Denny's (DENN) 10-Q 2 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 29, 2017	Apr. 26, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	DENNYS CORP
Entity Central Index Key	852,772
Current Fiscal Year End Date	--12-27
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		69,863,607
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 29, 2017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 29, 2017	Dec. 28, 2016
Current assets:
Cash and cash equivalents	$ 1,740	$ 2,592
Receivables	18,738	19,841
Inventories	3,088	3,046
Assets held for sale	1,754	1,020
Prepaid and other current assets	6,277	9,408
Total current assets	31,597	35,907
Property, net of accumulated depreciation of $255,163 and $255,185, respectively	133,141	133,102
Goodwill	35,607	35,233
Intangible assets, net	54,703	54,493
Deferred financing costs, net	1,787	1,936
Deferred income taxes	23,845	17,683
Other noncurrent assets	27,479	27,797
Total assets	308,159	306,151
Current liabilities:
Current maturities of capital lease obligations	3,319	3,285
Accounts payable	21,030	25,289
Other current liabilities	52,719	64,796
Total current liabilities	77,068	93,370
Long-term liabilities:
Long-term debt, less current maturities	230,000	218,500
Capital lease obligations, less current maturities	24,481	23,806
Liability for insurance claims, less current portion	14,347	14,853
Other noncurrent liabilities	26,945	26,734
Total long-term liabilities	295,773	283,893
Total liabilities	372,841	377,263
Commitments and contingencies
Shareholders' equity (deficit)
Common stock $0.01 par value; shares authorized - 135,000; March 29, 2017: 107,536 shares issued and 70,241 shares outstanding; December 28, 2016: 107,115 shares issued and 71,358 shares outstanding	1,075	1,071
Paid-in capital	587,369	577,951
Deficit	(366,050)	(382,843)
Accumulated other comprehensive loss, net of tax	(2,016)	(1,407)
Shareholders’ equity before treasury stock	220,378	194,772
Treasury stock, at cost, 37,295 and 35,757 shares, respectively	(285,060)	(265,884)
Total shareholders' deficit	(64,682)	(71,112)
Total liabilities and shareholders' deficit	$ 308,159	$ 306,151

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 29, 2017	Dec. 28, 2016
Assets [Abstract]
Accumulated depreciation	$ 255,163	$ 255,185
Shareholders' equity (deficit)
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	135,000	135,000
Common stock, shares issued	107,536	107,115
Common stock, shares outstanding	70,241	71,358
Treasury stock, at cost, shares	37,295	35,757

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Revenue:
Company restaurant sales	$ 93,779	$ 90,386
Franchise and license revenue	34,131	34,256
Total operating revenue	127,910	124,642
Costs of company restaurant sales:
Product costs	23,133	22,653
Payroll and benefits	37,397	34,461
Occupancy	4,734	4,800
Other operating expenses	12,571	12,197
Total costs of company restaurant sales	77,835	74,111
Costs of franchise and license revenue	9,746	10,003
General and administrative expenses	17,509	16,927
Depreciation and amortization	5,736	5,493
Operating (gains), losses and other charges, net	783	(125)
Total operating costs and expenses, net	111,609	106,409
Operating income	16,301	18,233
Interest expense, net	3,541	2,774
Other nonoperating (income) expense, net	(357)	27
Net income before income taxes	13,117	15,432
Provision for income taxes	4,744	5,478
Net income	$ 8,373	$ 9,954
Basic net income per share	$ 0.12	$ 0.13
Diluted net income per share	$ 0.11	$ 0.13
Basic weighted average shares outstanding	71,004	77,060
Diluted weighted average shares outstanding	73,241	78,877

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 8,373	$ 9,954
Other comprehensive income, net of tax:
Minimum pension liability adjustment, net of tax of $9 and $8	14	13
Recognition of unrealized loss on hedge transactions, net of tax of $(397) and $(2,997)	(623)	(4,693)
Other comprehensive loss	(609)	(4,680)
Total comprehensive income	$ 7,764	$ 5,274

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Statement of Comprehensive Income [Abstract]
Minimum pension liability adjustment, tax	$ 9	$ 8
Unrealized loss on hedged transactions, tax	$ (397)	$ (2,997)

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Shareholders' Deficit (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Paid-in Capital [Member]	(Deficit) [Member]	Accumulated Other Comprehensive Loss, Net [Member]	November 2016 Accelerated Share Repurchase [Member]Treasury Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment	$ 8,971			$ 551	$ 8,420
Balance at Dec. 28, 2016	$ (71,112)	$ 1,071	$ (265,884)	577,951	(382,843)	$ (1,407)
Balance, common stock, shares issued at Dec. 28, 2016	107,115	107,115
Balance, treasury stock, at cost, shares at Dec. 28, 2016	(35,757)		(35,757)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 8,373				8,373
Other comprehensive loss	(609)					(609)
Share-based compensation on equity classified awards	1,857			1,857
Purchase of treasury stock	(12,292)		$ (12,292)
Purchase of treasury stock (in shares)			(984)				(554)
Equity forward contract settlement	0		$ (6,884)	6,884
Issuance of common stock for share-based compensation	0	$ 4		(4)
Issuance of common stock for share-based compensation (in shares)		396
Exercise of common stock options	130	$ 0		130
Exercise of common stock options (in shares)		25
Balance at Mar. 29, 2017	$ (64,682)	$ 1,075	$ (285,060)	$ 587,369	$ (366,050)	$ (2,016)
Balance, common stock, shares issued at Mar. 29, 2017	107,536	107,536
Balance, treasury stock, at cost, shares at Mar. 29, 2017	(37,295)		(37,295)

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Cash flows from operating activities:
Net income	$ 8,373	$ 9,954
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation and amortization	5,736	5,493
Operating (gains), losses and other charges, net	783	(125)
Amortization of deferred financing costs	148	148
(Gain) loss on early extinguishments of debt and leases	73	(8)
Deferred income tax expense	3,225	3,722
Share-based compensation	1,973	1,948
Decrease (increase) in assets:
Receivables	3,345	2,634
Inventories	(41)	256
Other current assets	3,131	4,587
Other assets	(2,312)	(647)
Increase (decrease) in liabilities:
Accounts payable	(2,277)	1,023
Accrued salaries and vacations	(11,584)	(16,433)
Accrued taxes	(215)	(273)
Other accrued liabilities	(1,204)	(2,926)
Other noncurrent liabilities	(1,133)	(684)
Net cash flows provided by operating activities	8,021	8,669
Cash flows from investing activities:
Capital expenditures	(3,017)	(3,831)
Acquisition of restaurants and real estate	(3,800)	(1,476)
Proceeds from disposition of property	252	1,581
Collections on notes receivable	612	401
Issuance of notes receivable	(1,010)	(219)
Net cash flows used in investing activities	(6,963)	(3,544)
Cash flows from financing activities:
Revolver borrowings	31,000	18,500
Revolver payments	(19,500)	(12,500)
Long-term debt payments	(826)	(756)
Proceeds from exercise of stock options	130	290
Purchase of treasury stock	(11,742)	(3,832)
Net bank overdrafts	(972)	(4,361)
Net cash flows used in financing activities	(1,910)	(2,659)
Increase (decrease) in cash and cash equivalents	(852)	2,466
Cash and cash equivalents at beginning of period	2,592	1,671
Cash and cash equivalents at end of period	$ 1,740	$ 4,137

Introduction and Basis of Prese

Introduction and Basis of Presentation	3 Months Ended
	Mar. 29, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Introduction and Basis of Presentation	Introduction and Basis of Presentation Denny’s Corporation, or Denny’s, is one of America’s largest full-service restaurant chains based on number of restaurants. At March 29, 2017 , the Denny's brand consisted of 1,731 restaurants, 1,559 of which were franchised/licensed restaurants and 172 of which were company operated. Our unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or 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, including those for the above-described items, are reasonable. These interim condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 28, 2016 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Annual Report on Form 10-K for the fiscal year ended December 28, 2016 . The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 27, 2017 .

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 29, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Newly Adopted Accounting Standards Effective December 29, 2016, we adopted Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. As required by the guidance, excess tax benefits recognized on share-based compensation expense are reflected on a prospective basis in our condensed consolidated statements of income as a component of the provision for income taxes rather than paid-in capital. The cumulative-effect adjustment to retained earnings from previously unrecognized excess tax benefits resulted in an $8.8 million increase in deferred tax assets and a decrease to opening deficit. In addition, we have elected to account for forfeitures as they occur. The cumulative-effect adjustment to retained earnings from previously estimated forfeitures resulted in a $0.4 million increase to opening deficit, a $0.2 million increase in deferred tax assets and a $0.6 million increase to additional paid-in capital. As allowed by the update, on a retrospective basis, cash flows related to excess tax benefits recognized on stock-based compensation expense are classified as operating activities in the condensed consolidated statements of cash flows. There was no material impact on the prior periods retrospectively adjusted. Cash paid on employees’ behalf related to shares withheld for tax purposes continues to be classified as financing activites. In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The new guidance simplifies the subsequent measurement of goodwill by eliminating the second step of the two-step impairment test. Impairment is measured based on the excess of a reporting unit's carrying amount over its fair value. A qualitative assessment may still be completed first for an entity to determine if a quantitative impairment test is necessary. We early adopted ASU 2017-04 as of March 29, 2017 on a prospective basis. The adoption of this guidance did not have any impact on our consolidated financial statements. Accounting Standards to be Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The new guidance clarifies the principles used to recognize revenue for all entities and requires companies to recognize revenue when it transfers goods or service to a customer in an amount that reflects the consideration to which a company expects to be entitled. The FASB has subsequently amended this guidance by issuing additional ASUs that provide clarification and further guidance around areas identified as potential implementation issues, including principal versus agent considerations, licensing and identifying performance obligations, assessing collectability, presentation of sales taxes received from customers, noncash consideration, contract modification and clarification of using the full retrospective approach upon adoption. All of the standards are effective for annual and interim periods beginning after December 15, 2017 (our fiscal 2018). The guidance allows for either a retrospective or cumulative effect transition method with early application permitted. The guidance is not expected to impact the recognition of company restaurant sales or royalties from franchised restaurants. Upon adoption, initial franchise fees, which are currently recognized upon the opening of a franchise restaurant, are expected to be deferred and recognized over the term of the underlying franchise agreement. We are currently evaluating the impact this guidance will have on the recognition of other transactions on our consolidated financial statements, including our advertising arrangements with franchisees currently reported on a net versus gross basis in our consolidated statements of earnings, and the effect it will have on our disclosures. We have not yet selected a transition method. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. The new guidance requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. ASU 2016-01 is effective for annual and interim periods beginning after December 15, 2017 (our fiscal 2018) with early adoption permitted. We are currently evaluating the impact the adoption of this guidance will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The new guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform financial statement users of credit loss estimates. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 (our fiscal 2020) with early adoption permitted for annual and interim periods beginning after December 15, 2018 (our fiscal 2019). We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which provides guidance for accounting for leases. The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets. The accounting guidance for lessors is largely unchanged. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018 (our fiscal 2019) with early adoption permitted. The guidance will be adopted using a modified retrospective approach. Based on a preliminary assessment, we expect the adoption will result in a significant increase in the assets and liabilities on our consolidated balance sheets, as most of our operating lease commitments will be recognized as operating lease liabilities and right-of-use assets. We are continuing our evaluation, which may identify additional impacts this standard will have on our consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)”. The new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for annual and interim periods beginning after December 15, 2017 (our fiscal 2018) with early adoption permitted. The guidance is to be applied using a retrospective transition method to each period presented. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The new guidance clarifies the definition of a business. ASU 2017-01 is effective for annual and interim periods beginning after December 15, 2017 (our fiscal 2018) with early adoption permitted. The guidance is to be applied prospectively. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. The new guidance requires an entity to report the service cost component in the same line on the income statement as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside the subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement must be disclosed. ASU 2017-07 is effective for annual and interim periods beginning after December 15, 2017 (our fiscal 2018) with early adoption permitted. The guidance is to be applied prospectively. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. 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.

Receivables

Receivables	3 Months Ended
	Mar. 29, 2017
Receivables [Abstract]
Receivables	Receivables Receivables were comprised of the following: March 29, 2017 December 28, 2016 (In thousands) Current assets: Receivables: Trade accounts receivable from franchisees $ 9,943 $ 10,513 Financing receivables from franchisees 4,978 2,804 Vendor receivables 1,630 3,865 Credit card receivables 1,342 1,678 Other 1,125 1,261 Allowance for doubtful accounts (280 ) (280 ) Total current receivables, net $ 18,738 $ 19,841 Noncurrent assets (included as a component of other noncurrent assets): Financing receivables from franchisees $ 638 $ 732 The $2.2 million increase in financing receivables from franchisees is primarily the result of a short-term franchisee note receivable related to the sale of real estate.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 29, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets The following table reflects the changes in carrying amounts of goodwill. (In thousands) Balance, December 28, 2016 $ 35,233 Additions related to acquisition 374 Balance, March 29, 2017 $ 35,607 Other intangible assets were comprised of the following: March 29, 2017 December 28, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,077 $ — $ 44,076 $ — Liquor licenses 166 — 166 — Intangible assets with definite lives: Franchise and license agreements 190 188 190 186 Reacquired franchise rights 12,090 1,632 11,498 1,251 Intangible assets $ 56,523 $ 1,820 $ 55,930 $ 1,437 During the quarter ended March 29, 2017 , we acquired three franchised restaurants for $1.4 million , of which $0.6 million was allocated to reacquired franchise rights, $0.5 million to property and $0.4 million to goodwill. In addition, we recorded $0.4 million of capital leases in connection with the acquired franchised restaurants. We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on Level 3 fair value estimates.

Other Current Liabilities

Other Current Liabilities	3 Months Ended
	Mar. 29, 2017
Other Liabilities, Current [Abstract]
Other Liabilities Disclosure [Text Block]	Other Current Liabilities Other current liabilities consisted of the following: March 29, 2017 December 28, 2016 (In thousands) Accrued salaries and vacation $ 15,757 $ 27,056 Accrued insurance, primarily current portion of liability for insurance claims 6,260 6,651 Accrued taxes 7,192 7,407 Accrued advertising 8,539 8,051 Gift cards 4,461 5,474 Other 10,510 10,157 Other current liabilities $ 52,719 $ 64,796

Operating (Gains), Losses and O

Operating (Gains), Losses and Other Charges, Net	3 Months Ended
	Mar. 29, 2017
Other Income and Expenses [Abstract]
Operating (Gains), Losses and Other Charges, Net	Operating (Gains), Losses and Other Charges, Net Operating (gains), losses and other charges, net are comprised of the following: Quarter Ended March 29, 2017 March 30, 2016 (In thousands) Software implementation costs 2,124 — Gains on sales of assets and other, net (1,440 ) (644 ) Restructuring charges and exit costs 99 519 Operating (gains), losses and other charges, net $ 783 $ (125 ) Software implementation costs of $2.1 million for the quarter ended March 29, 2017 were the result of our investment in a new cloud-based ERP system. Gains on sales of assets and other, net of $1.4 million for the quarter ended March 29, 2017 primarily related to real estate sold to a franchisee. Restructuring charges and exit costs were comprised of the following: Quarter Ended March 29, 2017 March 30, 2016 (In thousands) Exit costs $ 31 $ 151 Severance and other restructuring charges 68 368 Total restructuring charges and exit costs $ 99 $ 519 The components of the change in accrued exit cost liabilities are as follows: (In thousands) Balance, December 28, 2016 $ 1,896 Exit costs (1) 31 Payments, net of sublease receipts (875 ) Interest accretion 28 Balance, March 29, 2017 1,080 Less current portion included in other current liabilities 246 Long-term portion included in other noncurrent liabilities $ 834 (1) Included as a component of operating (gains), losses and other charges, net. As of March 29, 2017 and December 28, 2016 , we had accrued severance and other restructuring charges of $0.3 million and $0.4 million , respectively. The balance as of March 29, 2017 is expected to be paid during the next 12 months.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 29, 2017
Fair Value Disclosures [Abstract]
Fair Value Disclosures	Fair Value of Financial Instruments Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis 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 (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique (In thousands ) Fair value measurements as of March 29, 2017: Deferred compensation plan investments (1) $ 11,792 $ 11,792 $ — $ — market approach Interest rate swaps, net (2) (1,776 ) — (1,776 ) — income approach Total $ 10,016 $ 11,792 $ (1,776 ) $ — Fair value measurements as of December 28, 2016: Deferred compensation plan investments (1) $ 11,248 $ 11,248 $ — $ — market approach Interest rate swaps (2) (756 ) — (756 ) — income approach Total $ 10,492 $ 11,248 $ (756 ) $ — (1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments. (2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 8 for details on the interest rate swaps. Those assets and liabilities measured at fair value on a nonrecurring basis are summarized below: Significant Other Observable Inputs (Level 2) Impairment Charges Valuation Technique (In thousands) Fair value measurements as of March 29, 2017: Assets held for sale (1) $ 1,754 $ — market approach Fair value measurements as of December 28, 2016: Assets held for sale (1) $ 1,020 $ 1,098 market approach (1) As of March 29, 2017 and December 28, 2016, assets were classified as assets held for sale and, if necessary, were written down to their fair value. The fair value of assets held for sale is based upon Level 2 inputs, which include sales agreements.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 29, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Denny's Corporation and certain of its subsidiaries have a credit facility consisting of a five-year $325 million senior secured revolver (with a $30 million letter of credit sublimit). As of March 29, 2017 , we had outstanding revolver loans of $230.0 million and outstanding letters of credit under the senior secured revolver of $22.4 million . These balances resulted in availability of $72.6 million under the revolving facility. Prior to considering the impact of our interest rate swaps, described below, the weighted-average interest rate on outstanding revolver loans was 2.61% and 2.45% as of March 29, 2017 and December 28, 2016 , respectively. Taking into consideration our interest rate swaps, the weighted-average interest rate of outstanding revolver loans was 2.78% and 2.74% as of March 29, 2017 and December 28, 2016 , respectively. A commitment fee of 0.25% is paid on the unused portion of the revolving credit facility. Borrowings under the credit facility bear a tiered interest rate, which is based on the Company’s consolidated leverage ratio and was set at LIBOR plus 175 basis points as of March 29, 2017 . The maturity date for the credit facility is March 30, 2020 . 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 the Company's subsidiaries. It includes negative covenants that are usual for facilities and transactions of this type. The credit facility also includes certain financial covenants with respect to a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. Interest Rate Hedges We have interest rate swaps to hedge a portion of the cash flows of our floating rate debt. We designated the interest rate swaps as cash flow hedges of our exposure to variability in future cash flows attributable to payments of LIBOR due on specific notional debt obligations. Based on the interest rate as determined by our consolidated leverage ratio in effect as of March 29, 2017 , under the terms of the swaps, we will pay the following fixed rates on the notional amounts noted: Period Covered Notional Amount Fixed Rate (In thousands) March 31, 2015 - March 29, 2018 $ 120,000 2.88 % March 29, 2018 - March 31, 2025 170,000 4.19 % April 1, 2025 - March 31, 2026 50,000 4.21 % As of March 29, 2017 , the fair value of the interest rate swaps was a net liability of $1.8 million , which is comprised of assets of less than $0.1 million recorded as a component of other noncurrent assets and liabilities of $1.8 million recorded as a component of other noncurrent liabilities in our Condensed Consolidated Balance Sheets. See Note 14 for the amounts recorded in accumulated other comprehensive loss related to the interest rate swaps.

Defined Benefit Plans

Defined Benefit Plans	3 Months Ended
	Mar. 29, 2017
Compensation and Retirement Disclosure [Abstract]
Defined Benefit Plans	Defined Benefit Plans During the second quarter of 2016, we completed the liquidation of the Advantica Pension Plan (the “Pension Plan”). The components of net periodic benefit cost were as follows: Quarter Ended March 29, 2017 March 30, 2016 (In thousands) Pension Plan: Service cost $ — $ 105 Net periodic benefit cost $ — $ 105 Other Defined Benefit Plans: Interest cost $ 21 $ 23 Amortization of net loss 23 21 Net periodic benefit cost $ 44 $ 44 We made contributions of less than $0.1 million to our other defined benefit plans during both the quarter ended March 29, 2017 and the quarter ended March 30, 2016 . We expect to contribute $0.1 million to our other defined benefit plans over the remainder of fiscal 2017 . Additional minimum pension liability, net of tax, of $0.9 million related to our other defined benefit plans is reported as a component of accumulated other comprehensive loss in our Condensed Consolidated Statement of Shareholders’ Equity as of both March 29, 2017 and December 28, 2016 , respectively.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation Refer to Note 2 for the impact of the adoption of ASU 2016-09. Total share-based compensation cost included as a component of net income was as follows: Quarter Ended March 29, 2017 March 30, 2016 (In thousands) Performance share awards $ 1,940 $ 1,734 Restricted stock units for board members 33 214 Total share-based compensation $ 1,973 $ 1,948 Performance Share Awards In January 2017, we granted certain employees approximately 0.3 million performance shares that vest based on the total shareholder return (“TSR”) of our common stock compared to the TSRs of a group of peer companies and 0.3 million performance shares that vest based on our Adjusted EBITDA growth rate, as defined under the terms of the award. As the TSR based performance shares contain a market condition, a Monte Carlo valuation was used to determine the grant date fair value of $13.05 per share. The performance shares based on the Adjusted EBITDA growth rate have a grant date fair value of $12.17 per share, the market value of our common stock on the date of grant. The awards granted to our named executive officers also contain a performance condition based on the attainment of an operating measure for the fiscal year ended December 27, 2017 . The performance period for these performance shares is the three year fiscal period beginning December 29, 2016 and ending December 25, 2019. They will vest and be earned (from 0% to 150% of the target award for each such increment) at the end of the performance period. During the quarter ended March 29, 2017 , we made payments of $3.9 million in cash and issued 0.4 million shares of common stock related to performance share awards. As of March 29, 2017 , we had approximately $13.5 million of unrecognized compensation cost related to all unvested performance share awards outstanding, which is expected to be recognized over a weighted average of 2.1 years . Restricted Stock Units for Board Members As of March 29, 2017 , we had approximately $0.3 million of unrecognized compensation cost related to all unvested restricted stock unit awards outstanding, which is expected to be recognized over a weighted average of 2.1 years .

Income Taxes

Income Taxes	3 Months Ended
	Mar. 29, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The effective tax rate was 36.2% for the quarter compared to 35.5% for the prior year period. Refer to Note 2 for the impact of the adoption of ASU 2016-09. The 2016 period benefited by 1.6 percentage points from state jobs tax credits claimed for prior years' hiring activity.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 29, 2017
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The amounts used for the basic and diluted net income per share calculations are summarized below: Quarter Ended March 29, 2017 March 30, 2016 (In thousands, except for per share amounts) Net income $ 8,373 $ 9,954 Weighted average shares outstanding - basic 71,004 77,060 Effect of dilutive share-based compensation awards 2,237 1,817 Weighted average shares outstanding - diluted 73,241 78,877 Basic net income per share $ 0.12 $ 0.13 Diluted net income per share $ 0.11 $ 0.13 Anti-dilutive share-based compensation awards 580 —

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 29, 2017
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information Quarter Ended March 29, 2017 March 30, 2016 (In thousands) Income taxes paid, net $ 395 $ 311 Interest paid $ 3,261 $ 2,452 Noncash investing and financing activities: Issuance of common stock, pursuant to share-based compensation plans $ 4,946 $ 3,497 Execution of capital leases $ 1,523 $ 532 Treasury stock payable $ 862 $ 256 Notes received in connection with disposition of property $ 1,750 $ —

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 29, 2017
Stockholders' Equity Attributable to Parent [Abstract]
Shareholders' equity	Shareholders' Equity Share Repurchase Our credit facility permits the purchase of Denny’s stock and the payment of cash dividends subject to certain limitations. In May 2016, our Board of Directors approved a share repurchase program authorizing us to repurchase up to $100 million of our common stock (in addition to prior authorizations). Under this program, 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. In November 2016, as part of our previously authorized share repurchase programs, we entered into a variable term, capped accelerated share repurchase (the “ASR”) agreement with MUFG Securities EMEA plc (“MUFG”), to repurchase an aggregate of $25 million of our common stock. Pursuant to the terms of the ASR agreement, we paid $25 million in cash and received approximately 1.5 million shares of our common stock (which represents the minimum shares to be delivered based on the cap price) and recorded $18.1 million of treasury stock related to these shares. The remaining balance of $6.9 million was recorded as additional paid-in capital in shareholders' equity as of December 28, 2016 as an equity forward contract. During the quarter ended March 29, 2017 , we settled the ASR agreement with MUFG. As a result, we received final delivery of an additional 0.5 million shares of our common stock, bringing the total number of shares repurchased pursuant to the ASR agreement to 2.0 million . The total number of shares repurchased was based on a combined discounted volume-weighted average price (“VWAP”) of $12.36 per share, which was determined based on the average of the daily VWAP of our common stock, less a fixed discount, over the term of the ASR agreement. As a result of settling the ASR agreement, we recorded $6.9 million of treasury stock related to the settlement of the equity forward contract related to the ASR agreement. In addition to the settlement of the ASR agreement, during the quarter ended March 29, 2017 , we repurchased 1.0 million shares of our common stock for approximately $12.3 million . This brings the total amount repurchased under the May 2016 repurchase program to 2.7 million shares of our common stock for approximately $33.1 million , leaving approximately $66.9 million of our common stock that can be repurchased under this program as of March 29, 2017 . Repurchased shares are included as treasury stock in our Condensed Consolidated Balance Sheets and our Condensed Consolidated Statement of Shareholders' Equity. Accumulated Other Comprehensive Loss The components of the change in accumulated other comprehensive loss were as follows: Pensions Derivatives Accumulated Other Comprehensive Loss (In thousands) Balance as of December 28, 2016 $ (945 ) $ (462 ) $ (1,407 ) Amortization of net loss (1) 23 — 23 Net change in fair value of derivatives — (912 ) (912 ) Reclassification of derivatives to interest expense (2) — (108 ) (108 ) Income tax (expense) benefit related to items of other comprehensive loss (9 ) 397 388 Balance as of March 29, 2017 $ (931 ) $ (1,085 ) $ (2,016 ) (1) Before-tax amount related to our Other Defined Benefit Plans that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Condensed Consolidated Statements of Income during the quarter ended March 29, 2017 . See Note 9 for additional details. (2) Amounts reclassified from accumulated other comprehensive loss into income, represent payments made to the counterparty for the effective portions of the interest rate swaps. These amounts are included as a component of interest expense in our Condensed Consolidated Statements of Income. We expect to reclassify approximately $0.4 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 8 for additional details.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 29, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We have guarantees related to certain franchisee loans. Payments under these guarantees would result from the inability of a franchisee to fund required payments when due. Through March 29, 2017 , no events had occurred that caused us to make payments under these guarantees. There were $7.5 million and $7.9 million of loans outstanding under these programs as of March 29, 2017 and December 28, 2016 , respectively. As of March 29, 2017 , the maximum amounts payable under the loan guarantees was $1.2 million . As a result of these guarantees, we have recorded liabilities of less than $0.1 million as of both March 29, 2017 and December 28, 2016 , which are included as a component of other noncurrent liabilities in our Condensed Consolidated Balance Sheets and other nonoperating expense in our Condensed Consolidated Statements of Income. 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 the Company's consolidated results of operations or financial position.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 29, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events We performed an evaluation of subsequent events and determined that no events required disclosure.

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 29, 2017
Accounting Policies [Abstract]
Newly adopted accounting standards and accounting standards to be adopted	Newly Adopted Accounting Standards Effective December 29, 2016, we adopted Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. As required by the guidance, excess tax benefits recognized on share-based compensation expense are reflected on a prospective basis in our condensed consolidated statements of income as a component of the provision for income taxes rather than paid-in capital. The cumulative-effect adjustment to retained earnings from previously unrecognized excess tax benefits resulted in an $8.8 million increase in deferred tax assets and a decrease to opening deficit. In addition, we have elected to account for forfeitures as they occur. The cumulative-effect adjustment to retained earnings from previously estimated forfeitures resulted in a $0.4 million increase to opening deficit, a $0.2 million increase in deferred tax assets and a $0.6 million increase to additional paid-in capital. As allowed by the update, on a retrospective basis, cash flows related to excess tax benefits recognized on stock-based compensation expense are classified as operating activities in the condensed consolidated statements of cash flows. There was no material impact on the prior periods retrospectively adjusted. Cash paid on employees’ behalf related to shares withheld for tax purposes continues to be classified as financing activites. In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The new guidance simplifies the subsequent measurement of goodwill by eliminating the second step of the two-step impairment test. Impairment is measured based on the excess of a reporting unit's carrying amount over its fair value. A qualitative assessment may still be completed first for an entity to determine if a quantitative impairment test is necessary. We early adopted ASU 2017-04 as of March 29, 2017 on a prospective basis. The adoption of this guidance did not have any impact on our consolidated financial statements. Accounting Standards to be Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The new guidance clarifies the principles used to recognize revenue for all entities and requires companies to recognize revenue when it transfers goods or service to a customer in an amount that reflects the consideration to which a company expects to be entitled. The FASB has subsequently amended this guidance by issuing additional ASUs that provide clarification and further guidance around areas identified as potential implementation issues, including principal versus agent considerations, licensing and identifying performance obligations, assessing collectability, presentation of sales taxes received from customers, noncash consideration, contract modification and clarification of using the full retrospective approach upon adoption. All of the standards are effective for annual and interim periods beginning after December 15, 2017 (our fiscal 2018). The guidance allows for either a retrospective or cumulative effect transition method with early application permitted. The guidance is not expected to impact the recognition of company restaurant sales or royalties from franchised restaurants. Upon adoption, initial franchise fees, which are currently recognized upon the opening of a franchise restaurant, are expected to be deferred and recognized over the term of the underlying franchise agreement. We are currently evaluating the impact this guidance will have on the recognition of other transactions on our consolidated financial statements, including our advertising arrangements with franchisees currently reported on a net versus gross basis in our consolidated statements of earnings, and the effect it will have on our disclosures. We have not yet selected a transition method. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. The new guidance requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. ASU 2016-01 is effective for annual and interim periods beginning after December 15, 2017 (our fiscal 2018) with early adoption permitted. We are currently evaluating the impact the adoption of this guidance will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The new guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform financial statement users of credit loss estimates. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 (our fiscal 2020) with early adoption permitted for annual and interim periods beginning after December 15, 2018 (our fiscal 2019). We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which provides guidance for accounting for leases. The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets. The accounting guidance for lessors is largely unchanged. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018 (our fiscal 2019) with early adoption permitted. The guidance will be adopted using a modified retrospective approach. Based on a preliminary assessment, we expect the adoption will result in a significant increase in the assets and liabilities on our consolidated balance sheets, as most of our operating lease commitments will be recognized as operating lease liabilities and right-of-use assets. We are continuing our evaluation, which may identify additional impacts this standard will have on our consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)”. The new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for annual and interim periods beginning after December 15, 2017 (our fiscal 2018) with early adoption permitted. The guidance is to be applied using a retrospective transition method to each period presented. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The new guidance clarifies the definition of a business. ASU 2017-01 is effective for annual and interim periods beginning after December 15, 2017 (our fiscal 2018) with early adoption permitted. The guidance is to be applied prospectively. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. The new guidance requires an entity to report the service cost component in the same line on the income statement as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside the subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement must be disclosed. ASU 2017-07 is effective for annual and interim periods beginning after December 15, 2017 (our fiscal 2018) with early adoption permitted. The guidance is to be applied prospectively. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. 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.

Receivables (Tables)

Receivables (Tables)	3 Months Ended
	Mar. 29, 2017
Receivables [Abstract]
Receivables, net	Receivables were comprised of the following: March 29, 2017 December 28, 2016 (In thousands) Current assets: Receivables: Trade accounts receivable from franchisees $ 9,943 $ 10,513 Financing receivables from franchisees 4,978 2,804 Vendor receivables 1,630 3,865 Credit card receivables 1,342 1,678 Other 1,125 1,261 Allowance for doubtful accounts (280 ) (280 ) Total current receivables, net $ 18,738 $ 19,841 Noncurrent assets (included as a component of other noncurrent assets): Financing receivables from franchisees $ 638 $ 732

Goodwill and Other Intangible27

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 29, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	The following table reflects the changes in carrying amounts of goodwill. (In thousands) Balance, December 28, 2016 $ 35,233 Additions related to acquisition 374 Balance, March 29, 2017 $ 35,607
Indefinite-Lived Intangible Assets	Other intangible assets were comprised of the following: March 29, 2017 December 28, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,077 $ — $ 44,076 $ — Liquor licenses 166 — 166 — Intangible assets with definite lives: Franchise and license agreements 190 188 190 186 Reacquired franchise rights 12,090 1,632 11,498 1,251 Intangible assets $ 56,523 $ 1,820 $ 55,930 $ 1,437
Finite-Lived Intangible Assets	Other intangible assets were comprised of the following: March 29, 2017 December 28, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,077 $ — $ 44,076 $ — Liquor licenses 166 — 166 — Intangible assets with definite lives: Franchise and license agreements 190 188 190 186 Reacquired franchise rights 12,090 1,632 11,498 1,251 Intangible assets $ 56,523 $ 1,820 $ 55,930 $ 1,437

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	3 Months Ended
	Mar. 29, 2017
Other Liabilities, Current [Abstract]
Schedule of Other Current Liabilities	Other current liabilities consisted of the following: March 29, 2017 December 28, 2016 (In thousands) Accrued salaries and vacation $ 15,757 $ 27,056 Accrued insurance, primarily current portion of liability for insurance claims 6,260 6,651 Accrued taxes 7,192 7,407 Accrued advertising 8,539 8,051 Gift cards 4,461 5,474 Other 10,510 10,157 Other current liabilities $ 52,719 $ 64,796

Operating (Gains), Losses and29

Operating (Gains), Losses and Other Charges, Net (Tables)	3 Months Ended
	Mar. 29, 2017
Other Income and Expenses [Abstract]
Operating gains losses and other charges net	Operating (gains), losses and other charges, net are comprised of the following: Quarter Ended March 29, 2017 March 30, 2016 (In thousands) Software implementation costs 2,124 — Gains on sales of assets and other, net (1,440 ) (644 ) Restructuring charges and exit costs 99 519 Operating (gains), losses and other charges, net $ 783 $ (125 )
Restructuring charges and exit costs	Restructuring charges and exit costs were comprised of the following: Quarter Ended March 29, 2017 March 30, 2016 (In thousands) Exit costs $ 31 $ 151 Severance and other restructuring charges 68 368 Total restructuring charges and exit costs $ 99 $ 519
Components of change in accrued exit cost liabilities	The components of the change in accrued exit cost liabilities are as follows: (In thousands) Balance, December 28, 2016 $ 1,896 Exit costs (1) 31 Payments, net of sublease receipts (875 ) Interest accretion 28 Balance, March 29, 2017 1,080 Less current portion included in other current liabilities 246 Long-term portion included in other noncurrent liabilities $ 834 (1) Included as a component of operating (gains), losses and other charges, net.

Fair Value of Financial Instr30

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 29, 2017
Fair Value Disclosures [Abstract]
Financial assets and liabilities measured at fair value on a recurring basis	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 (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique (In thousands ) Fair value measurements as of March 29, 2017: Deferred compensation plan investments (1) $ 11,792 $ 11,792 $ — $ — market approach Interest rate swaps, net (2) (1,776 ) — (1,776 ) — income approach Total $ 10,016 $ 11,792 $ (1,776 ) $ — Fair value measurements as of December 28, 2016: Deferred compensation plan investments (1) $ 11,248 $ 11,248 $ — $ — market approach Interest rate swaps (2) (756 ) — (756 ) — income approach Total $ 10,492 $ 11,248 $ (756 ) $ — (1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments. (2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 8 for details on the interest rate swaps.
Assets and liabilities measured at fair value on a nonrecurring basis	Those assets and liabilities measured at fair value on a nonrecurring basis are summarized below: Significant Other Observable Inputs (Level 2) Impairment Charges Valuation Technique (In thousands) Fair value measurements as of March 29, 2017: Assets held for sale (1) $ 1,754 $ — market approach Fair value measurements as of December 28, 2016: Assets held for sale (1) $ 1,020 $ 1,098 market approach (1)

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 29, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative instruments	Based on the interest rate as determined by our consolidated leverage ratio in effect as of March 29, 2017 , under the terms of the swaps, we will pay the following fixed rates on the notional amounts noted: Period Covered Notional Amount Fixed Rate (In thousands) March 31, 2015 - March 29, 2018 $ 120,000 2.88 % March 29, 2018 - March 31, 2025 170,000 4.19 % April 1, 2025 - March 31, 2026 50,000 4.21 %

Defined Benefit Plans (Tables)

Defined Benefit Plans (Tables)	3 Months Ended
	Mar. 29, 2017
Compensation and Retirement Disclosure [Abstract]
Components of net periodic benefit cost	Quarter Ended March 29, 2017 March 30, 2016 (In thousands) Pension Plan: Service cost $ — $ 105 Net periodic benefit cost $ — $ 105 Other Defined Benefit Plans: Interest cost $ 21 $ 23 Amortization of net loss 23 21 Net periodic benefit cost $ 44 $ 44

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total share-based compensation	Total share-based compensation cost included as a component of net income was as follows: Quarter Ended March 29, 2017 March 30, 2016 (In thousands) Performance share awards $ 1,940 $ 1,734 Restricted stock units for board members 33 214 Total share-based compensation $ 1,973 $ 1,948

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 29, 2017
Earnings Per Share [Abstract]
Net Income Per Share	The amounts used for the basic and diluted net income per share calculations are summarized below: Quarter Ended March 29, 2017 March 30, 2016 (In thousands, except for per share amounts) Net income $ 8,373 $ 9,954 Weighted average shares outstanding - basic 71,004 77,060 Effect of dilutive share-based compensation awards 2,237 1,817 Weighted average shares outstanding - diluted 73,241 78,877 Basic net income per share $ 0.12 $ 0.13 Diluted net income per share $ 0.11 $ 0.13 Anti-dilutive share-based compensation awards 580 —

Supplemental Cash Flow Inform35

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 29, 2017
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Quarter Ended March 29, 2017 March 30, 2016 (In thousands) Income taxes paid, net $ 395 $ 311 Interest paid $ 3,261 $ 2,452 Noncash investing and financing activities: Issuance of common stock, pursuant to share-based compensation plans $ 4,946 $ 3,497 Execution of capital leases $ 1,523 $ 532 Treasury stock payable $ 862 $ 256 Notes received in connection with disposition of property $ 1,750 $ —

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 29, 2017
Statement of Comprehensive Income [Abstract]
Components of accumulated other comprehensive loss	The components of the change in accumulated other comprehensive loss were as follows: Pensions Derivatives Accumulated Other Comprehensive Loss (In thousands) Balance as of December 28, 2016 $ (945 ) $ (462 ) $ (1,407 ) Amortization of net loss (1) 23 — 23 Net change in fair value of derivatives — (912 ) (912 ) Reclassification of derivatives to interest expense (2) — (108 ) (108 ) Income tax (expense) benefit related to items of other comprehensive loss (9 ) 397 388 Balance as of March 29, 2017 $ (931 ) $ (1,085 ) $ (2,016 ) (1) Before-tax amount related to our Other Defined Benefit Plans that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Condensed Consolidated Statements of Income during the quarter ended March 29, 2017 . See Note 9 for additional details. (2) Amounts reclassified from accumulated other comprehensive loss into income, represent payments made to the counterparty for the effective portions of the interest rate swaps. These amounts are included as a component of interest expense in our Condensed Consolidated Statements of Income. We expect to reclassify approximately $0.4 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 8 for additional details.

Introduction and Basis of Pre37

Introduction and Basis of Presentation (Details)	Mar. 29, 2017restaurant
Franchisor Disclosure [Line Items]
Number of restaurants	1,731
Franchised/licensed restaurants [Member]
Franchisor Disclosure [Line Items]
Number of restaurants	1,559
Company restaurants [Member]
Franchisor Disclosure [Line Items]
Number of restaurants	172

Summary of Significant Accoun38

Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) $ in Thousands	Dec. 28, 2016USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment	$ 8,971
Other Noncurrent Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment	(200)
Paid-in Capital [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment	600
Excess Tax Benefits [Member] | (Deficit) [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment	8,800
Estimated Forfeitures [Member] | (Deficit) [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment	$ (400)

Receivables (Details)

Receivables (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Dec. 28, 2016
Receivables [Abstract]
Trade accounts receivable from franchisees, gross, current	$ 9,943	$ 10,513
Financing receivables from franchisees, gross, current	4,978	2,804
Allowance for doubtful accounts	(280)	(280)
Total current receivables, net	18,738	19,841
Noncurrent assets (included as a component of other noncurrent assets):
Financing receivables from franchisees, noncurrent	638	732
Increase in financing receivables	2,200
Vendor receivables [Member]
Receivables [Abstract]
Other receivables, gross, current	1,630	3,865
Credit card receivables [Member]
Receivables [Abstract]
Other receivables, gross, current	1,342	1,678
Other [Member]
Receivables [Abstract]
Other receivables, gross, current	$ 1,125	$ 1,261

Goodwill and Other Intangible40

Goodwill and Other Intangible Assets (Details) $ in Thousands	3 Months Ended
	Mar. 29, 2017USD ($)restaurants	Dec. 28, 2016USD ($)
Goodwill [Roll Forward]
Balance, December 28, 2016	$ 35,233
Additions related to acquisition	374
Balance, March 29, 2017	35,607
Intangible Assets [Line Items]
Gross carrying amount - Trade names	44,077	$ 44,076
Gross carrying amount - Liquor licenses	166	166
Accumulated amortization - Intangible assets with definite lives	1,820	1,437
Intangible assets	$ 56,523	55,930
Restaurants reacquired from franchisees | restaurants	3
Purchase price to reacquire franchised restaurant	$ 1,400
Purchase price allocation of property	500
Purchase price allocation of goodwill	374
Capital leases recorded related to acquisitions	400
Other Intangible Assets [Member]
Intangible Assets [Line Items]
Gross carrying amount - Intangible assets with definite lives	190	190
Accumulated amortization - Intangible assets with definite lives	188	186
Franchise Rights [Member]
Intangible Assets [Line Items]
Gross carrying amount - Intangible assets with definite lives	12,090	11,498
Accumulated amortization - Intangible assets with definite lives	1,632	$ 1,251
Purchase price allocation of reacquired franchise rights	$ 600

Other Current Liabilities (Deta

Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 29, 2017	Dec. 28, 2016
Other Liabilities, Current [Abstract]
Accrued salaries and vacation	$ 15,757	$ 27,056
Accrued insurance, primarily current portion of liability for insurance claims	6,260	6,651
Accrued taxes	7,192	7,407
Accrued advertising	8,539	8,051
Gift cards	4,461	5,474
Other	10,510	10,157
Other current liabilities	$ 52,719	$ 64,796

Operating (Gains), Losses and42

Operating (Gains), Losses and Other Charges, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017		Mar. 30, 2016	Dec. 28, 2016
Other Income and Expenses [Abstract]
Software implementation costs	$ 2,124		$ 0
Gains on sales of assets and other, net	(1,440)		(644)
Restructuring charges and exit costs	99		519
Operating (gains), losses and other charges, net	783		(125)
Restructuring Charges [Abstract]
Exit costs	31	[1]	151
Severance and other restructuring charges	68		368
Total restructuring charges and exit costs	99		519
Restructuring Reserve [Roll Forward]
Balance, December 28, 2016	1,896
Exit costs	31	[1]	$ 151
Payments, net of sublease receipts	(875)
Interest accretion	28
Balance, March 29, 2017	1,080
Less current portion included in other current liabilities	246
Long-term portion included in other noncurrent liabilities	834
Accrued severance and other restructuring charges	$ 300			$ 400
[1]	Included as a component of operating (gains), losses and other charges, net.

Fair Value of Financial Instr43

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 29, 2017	Dec. 28, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps, net		$ (1,800)
Interest rate swaps		(1,800)
Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total, assets		10,016	$ 10,492
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total, assets		11,792	11,248
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total, liabilities		(1,776)	(756)
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total, assets		0	0
Recurring [Member] | Deferred Compensation Plan Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	[1]	$ 11,792	$ 11,248
Valuation technique		market approach	market approach
Recurring [Member] | Deferred Compensation Plan Investments [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	[1]	$ 11,792	$ 11,248
Recurring [Member] | Deferred Compensation Plan Investments [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	[1]	0	0
Recurring [Member] | Deferred Compensation Plan Investments [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	[1]	0	0
Recurring [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps, net	[2]	$ (1,776)
Interest rate swaps	[2]		$ (756)
Valuation technique		income approach	income approach
Recurring [Member] | Interest Rate Swap [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps, net	[2]	$ 0
Interest rate swaps	[2]		$ 0
Recurring [Member] | Interest Rate Swap [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps, net	[2]	(1,776)
Interest rate swaps	[2]		(756)
Recurring [Member] | Interest Rate Swap [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps, net	[2]	$ 0
Interest rate swaps	[2]		$ 0
Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		market approach	market approach
Impairment of assets identified as assets held for sale		$ 0	$ 1,098
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held for sale	[3]	$ 1,754	$ 1,020
[1]	The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments.
[2]	The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 8 for details on the interest rate swaps.
[3]	As of March 29, 2017 and December 28, 2016, assets were classified as assets held for sale and, if necessary, were written down to their fair value. The fair value of assets held for sale is based upon Level 2 inputs, which include sales agreements.

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Dec. 28, 2016
Line of Credit Facility [Line Items]
Interest rate swaps, net liability	$ 1,800
Interest rate swaps, asset	100
Interest rate swaps, liability	1,800
Interest Rate Swaps 2015-2018 [Member]
Line of Credit Facility [Line Items]
Derivative, notional amount	$ 120,000
Average fixed interest rate on interest rate swaps	2.88%
Interest Rate Swaps 2018-2025 [Member]
Line of Credit Facility [Line Items]
Derivative, notional amount	$ 170,000
Average fixed interest rate on interest rate swaps	4.19%
Interest Rate Swaps 2018-2026 [Member]
Line of Credit Facility [Line Items]
Derivative, notional amount	$ 50,000
Average fixed interest rate on interest rate swaps	4.21%
Senior secured revolver [Member]
Line of Credit Facility [Line Items]
Line of credit facility, current borrowing capacity	$ 325,000
Outstanding amount under credit facility	230,000
Availability under the revolving facility	$ 72,600
Weighted-average interest rate (in hundredths)	2.61%	2.45%
Commitment fee for unused portion of revolving credit facility (in hundredths)	0.25%
Basis spread on variable rate debt	1.75%
Maturity date	Mar. 30, 2020
Senior secured revolver [Member] | Interest Rate Swap [Member]
Line of Credit Facility [Line Items]
Weighted-average interest rate (in hundredths)	2.78%	2.74%
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit facility, current borrowing capacity	$ 30,000
Outstanding amount of letters of credit	$ 22,400

Defined Benefit Plans (Details)

Defined Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016	Dec. 28, 2016
Components of net periodic benefit cost [Abstract]
Additional minimum pension liability	$ 900		$ 900
Pension Plan [Member]
Components of net periodic benefit cost [Abstract]
Service cost	0	$ 105
Net periodic benefit cost	0	105
Other Defined Benefit Plans [Member]
Components of net periodic benefit cost [Abstract]
Interest cost	21	23
Amortization of net loss	23	21
Net periodic benefit cost	44	44
Employer contributions	100	$ 100
Estimated employer contributions remainder of current fiscal year	$ 100

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Total share-based compensation [Abstract]
Total share-based compensation	$ 1,973	$ 1,948
Performance shares [Member]
Total share-based compensation [Abstract]
Total share-based compensation	$ 1,940	1,734
Restricted Stock Units [Abstract]
Performance period, equity award	3 years
Cash payments	$ 3,900
Maximum common stock shares issued (in shares)	0.4
Unrecognized compensation cost [Abstract]
Unrecognized compensation cost related to unvested share awards outstanding	$ 13,500
Unrecognized compensation cost, expected weighted average period	2 years 1 month 16 days
Performance shares [Member] | Minimum [Member]
Restricted Stock Units [Abstract]
Percentage of target awards to be earned (in hundredths)	0.00%
Performance shares [Member] | Maximum [Member]
Restricted Stock Units [Abstract]
Percentage of target awards to be earned (in hundredths)	150.00%
Performance shares [Member] | Performance shares that vest based on TSR [Member]
Restricted Stock Units [Abstract]
Equity awards granted (in shares)	0.3
Equity awards, grant date fair value (in dollars per share)	$ 13.05
Performance shares [Member] | Performance shares that vest based on EBITDA growth [Member]
Restricted Stock Units [Abstract]
Equity awards granted (in shares)	0.3
Equity awards, grant date fair value (in dollars per share)	$ 12.17
Restricted stock units for board members [Member]
Total share-based compensation [Abstract]
Total share-based compensation	$ 33	$ 214
Unrecognized compensation cost [Abstract]
Unrecognized compensation cost related to unvested share awards outstanding	$ 300
Unrecognized compensation cost, expected weighted average period	2 years 1 month

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Income Tax Disclosure [Abstract]
Effective tax rate, percent	36.20%	35.50%
State jobs tax credits, percent		1.60%

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Earnings Per Share [Abstract]
Net income	$ 8,373	$ 9,954
Weighted average shares outstanding - basic (in shares)	71,004	77,060
Effect of dilutive share-based compensation awards	2,237	1,817
Weighted average shares outstanding - diluted (in shares)	73,241	78,877
Basic net income per share	$ 0.12	$ 0.13
Diluted net income per share	$ 0.11	$ 0.13
Antidilutive share-based compensation awards (in shares)	580	0

Supplemental Cash Flow Inform49

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2017	Mar. 30, 2016
Supplemental Cash Flow Information [Abstract]
Income taxes paid, net	$ 395	$ 311
Interest paid	3,261	2,452
Noncash investing and financing activities:
Issuance of common stock, pursuant to share-based compensation plans	4,946	3,497
Execution of capital leases	1,523	532
Treasury stock payable	862	256
Notes received in connection with disposition of property	$ 1,750	$ 0

Shareholders' Equity (Share Rep

Shareholders' Equity (Share Repurchase) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 29, 2017	Feb. 06, 2017	Dec. 28, 2016
Equity, Class of Treasury Stock [Line Items]
Purchase of treasury stock	$ 12,292
Number of accumulated shares repurchased (in shares)	37,295		35,757
Share Repurchase Program 2016 [Member]
Equity, Class of Treasury Stock [Line Items]
Share repurchase, authorized amount (in dollars)	$ 100,000
Purchase of treasury stock (in shares)	1,000
Purchase of treasury stock	$ 12,300
Remaining shares to be repurchased (in dollars)	$ 66,900
Number of accumulated shares repurchased (in shares)	2,700
Value of shares repurchased	$ 33,100
November 2016 Accelerated Share Repurchase [Member]
Equity, Class of Treasury Stock [Line Items]
Share repurchase, authorized amount (in dollars)			$ 25,000
Purchase of treasury stock (in shares)	500	2,000	1,500
Purchase of treasury stock	$ 6,900		$ 18,100
Remaining shares to be repurchased (in dollars)			$ 6,900
Volume-weighted average price of treasury stock repurchased		$ 12.36

Shareholders' Equity (Component

Shareholders' Equity (Components of Accumulated Other Comprehensive Loss) (Details) $ in Thousands	3 Months Ended
	Mar. 29, 2017USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of December 28, 2016	$ (1,407)
Amortization of net loss	23	[1]
Net change in fair value of derivatives	(912)
Reclassification of derivatives to interest expense	(108)	[2]
Income tax (expense) benefit related to items of other comprehensive loss	388
Balance as of March 29, 2017	(2,016)
Estimated reclassification from accumulated other comprehensive income to interest expense related to the interest rate swaps over the next 12 months	400
Pensions [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of December 28, 2016	(945)
Amortization of net loss	23	[1]
Income tax (expense) benefit related to items of other comprehensive loss	(9)
Balance as of March 29, 2017	(931)
Derivatives [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of December 28, 2016	(462)
Net change in fair value of derivatives	(912)
Reclassification of derivatives to interest expense	(108)	[2]
Income tax (expense) benefit related to items of other comprehensive loss	397
Balance as of March 29, 2017	$ (1,085)
[1]	Before-tax amount related to our Other Defined Benefit Plans that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Condensed Consolidated Statements of Income during the quarter ended March 29, 2017. See Note 9 for additional details.
[2]	Amounts reclassified from accumulated other comprehensive loss into income, represent payments made to the counterparty for the effective portions of the interest rate swaps. These amounts are included as a component of interest expense in our Condensed Consolidated Statements of Income. We expect to reclassify approximately $0.4 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 8 for additional details.

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Mar. 29, 2017	Dec. 28, 2016
Commitments and Contingencies Disclosure [Abstract]
Loan amounts outstanding under the loan pools	$ 7.5	$ 7.9
Maximum payments guaranteed	1.2
Guarantee liabilities included as a component of other noncurrent liabilities and deferred credits	$ 0.1	$ 0.1