Denny’s Corporation Reports Results for Fourth Quarter and Full Year 2015

Feb 17, 2016

-  5.8% Increase in 2015 Full Year Domestic System-Wide Same-Store Sales  -

-  16.4% Growth in 2015 Full Year Adjusted Net Income Per Share*  -

SPARTANBURG, S.C., Feb. 17, 2016 (GLOBE NEWSWIRE) -- Denny’s Corporation (NASDAQ:DENN), franchisor and operator of one of America's largest franchised full-service restaurant chains, today reported results for its fourth quarter and full year ended December 30, 2015.

John Miller, President and Chief Executive Officer, stated, “Our brand revitalization strategies led to another great year for the Denny’s brand.  We achieved the highest same-store sales and traffic growth in over a decade as we continued to offer craveable products and more consistent service, both delivered in a more inviting environment.  With only 32% of the system reflecting the Heritage image at the end of 2015, we are still in the early stages of our revitalization.  We currently anticipate over 70% of the system will have the Heritage image by the end of 2018.  As we continue to grow and transform the Denny’s brand, we will consistently grow same-store sales and expand our global reach, while returning cash to shareholders through our ongoing share repurchase program.”

Full Year 2015 Highlights

  • Domestic system-wide same-store sales growth of 5.8%, comprised of a 6.5% increase at company restaurants and 5.7% increase at domestic franchised restaurants.
  • Opened 45 system restaurants with net system growth of 8 restaurants.
  • Completed 232 remodels including 51 at company restaurants.
  • Adjusted EBITDA* of $88.7 million increased $6.2 million, or 7.5%.
  • Net Income of $36.0 million, or $0.42 per diluted share, increased 9.9%.
  • Adjusted Net Income per Share* of $0.43 grew 16.4%.
  • Generated $42.3 million of Free Cash Flow*, after cash capital spending of $32.8 million.
  • Allocated $105.8 million towards share repurchases. 

Fourth Quarter Highlights

  • Domestic system-wide same-store sales growth of 2.9%, comprised of a 3.5% increase at company restaurants and 2.8% increase at domestic franchised restaurants.
  • Opened 14 system restaurants including three company restaurants.
  • Adjusted EBITDA* of $21.9 million grew 4.8%, excluding the impact of an additional operating week in 2014 which contributed approximately $3.6 million
  • Net Income of $8.8 million, or $0.11 per diluted share, decreased 9.5%.
  • Adjusted Net Income* of $8.9 million, or $0.11 per diluted share, increased 18.9%, excluding the impact of an additional operating week.
  • Generated $7.1 million of Free Cash Flow* and repurchased 5.1 million shares. 

Fourth Quarter Results

Denny’s domestic system-wide same-store sales grew 2.9%, including growth of 3.5% at company restaurants and 2.8% at domestic franchised restaurants. During the quarter, Denny’s opened 14 restaurants, including 11 franchised locations and three company operated restaurants in partnership with Kwik TripTM convenience stores. Franchisees closed four restaurants, bringing the total number of restaurants to 1,710.

Denny’s total operating revenue of $124.0 million decreased by $4.7 million due to an additional operating week in the prior year.  Excluding this impact, total operating revenue would have increased $6.0 million, or 5.1%, primarily from the growth in same-store sales and the opening of new company restaurants, including the full-year impact of the Las Vegas Casino Royale restaurant which reopened in late 2014, and acquisition of three franchised locations.

The additional operating week in 2014 added approximately $8.3 million of company restaurant sales and $2.4 million of franchise and licensing revenue, $3.6 million of additional operating income, and $2.2 million of additional net income.  Company restaurant and franchise operating margins increased approximately $2.0 million and $2.2 million, respectively, with additional general and administrative expenses of approximately $0.6 million.

Franchise operating margin was $24.3 million, or 69.9% of franchise and licensing revenue.  The $0.9 million decrease was primarily due to the additional operating week in the prior year, which was partially offset by an increase in royalties.  Company restaurant operating margin was $13.5 million, or 15.2% of company restaurant sales.  The 0.4 percentage point decrease was primarily due to higher incentive compensation, increased commodity costs, and the additional operating week in the prior year, partially offset by the growth in same-store sales, favorable workers’ compensation costs, and the reopening of the Las Vegas Casino Royale restaurant.

Total general and administrative expenses of $16.8 million improved $0.5 million compared to the prior year quarter primarily due to a reduction in share-based compensation, partially offset by additional incentive and deferred compensation and payroll and benefits expenses.  Depreciation and amortization expense of $5.7 million was up by $0.2 million.  Interest expense of $2.6 million was up by $0.3 million due to additional outstanding debt.  Denny’s ended the fourth quarter with $215.7 million of total debt outstanding, including $195.0 million of borrowings under its revolving credit facility. The provision for income taxes was $3.7 million, reflecting an effective tax rate of 29.9%.  Due to the use of net operating loss and tax credit carryforwards, the Company paid $0.4 million in cash taxes during the quarter.

Denny's net income of $8.8 million, or $0.11 per diluted share, decreased compared to prior year quarter net income of $9.7 million, or $0.11 per diluted share, primarily due to the additional operating week in the prior year.  Adjusted Net Income per Share* of $0.11 increased 28.2% compared to the prior year quarter when excluding the additional operating week in the prior year.

Free Cash Flow* and Capital Allocation

Denny’s generated $7.1 million of Free Cash Flow* in the quarter after investing $12.0 million to remodel 14 company restaurants, acquire a franchised restaurant, and purchase a parcel of real estate.  During the year, the Company allocated $105.8 million towards share repurchases including the $50 million accelerated share repurchase agreement announced in November 2015.  A total of 8.5 million shares were acquired during the year with 5.1 million shares acquired during the fourth quarter.  As of December 30, 2015, the Company had approximately $38 million remaining under a $100 million authorized share repurchase program.

Pension Plan Liquidation

The Company anticipates that its Advantica Pension Plan will be liquidated by the end of the second quarter of 2016.  The Advantica Pension Plan was closed to new participants at the end of 1999.  The Company expects to record an operating loss of approximately $24.0 million and make a required contribution of approximately $9.4 million as a result of the liquidation during the second quarter.

Business Outlook

Mark Wolfinger, Denny's Executive Vice President, Chief Administrative Officer, and Chief Financial Officer, commented, “Our continued strong performance driven by our same-store sales growth enabled us to grow our revenue, margins, and profitability, while making investments in our support systems and company restaurants.  Our highly franchised business generated $42.3 million of Free Cash Flow* after accelerating remodels at company restaurants and acquiring franchised restaurants and real estate. Our annual guidance for 2016 anticipates continued same-store sales growth and ongoing investments in company restaurant remodels. As a result, we are expecting to grow our Adjusted EBITDA* 4% to 7% and generate between $59 and $62 million of Free Cash Flow*."

The following full year 2016 estimates are based on management’s expectations at this time and exclude any impact from the liquidation of the Advantica Pension Plan.

  • Same-store sales growth at company restaurants between 1.5% and 2.5% with same-store sales growth at domestic franchised restaurants between 1% and 2%.
  • 44 to 48 new restaurant openings, including one company operated opening in partnership with Kwik TripTM convenience stores, with net restaurant growth of 5 to 10 restaurants.
  • Total operating revenue between $501 and $506 million with franchise and licensing revenue between $140 and $141 million.
  • Company margin between 16% and 17% with franchise margin between 68.5% and 69%.
  • Total general and administrative expenses between $64 and $67 million.
  • Adjusted EBITDA* between $92 and $95 million.
  • Depreciation and amortization expense between $21.5 and $22 million.
  • Net interest expense between $11 and $11.5 million.
  • Effective income tax rate between 33% and 37% with $3 to $5 million of cash taxes.
  • Cash capital expenditures between $18 and $20 million including completion of approximately 25 remodels at company restaurants, opening of one new company restaurant, and scrape and rebuild of a company restaurant.
  • Free Cash Flow* between $59 and $62 million

*  Adjusted Net Income excludes debt refinancing charges, impairment charges, and gains on sales of assets and other.  Please refer to the historical reconciliation of Net Income to Adjusted Net Income, Adjusted Net Income per Share, Adjusted EBITDA, and Free Cash Flow included in the following tables.

Conference Call and Webcast Information

Denny’s will provide further commentary on the results for the fourth quarter and full year ended December 30, 2015 on its quarterly investor conference call today, Wednesday, February 17, 2016 at 4:30 p.m. Eastern Time.  Interested parties are invited to listen to a live broadcast of the conference call accessible through the investor relations section of Denny’s website at investor.dennys.com.  A replay of the call may be accessed at the same location later in the day and will remain available for 30 days.

About Denny’s

Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants.  As of December 30, 2015, Denny’s had 1,710 franchised, licensed, and company restaurants around the world with combined sales of $2.7 billion including 111 restaurants in Canada, Puerto Rico, New Zealand, Mexico, Costa Rica, Dominican Republic, Honduras, Guam, the United Arab Emirates, Chile, Curaçao, and El Salvador, and 164 company operated restaurants in the United States.  For further information on Denny's, including news releases, links to SEC filings, and other financial information, please visit the Denny's investor relations website at investor.dennys.com.

The Company urges caution in considering its current trends and any outlook on earnings disclosed in this press release.  In addition, certain matters discussed in this release may constitute forward-looking statements.  These forward-looking statements, which reflect its 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”, 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 release 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:  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, such as avian flu, 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 (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 year ended December 31, 2014 (and in the Company’s subsequent quarterly reports on Form 10-Q).

DENNY’S CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
       
(In thousands)12/30/15 12/31/14
Assets   
 Current assets   
  Cash and cash equivalents$1,671  $3,074 
  Receivables16,552  18,059 
  Assets held for sale931   
  Current deferred income taxes  24,310 
  Other current assets17,260  10,628 
   Total current assets36,414  56,071 
 Property, net124,816  109,777 
 Goodwill33,454  31,451 
 Intangible assets, net46,074  46,278 
 Noncurrent deferred income taxes29,159  19,252 
 Other noncurrent assets27,120  27,029 
   Total assets$297,037  $289,858 
       
Liabilities   
 Current liabilities   
  Current maturities of long-term debt$  $4,125 
  Current maturities of capital lease obligations3,246  3,609 
  Accounts payable20,759  13,250 
  Other current liabilities77,548  59,432 
   Total current liabilities101,553  80,416 
 Long-term liabilities   
  Long-term debt, less current maturities195,000  135,875 
  Capital lease obligations, less current maturities17,499  15,204 
  Other43,580  56,780 
   Total long-term liabilities256,079  207,859 
   Total liabilities357,632  288,275 
       
Shareholders' equity   
  Common stock1,065  1,058 
  Paid-in capital565,364  571,674 
  Deficit(402,245) (438,221)
  Accumulated other comprehensive loss, net of tax(23,777) (24,602)
  Treasury stock(201,002) (108,326)
   Total shareholders' (deficit) equity(60,595) 1,583 
   Total liabilities and shareholders' equity$297,037  $289,858 
       
Debt Balances
(In thousands)12/30/15 12/31/14
Credit facility revolver due 2020$195,000  $ 
Credit facility term loan and revolver due 2018  140,000 
Capital leases20,745  18,813 
 Total debt$215,745  $158,813 

 

DENNY’S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
      
   Quarter Ended
(In thousands, except per share amounts)12/30/15 12/31/14
Revenue:   
 Company restaurant sales$89,183  $91,415 
 Franchise and license revenue34,842  37,314 
  Total operating revenue124,025  128,729 
Costs of company restaurant sales75,639  77,183 
Costs of franchise and license revenue10,502  12,122 
General and administrative expenses16,831  17,284 
Depreciation and amortization5,712  5,514 
Operating (gains), losses and other charges, net        644  221 
  Total operating costs and expenses, net109,328  112,324 
Operating income14,697  16,405 
Interest expense, net2,605  2,302 
Other nonoperating income, net(399) (147)
Net income before income taxes12,491  14,250 
Provision for income taxes3,732  4,572 
Net income$8,759  $9,678 
      
      
Basic net income per share$0.11  $0.11 
Diluted net income per share$0.11  $0.11 
      
Basic weighted average shares outstanding78,650  84,765 
Diluted weighted average shares outstanding80,783  87,136 
      
Comprehensive income$10,828  $2,214 
      
General and Administrative ExpensesQuarter Ended
(In thousands)12/30/15 12/31/14
Share-based compensation$1,130  $2,853 
Other general and administrative expenses15,701  14,431 
 Total general and administrative expenses$16,831  $17,284 

 

DENNY’S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
      
   Fiscal Year Ended
(In thousands, except per share amounts)12/30/15 12/31/14
Revenue:   
 Company restaurant sales$353,073  $334,684 
 Franchise and license revenue138,220  137,611 
  Total operating revenue491,293  472,295 
Costs of company restaurant sales294,357  288,808 
Costs of franchise and license revenue43,345  44,761 
General and administrative expenses66,602  58,907 
Depreciation and amortization21,472  21,218 
Operating (gains), losses and other charges, net    2,366  1,270 
  Total operating costs and expenses, net428,142  414,964 
Operating income63,151  57,331 
Interest expense, net9,283  9,182 
Other nonoperating expense (income), net139  (612)
Net income before income taxes53,729  48,761 
Provision for income taxes17,753  16,036 
Net income$35,976  $32,725 
      
      
Basic net income per share$0.44  $0.38 
Diluted net income per share$0.42  $0.37 
      
Basic weighted average shares outstanding82,627  86,323 
Diluted weighted average shares outstanding84,729  88,355 
      
Comprehensive income$36,801  $24,965 
    
General and Administrative ExpensesFiscal Year Ended
(In thousands)12/30/15 12/31/14
Share-based compensation$6,635  $5,846 
Other general and administrative expenses59,967  53,061 
 Total general and administrative expenses$66,602  $58,907 

 

DENNY’S CORPORATION
Income, EBITDA, Free Cash Flow, and Net Income Reconciliations
(Unaudited)
          
Income, EBITDA and Free Cash Flow ReconciliationQuarter Ended Fiscal Year Ended
(In thousands)12/30/15 12/31/14 12/30/15 12/31/14
Net income$8,759  $9,678  $35,976  $32,725 
Provision for income taxes3,732  4,572  17,753  16,036 
Operating (gains), losses and other charges, net644  221  2,366  1,270 
Other nonoperating (income) expense, net(399) (147) 139  (612)
Share-based compensation1,130  2,853  6,635  5,846 
Adjusted Income Before Taxes (1)$13,866  $17,177  $62,869  $55,265 
        
Interest expense, net2,605  2,302  9,283  9,182 
Depreciation and amortization5,712  5,514  21,472  21,218 
Cash payments for restructuring charges and exit costs                  (259) (479) (1,475) (2,036)
Cash payments for share-based compensation    (3,440) (1,083)
Adjusted EBITDA (1)$21,924  $24,514  $88,709  $82,546 
        
Cash interest expense, net(2,348) (2,049) (8,299) (8,139)
Cash paid for income taxes, net(448) (732) (5,364) (3,802)
Cash paid for capital expenditures(12,018) (4,196) (32,780) (22,076)
Free Cash Flow (1)$7,110  $17,537  $42,266  $48,529 
        
Net Income ReconciliationQuarter Ended Fiscal Year Ended
(In thousands)12/30/15 12/31/14 12/30/15 12/31/14
Net income$8,759  $9,678  $35,976  $32,725 
Gains on sales of assets and other, net(50) (38) (93) (112)
Impairment charges264  53  935  401 
Loss on debt refinancing    293   
Tax effect (2)(71) (5) (375) (95)
Adjusted Net Income (1)$8,902  $9,688  $36,736  $32,919 
        
Diluted weighted-average shares outstanding80,783  87,136  84,729  88,355 
        
Adjusted Net Income Per Share (1)$0.11  $0.11  $0.43  $0.37 
                
(1) The Company believes that, in addition to other financial measures, Adjusted Income Before Taxes, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income and Adjusted Net Income Per Share are appropriate indicators to assist in the evaluation of its operating performance on a period-to-period basis. The Company also uses Adjusted Income, Adjusted EBITDA and Free Cash Flow internally as performance measures for planning purposes, including the preparation of annual operating budgets, and for compensation purposes, including bonuses for certain employees. Adjusted EBITDA is also used to evaluate its ability to service debt because the excluded charges do not have an impact on its prospective debt servicing capability and these adjustments are contemplated in its credit facility for the computation of its debt covenant ratios. Free Cash Flow, defined as Adjusted EBITDA less cash portion of interest expense net of interest income, capital expenditures, and cash taxes, is used to evaluate operating effectiveness and decisions regarding the allocation of resources. However, Adjusted Income, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income and Adjusted Net Income Per Share should be considered as a supplement to, not a substitute for, operating income, net income or other financial performance measures prepared in accordance with U.S. generally accepted accounting principles.
 
(2) Tax adjustments for the three months and year ended December 30, 2015 are calculated using the Company's year-to-date effective tax rate of 33.0%. Tax adjustments for the three months and year ended December 31, 2014 are calculated using the Company's 2014 year-to-date effective tax rate of 32.9%.
 

 

DENNY’S CORPORATION
Operating Margins
(Unaudited)
       
    Quarter Ended
(In thousands)12/30/15 12/31/14
Company restaurant operations: (1)     
 Company restaurant sales$89,183 100.0% $91,415 100.0%
 Costs of company restaurant sales:     
  Product costs23,051 25.8% 23,551 25.8%
  Payroll and benefits35,508 39.8% 35,696 39.0%
  Occupancy5,471 6.1% 5,400 5.9%
  Other operating costs:     
   Utilities3,041 3.4% 3,529 3.9%
   Repairs and maintenance1,521 1.7% 1,543 1.7%
   Marketing2,679 3.0% 3,326 3.6%
   Other4,368 4.9% 4,138 4.5%
 Total costs of company restaurant sales$75,639 84.8% $77,183 84.4%
 Company restaurant operating margin (2)$13,544 15.2% $14,232 15.6%
         
Franchise operations: (3)     
 Franchise and license revenue:     
  Royalties$23,896 68.6% $24,524 65.7%
  Initial fees819 2.3% 1,053 2.8%
  Occupancy revenue10,127 29.1% 11,737 31.5%
 Total franchise and license revenue$34,842 100.0% $37,314 100.0%
         
 Costs of franchise and license revenue:     
  Occupancy costs$7,172 20.6% $8,361 22.4%
  Other direct costs3,330 9.5% 3,761 10.1%
 Total costs of franchise and license revenue$10,502 30.1% $12,122 32.5%
 Franchise operating margin (2)$24,340 69.9% $25,192 67.5%
         
Total operating revenue (4)$124,025 100.0% $128,729 100.0%
Total costs of operating revenue (4)86,141 69.5% 89,305 69.4%
Total operating margin (4)(2)$37,884 30.5% $39,424 30.6%
         
Other operating expenses: (4)(2)     
 General and administrative expenses$16,831 13.6% $17,284 13.4%
 Depreciation and amortization5,712 4.6% 5,514 4.3%
 Operating gains, losses and other charges, net644 0.5% 221 0.2%
 Total other operating expenses$23,187 18.7% $23,019 17.9%
         
Operating income (4)$14,697 11.9% $16,405 12.7%
         
(1)  As a percentage of company restaurant sales.
(2)  Other operating expenses such as general and administrative expenses and depreciation and amortization relate to both company and franchise operations and are not allocated to costs of company restaurant sales and costs of franchise and license revenue.  As such, operating margin is considered a non-GAAP financial measure.  Operating margins should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with U.S. generally accepted accounting principles.
(3)  As a percentage of franchise and license revenue.
(4)  As a percentage of total operating revenue.

 

DENNY’S CORPORATION
Operating Margins
(Unaudited)
       
    Fiscal Year Ended
(In thousands)12/30/15 12/31/14
Company restaurant operations: (1)     
 Company restaurant sales$353,073 100.0% $334,684 100.0%
 Costs of company restaurant sales:     
  Product costs89,660 25.4% 86,825 25.9%
  Payroll and benefits136,626 38.7% 133,280 39.8%
  Occupancy20,443 5.8% 20,845 6.2%
  Other operating costs:     
   Utilities12,866 3.6% 13,915 4.2%
   Repairs and maintenance6,017 1.7% 5,971 1.8%
   Marketing12,527 3.5% 12,329 3.7%
   Other16,218 4.6% 15,643 4.7%
 Total costs of company restaurant sales$294,357 83.4% $288,808 86.3%
 Company restaurant operating margin (2)$58,716 16.6% $45,876 13.7%
         
Franchise operations: (3)     
 Franchise and license revenue:     
  Royalties$94,755 68.6% $90,835 66.0%
  Initial fees2,478 1.8% 1,893 1.4%
  Occupancy revenue40,987 29.6% 44,883 32.6%
 Total franchise and license revenue$138,220 100.0% $137,611 100.0%
         
 Costs of franchise and license revenue:     
  Occupancy costs$30,416 22.0% $33,134 24.1%
  Other direct costs12,929 9.4% 11,627 8.4%
 Total costs of franchise and license revenue$43,345 31.4% $44,761 32.5%
 Franchise operating margin (2)$94,875 68.6% $92,850 67.5%
         
Total operating revenue (4)$491,293 100.0% $472,295 100.0%
Total costs of operating revenue (4)337,702 68.7% 333,569 70.6%
Total operating margin (4)(2)$153,591 31.3% $138,726 29.4%
         
Other operating expenses: (4)(2)     
 General and administrative expenses$66,602 13.6% $58,907 12.5%
 Depreciation and amortization21,472 4.4% 21,218 4.5%
 Operating gains, losses and other charges, net2,366 0.5% 1,270 0.3%
 Total other operating expenses$90,440 18.4% $81,395 17.2%
         
Operating income (4)$63,151 12.9% $57,331 12.1%
         
(1)  As a percentage of company restaurant sales.
(2)  Other operating expenses such as general and administrative expenses and depreciation and amortization relate to both company and franchise operations and are not allocated to costs of company restaurant sales and costs of franchise and license revenue.  As such, operating margin is considered a non-GAAP financial measure.  Operating margins should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with U.S. generally accepted accounting principles.
(3)  As a percentage of franchise and license revenue.
(4)  As a percentage of total operating revenue.
 

 

DENNY’S CORPORATION
Statistical Data
(Unaudited)
          
Same-Store SalesQuarter Ended Fiscal Year Ended
(increase vs. prior year)12/30/15 12/31/14 12/30/15 12/31/14
 Company Restaurants3.5% 5.8% 6.5% 4.2%
 Domestic Franchised Restaurants2.8% 4.6% 5.7% 2.5%
 Domestic System-wide Restaurants      2.9% 4.7% 5.8% 2.8%
 System-wide Restaurants2.0% 4.4% 4.9% 2.5%
          
Average Unit SalesQuarter Ended Fiscal Year Ended
(In thousands)12/30/15 12/31/14 12/30/15 12/31/14
 Company Restaurants$557  $572  $2,217  $2,100 
 Franchised Restaurants$394  $409  $1,579  $1,506 
          
     Franchised    
Restaurant Unit ActivityCompany  & Licensed Total  
Ending Units September 30, 2015161  1,539  1,700   
 Units Opened3  11  14   
 Units Reacquired1  (1)    
 Units Refranchised(1) 1     
 Units Closed  (4) (4)  
  Net Change3  7  10   
Ending Units December 30, 2015164  1,546  1,710   
          
Equivalent Units       
 Fourth Quarter 2015160  1,543  1,703   
 Fourth Quarter 2014160  1,533  1,693   
  Net Change  10  10   
          
     Franchised    
Restaurant Unit ActivityCompany  & Licensed Total  
Ending Units December 31, 2014161  1,541  1,702   
 Units Opened3  42  45   
 Units Reacquired3  (3)    
 Units Refranchised(1) 1     
 Units Closed(2) (35) (37)  
  Net Change3  5  8   
Ending Units December 30, 2015164  1,546  1,710   
          
Equivalent Units       
 Year-to-Date 2015159  1,538  1,697   
 Year-to-Date 2014159  1,534  1,693   
  Net Change  4  4   

 

Investor Contact:
Whit Kincaid
877-784-7167

Media Contact:
Kristina Jorge, ICR
646-277-1226

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Source: Denny's Corporation
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