Denny's (DENN) 8-K Denny’s Corporation Reports Results for Fourth Quarter and Full Year 2016

DENNY’S CORPORATION REPORTS RESULTS FOR FOURTH QUARTER AND FULL YEAR 2016

SPARTANBURG, S.C., February 15, 2017 - 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 28, 2016.

Full Year 2016 Highlights

• Domestic system-wide same-store sales increased 0.9%, including an increase of 1.1% at company restaurants and an increase of 0.8% at domestic franchised restaurants.

• Opened 50 system restaurants including 14 international franchised locations.

• Completed 240 remodels including 27 at company restaurants.

• Company restaurant operating margin grew 11.1% to $65.2 million while franchise operating margin grew 4.2% to $98.8 million.

• Net Income was $19.4 million, or $0.25 per diluted share, including a pre-tax settlement loss of $24.3 million resulting from the Company's pension plan liquidation.

• Adjusted Net Income* grew 15.2% to $42.3 million while Adjusted Net Income per Share* grew 26.5% to $0.55.

• Adjusted EBITDA* improved by 12.0% to $99.4 million.

• Generated $51.1 million of Free Cash Flow*, after cash capital expenditures of $34.0 million.

• Allocated $58.7 million towards share repurchases.

Fourth Quarter Highlights

• Domestic system-wide same-store sales increased 0.5%, including an increase of 0.1% at company restaurants and an increase of 0.6% at domestic franchised restaurants.

• Opened 12 system restaurants including four international franchised locations.

• Completed 51 remodels including 10 at company restaurants.

• Company restaurant operating margin expanded 22.3% to $16.6 million while franchise operating margin grew 3.7% to $25.2 million.

• Net Income increased 28.7% to $11.3 million, or $0.15 per diluted share.

• Adjusted Net Income* grew 41.3% to $12.6 million while Adjusted Net Income per Share* grew 52.9% to $0.17.

• Adjusted EBITDA* improved by 17.8% to $25.8 million.

• Generated $14.4 million of Free Cash Flow*, after cash capital expenditures of $6.5 million.

• Allocated $39.0 million towards share repurchases.

"We are pleased with our performance during the fourth quarter and full year, particularly in light of the pervasive challenges within the restaurant industry", commented John Miller, Denny's President and Chief Executive Officer. "Throughout the year, we continued to successfully execute our brand revitalization strategy and delivered an improved and differentiated experience for our guests across food, service, and atmosphere. These efforts resulted in market share gains and impressive growth in company and franchise margins. In addition, we delivered our best year of unit expansion in the past five years. Moving forward, despite an uncertain industry outlook, Denny's remains committed to further elevating the guest experience, consistently growing same-store sales, and expanding the brand across the globe, leading to value creation for all franchisees and shareholders."

Fourth Quarter Results

Denny’s domestic system-wide same-store sales increased 0.5%, including a 0.1% increase at company restaurants and a 0.6% increase at domestic franchised restaurants. During the quarter, the Company acquired one franchised restaurant. Denny’s franchisees opened 12 restaurants and closed seven restaurants, bringing the total number of restaurants to 1,733.

Denny’s total operating revenue grew 4.5% to $129.6 million due to an increase in both company restaurant sales and franchise royalties. Company restaurant sales improved 6.1% to $94.6 million due to a greater number of company restaurants compared to the prior year quarter and same-store sales growth. Franchise and licensing revenue grew 0.5% to $35.0 million primarily due to higher royalty revenue, partially offset by a decrease in occupancy revenue.

Company restaurant operating margin of $16.6 million, or 17.5% of company restaurant sales, increased $3.0 million, or 230 basis points. Franchise operating margin of $25.2 million, or 72.1% of franchise and licensing revenue, increased $0.9 million, or 220 basis points.

Total general and administrative expenses were $17.3 million compared to $16.8 million in the prior year quarter as lower incentive compensation was offset by higher stock-based compensation. Interest expense of $3.3 million increased $0.7 million due to higher borrowings compared to the prior year quarter. Denny’s ended the quarter with $245.6 million of total debt outstanding, including $218.5 million of borrowings under its revolving credit facility. Depreciation and amortization expense of $6.0 million increased $0.3 million.

The provision for income taxes was $1.9 million, reflecting an effective tax rate of 14.4%. During the quarter, amended federal tax returns for prior years were filed in order to claim foreign tax credits in lieu of foreign tax deductions. These returns generated $1.7 million in additional tax credits and $0.9 million in federal income tax refunds. The Company paid $1.9 million in cash taxes during the quarter.

Denny's Net Income of $11.3 million, or $0.15 per diluted share, grew 28.7%. Adjusted Net Income per Share* of $0.17 grew 52.9% compared to the prior year quarter and included $0.04 per share resulting from the amended tax return filings.

Free Cash Flow* and Capital Allocation

Denny’s generated $14.4 million of Free Cash Flow* in the quarter after investing $6.5 million in cash capital expenditures, including the acquisition of one franchised restaurant and the remodeling of 10 company restaurants.

During the quarter, the Company allocated $39.0 million to share repurchases, including a $25.0 million accelerated share repurchase agreement entered into in November 2016 and completed in February 2017. As part of this agreement, approximately 1.5 million shares were repurchased during the fourth quarter and approximately 0.5 million shares were repurchased following the close of the fourth quarter. As of December 28, 2016, the Company had approximately $79 million remaining in authorized share repurchases, including the impact of the accelerated share repurchase agreement.

Business Outlook

The following full year 2017 estimates are based on management’s expectations at this time.

• Same-store sales growth at company and domestic franchised restaurants between 0% and 2%.

• 45 to 50 new restaurant openings, with net restaurant growth of 10 to 20 restaurants.

• Total operating revenue between $523 and $532 million including franchise and licensing revenue between $140 and $142 million.

• Company restaurant margin between 17.5% and 18% and franchise restaurant margin between 71% and 71.5%.

• Total general and administrative expenses between $68 and $71 million.

• Adjusted EBITDA* between $101 and $103 million.

• Depreciation and amortization expense between $23 and $24 million.

• Net interest expense between $12.5 and $13 million.

• Effective income tax rate between 35% and 37% with cash taxes between $7 and $9 million.

• Cash capital expenditures between $22 and $24 million including the relocation of three high-performing company restaurants due to impending loss of property control.

• Free Cash Flow* between $58 and $60 million.

* Adjusted Net Income excludes debt refinancing charges, impairment charges, gains on sales of assets, and other adjustments including the pension settlement loss. The forward looking non-GAAP estimates set forth above are provided only on a non-GAAP basis. The Company is not able to reconcile these forward-looking non-GAAP estimates to their most directly comparable GAAP estimates without unreasonable efforts because it is unable to predict or forecast the items impacting these estimates with a reasonable degree of accuracy. The Company is unable to determine the probable significance of the unavailable information. Please refer to the historical reconciliation of Net Income to Adjusted Income Before Taxes, 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 28, 2016 on its quarterly investor conference call today, Wednesday, February 15, 2017 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 28, 2016, Denny’s had 1,733 franchised, licensed, and company restaurants around the world with combined sales of $2.8 billion including 123 restaurants in Canada, Puerto Rico, Mexico, New Zealand, Honduras, Costa Rica, Dominican Republic, the United Arab Emirates, Guam, the Philippines, Curaçao, El Salvador, and Trinidad and Tobago. 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 30, 2015 (and in the Company’s subsequent quarterly reports on Form 10-Q). 

Investor Contact:

Curt Nichols

877-784-7167

Media Contact:

Jessica Liddell, ICR

203-682-8208

DENNY’S CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)				12/28/16			12/30/15
Assets
	Current assets
		Cash and cash equivalents		$	2,592		$	1,671
		Receivables		19,841			16,552
		Assets held for sale		1,020			931
		Other current assets		12,454			17,260
			Total current assets	35,907			36,414
	Property, net			133,102			124,816
	Goodwill			35,233			33,454
	Intangible assets, net			54,493			46,074
	Deferred income taxes			17,683			29,159
	Other noncurrent assets			29,733			27,120
			Total assets	$	306,151		$	297,037
Liabilities
	Current liabilities
		Current maturities of capital lease obligations		$	3,285		$	3,246
		Accounts payable		25,289			20,759
		Other current liabilities		64,796			77,548
			Total current liabilities	93,370			101,553
	Long-term liabilities
		Long-term debt, less current maturities		218,500			195,000
		Capital lease obligations, less current maturities		23,806			17,499
		Other		41,587			43,580
			Total long-term liabilities	283,893			256,079
			Total liabilities	377,263			357,632
Shareholders' deficit
		Common stock		1,071			1,065
		Paid-in capital		577,951			565,364
		Deficit		(382,843		)	(402,245		)
		Accumulated other comprehensive loss, net of tax		(1,407		)	(23,777		)
		Treasury stock		(265,884		)	(201,002		)
			Total shareholders' deficit	(71,112		)	(60,595		)
			Total liabilities and shareholders' deficit	$	306,151		$	297,037
Debt Balances
(In thousands)				12/28/16			12/30/15
Credit facility revolver due 2020				$	218,500		$	195,000
Capital leases				27,091			20,745
	Total debt			$	245,591		$	215,745

DENNY’S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
			Quarter Ended
(In thousands, except per share amounts)			12/28/16			12/30/15
Revenue:
	Company restaurant sales		$	94,592		$	89,183
	Franchise and license revenue		35,013			34,842
		Total operating revenue	129,605			124,025
Costs of company restaurant sales			78,030			75,639
Costs of franchise and license revenue			9,768			10,502
General and administrative expenses			17,269			16,831
Depreciation and amortization			5,971			5,712
Operating (gains), losses and other charges, net			2,545			644
		Total operating costs and expenses, net	113,583			109,328
Operating income			16,022			14,697
Interest expense, net			3,327			2,605
Other nonoperating income, net			(474		)	(399		)
Net income before income taxes			13,169			12,491
Provision for income taxes			1,895			3,732
Net income			$	11,274		$	8,759
Basic net income per share			$	0.16		$	0.11
Diluted net income per share			$	0.15		$	0.11
Basic weighted average shares outstanding			72,657			78,650
Diluted weighted average shares outstanding			74,650			80,783
Comprehensive income			$	19,675		$	10,828
General and Administrative Expenses			Quarter Ended
(In thousands)			12/28/2016			12/30/2015
Share-based compensation			$	1,985		$	1,130
Other general and administrative expenses			15,284			15,701
	Total general and administrative expenses		$	17,269		$	16,831

DENNY’S CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
			Fiscal Year Ended
(In thousands, except per share amounts)			12/28/16			12/30/15
Revenue:
	Company restaurant sales		$	367,310		$	353,073
	Franchise and license revenue		139,638			138,220
		Total operating revenue	506,948			491,293
Costs of company restaurant sales			302,096			294,357
Costs of franchise and license revenue			40,805			43,345
General and administrative expenses			67,960			66,602
Depreciation and amortization			22,178			21,472
Operating (gains), losses and other charges, net			26,910			2,366
		Total operating costs and expenses, net	459,949			428,142
Operating income			46,999			63,151
Interest expense, net			12,232			9,283
Other nonoperating (income) expense, net			(1,109		)	139
Net income before income taxes			35,876			53,729
Provision for income taxes			16,474			17,753
Net income			$	19,402		$	35,976
Basic net income per share			$	0.26		$	0.44
Diluted net income per share			$	0.25		$	0.42
Basic weighted average shares outstanding			75,325			82,627
Diluted weighted average shares outstanding			77,206			84,729
Comprehensive income			$	41,772		$	36,801
General and Administrative Expenses			Fiscal Year Ended
(In thousands)			12/28/16			12/30/15
Share-based compensation			$	7,610		$	6,635
Other general and administrative expenses			60,350			59,967
	Total general and administrative expenses		$	67,960		$	66,602

DENNY’S CORPORATION

Reconciliation of Net (Loss) Income to Non-GAAP Operating Measures

(Unaudited)

The Company believes that, in addition to GAAP measures, certain other non-GAAP financial measures are appropriate indicators to assist in the evaluation of operating performance on a period-to-period basis.  The Company uses Adjusted Income Before Taxes, Adjusted EBITDA, Free Cash Flow and Adjusted Net Income 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 the ability to service debt because the excluded charges do not have an impact on prospective debt servicing capability and these adjustments are contemplated in our credit facility for the computation of our 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, each of these non-GAAP financial measures 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.

	Quarter Ended						Fiscal Year Ended
(In thousands, except per share amounts)	12/28/16			12/30/15			12/28/16			12/30/15
Net income	$	11,274		$	8,759		$	19,402		$	35,976
Provision for income taxes	1,895			3,732			16,474			17,753
Operating (gains), losses and other charges, net	2,545			644			26,910			2,366
Other nonoperating (income) expense, net	(474		)	(399		)	(1,109		)	139
Share-based compensation	1,985			1,130			7,610			6,635
Adjusted Income Before Taxes	$	17,225		$	13,866		$	69,287		$	62,869
Interest expense, net	3,327			2,605			12,232			9,283
Depreciation and amortization	5,971			5,712			22,178			21,472
Cash payments for restructuring charges and exit costs	(706		)	(259		)	(1,810		)	(1,475		)
Cash payments for share-based compensation	—			—			(2,529		)	(3,440		)
Adjusted EBITDA	$	25,817		$	21,924		$	99,358		$	88,709
Cash interest expense, net	(3,082		)	(2,348		)	(11,232		)	(8,299		)
Cash paid for income taxes, net	(1,872		)	(448		)	(3,012		)	(5,364		)
Cash paid for capital expenditures	(6,460		)	(12,018		)	(34,031		)	(32,780		)
Free Cash Flow	$	14,403		$	7,110		$	51,083		$	42,266
	Quarter Ended						Fiscal Year Ended
(In thousands, except per share amounts)	12/28/16			12/30/15			12/28/16			12/30/15
Net income	$	11,274		$	8,759		$	19,402		$	35,976
Pension settlement loss	—			—			24,297			—
Gains on sales of assets and other, net	793			(50		)	29			(93		)
Impairment charges	1,098			264			1,098			935
Loss on debt refinancing	—			—			—			293
Tax effect (1)	(584		)	(71		)	(2,492		)	(375		)
Adjusted Net Income	$	12,581		$	8,902		$	42,334		$	36,736
Diluted weighted average shares outstanding	74,650			80,783			77,206			84,729
Adjusted Net Income Per Share	$	0.17		$	0.11		$	0.55		$	0.43

(1) Tax adjustment for the loss on pension termination for the three months and year ended December 28, 2016 are calculated using an effective tax rate of 8.8%. The remaining tax adjustments for the three months and year ended December 28, 2016 are calculated using the Company's year-to-date effective tax rate of 30.9%, which excludes the impact of the pension termination. Tax adjustments for the three months and year ended December 30, 2015 are calculated using the Company's 2015 year-to-date effective tax rate of 33.0%.

DENNY’S CORPORATION
Operating Margins
(Unaudited)
				Quarter Ended
(In thousands)				12/28/16				12/30/15
Company restaurant operations: (1)
	Company restaurant sales			$	94,592	100.0	%	$	89,183	100.0	%
	Costs of company restaurant sales:
		Product costs		23,234		24.6	%	23,051		25.8	%
		Payroll and benefits		38,275		40.5	%	35,508		39.8	%
		Occupancy		4,836		5.1	%	5,471		6.1	%
		Other operating costs:
			Utilities	3,194		3.4	%	3,041		3.4	%
			Repairs and maintenance	1,513		1.6	%	1,521		1.7	%
			Marketing	2,989		3.2	%	2,679		3.0	%
			Other	3,989		4.2	%	4,368		4.9	%
	Total costs of company restaurant sales			$	78,030	82.5	%	$	75,639	84.8	%
	Company restaurant operating margin (2)			$	16,562	17.5	%	$	13,544	15.2	%
Franchise operations: (3)
	Franchise and license revenue:
	Royalties			$	24,722	70.6	%	$	23,896	68.6	%
	Initial fees			636		1.8	%	819		2.3	%
	Occupancy revenue			9,655		27.6	%	10,127		29.1	%
	Total franchise and license revenue			$	35,013	100.0	%	$	34,842	100.0	%
	Costs of franchise and license revenue:
	Occupancy costs			$	6,689	19.1	%	$	7,172	20.6	%
	Other direct costs			3,079		8.8	%	3,330		9.6	%
	Total costs of franchise and license revenue			$	9,768	27.9	%	$	10,502	30.1	%
	Franchise operating margin (2)			$	25,245	72.1	%	$	24,340	69.9	%
Total operating revenue (4)				$	129,605	100.0	%	$	124,025	100.0	%
Total costs of operating revenue (4)				87,798		67.7	%	86,141		69.5	%
Total operating margin (4)(2)				$	41,807	32.3	%	$	37,884	30.5	%
Other operating expenses: (4)(2)
	General and administrative expenses			$	17,269	13.3	%	$	16,831	13.6	%
	Depreciation and amortization			5,971		4.6	%	5,712		4.6	%
	Operating (gains), losses and other charges, net			2,545		2.0	%	644		0.5	%
	Total other operating expenses			$	25,785	19.9	%	$	23,187	18.7	%
Operating income (4)				$	16,022	12.4	%	$	14,697	11.9	%
(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)				12/28/16				12/30/15
Company restaurant operations: (1)
	Company restaurant sales			$	367,310	100.0	%	$	353,073	100.0	%
	Costs of company restaurant sales:
		Product costs		90,487		24.6	%	89,660		25.4	%
		Payroll and benefits		142,823		38.9	%	136,626		38.7	%
		Occupancy		19,557		5.3	%	20,443		5.8	%
		Other operating costs:
			Utilities	12,426		3.4	%	12,866		3.6	%
			Repairs and maintenance	6,406		1.7	%	6,017		1.7	%
			Marketing	13,112		3.6	%	12,527		3.5	%
			Other	17,285		4.7	%	16,218		4.6	%
	Total costs of company restaurant sales			$	302,096	82.2	%	$	294,357	83.4	%
	Company restaurant operating margin (2)			$	65,214	17.8	%	$	58,716	16.6	%
Franchise operations: (3)
	Franchise and license revenue:
	Royalties			$	98,416	70.5	%	$	94,755	68.6	%
	Initial fees			2,717		1.9	%	2,478		1.8	%
	Occupancy revenue			38,505		27.6	%	40,987		29.7	%
	Total franchise and license revenue			$	139,638	100.0	%	$	138,220	100.0	%
	Costs of franchise and license revenue:
	Occupancy costs			$	28,062	20.1	%	$	30,416	22.0	%
	Other direct costs			12,743		9.1	%	12,929		9.4	%
	Total costs of franchise and license revenue			$	40,805	29.2	%	$	43,345	31.4	%
	Franchise operating margin (2)			$	98,833	70.8	%	$	94,875	68.6	%
Total operating revenue (4)				$	506,948	100.0	%	$	491,293	100.0	%
Total costs of operating revenue (4)				342,901		67.6	%	337,702		68.7	%
Total operating margin (4)(2)				$	164,047	32.4	%	$	153,591	31.3	%
Other operating expenses: (4)(2)
	General and administrative expenses			$	67,960	13.4	%	$	66,602	13.6	%
	Depreciation and amortization			22,178		4.4	%	21,472		4.4	%
	Operating gains, losses and other charges, net			26,910		5.3	%	2,366		0.5	%
	Total other operating expenses			$	117,048	23.1	%	$	90,440	18.4	%
Operating income (4)				$	46,999	9.3	%	$	63,151	12.9	%
(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 Sales			Quarter Ended						Fiscal Year Ended
(increase vs. prior year)			12/28/16			12/30/15			12/28/16			12/30/15
	Company Restaurants		0.1		%	3.5		%	1.1		%	6.5		%
	Domestic Franchised Restaurants		0.6		%	2.8		%	0.8		%	5.7		%
	Domestic System-wide Restaurants		0.5		%	2.9		%	0.9		%	5.8		%
	System-wide Restaurants		0.6		%	2.0		%	0.7		%	4.9		%
Average Unit Sales			Quarter Ended						Fiscal Year Ended
(In thousands)			12/28/16			12/30/15			12/28/16			12/30/15
	Company Restaurants		$	565		$	557		$	2,254		$	2,217
	Franchised Restaurants		$	389		$	388		$	1,563		$	1,555
						Franchised
Restaurant Unit Activity			Company			& Licensed			Total
Ending Units September 28, 2016			168			1,560			1,728
	Units Opened		—			12			12
	Units Reacquired		1			(1		)	—
	Units Refranchised		—			—			—
	Units Closed		—			(7		)	(7		)
		Net Change	1			4			5
Ending Units December 28, 2016			169			1,564			1,733
Equivalent Units
	Fourth Quarter 2016		167			1,563			1,730
	Fourth Quarter 2015		160			1,543			1,703
		Net Change	7			20			27
						Franchised
Restaurant Unit Activity			Company			& Licensed			Total
Ending Units December 30, 2015			164			1,546			1,710
	Units Opened		1			49			50
	Units Reacquired		10			(10		)	—
	Units Refranchised		(6		)	6			—
	Units Closed		—			(27		)	(27		)
		Net Change	5			18			23
Ending Units December 28, 2016			169			1,564			1,733
Equivalent Units
	Year-to-Date 2016		163			1,556			1,719
	Year-to-Date 2015		159			1,538			1,697
		Net Change	4			18			22