spending; commodity and labor inflation; the potential impacts of tariffs; the ability to effectively staff restaurants and support personnel; our ability to maintain adequate levels of liquidity for our cash needs, including debt obligations, payment of dividends, planned share repurchases and capital expenditures as well as the ability of our customers, suppliers, franchisees and lenders to access sources of liquidity to provide for their own cash needs; competitive pressures from within the restaurant industry; the level of success of our operating initiatives and advertising and promotional efforts; adverse publicity; health concerns arising from food-related pandemics, outbreaks of flu viruses, or other diseases; changes in business strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general economy (including with regard to energy costs), particularly at the retail level; political environment and geopolitical events (including acts of war and terrorism); and other factors from time to time set forth in the Company's SEC reports and other filings, including but not limited to the discussion in Management's Discussion and Analysis and the risks identified in Item 1A. Risk Factors contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 25, 2024 and in the Company's subsequent quarterly reports on Form 10-Q.

**<u>Overview</u>**

We manage our business by brand and as a result have identified two operating segments, Denny's and Keke's. As of June 25, 2025, the Denny's brand consisted of 1,484 restaurants, 1,422 of which were franchised/licensed restaurants and 62 of which were company operated. At June 25, 2025, the Keke's brand consisted of 74 restaurants, 52 of which were franchised restaurants and 22 of which were company operated.

In addition, we have identified Denny's as a reportable segment. The Denny's reportable segment includes the results of all company and franchised and licensed Denny's restaurants. Total revenues at Keke's for the quarter and year-to-date periods ended June 25, 2025 represented less than 10% of total consolidated revenues. Therefore, the Keke's operating segment is included in Other for segment reporting purposes.

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**<u>Statements of Income</u>**

The following table contains information derived from our Consolidated Statements of Income expressed as a percentage of total operating revenue, except as noted below. Percentages may not add due to rounding.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 25, 2025** | **June 26, 2024** | **June 26, 2024** | **June 25, 2025** | **June 25, 2025** | **June 26, 2024** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Revenue: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Company restaurant sales | $58395 | 49.6% | $54348 | 46.9% | $112295 | 49.0% | $106690 | 47.2% |
| &nbsp;&nbsp;&nbsp;Franchise and license revenue | 59262 | 50.4% | 61579 | 53.1% | 116999 | 51.0% | 119211 | 52.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | 117657 | 100.0% | 115927 | 100.0% | 229294 | 100.0% | 225901 | 100.0% |
| Costs of company restaurant sales, excluding depreciation and amortization (a): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Product costs | 15086 | 25.8% | 13632 | 25.1% | 29297 | 26.1% | 26943 | 25.3% |
| &nbsp;&nbsp;&nbsp;Payroll and benefits | 21869 | 37.5% | 20493 | 37.7% | 42965 | 38.3% | 40967 | 38.4% |
| &nbsp;&nbsp;&nbsp;Occupancy | 5181 | 8.9% | 4671 | 8.6% | 10240 | 9.1% | 9244 | 8.7% |
| &nbsp;&nbsp;&nbsp;Other operating expenses | 10209 | 17.5% | 8782 | 16.2% | 19868 | 17.7% | 18542 | 17.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total costs of company restaurant sales, excluding depreciation and amortization | 52345 | 89.6% | 47578 | 87.5% | 102370 | 91.2% | 95696 | 89.7% |
| Costs of franchise and license revenue, excluding depreciation and amortization (a) | 29217 | 49.3% | 33428 | 54.3% | 57571 | 49.2% | 60802 | 51.0% |
| General and administrative expenses | 21445 | 18.2% | 20486 | 17.7% | 41475 | 18.1% | 41708 | 18.5% |
| Depreciation and amortization | 4378 | 3.7% | 3735 | 3.2% | 8485 | 3.7% | 7316 | 3.2% |
| Goodwill impairment charges |  | 0.0% | 20 | 0.0% |  | 0.0% | 20 | 0.0% |
| Operating (gains), losses and other charges, net | 1700 | 1.4% | 1565 | 1.3% | 5611 | 2.4% | 1238 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses, net | 109085 | 92.7% | 106812 | 92.1% | 215512 | 94.0% | 206780 | 91.5% |
| Operating income | 8572 | 7.3% | 9115 | 7.9% | 13782 | 6.0% | 19121 | 8.5% |
| Interest expense, net | 5374 | 4.6% | 4573 | 3.9% | 9802 | 4.3% | 8993 | 4.0% |
| Other nonoperating income, net | (563) | (0.5)% | (224) | (0.2)% | (401) | (0.2)% | (861) | (0.4)% |
| Income before income taxes | 3761 | 3.2% | 4766 | 4.1% | 4381 | 1.9% | 10989 | 4.9% |
| Provision for income taxes | 1291 | 1.1% | 1198 | 1.0% | 1585 | 0.7% | 2730 | 1.2% |
| Net income | $2470 | 2.1% | $3568 | 3.1% | $2796 | 1.2% | $8259 | 3.7% |

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<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

(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.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Statistical Data** | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Denny's** | | | | |
| &nbsp;&nbsp;&nbsp;Company average unit sales | $789 | $774 | $1547 | $1517 |
| &nbsp;&nbsp;&nbsp;Franchise average unit sales | $479 | $473 | $930 | $930 |
| &nbsp;&nbsp;&nbsp;Company equivalent units (a) | 61 | 64 | 61 | 64 |
| &nbsp;&nbsp;&nbsp;Franchise equivalent units (a) | 1426 | 1485 | 1430 | 1493 |
| &nbsp;&nbsp;&nbsp;Company same-store sales decrease vs. prior year (b)(c) | 0.0% | (2.6)% | (0.4)% | (2.8)% |
| &nbsp;&nbsp;&nbsp;Domestic franchise same-store sales decrease vs. prior year (b)(c) | (1.4)% | (0.4)% | (2.3)% | (0.8)% |
| **Keke's** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Company average unit sales | $433 | $447 | $845 | $902 |
| &nbsp;&nbsp;&nbsp;Franchise average unit sales | $484 | $457 | $996 | $929 |
| &nbsp;&nbsp;&nbsp;Company equivalent units (a) | 23 | 11 | 21 | 10 |
| &nbsp;&nbsp;&nbsp;Franchise equivalent units (a) | 48 | 51 | 47 | 50 |
| &nbsp;&nbsp;&nbsp;Company same-store sales increase (decrease) vs. prior year (b)(c) | 3.4% | (4.4)% | 2.0% | (2.7)% |
| &nbsp;&nbsp;&nbsp;Franchise same-store sales increase (decrease) vs. prior year (b)(c) | 4.2% | (4.6)% | 4.2% | (4.3)% |

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<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

(a)Equivalent units are calculated as the weighted average number of units in operation during a defined time period.

(b)Same-restaurant sales include sales from company restaurants or non-consolidated franchised and licensed restaurants that were open during the comparable periods noted.

(c)Prior year amounts have not been restated for 2025 comparable units.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Unit Activity** | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| **Denny's** | | | | |
| &nbsp;&nbsp;Company restaurants, beginning of period | 61 | 64 | 61 | 65 |
| &nbsp;&nbsp;Units acquired from franchisees | 1 |  | 1 |  |
| &nbsp;&nbsp;Units closed |  |  |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period | 62 | 64 | 62 | 64 |
| &nbsp;&nbsp;Franchised and licensed restaurants, beginning of period | 1430 | 1489 | 1438 | 1508 |
| &nbsp;&nbsp;Units opened | 3 | 3 | 9 | 8 |
| &nbsp;&nbsp;Units acquired by Company | (1) |  | (1) |  |
| &nbsp;&nbsp;Units closed | (10) | (15) | (24) | (39) |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period | 1422 | 1477 | 1422 | 1477 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total restaurants, end of period | 1484 | 1541 | 1484 | 1541 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| **Keke's** | | | | |
| &nbsp;&nbsp;Company restaurants, beginning of period | 21 | 11 | 14 | 8 |
| &nbsp;&nbsp;Units opened | 4 | 1 | 6 | 4 |
| &nbsp;&nbsp;Units acquired from franchisees |  |  | 5 |  |
| &nbsp;&nbsp;Units sold to franchisees | (3) | (1) | (3) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period | 22 | 11 | 22 | 11 |
| &nbsp;&nbsp;Franchised restaurants, beginning of period | 45 | 50 | 55 | 50 |
| &nbsp;&nbsp;Units opened | 4 |  | 5 |  |
| &nbsp;&nbsp;Units purchased from Company | 3 | 1 | 3 | 1 |
| &nbsp;&nbsp;Units acquired by Company |  |  | (5) |  |
| &nbsp;&nbsp;Units closed |  |  | (6) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period | 52 | 51 | 52 | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total restaurants, end of period | 74 | 62 | 74 | 62 |

---

**Company Restaurant Operations**

Company restaurant sales increased $4.0 million, or 7.4%, for the quarter ended June 25, 2025 and $5.6 million, or 5.3%, year-to-date compared to the prior year periods, primarily resulting from a Keke's 12 equivalent unit increase for the current quarter and a Keke's 11 equivalent unit increase year-to-date compared to the prior year periods and an increase in Keke's same-store sales of 3.4% for the current quarter and 2.0% year-to-date compared to the prior year periods. The increases in company restaurant sales were partially offset by a Denny's three equivalent unit decrease for the current quarter and year-to-date periods compared to the prior year periods.

Total costs of company restaurant sales as a percentage of company restaurant sales were 89.6% for the quarter ended June 25, 2025 and 91.2% year-to-date compared to 87.5% and 89.7% for the prior year periods, respectively.

Product costs as a percentage of company restaurant sales were 25.8% for the quarter ended June 25, 2025 and 26.1% year-to-date compared to 25.1% and 25.3% for the prior year periods, respectively. The current quarter and year-to-date period increases as a percentage of company restaurant sales were primarily due to higher commodity costs heavily impacted by higher egg prices, partially offset by increased pricing.

Payroll and benefits as a percentage of company restaurant sales were 37.5% for the quarter ended June 25, 2025 and 38.3% year-to-date compared to 37.7% and 38.4% for the prior year periods, respectively.

Occupancy costs as a percentage of company restaurant sales were 8.9% for the quarter ended June 25, 2025 and 9.1% year-to-date compared to 8.6% and 8.7%, respectively, for the prior year periods. The current quarter increase as a percentage of company restaurant sales was primarily due to a 0.7 percentage point increase in rent and property taxes, offset by a 0.4 percentage point decrease in general liability insurance costs resulting from favorable claims development. The year-to-date increase as a percentage of company restaurant sales was primarily due to a 0.8 percentage point increase in rent and property taxes, offset by a 0.4 percentage point decrease in general liability insurance costs resulting from favorable claims development.

------

Other operating expenses consist of the following amounts and percentages of company restaurant sales:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 25, 2025** | **June 26, 2024** | **June 26, 2024** | **June 25, 2025** | **June 25, 2025** | **June 26, 2024** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Utilities | $1829 | 3.1% | $1695 | 3.1% | $3523 | 3.1% | $3350 | 3.1% |
| Repairs and maintenance | 847 | 1.5% | 1008 | 1.9% | 1683 | 1.5% | 2013 | 1.9% |
| Marketing | 2386 | 4.1% | 1876 | 3.5% | 4414 | 3.9% | 3480 | 3.3% |
| Legal settlements | 391 | 0.7% | 208 | 0.4% | 796 | 0.7% | 1657 | 1.6% |
| Pre-opening costs | 645 | 1.1% | 191 | 0.4% | 1354 | 1.2% | 557 | 0.5% |
| Other direct costs | 4111 | 7.0% | 3804 | 7.0% | 8098 | 7.2% | 7485 | 7.0% |
| &nbsp;&nbsp;&nbsp;Other operating expenses | $10209 | 17.5% | $8782 | 16.2% | $19868 | 17.7% | $18542 | 17.4% |

---

The current quarter and year-to-date period increases in other operating expenses were primarily due to increased marketing and higher pre-opening costs at Keke's related to new unit openings. The year-to-date period also benefited from favorable legal settlement costs related to unfavorable developments in certain claims during the prior period.

**Franchise Operations**

Franchise and license revenue and costs of franchise and license revenue consisted of the following amounts and percentages of franchise and license revenue for the periods indicated:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 25, 2025** | **June 26, 2024** | **June 26, 2024** | **June 25, 2025** | **June 25, 2025** | **June 26, 2024** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Royalties | $29091 | 49.1% | $30014 | 48.7% | $56928 | 48.7% | $59320 | 49.7% |
| Advertising revenue | 19490 | 32.9% | 20788 | 33.8% | 38563 | 33.0% | 38926 | 32.7% |
| Initial and other fees | 2804 | 4.7% | 2448 | 4.0% | 5678 | 4.9% | 4264 | 3.6% |
| Occupancy revenue | 7877 | 13.3% | 8329 | 13.5% | 15830 | 13.5% | 16701 | 14.0% |
| &nbsp;&nbsp;Franchise and license revenue  | $59262 | 100.0% | $61579 | 100.0% | $116999 | 100.0% | $119211 | 100.0% |
| Advertising costs | $19490 | 32.9% | $20788 | 33.8% | $38563 | 33.0% | $38926 | 32.7% |
| Occupancy costs | 4872 | 8.2% | 5094 | 8.3% | 9805 | 8.4% | 10226 | 8.6% |
| Other direct franchise costs | 4855 | 8.2% | 7546 | 12.3% | 9203 | 7.9% | 11650 | 9.8% |
| &nbsp;&nbsp;Costs of franchise and license revenue  | $29217 | 49.3% | $33428 | 54.3% | $57571 | 49.2% | $60802 | 51.0% |

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Franchise and license revenue decreased $2.3 million, or 3.8%, for the quarter ended June 25, 2025 and $2.2 million, or 1.9%, year-to-date compared to the prior year periods. Royalties decreased $0.9 million, or 3.1%, and $2.4 million, or 4.0%, for the current quarter and year-to-date periods, respectively, compared to the prior year periods. The decreases in royalties primarily resulted from a decrease of 59 Denny's franchise equivalent units for the current quarter and 63 franchise equivalent units year-to-date compared to the prior year periods, and a decrease in Denny's domestic franchise same-store sales of 1.4% for the current quarter and 2.3% year-to-date as compared to the prior year periods. The decreases also include Keke's franchise equivalent unit decreases of three units for the current quarter and year-to-date periods, respectively. These decreases were partially offset by an increase in Keke's franchise same-store sales of 4.2% for the current quarter and 4.2% year-to-date as compared to the prior year periods.

Advertising revenue decreased $1.3 million, or 6.2%, for the quarter ended June 25, 2025 and $0.4 million, or 0.9%, year-to-date compared to the prior year periods. The decrease in advertising revenue for the current quarter and year-to-date periods primarily resulted from the decrease in Denny's franchise equivalent units and same-store sales noted above. In addition, local advertising co-op contributions decreased by $0.7 million and increased by $1.1 million for the current quarter and year-to-date periods, respectively.

Initial and other fees increased $0.4 million, or 14.6%, for the quarter ended June 25, 2025 and $1.4 million, or 33.2%, year-to-date compared to the prior year periods. These increases in initial and other fees were driven by increased revenue of $0.2

------

million and $0.5 million from sales of equipment to franchisees for the current quarter and year-to-date periods, respectively. The year-to-date period ended June 25, 2025 also included the collection of a $0.6 million early franchise termination fee.

Occupancy revenue decreased $0.5 million, or 5.4%, for the current quarter and $0.9 million, or 5.2%, year-to-date compared to the prior year periods, primarily due to lease terminations and modifications.

Costs of franchise and license revenue decreased $4.2 million, or 12.6%, for the quarter ended June 25, 2025 and $3.2 million, or 5.3%, year-to-date compared to the prior year periods. Advertising costs decreased $1.3 million, or 6.2%, for the current quarter and decreased $0.4 million, or 0.9%, year-to-date, which corresponds to the related advertising revenue decreases for the current quarter and year-to-date periods noted above. Occupancy costs decreased $0.2 million, or 4.3%, for the current quarter and $0.4 million, or 4.1%, year-to-date compared to the prior year periods, primarily due to lease terminations. Other direct franchise costs decreased $2.7 million, or 35.7%, for the current quarter and $2.4 million, or 21.0%, year-to-date compared to the prior year periods. The decrease in other direct franchise costs for the current quarter and the year-to-date period was primarily due to a $2.6 million distribution to franchisees related to a review of advertising costs in the prior year periods. As a result of the changes in franchise and license revenue discussed above, costs of franchise and license revenue decreased to 49.3% and 49.2% of franchise and license revenue for the quarter and year-to-date periods ended June 25, 2025, respectively, from 54.3% and 51.0% for the prior year periods, respectively.

**Other Operating Costs and Expenses**

Other operating costs and expenses such as general and administrative expenses and depreciation and amortization expense relate to both company and franchise operations.

**General and administrative expenses** consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Corporate administrative expenses | $15226 | $15776 | $30470 | $30968 |
| Share-based compensation | 2982 | 2624 | 5767 | 5400 |
| Incentive compensation | 2759 | 1898 | 5016 | 4421 |
| Deferred compensation valuation adjustments | 478 | 188 | 222 | 919 |
| &nbsp;&nbsp;Total general and administrative expenses | $21445 | $20486 | $41475 | $41708 |

---

Total general and administrative expenses increased $1.0 million, or 4.7%, for the quarter ended June 25, 2025 and decreased $0.2 million, or 0.6%, year-to-date compared to the prior year periods.

Corporate administrative expenses decreased $0.6 million for the quarter and $0.5 million for the year-to-date period, primarily due to the elimination of positions during each period. Share-based compensation increased by $0.4 million for the quarter and the year-to-date period. The increases for both periods were primarily due to plan performance adjustments in the prior year. Incentive compensation increased by $0.9 million for the quarter and $0.6 million for the year-to-date period. The changes in incentive compensation for both periods primarily resulted from our performance against plan metrics. Changes in deferred compensation valuation adjustments have offsetting gains or losses on the underlying nonqualified deferred plan investments included as a component of other nonoperating income, net, for the corresponding periods.

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**Depreciation and amortization** consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Depreciation of property and equipment | $3545 | $2823 | $6815 | $5478 |
| Amortization of finance lease ROU assets | 299 | 348 | 607 | 700 |
| Amortization of intangible and other assets | 534 | 564 | 1063 | 1138 |
| &nbsp;&nbsp;Total depreciation and amortization expense | $4378 | $3735 | $8485 | $7316 |

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The increases in total depreciation and amortization expense for the quarter and year-to-date periods ended June 25, 2025 were primarily due to new Keke's units.

**Operating (gains), losses and other charges, net** consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| (Gains) losses on sales of assets and other, net | $425 | $526 | $(1317) | $(94) |
| Impairment charges | 49 | 619 | 3265 | 714 |
| Restructuring charges and exit costs | 1226 | 420 | 3663 | 618 |
| &nbsp;&nbsp;Operating (gains), losses and other charges, net | $1700 | $1565 | $5611 | $1238 |

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(Gains) losses on sales of assets and other, net for the quarter and year-to-date periods ended June 25, 2025 and June 26, 2024 were primarily related to the sales of real estate and restaurants.

We recorded impairment charges of less than $0.1 million and $3.3 million for the quarter and year-to-date periods ended June 25, 2025, primarily related to closed franchise restaurants and the relocation of certain support functions.

Restructuring charges and exit costs consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Exit costs | $9 | $49 | $49 | $91 |
| Severance and other restructuring charges | 1217 | 371 | 3614 | 527 |
| &nbsp;&nbsp;Total restructuring and exit costs | $1226 | $420 | $3663 | $618 |

---

Severance and other restructuring charges for the quarter and year-to-date periods ended June 25, 2025 primarily consisted of severance costs resulting from the elimination of 26 positions during the quarter and 66 positions year-to-date, as part of a cost savings initiative.

**Operating income** was $8.6 million for the quarter ended June 25, 2025 and $13.8 million year-to-date compared to $9.1 million and $19.1 million, respectively, for the prior year periods.

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**Interest expense, net** consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Interest on credit facility | $4666 | $5167 | $9213 | $10224 |
| Interest income on interest rate swaps | (840) | (1536) | (1915) | (3044) |
| Interest on finance lease liabilities | 463 | 497 | 933 | 1006 |
| Letters of credit and other fees | 102 | 179 | 214 | 311 |
| Interest income | (56) | (61) | (100) | (132) |
| &nbsp;&nbsp;&nbsp;Total cash interest, net | 4335 | 4246 | 8345 | 8365 |
| Amortization of deferred financing costs | 159 | 159 | 318 | 318 |
| Amortization of interest rate swap losses | 879 | 167 | 1138 | 309 |
| Interest accretion on other liabilities | 1 | 1 | 1 | 1 |
| &nbsp;&nbsp;Total interest expense, net | $5374 | $4573 | $9802 | $8993 |

---

Interest expense, net increased $0.8 million for both the quarter and year-to-date periods ended June 25, 2025, respectively, primarily due to increases in amortization of interest rate swap losses. We expect to amortize $4.2 million from accumulated other comprehensive loss, net to interest expense, net related to dedesignated interest rate swaps during the next 12 months.

**Other nonoperating income, net** increased $0.3 million and decreased $0.5 million for the quarter and year-to-date periods ended June 25, 2025, respectively, compared to the prior year periods. These changes were primarily due to market value changes of deferred compensation plan investments.

**Provision for income taxes** was $1.3 million for the quarter ended June 25, 2025 and $1.6 million year-to-date compared to $1.2 million and $2.7 million, respectively, for the prior year periods. The effective tax rate was 34.3% for the current quarter and 36.2% year-to-date, compared to 25.1% and 24.8% for the prior year periods, respectively. The effective income tax rate for the quarter and year-to-date periods ended June 25, 2025 included discrete items relating to share-based compensation of 9.0% and 11.5%, respectively. We did not have similar discrete items for the quarter and year-to-date periods ended June 26, 2024. We expect the 2025 fiscal year effective tax rate to be between 23% and 27%. The annual effective tax rate cannot be determined until the end of the fiscal year; therefore, the actual rate could differ from our current estimates.

On July 4, 2025, H.R. 1, the budget bill known as the One Big Beautiful Bill Act ("OBBBA") was enacted. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing its impact on our consolidated financial statements.

**Net income** was $2.5 million for the quarter ended June 25, 2025 and $2.8 million year-to-date compared to $3.6 million and $8.3 million for the prior year periods, respectively.

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**<u>Liquidity and Capital Resources</u>**

Our primary sources of liquidity and capital resources are cash generated from operations and borrowings under our credit facility (as described below). Principal uses of cash are operating expenses, capital expenditures, and the repurchase of shares of our common stock.

The following table presents a summary of our sources and uses of cash and cash equivalents for the periods indicated:

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| | | |
|:---|:---|:---|
| | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** |
| Net cash provided by operating activities | $14368 | $14396 |
| Net cash used in investing activities | (17536) | (10349) |
| Net cash provided by (used in) financing activities | 2636 | (7774) |
| &nbsp;&nbsp;&nbsp;Decrease in cash and cash equivalents | $(532) | $(3727) |

---

Net cash flows provided by operating activities were $14.4 million for the year-to-date period ended June 25, 2025 and the year-to-date period ended June 26, 2024, respectively. We believe that our estimated cash flows from operations, combined with our capacity for additional borrowings under our credit facility and cash on hand, will enable us to meet our anticipated cash requirements and fund capital expenditures over the next 12 months.

Net cash flows used in investing activities were $17.5 million for the year-to-date period ended June 25, 2025. These cash flows included capital expenditures of $16.4 million and acquisitions of restaurants of $4.1 million, partially offset by net proceeds from asset sales of $1.9 million and investment sales of $1.1 million. Net cash flows used in investing activities were $10.3 million for the year-to-date period ended June 26, 2024. These cash flows included capital expenditures of $9.9 million and investment purchases of $1.5 million, partially offset by net proceeds from asset sales of $1.0 million.

Our principal capital requirements have been largely associated with the following:

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| | | |
|:---|:---|:---|
| | **Two Quarters Ended** | **Two Quarters Ended** |
| | **June 25, 2025** | **June 26, 2024** |
| | **(In thousands)** | **(In thousands)** |
| Facilities | $3365 | $2182 |
| New construction | 9044 | 5427 |
| Remodeling | 3128 | 510 |
| Information technology | 297 | 861 |
| Other | 550 | 968 |
| &nbsp;&nbsp;&nbsp;Capital expenditures | $16384 | $9948 |

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Net cash flows provided by financing activities were $2.6 million for the year-to-date period ended June 25, 2025, including net long-term debt borrowings of $6.7 million, partially offset by cash payments of tax withholding on share-based compensation of $1.0 million, payments for stock repurchases of $1.7 million and net bank overdraft payments of $1.4 million. Net cash flows used in financing activities were $7.8 million for the year-to-date period ended June 26, 2024, which included net long-term debt borrowings of $1.3 million and net bank overdraft borrowings of $2.2 million, partially offset by cash payments for stock repurchases of $9.4 million and payments of tax withholding on share-based compensation of $1.9 million.

Our working capital deficit was $55.7 million at June 25, 2025 compared to $55.6 million at December 25, 2024. We are able to operate with a substantial working capital deficit because (1) restaurant operations and most food service operations are conducted primarily on a cash (and cash equivalent) basis with a low level of accounts receivable, (2) rapid turnover allows for a limited investment in inventories, and (3) accounts payable for food, beverages and supplies usually becomes due after the receipt of cash from the related sales.

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***Credit Facility***

The Company and certain of its subsidiaries have a credit facility consisting of a five-year $400 million senior secured revolver (with a $25 million letter of credit sublimit). The credit facility includes an accordion feature that would allow us to increase the size of the facility to $450 million. Borrowings bear a tiered interest rate, which is based on the Company's consolidated leverage ratio. The maturity date for the credit facility is August 26, 2026.

The credit facility is available for working capital, capital expenditures and other general corporate purposes. The credit facility is guaranteed by the Company and its material subsidiaries and is secured by assets of the Company and its subsidiaries, including the stock of its subsidiaries (other than its insurance captive subsidiary). It includes negative covenants that are usual for facilities and transactions of this type. The credit facility also includes certain financial covenants, including a maximum consolidated leverage ratio of 4.0 times and a minimum consolidated fixed charge coverage ratio of 1.5 times. As of June 25, 2025, our consolidated leverage ratio was 3.98 times and our consolidated fixed charge coverage ratio was 2.05 times. We were in compliance with all financial covenants as of June 25, 2025, and we expect to remain in compliance throughout the remainder of 2025.

As of June 25, 2025, we had outstanding revolver loans of $268.6 million and outstanding letters of credit under the credit facility of $15.9 million. These balances resulted in unused commitments of $115.5 million as of June 25, 2025 under the credit facility.

As of June 25, 2025, borrowings under the credit facility bore interest at a rate of Adjusted Daily Simple SOFR plus 2.25%. Letters of credit under the credit facility bore interest at a rate of 2.38%. The commitment fee, paid on the unused portion of the credit facility, was set to 0.35%.

Prior to considering the impact of our interest rate swaps, described below, the weighted-average interest rate on outstanding revolver loans was 6.67% and 6.98% as of June 25, 2025 and December 25, 2024, respectively. Taking into consideration our interest rate swaps that are designated as cash flow hedges, the weighted-average interest rate of outstanding revolver loans was 5.36% and 5.01% as of June 25, 2025 and December 25, 2024, respectively.

***Technology Transformation Initiatives***

The Company has committed to investing approximately $4 million toward a new cloud-based restaurant technology platform in domestic franchise restaurants, which will lay the foundation for future technology initiatives to further enhance the guest experience. The rollout is in progress and is expected to continue through 2026.

**<u>Critical Accounting Policies and Estimates</u>**

For information regarding our Critical Accounting Policies and Estimates, see the "Critical Accounting Policies and Estimates" section in Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended December 25, 2024.

**<u>Implementation of New Accounting Standards</u>**

Information regarding the implementation of new accounting standards is incorporated by reference from Note 2 to our unaudited consolidated financial statements set forth in Part I, Item 1 of this report.

**Item 3.&nbsp;&nbsp;&nbsp;&nbsp; Quantitative and Qualitative Disclosures About Market Risk**

**Interest Rate Risk** 

We have exposure to interest rate risk related to certain instruments entered into for other than trading purposes. Specifically, as of June 25, 2025, borrowings under our credit facility bore interest at variable rates based on Adjusted Daily Simple SOFR plus 2.25% per annum.

------

We have receive-variable, pay-fixed interest rate swaps to hedge the forecasted cash flows of our floating rate debt. A summary of our interest rate swaps designated as cash flow hedges as of June 25, 2025 is as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Trade Date** | **Effective Date** | **Maturity Date** | **Notional Amount** | | **Fair Value** | **Fixed Rate** |
| | | | **(In thousands)** | **(In thousands)** | **(In thousands)** | |
| October 1, 2015 | March 29, 2018 | March 31, 2026 | $50000 |  | $614 | 2.37% |
| February 15, 2018 | March 31, 2020 | December 31, 2033 | $189000 | (1) | $11131 | 3.09% |
| **Total** |  |  | $239000 |  | $11745 |  |

---

(1) &nbsp;&nbsp;&nbsp;&nbsp;The notional amounts of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $335 million on August 31, 2033.

As of June 25, 2025, our swaps effectively increased our ratio of fixed rate debt from 4% of total debt to 89% of total debt. Based on the levels of borrowings under the credit facility at June 25, 2025, if interest rates changed by 100 basis points, our annual cash flow and income before taxes would change by $0.2 million. This computation is determined by considering the impact of hypothetical interest rates on the credit facility at June 25, 2025, taking into consideration the interest rate swaps that will be in effect during the next 12 months. However, the nature and amount of our borrowings may vary as a result of future business requirements, market conditions and other factors.

Depending on market considerations, fluctuations in the fair values of our interest rate swaps could be significant. With the exception of these changes in the fair value of our interest rate swaps and in the levels of borrowings under our credit facility, there have been no material changes in our quantitative and qualitative market risks since the end of the preceding fiscal year. For additional information related to our interest rate swaps, including changes in the fair value, refer to Note 6, Note 7 and Note 13 to our unaudited consolidated financial statements in Part I, Item 1 of this report.

**Item 4.&nbsp;&nbsp;&nbsp;&nbsp; Controls and Procedures**

As required by Rule 13a-15(b) under the Exchange Act, our management conducted an evaluation (under the supervision and with the participation of our Chief Executive Officer, Kelli F. Valade, and our Executive Vice President and Chief Financial Officer, Robert P. Verostek) as of the end of the period covered by this Quarterly Report on Form 10-Q, of the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) under the Exchange Act. Based on that evaluation, Ms. Valade and Mr. Verostek each concluded that our disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act (i) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and (ii) is accumulated and communicated to our management, including Ms. Valade and Mr. Verostek, as appropriate to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) of the Exchange Act that occurred during our fiscal quarter ended June 25, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**PART II - OTHER INFORMATION**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp; Legal Proceedings**

Information regarding legal proceedings is incorporated by reference from Note 14 to our unaudited consolidated financial statements set forth in Part I, Item 1 of this report.

**Item 1A.&nbsp;&nbsp;&nbsp;&nbsp; Risk Factors**

There have been no material changes in the risk factors set forth in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 25, 2024.

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

**Purchases of Equity Securities by the Issuer**

The table below provides information concerning repurchases of shares of our common stock during the quarter ended June 25, 2025.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **<br>Total Number of Shares Purchased** | **Average Price Paid Per Share** <sup>(1)</sup> | **Total Number of Shares Purchased as Part of Publicly Announced Programs** <sup>(2)</sup> | **Dollar Value of Shares that May Yet be Purchased Under the Programs** <sup>(2)</sup> |
| | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** |
| March 27, 2025 - April 23, 2025 | 143 | $3.34 | 143 | $87736 |
| April 24, 2025 - May 21, 2025 | 37 | 3.56 | 37 | $87602 |
| May 22, 2025 - June 25, 2025 |  |  |  | $87602 |
| &nbsp;&nbsp;&nbsp;Total | 180 | $3.39 | 180 |  |

---

(1)Average price paid per share excludes commissions and any excise taxes paid.

(2)On December 2, 2019, we announced that our Board of Directors approved a share repurchase program, authorizing us to repurchase up to an additional $250 million of our common stock (in addition to prior authorizations). Such repurchases may take place from time to time in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Exchange Act) or in privately negotiated transactions, subject to market and business conditions. During the quarter ended June 25, 2025, we purchased 0.2 million shares of our common stock for an aggregate consideration of $0.6 million pursuant to the share repurchase program.

**Item 5. Other Information**

**Rule 10b5-1 Trading Plans**

During the quarter ended June 25, 2025, none of the Company's directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as those terms are defined in Regulation S-K, Item 408.

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**Item 6.&nbsp;&nbsp;&nbsp;&nbsp; Exhibits**

The following are included as exhibits to this report:

---

| | |
|:---|:---|
| Exhibit No. | Description |
| 10.1 | Denny's Corporation Amended and Restated 2021 Omnibus Incentive Plan (incorporated by reference to Appendix B to the Company's Definitive Proxy Statement filed with the Securities and Exchange Commission on April 3, 2025). |
| 31.1 | <u>[Certification of Kelli F. Valade, 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.](q22025ex311.htm)</u> |
| 31.2 | <u>[Certification of Robert P. Verostek, Executive Vice President 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.](q22025ex312.htm)</u> |
| 32.1 | <u>[Certification of Kelli F. Valade, Chief Executive Officer of Denny's Corporation, and Robert P. Verostek, Executive Vice President 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.](q22025ex321.htm)</u> |
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
| | | **DENNY'S CORPORATION** | **DENNY'S CORPORATION** |
| Date: | August 4, 2025 | By:&nbsp;&nbsp;&nbsp;&nbsp; | /s/ Robert P. Verostek |
|  |  |  | Robert P. Verostek |
|  |  |  | Executive Vice President and<br>Chief Financial Officer |
| Date: | August 4, 2025 | By:&nbsp;&nbsp;&nbsp;&nbsp; | /s/ Jay C. Gilmore |
|  |  |  | Jay C. Gilmore |
|  |  |  | Senior Vice President,<br>Chief Accounting Officer and<br>Corporate Controller |

---

## Exhibit 31.1

*Exhibit 31.1*

CERTIFICATION

I, Kelli F. Valade, certify that:

1. I have reviewed this report on Form 10-Q of Denny's Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| Date: | August 4, 2025 | By: | /s/ Kelli F. Valade |
|  |  |  | Kelli F. Valade |
|  |  |  | Chief Executive Officer |

---

## Exhibit 31.2

*Exhibit 31.2*

CERTIFICATION

I, Robert P. Verostek, certify that:

1. I have reviewed this report on Form 10-Q of Denny's Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| Date: | August 4, 2025 | By: | /s/ Robert P. Verostek |
|  |  |  | Robert P. Verostek |
|  |  |  | Executive Vice President and |
|  |  |  | Chief Financial Officer |

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## Exhibit 32.1

*Exhibit 32.1*

CERTIFICATION

Kelli F. Valade

Chief Executive Officer

of Denny's Corporation

and

Robert P. Verostek

Executive Vice President 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

In connection with the Quarterly Report of Denny's Corporation (the "Company") on Form 10-Q for the quarter ended June 25, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Kelli F. Valade, Chief Executive Officer of the Company, and I, Robert P. Verostek, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | | |
|:---|:---|:---|:---|
| Date: | August 4, 2025 | By: | /s/ Kelli F. Valade |
|  |  |  | Kelli F. Valade |
|  |  |  | Chief Executive Officer |

---

---

| | | | |
|:---|:---|:---|:---|
| Date: | August 4, 2025 | By: | /s/ Robert P. Verostek |
|  |  |  | Robert P. Verostek |
|  |  |  | Executive Vice President and |
|  |  |  | Chief Financial Officer |

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A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Denny's Corporation and will be retained by Denny's Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

<br>