Denny's (DENN) 10-Q 29 Oct 24 2024 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 25, 2024	Oct. 24, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 25, 2024
Document Transition Report	false
Entity File Number	0-18051
Entity Registrant Name	DENNY’S CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3487402
Entity Address, Address Line One	203 East Main Street
Entity Address, City or Town	Spartanburg,
Entity Address, State or Province	SC
Entity Address, Postal Zip Code	29319-0001
City Area Code	864
Local Phone Number	597-8000
Title of 12(b) Security	$.01 Par Value, Common Stock
Trading Symbol	DENN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		51,329,094
Entity Central Index Key	0000852772
Current Fiscal Year End Date	--12-25
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 25, 2024	Dec. 27, 2023
Current assets:
Cash and cash equivalents	$ 1,466	$ 4,893
Investments	2,902	1,281
Receivables, net	17,038	21,391
Inventories	1,835	2,175
Assets held for sale	0	1,455
Prepaid and other current assets	10,610	12,855
Total current assets	33,851	44,050
Property, net of accumulated depreciation of $160,221 and $159,879, respectively	101,532	93,494
Finance lease right-of-use assets, net of accumulated amortization of $7,563 and $8,220, respectively	6,411	6,098
Operating lease right-of-use assets, net	121,169	116,795
Goodwill	66,357	65,908
Intangible assets, net	92,112	93,428
Deferred financing costs, net	1,225	1,702
Other noncurrent assets	38,966	43,343
Total assets	461,623	464,818
Current liabilities:
Current finance lease liabilities	1,457	1,383
Current operating lease liabilities	15,076	14,779
Accounts payable	14,685	24,070
Other current liabilities	56,474	63,068
Total current liabilities	87,692	103,300
Long-term liabilities:
Long-term debt	261,000	255,500
Noncurrent finance lease liabilities	9,540	9,150
Noncurrent operating lease liabilities	117,390	114,451
Liability for insurance claims, less current portion	7,160	6,929
Deferred income taxes, net	4,619	6,582
Other noncurrent liabilities	28,705	31,592
Total long-term liabilities	428,414	424,204
Total liabilities	516,106	527,504
Shareholders' deficit
Common stock $0.01 par value; 135,000 shares authorized; September 25, 2024: 53,342 shares issued and 51,326 outstanding; December 27, 2023: 52,906 shares issued and 52,239 shares outstanding	533	529
Paid-in capital	13,129	6,688
Deficit	(7,009)	(21,784)
Accumulated other comprehensive loss, net	(43,445)	(41,659)
Treasury stock, at cost, 2,016 and 667 shares, respectively	(17,691)	(6,460)
Total shareholders' deficit	(54,483)	(62,686)
Total liabilities and shareholders' deficit	$ 461,623	$ 464,818

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 25, 2024	Dec. 27, 2023
Assets
Accumulated depreciation	$ 160,221	$ 159,879
Accumulated amortization	$ 7,563	$ 8,220
Shareholders' deficit
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	135,000,000	135,000,000
Common stock, shares issued (in shares)	53,342,000	52,906,000
Common stock, shares outstanding (in shares)	51,326,000	52,239,000
Treasury stock, at cost (in shares)	2,016,000	667,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Revenue:
Total operating revenue	$ 111,759	$ 114,183	$ 337,660	$ 348,569
Costs of company restaurant sales, excluding depreciation and amortization:
Product costs	13,611	13,587	40,554	41,796
Payroll and benefits	19,838	19,754	60,805	60,482
Occupancy	4,443	4,085	13,687	12,259
Other operating expenses	8,928	8,467	27,470	24,416
Total costs of company restaurant sales, excluding depreciation and amortization	46,820	45,893	142,516	138,953
Costs of franchise and license revenue, excluding depreciation and amortization	28,999	29,810	89,801	92,657
General and administrative expenses	19,831	18,237	61,539	58,515
Depreciation and amortization	3,622	3,605	10,938	10,878
Goodwill impairment charges	0	0	20	0
Operating (gains), losses and other charges, net	746	2,620	1,984	2,467
Total operating costs and expenses, net	100,018	100,165	306,798	303,470
Operating income	11,741	14,018	30,862	45,099
Interest expense, net	4,571	4,381	13,564	13,288
Other nonoperating (income) expense, net	(824)	43	(1,685)	9,470
Income before income taxes	7,994	9,594	18,983	22,341
Provision for income taxes	1,478	1,686	4,208	5,298
Net income	$ 6,516	$ 7,908	$ 14,775	$ 17,043
Net income per share - basic (in dollars per share)	$ 0.12	$ 0.14	$ 0.28	$ 0.30
Net income per share - diluted (in dollars per share)	$ 0.12	$ 0.14	$ 0.28	$ 0.30
Basic weighted average shares outstanding (in shares)	52,148	55,869	52,635	56,764
Diluted weighted average shares outstanding (in shares)	52,207	56,082	52,739	56,973
Company restaurant sales
Revenue:
Total operating revenue	$ 52,701	$ 53,153	$ 159,391	$ 161,486
Franchise and license revenue
Revenue:
Total operating revenue	$ 59,058	$ 61,030	$ 178,269	$ 187,083

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 6,516	$ 7,908	$ 14,775	$ 17,043
Other comprehensive income (loss), net of tax:
Minimum pension liability adjustment, net of tax of $4, $4, $23 and $30, respectively	12	9	63	86
Changes in the fair value of cash flow hedges, net of tax of $(2,687), $4,597, $416 and $5,893, respectively	(7,958)	13,516	1,234	17,328
Reclassification of cash flow hedges to interest expense, net of tax of $(400), $(352), $(1,168) and $(901), respectively	(1,182)	(1,034)	(3,458)	(2,650)
Amortization of unrealized losses related to interest rate swaps to interest expense, net of tax of $49, $24, $127 and $59, respectively	144	70	375	173
Other comprehensive income (loss)	(8,984)	12,561	(1,786)	14,937
Total comprehensive income (loss)	$ (2,468)	$ 20,469	$ 12,989	$ 31,980

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Statement of Comprehensive Income [Abstract]
Tax effect of minimum pension liability adjustment	$ 4	$ 4	$ 23	$ 30
Changes in fair value of cash flow derivatives, tax	(2,687)	4,597	416	5,893
Reclassification of cash flow derivatives to interest expense, tax	(400)	(352)	(1,168)	(901)
Reclassification of unrealized losses related to derivatives to interest expense, tax	$ 49	$ 24	$ 127	$ 59

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Paid-in Capital	Deficit	Accumulated Other Comprehensive Loss, Net
Balance as of beginning of period (in shares) at Dec. 28, 2022		64,998
Balance as of beginning of period at Dec. 28, 2022	$ (37,116)	$ 650	$ (95,476)	$ 142,136	$ (41,729)	$ (42,697)
Balance as of beginning of period, treasury stock (in shares) at Dec. 28, 2022			(8,270)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	17,043				17,043
Other comprehensive income (loss)	14,937					14,937
Share-based compensation on equity classified awards, net of withholding tax	5,264			5,264
Purchase of treasury stock, including excise tax (in shares)			(3,410)
Purchase of treasury stock, including excise tax	(35,926)		$ (35,926)
Issuance of common stock for share-based compensation (in shares)		713
Issuance of common stock for share-based compensation	0	$ 7		(7)
Balance as of end of period (in shares) at Sep. 27, 2023		65,711
Balance as of end of period at Sep. 27, 2023	(35,798)	$ 657	$ (131,402)	147,393	(24,686)	(27,760)
Balance as of end of period, treasury stock (in shares) at Sep. 27, 2023			(11,680)
Balance as of beginning of period (in shares) at Jun. 28, 2023		65,708
Balance as of beginning of period at Jun. 28, 2023	(42,618)	$ 657	$ (114,866)	144,506	(32,594)	(40,321)
Balance as of beginning of period, treasury stock (in shares) at Jun. 28, 2023			(10,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,908				7,908
Other comprehensive income (loss)	12,561					12,561
Share-based compensation on equity classified awards, net of withholding tax	2,887			2,887
Purchase of treasury stock, including excise tax (in shares)			(1,680)
Purchase of treasury stock, including excise tax	(16,536)		$ (16,536)
Issuance of common stock for share-based compensation (in shares)		3
Balance as of end of period (in shares) at Sep. 27, 2023		65,711
Balance as of end of period at Sep. 27, 2023	$ (35,798)	$ 657	$ (131,402)	147,393	(24,686)	(27,760)
Balance as of end of period, treasury stock (in shares) at Sep. 27, 2023			(11,680)
Balance as of beginning of period (in shares) at Dec. 27, 2023	52,906	52,906
Balance as of beginning of period at Dec. 27, 2023	$ (62,686)	$ 529	$ (6,460)	6,688	(21,784)	(41,659)
Balance as of beginning of period, treasury stock (in shares) at Dec. 27, 2023	(667)		(667)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 14,775				14,775
Other comprehensive income (loss)	(1,786)					(1,786)
Share-based compensation on equity classified awards, net of withholding tax	$ 6,445			6,445
Purchase of treasury stock, including excise tax (in shares)	(1,300)		(1,349)
Purchase of treasury stock, including excise tax	$ (11,231)		$ (11,231)
Issuance of common stock for share-based compensation (in shares)		436
Issuance of common stock for share-based compensation	$ 0	$ 4		(4)
Balance as of end of period (in shares) at Sep. 25, 2024	53,342	53,342
Balance as of end of period at Sep. 25, 2024	$ (54,483)	$ 533	$ (17,691)	13,129	(7,009)	(43,445)
Balance as of end of period, treasury stock (in shares) at Sep. 25, 2024	(2,016)		(2,016)
Balance as of beginning of period (in shares) at Jun. 26, 2024		53,339
Balance as of beginning of period at Jun. 26, 2024	$ (53,243)	$ 533	$ (15,925)	10,135	(13,525)	(34,461)
Balance as of beginning of period, treasury stock (in shares) at Jun. 26, 2024			(1,770)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,516				6,516
Other comprehensive income (loss)	(8,984)					(8,984)
Share-based compensation on equity classified awards, net of withholding tax	2,994			2,994
Purchase of treasury stock, including excise tax (in shares)			(246)
Purchase of treasury stock, including excise tax	$ (1,766)		$ (1,766)
Issuance of common stock for share-based compensation (in shares)		3
Balance as of end of period (in shares) at Sep. 25, 2024	53,342	53,342
Balance as of end of period at Sep. 25, 2024	$ (54,483)	$ 533	$ (17,691)	$ 13,129	$ (7,009)	$ (43,445)
Balance as of end of period, treasury stock (in shares) at Sep. 25, 2024	(2,016)		(2,016)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023
Cash flows from operating activities:
Net income	$ 14,775	$ 17,043
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation and amortization	10,938	10,878
Goodwill impairment charges	20	0
Operating (gains), losses and other charges, net	1,984	2,467
Losses and amortization on interest rate swaps, net	502	10,838
Amortization of deferred financing costs	477	476
Gains on investments	(121)	(59)
Gains on early termination of debt and leases	(42)	0
Deferred income tax (benefit) expense	(1,672)	369
Increase of tax valuation allowance	333	0
Share-based compensation expense	8,406	8,477
Changes in assets and liabilities, excluding acquisitions and dispositions:
Receivables	4,119	8,235
Inventories	341	3,184
Prepaids and other current assets	2,245	712
Other noncurrent assets	669	(902)
Operating lease assets and liabilities	(725)	(479)
Accounts payable	(11,087)	(7,079)
Other accrued liabilities	(7,824)	(1,319)
Other noncurrent liabilities	(2,391)	(2,073)
Net cash flows provided by operating activities	20,947	50,768
Cash flows from investing activities:
Capital expenditures	(17,710)	(5,499)
Acquisition of restaurant and real estate	0	(1,227)
Initial operating lease direct costs	0	(400)
Proceeds from sales of real estate, restaurants and other assets	1,360	3,161
Investment purchases	(1,500)	(1,300)
Proceeds from sale of investments	0	1,850
Collections on notes receivable	489	391
Issuance of notes receivable	(255)	0
Net cash flows used in investing activities	(17,616)	(3,024)
Cash flows from financing activities:
Revolver borrowings	91,900	100,300
Revolver payments	(86,400)	(113,700)
Repayments of finance leases	(1,056)	(1,359)
Tax withholding on share-based payments	(1,881)	(3,007)
Purchase of treasury stock	(11,266)	(35,415)
Net bank overdrafts	1,945	2,936
Net cash flows used in financing activities	(6,758)	(50,245)
Decrease in cash and cash equivalents	(3,427)	(2,501)
Cash and cash equivalents at beginning of period	4,893	3,523
Cash and cash equivalents at end of period	$ 1,466	$ 1,022

Introduction and Basis of Prese

Introduction and Basis of Presentation	9 Months Ended
	Sep. 25, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Introduction and Basis of Presentation	Introduction and Basis of Presentation Introduction Denny’s Corporation, or the Company, is one of America’s largest full-service restaurant chains based on number of restaurants. As of September 25, 2024, the Company consisted of 1,586 restaurants, 1,514 of which were franchised/licensed restaurants and 72 of which were company operated. The Company consists of the Denny’s brand ("Denny's") and the Keke’s Breakfast Café brand (“Keke’s”). As of September 25, 2024, the Denny's brand consisted of 1,525 restaurants, 1,464 of which were franchised/licensed restaurants and 61 of which were company operated. As of September 25, 2024, the Keke's brand consisted of 61 restaurants, 50 of which were franchised restaurants and 11 of which were company operated. Basis of Presentation Our unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted. In our opinion, all adjustments considered necessary for a fair presentation of the interim periods presented have been included. Such adjustments are of a normal and recurring nature. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions; however, we believe that our estimates are reasonable. These interim consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto as of and for the fiscal year ended December 27, 2023 which are contained in our audited Annual Report on Form 10-K for the fiscal year ended December 27, 2023. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 25, 2024. Our significant interim accounting policies include the recognition of advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective rate. Change in Presentation Certain reclassifications have been made in the 2023 interim consolidated financial statements to conform to the 2024 presentation. These reclassifications did not affect total revenues or net income.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 25, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Newly Adopted Accounting Standards In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which was later clarified in January 2021 by ASU 2021-01, “Reference Rate Reform (Topic 848): Scope”. Additionally, in December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which allows ASU 2020-04 to be adopted and applied prospectively to contract modifications made on or before December 31, 2024. The guidance provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The Company adopted ASU 2020-04 on March 12, 2020. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on the Company’s consolidated financial position or results of operations. The guidance is effective through December 31, 2024. Accounting Standards to be Adopted In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The new guidance requires enhanced reportable segment disclosures to include significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 (our fiscal 2024) and interim periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial statements and will add necessary disclosures upon adoption. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The new guidance requires enhanced effective tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial statements and will add necessary disclosures upon adoption. 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	9 Months Ended
	Sep. 25, 2024
Receivables [Abstract]
Receivables	Receivables Receivables consisted of the following: September 25, 2024 December 27, 2023 (In thousands) Receivables, net: Trade accounts receivable from franchisees $ 12,363 $ 14,092 Notes and loan receivables from franchisees 235 584 Vendor receivables 1,941 4,059 Credit card receivables 657 995 Other 2,402 1,862 Allowance for credit losses (560) (201) Total receivables, net $ 17,038 $ 21,391

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 25, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets September 25, 2024 (In thousands) Balance, beginning of year $ 65,908 Reclassifications from Keke's assets held for sale 469 Impairment charges related to Denny's (20) Balance, end of period $ 66,357 Goodwill by segment consisted of the following: September 25, 2024 December 27, 2023 (In thousands) Denny’s $ 37,507 $ 37,527 Other 28,850 28,381 Total goodwill $ 66,357 $ 65,908 Intangible assets consisted of the following: September 25, 2024 December 27, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 79,687 $ — $ 79,687 $ — Liquor licenses 120 — 120 — Intangible assets with definite lives: Reacquired franchise rights 9,135 5,990 9,470 5,614 Franchise agreements 10,603 1,443 10,700 935 Intangible assets, net $ 99,545 $ 7,433 $ 99,977 $ 6,549 Amortization expense for intangible assets with definite lives totaled $0.4 million and $1.1 million for the quarter and year-to-date period ended September 25, 2024, respectively. Amortization expense for intangible assets with definite lives totaled $0.4 million and $1.2 million for the quarter and year-to-date period ended September 27, 2023, respectively.

Other Current Liabilities

Other Current Liabilities	9 Months Ended
	Sep. 25, 2024
Other Liabilities, Current [Abstract]
Other Current Liabilities	Other Current Liabilities Other current liabilities consisted of the following: September 25, 2024 December 27, 2023 (In thousands) Accrued payroll $ 14,896 $ 16,400 Current portion of liability for insurance claims 3,732 3,758 Accrued taxes 6,027 4,699 Accrued advertising 10,474 10,664 Gift cards 5,932 7,838 Accrued legal settlements 4,367 7,488 Accrued interest 4,826 4,530 Other 6,220 7,691 Other current liabilities $ 56,474 $ 63,068

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 25, 2024
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Total Quoted Prices in Active Markets for Identical Assets/Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (In thousands ) Fair value measurements as of September 25, 2024: Deferred compensation plan investments (1) $ 11,063 $ 11,063 $ — $ — Interest rate swaps (2) 5,912 — 5,912 — Investments (3) 2,902 — 2,902 — Total $ 19,877 $ 11,063 $ 8,814 $ — Fair value measurements as of December 27, 2023: Deferred compensation plan investments (1) $ 12,225 $ 12,225 $ — $ — Interest rate swaps (2) 8,888 — 8,888 — Investments (3) 1,281 — 1,281 — Total $ 22,394 $ 12,225 $ 10,169 $ — (1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments and are included in other noncurrent assets in our Consolidated Balance Sheets. (2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates, forward yield curves and credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For disclosures about the fair value measurements of our derivative instruments, see Note 7. (3) The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments. Those assets and liabilities measured at fair value on a non-recurring basis are summarized below: Significant Unobservable Inputs Impairment Charges (In thousands) Fair value measurements as of September 25, 2024: Assets held and used (1) $ — $ 78 (1) As of September 25, 2024, impaired assets were written down to their fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods. Assets that are measured at fair value on a non-recurring basis include property, operating lease right-of-use assets, finance lease right-of-use assets, goodwill and intangible assets. During the quarter and year-to-date period ended September 25, 2024, we recognized impairment charges of $0.1 million and $0.8 million, respectively, related to certain of these assets. See Note 4 and Note 9.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 25, 2024
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt The Company and certain of its subsidiaries have a credit facility consisting of a five-year $400 million senior secured revolver (with a $25 million letter of credit sublimit). The credit facility includes an accordion feature that would allow us to increase the size of the facility to $450 million. Borrowings bear a tiered interest rate, which is based on the Company's consolidated leverage ratio. The maturity date for the credit facility is August 26, 2026. The credit facility is available for working capital, capital expenditures and other general corporate purposes. The credit facility is guaranteed by the Company and its material subsidiaries and is secured by assets of the Company and its subsidiaries, including the stock of its subsidiaries (other than its insurance captive subsidiary). It includes negative covenants that are usual for facilities and transactions of this type. The credit facility also includes certain financial covenants with respect to a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. We were in compliance with all financial covenants as of September 25, 2024. As of September 25, 2024, we had outstanding revolver loans of $261.0 million and outstanding letters of credit under the credit facility of $16.1 million. These balances resulted in unused commitments of $122.9 million as of September 25, 2024 under the credit facility. As of September 25, 2024, borrowings under the credit facility bore interest at a rate of Adjusted Daily Simple SOFR plus 2.25%. Letters of credit under the credit facility bore interest at a rate of 2.38%. The commitment fee, paid on the unused portion of the credit facility, was set to 0.35%. Prior to considering the impact of our interest rate swaps, described below, the weighted-average interest rate on outstanding revolver loans was 7.68% and 7.41% as of September 25, 2024 and December 27, 2023, respectively. Taking into consideration our interest rate swaps that are designated as cash flow hedges, the weighted-average interest rate of outstanding revolver loans was 5.14% and 5.04% as of September 25, 2024 and December 27, 2023, respectively. Interest Rate Hedges We have receive-variable, pay-fixed interest rate swaps to hedge the forecasted cash flows of our floating rate debt. A summary of our interest rate swaps as of September 25, 2024 is as follows: Trade Date Effective Date Maturity Date Notional Amount Fair Value Fixed Rate (In thousands) Swaps designated as cash flow hedges March 20, 2015 March 29, 2018 March 31, 2025 $ 120,000 $ 1,159 2.34 % October 1, 2015 March 29, 2018 March 31, 2026 $ 50,000 $ 811 2.37 % February 15, 2018 March 31, 2020 December 31, 2033 $ 60,000 (1) $ 3,942 3.09 % Total $ 230,000 $ 5,912 (1) The notional amounts of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $335 million on August 31, 2033. Termination and Designation of Certain Interest Rate Swaps During the quarter ended March 29, 2023, we terminated a portion of our hedging relationship entered into in 2018 (“2018 Swaps”), reducing the previous maximum notional amount of $425 million on August 31, 2033 to $335 million. We received $1.5 million of cash as a result of the termination, which is recorded as a component of operating activities in our Consolidated Statement of Cash Flows for the year-to-date period ended September 27, 2023. In addition, during the quarter ended March 29, 2023, we designated the remaining 2018 Swaps as cash flow hedges of our exposure to variability in future cash flows attributable to variable rate interest payments due on forecasted notional amounts. Changes in Fair Value of Interest Rate Swaps To the extent the swaps are highly effective in offsetting the variability of the hedged cash flows, changes in the fair value of the swaps are not included in the Consolidated Statements of Income but are reported as a component of other comprehensive income (loss). Our interest rate swaps are designated as cash flow hedges with unrealized gains and losses recorded as a component of accumulated other comprehensive loss, net. As of September 25, 2024, the fair value of the swaps designated as cash flow hedges was an asset of $5.9 million, recorded as a component of other noncurrent assets. The designated swaps have an offsetting amount (before taxes) recorded as a component of accumulated other comprehensive loss, net in our Consolidated Balance Sheets. See Note 13 for amounts recorded in accumulated other comprehensive loss related to interest rate swaps. During the year-to-date period ended September 25, 2024, we reclassified $4.6 million from accumulated other comprehensive loss, net as a reduction to interest expense, net. We expect to reclassify $6.6 million from accumulated other comprehensive loss, net as a reduction to interest expense, net in our Consolidated Statements of Income related to swaps designated as cash flow hedges during the next 12 months. For the periods prior to their designation as cash flow hedges, changes in the fair value of the 2018 Swaps were recorded as a component of other nonoperating (income) expense, net in our Consolidated Statements of Income. For the year-to-date period ended September 27, 2023, we recorded expense of $10.6 million as a component of other nonoperating (income) expense, net related to the 2018 Swaps resulting from changes in fair value. Amortization of Certain Amounts Included in Accumulated Other Comprehensive Loss, Net At September 25, 2024, we had a total of $63.7 million (before taxes) included in accumulated other comprehensive loss, net related to (i) the discontinuance of hedge accounting treatment related to certain cash flow hedges in prior years and (ii) the fair value of certain swaps at the date of designation as cash flow hedges that are being amortized into our Consolidated Statements of Income as a component of interest expense, net over the remaining term of the related swap.

Revenues

Revenues	9 Months Ended
	Sep. 25, 2024
Revenue from Contract with Customer [Abstract]
Revenues	Revenues The following table disaggregates our revenue by sales channel and type of good or service: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 (In thousands) Company restaurant sales $ 52,701 $ 53,153 $ 159,391 $ 161,486 Franchise and license revenue: Royalties 29,101 29,703 88,421 90,106 Advertising revenue 20,172 19,297 59,098 58,818 Initial and other fees 1,639 3,388 5,903 10,994 Occupancy revenue 8,146 8,642 24,847 27,165 Franchise and license revenue 59,058 61,030 178,269 187,083 Total operating revenue $ 111,759 $ 114,183 $ 337,660 $ 348,569 Franchise occupancy revenue consisted of the following: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 (In thousands) Operating lease revenue $ 6,063 $ 6,461 $ 18,262 $ 20,015 Variable lease revenue 2,083 2,181 6,585 7,150 Total occupancy revenue $ 8,146 $ 8,642 $ 24,847 $ 27,165 Balances related to contracts with customers consist of receivables, contract assets, deferred franchise revenue and deferred gift card revenue. See Note 3 for details on our receivables. Deferred franchise revenue consists primarily of the unamortized portion of initial franchise fees that are currently being amortized into revenue and amounts related to development agreements and unopened restaurants that will begin amortizing into revenue when the related restaurants are opened. Deferred franchise revenue represents our remaining performance obligations to our franchisees, excluding amounts of variable consideration related to sales-based royalties and advertising. The components of the change in deferred franchise revenue are as follows: (In thousands) Balance, December 27, 2023 $ 19,150 Fees received from franchisees 522 Revenue recognized (1) (2,345) Balance, September 25, 2024 17,327 Less current portion included in other current liabilities 1,946 Deferred franchise revenue included in other noncurrent liabilities $ 15,381 (1) Of this amount $2.1 million was included in the deferred franchise revenue balance as of December 27, 2023. We record contract assets related to incentives and subsidies provided to franchisees related to new unit openings and/or equipment upgrades. These amounts will be recognized as a component of franchise and license revenue over the remaining term of the related franchise agreements. The components of the change in contract assets are as follows: (In thousands) Balance, December 27, 2023 $ 6,608 Franchisee deferred costs 293 Contract asset amortization (980) Balance, September 25, 2024 5,921 Less current portion included in other current assets 941 Contract assets included in other noncurrent assets $ 4,980 The Company purchases equipment related to various programs for franchise restaurants, including kitchen and point-of-sale system equipment. We bill our franchisees and recognize revenue when the related equipment is installed, less amounts contributed from the Company, which have been deferred as contract assets in the table above. We recognized $0.1 million and $0.6 million of revenue, recorded as a component of initial and other fees, related to the sale of equipment to franchisees during the quarter and year-to-date period ended September 25, 2024, respectively. We recognized $1.7 million and $4.6 million of revenue, recorded as a component of initial and other fees, related to the sale of equipment to franchisees during the quarter and year-to-date period ended September 27, 2023, respectively. As of September 25, 2024, we had $0.3 million in inventory and $0.2 million in receivables related to the purchased equipment. As of December 27, 2023, we had $0.6 million in inventory and $0.3 million in receivables related to the purchased equipment. As of September 25, 2024, deferred franchise revenue, net of contract asset amortization, expected to be recognized in the future is as follows: (In thousands) Remainder of 2024 $ 306 2025 1,123 2026 1,121 2027 1,091 2028 966 Thereafter 6,799 Deferred franchise revenue, net $ 11,406 Deferred gift card liabilities consist of the unredeemed portion of gift cards sold in company restaurants and at third party locations. The balance of deferred gift card liabilities represents our remaining performance obligations to our customers. The balance of deferred gift card liabilities as of September 25, 2024 and December 27, 2023 was $5.9 million and $7.8 million, respectively. During the year-to-date period ended September 25, 2024, we recognized revenue of $0.4 million from gift card redemptions at company restaurants.

Operating (Gains), Losses and O

Operating (Gains), Losses and Other Charges, Net	9 Months Ended
	Sep. 25, 2024
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 consisted of the following: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 (In thousands) Losses (gains) on sales of assets and other, net $ 6 $ (88) $ (88) $ (2,132) Impairment charges (1) 78 1,711 792 1,840 Restructuring charges and exit costs 662 997 1,280 2,759 Operating (gains), losses and other charges, net $ 746 $ 2,620 $ 1,984 $ 2,467 (1) Impairment charges include impairments related to property, operating right-of-use assets, finance right-of-use assets, franchise agreements, and reacquired franchise rights. During the quarter and year-to-date period ended September 25, 2024, losses (gains) on sales of assets and other, net were primarily related to the sales of restaurants and real estate. During the quarter and year-to-date period ended September 27, 2023, losses (gains) on sales of assets and other, net were primarily related to the sales of real estate. As of September 25, 2024, we had no recorded assets held for sale. As of December 27, 2023, we had recorded assets held for sale at their carrying amount of $1.5 million (consisting of property of $0.9 million, goodwill of $0.5 million and other assets of $0.1 million) related to one parcel of real estate and three Keke's restaurants. We recorded impairment charges of $0.1 million and $0.8 million for the quarter and year-to-date period ended September 25, 2024, respectively, primarily related to assets held for sale and resulting from our assessments of underperforming units and closed units. The $0.1 million for the quarter was related to a franchise agreement. The $0.8 million for the year-to-date period included $0.6 million related to property, $0.1 million related to reacquired franchise rights, and $0.1 million related to a franchise agreement. Restructuring charges and exit costs consisted of the following: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 (In thousands) Exit costs $ 231 $ 12 $ 322 $ 64 Severance and other restructuring charges 431 985 958 2,695 Total restructuring charges and exit costs $ 662 $ 997 $ 1,280 $ 2,759 Exit costs primarily consist of costs related to closed restaurants. Exit cost liabilities related to lease costs are included as a component of operating lease liabilities in our Consolidated Balance Sheets. As of September 25, 2024 and December 27, 2023, we had accrued severance and other restructuring charges of $0.7 million and $1.4 million, respectively. The balance as of September 25, 2024 is expected to be paid during the next 12 months.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 25, 2024
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation Total share-based compensation included as a component of general and administrative expenses was as follows: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 (In thousands) Employee share awards $ 2,773 $ 2,659 $ 7,753 $ 7,793 Restricted stock units for board members 233 205 653 684 Total share-based compensation $ 3,006 $ 2,864 $ 8,406 $ 8,477 Employee Share Awards During the year-to-date period ended September 25, 2024, we granted certain employees 0.6 million performance share units ("PSUs") with a weighted average grant date fair value of $15.48 per share that vest based on the total shareholder return (“TSR”) of our common stock compared to the TSRs of a group of peer companies. As the TSR based PSUs contain a market condition, a Monte Carlo valuation was used to determine the grant date fair value. The performance period for these PSUs is the three-year fiscal period beginning December 28, 2023 and ending December 30, 2026. The PSUs will vest and be earned at the end of the performance period at which point the relative TSR achievement percentages will be applied to the vested units (from 0% to 200% of the target award). During the year-to-date period ended September 25, 2024, we also granted certain employees 0.7 million restricted stock units ("RSUs") with a weighted average grant date fair value of $10.63 per share. These RSUs generally vest evenly over the three-year fiscal period beginning December 28, 2023 and ending December 30, 2026. We recognize compensation cost associated with these RSU awards on a straight-line basis over the entire performance period of the award. During the year-to-date period ended September 25, 2024, we issued 0.4 million shares of common stock related to vested PSUs and RSUs. In addition, 0.2 million shares of common stock were withheld in lieu of taxes related to vested PSUs and RSUs. As of September 25, 2024, we had $16.6 million of unrecognized compensation cost related to unvested PSU awards and RSU awards outstanding, which have a weighted average remaining contractual term of 1.9 years. Restricted Stock Units for Board Members During the year-to-date period ended September 25, 2024, we granted 0.1 million RSUs (which are equity classified) with a weighted average grant date fair value of $8.09 per unit to non-employee members of our Board of Directors. The RSUs vest after a one-year service period. A director may elect to convert these awards to shares of common stock either on a specific date in the future (while still serving as a member of our Board of Directors), upon termination as a member of our Board of Directors, or in three equal annual installments commencing after termination of service as a member of our Board of Directors. During the year-to-date period ended September 25, 2024, fewer than 0.1 million RSUs were converted into shares of common stock.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 25, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The effective income tax rate was 18.5% for the quarter and 22.2% for the year-to-date period ended September 25, 2024, compared to 17.6% and 23.7% for the prior year periods, respectively. The effective income tax rate for the year-to-date period ended September 25, 2024 included discrete items relating to share-based compensation of 0.1%. The effective income tax rate for the quarter and year-to-date period ended September 27, 2023 included discrete items relating to share-based compensation of (2.5)% and 0.4%, respectively.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 25, 2024
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 Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 (In thousands, except per share amounts) Net income $ 6,516 $ 7,908 $ 14,775 $ 17,043 Weighted average shares outstanding - basic 52,148 55,869 52,635 56,764 Effect of dilutive share-based compensation awards 59 213 104 209 Weighted average shares outstanding - diluted 52,207 56,082 52,739 56,973 Net income per share - basic $ 0.12 $ 0.14 $ 0.28 $ 0.30 Net income per share - diluted $ 0.12 $ 0.14 $ 0.28 $ 0.30 Anti-dilutive share-based compensation awards 618 735 758 788

Shareholders' Deficit

Shareholders' Deficit	9 Months Ended
	Sep. 25, 2024
Equity [Abstract]
Shareholders' Deficit	Shareholders' Deficit Share Repurchases Our credit facility permits the repurchase of the Company's stock and the payment of cash dividends subject to certain limitations. Our Board of Directors approves share repurchases of our common stock. Under these authorizations, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions, subject to market and business conditions. Currently, we are operating under a $250 million share repurchase authorization approved by the Board of Directors in December 2019. During the year-to-date period ended September 25, 2024, we repurchased a total of 1.3 million shares of our common stock for $11.2 million, including excise taxes. This brings the total amount repurchased under the current authorization to $160.8 million, leaving $89.2 million that can be used to repurchase our common stock under this authorization as of September 25, 2024. Repurchased shares are included as treasury stock in our Consolidated Balance Sheets and our Consolidated Statements of Shareholders' Deficit. In the fourth quarter of fiscal 2023, the Board approved the retirement of 12.8 million shares of treasury stock at a weighted average share price of $11.02, including excise taxes. As of September 25, 2024, 2.0 million shares were held in treasury stock. Accumulated Other Comprehensive Loss, Net The components of the change in accumulated other comprehensive loss, net were as follows: Defined Benefit Plans Derivatives Accumulated Other Comprehensive Loss, Net (In thousands) Balance as of December 27, 2023 $ (337) $ (41,322) $ (41,659) Amortization of net loss (1) 60 — 60 Settlement loss recognized 26 — 26 Changes in the fair value of cash flow hedges — 1,650 1,650 Reclassification of cash flow hedges to interest expense, net (2) — (4,626) (4,626) Amortization of unrealized losses related to interest rate swaps to interest expense, net — 502 502 Income tax expense related to items of other comprehensive income (loss) (23) 625 602 Balance as of September 25, 2024 $ (274) $ (43,171) $ (43,445) (1) Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss, net and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Income during the year-to-date period ended September 25, 2024. (2) Amounts reclassified from accumulated other comprehensive loss, net into interest expense, net in our Consolidated Statements of Income represent payments either (received from) or made to the counterparty for the interest rate hedges. See Note 7 for additional details.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 25, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 25, 2024
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information Three Quarters Ended September 25, 2024 September 27, 2023 (In thousands) Income taxes paid, net $ 4,344 $ 6,531 Interest paid $ 12,469 $ 9,346 Noncash investing and financing activities: Accrued purchase of property $ 513 $ 102 Issuance of common stock, pursuant to share-based compensation plans $ 3,815 $ 5,638 Execution of finance leases $ 1,514 $ 593 Treasury stock payable, including excise taxes $ 528 $ 1,053

Segment Information

Segment Information	9 Months Ended
	Sep. 25, 2024
Segment Reporting [Abstract]
Segment Information	Segment Information We manage our business by brand and as a result have identified two operating segments, Denny’s and Keke’s. In addition, we have identified Denny’s as a reportable segment. The Denny’s reportable segment includes the results of all company and franchised and licensed Denny’s restaurants. Our Keke’s operating segment, which includes the results of all company and franchised Keke's restaurants, is included in Other. The primary sources of revenues for all operating segments are the sale of food and beverages at our company restaurants and the collection of royalties, advertising revenue, initial and other fees, including occupancy revenue, from restaurants operated by our franchisees. We do not rely on any major customer as a source of sales and the customers and assets of all operating segments are located predominantly in the United States. There are no material transactions between segments. Management’s measure of segment income is restaurant-level operating margin. The Company defines restaurant-level operating margin as operating income excluding the following four items: general and administrative expenses, depreciation and amortization, goodwill impairment charges and operating (gains), losses and other charges, net. The Company excludes general and administrative expenses, which include primarily non restaurant-level costs associated with the support of company and franchised restaurants and other activities at their corporate office. The Company excludes depreciation and amortization expense, substantially all of which is related to company restaurant-level assets, because such expenses represent historical sunk costs which do not reflect current cash outlays for the restaurants. The Company excludes operating (gains), losses and other charges, net, to provide a clearer perspective of its ongoing operating performance. Restaurant-level operating margin is used by our chief operating decision maker (“CODM”) to evaluate restaurant-level operating efficiency and performance. The following tables present revenues by segment and a reconciliation of restaurant-level operating margin to net income: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 Revenues by operating segment: (In thousands) Denny’s $ 105,365 $ 109,136 $ 318,728 $ 332,952 Other 6,394 5,047 18,932 15,617 Total operating revenue $ 111,759 $ 114,183 $ 337,660 $ 348,569 Segment income: Denny’s $ 35,015 $ 36,944 $ 102,750 $ 111,525 Other 925 1,536 2,593 5,434 Total restaurant-level operating margin $ 35,940 $ 38,480 $ 105,343 $ 116,959 General and administrative expenses $ 19,831 $ 18,237 $ 61,539 $ 58,515 Depreciation and amortization 3,622 3,605 10,938 10,878 Goodwill impairment charges — — 20 — Operating (gains), losses and other charges, net 746 2,620 1,984 2,467 Total other operating expenses 24,199 24,462 74,481 71,860 Operating income 11,741 14,018 30,862 45,099 Interest expense, net 4,571 4,381 13,564 13,288 Other nonoperating (income) expense, net (824) 43 (1,685) 9,470 Income before income taxes 7,994 9,594 18,983 22,341 Provision for income taxes 1,478 1,686 4,208 5,298 Net income $ 6,516 $ 7,908 $ 14,775 $ 17,043 September 25, 2024 December 27, 2023 Segment assets: (In thousands) Denny’s $ 320,642 $ 340,136 Other 140,981 124,682 Total assets $ 461,623 $ 464,818

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Pay vs Performance Disclosure
Net income	$ 6,516	$ 7,908	$ 14,775	$ 17,043

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 25, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 25, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Our unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted. In our opinion, all adjustments considered necessary for a fair presentation of the interim periods presented have been included. Such adjustments are of a normal and recurring nature. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions; however, we believe that our estimates are reasonable. These interim consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto as of and for the fiscal year ended December 27, 2023 which are contained in our audited Annual Report on Form 10-K for the fiscal year ended December 27, 2023. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 25, 2024. Our significant interim accounting policies include the recognition of advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective rate.
Change in Presentation	Change in Presentation Certain reclassifications have been made in the 2023 interim consolidated financial statements to conform to the 2024 presentation. These reclassifications did not affect total revenues or net income.
Newly Adopted Accounting Standards and Accounting Standards to be Adopted	Newly Adopted Accounting Standards In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which was later clarified in January 2021 by ASU 2021-01, “Reference Rate Reform (Topic 848): Scope”. Additionally, in December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which allows ASU 2020-04 to be adopted and applied prospectively to contract modifications made on or before December 31, 2024. The guidance provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The Company adopted ASU 2020-04 on March 12, 2020. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on the Company’s consolidated financial position or results of operations. The guidance is effective through December 31, 2024. Accounting Standards to be Adopted In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The new guidance requires enhanced reportable segment disclosures to include significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 (our fiscal 2024) and interim periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial statements and will add necessary disclosures upon adoption. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The new guidance requires enhanced effective tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 (our fiscal 2025). We are currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial statements and will add necessary disclosures upon adoption. 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)	9 Months Ended
	Sep. 25, 2024
Receivables [Abstract]
Schedule of Receivables, Net	Receivables consisted of the following: September 25, 2024 December 27, 2023 (In thousands) Receivables, net: Trade accounts receivable from franchisees $ 12,363 $ 14,092 Notes and loan receivables from franchisees 235 584 Vendor receivables 1,941 4,059 Credit card receivables 657 995 Other 2,402 1,862 Allowance for credit losses (560) (201) Total receivables, net $ 17,038 $ 21,391

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 25, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill by Segment	September 25, 2024 (In thousands) Balance, beginning of year $ 65,908 Reclassifications from Keke's assets held for sale 469 Impairment charges related to Denny's (20) Balance, end of period $ 66,357 Goodwill by segment consisted of the following: September 25, 2024 December 27, 2023 (In thousands) Denny’s $ 37,507 $ 37,527 Other 28,850 28,381 Total goodwill $ 66,357 $ 65,908
Schedule of Indefinite-Lived Intangible Assets	Intangible assets consisted of the following: September 25, 2024 December 27, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 79,687 $ — $ 79,687 $ — Liquor licenses 120 — 120 — Intangible assets with definite lives: Reacquired franchise rights 9,135 5,990 9,470 5,614 Franchise agreements 10,603 1,443 10,700 935 Intangible assets, net $ 99,545 $ 7,433 $ 99,977 $ 6,549
Schedule of Finite-Lived Intangible Assets	Intangible assets consisted of the following: September 25, 2024 December 27, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 79,687 $ — $ 79,687 $ — Liquor licenses 120 — 120 — Intangible assets with definite lives: Reacquired franchise rights 9,135 5,990 9,470 5,614 Franchise agreements 10,603 1,443 10,700 935 Intangible assets, net $ 99,545 $ 7,433 $ 99,977 $ 6,549

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	9 Months Ended
	Sep. 25, 2024
Other Liabilities, Current [Abstract]
Schedule of Other Current Liabilities	Other current liabilities consisted of the following: September 25, 2024 December 27, 2023 (In thousands) Accrued payroll $ 14,896 $ 16,400 Current portion of liability for insurance claims 3,732 3,758 Accrued taxes 6,027 4,699 Accrued advertising 10,474 10,664 Gift cards 5,932 7,838 Accrued legal settlements 4,367 7,488 Accrued interest 4,826 4,530 Other 6,220 7,691 Other current liabilities $ 56,474 $ 63,068

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 25, 2024
Fair Value Disclosures [Abstract]
Schedule of 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 Significant Other Observable Inputs Significant Unobservable Inputs (In thousands ) Fair value measurements as of September 25, 2024: Deferred compensation plan investments (1) $ 11,063 $ 11,063 $ — $ — Interest rate swaps (2) 5,912 — 5,912 — Investments (3) 2,902 — 2,902 — Total $ 19,877 $ 11,063 $ 8,814 $ — Fair value measurements as of December 27, 2023: Deferred compensation plan investments (1) $ 12,225 $ 12,225 $ — $ — Interest rate swaps (2) 8,888 — 8,888 — Investments (3) 1,281 — 1,281 — Total $ 22,394 $ 12,225 $ 10,169 $ — (1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments and are included in other noncurrent assets in our Consolidated Balance Sheets. (2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates, forward yield curves and credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For disclosures about the fair value measurements of our derivative instruments, see Note 7. (3) The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments.
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Non - Recurring Basis	Those assets and liabilities measured at fair value on a non-recurring basis are summarized below: Significant Unobservable Inputs Impairment Charges (In thousands) Fair value measurements as of September 25, 2024: Assets held and used (1) $ — $ 78 (1) As of September 25, 2024, impaired assets were written down to their fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods.

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 25, 2024
Debt Disclosure [Abstract]
Schedule of Interest Rate Swaps	A summary of our interest rate swaps as of September 25, 2024 is as follows: Trade Date Effective Date Maturity Date Notional Amount Fair Value Fixed Rate (In thousands) Swaps designated as cash flow hedges March 20, 2015 March 29, 2018 March 31, 2025 $ 120,000 $ 1,159 2.34 % October 1, 2015 March 29, 2018 March 31, 2026 $ 50,000 $ 811 2.37 % February 15, 2018 March 31, 2020 December 31, 2033 $ 60,000 (1) $ 3,942 3.09 % Total $ 230,000 $ 5,912 (1) The notional amounts of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $335 million on August 31, 2033.

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 25, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table disaggregates our revenue by sales channel and type of good or service: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 (In thousands) Company restaurant sales $ 52,701 $ 53,153 $ 159,391 $ 161,486 Franchise and license revenue: Royalties 29,101 29,703 88,421 90,106 Advertising revenue 20,172 19,297 59,098 58,818 Initial and other fees 1,639 3,388 5,903 10,994 Occupancy revenue 8,146 8,642 24,847 27,165 Franchise and license revenue 59,058 61,030 178,269 187,083 Total operating revenue $ 111,759 $ 114,183 $ 337,660 $ 348,569
Schedule of Components of Lease Income	Franchise occupancy revenue consisted of the following: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 (In thousands) Operating lease revenue $ 6,063 $ 6,461 $ 18,262 $ 20,015 Variable lease revenue 2,083 2,181 6,585 7,150 Total occupancy revenue $ 8,146 $ 8,642 $ 24,847 $ 27,165
Schedule of Components of the Change in Contract Asset and Contract Liability	The components of the change in deferred franchise revenue are as follows: (In thousands) Balance, December 27, 2023 $ 19,150 Fees received from franchisees 522 Revenue recognized (1) (2,345) Balance, September 25, 2024 17,327 Less current portion included in other current liabilities 1,946 Deferred franchise revenue included in other noncurrent liabilities $ 15,381 (1) Of this amount $2.1 million was included in the deferred franchise revenue balance as of December 27, 2023. The components of the change in contract assets are as follows: (In thousands) Balance, December 27, 2023 $ 6,608 Franchisee deferred costs 293 Contract asset amortization (980) Balance, September 25, 2024 5,921 Less current portion included in other current assets 941 Contract assets included in other noncurrent assets $ 4,980
Schedule of Deferred Franchise Revenue Recognition	As of September 25, 2024, deferred franchise revenue, net of contract asset amortization, expected to be recognized in the future is as follows: (In thousands) Remainder of 2024 $ 306 2025 1,123 2026 1,121 2027 1,091 2028 966 Thereafter 6,799 Deferred franchise revenue, net $ 11,406

Operating (Gains), Losses and_2

Operating (Gains), Losses and Other Charges, Net (Tables)	9 Months Ended
	Sep. 25, 2024
Other Income and Expenses [Abstract]
Schedule of Operating Gains Losses and Other Charges, Net	Operating (gains), losses and other charges, net consisted of the following: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 (In thousands) Losses (gains) on sales of assets and other, net $ 6 $ (88) $ (88) $ (2,132) Impairment charges (1) 78 1,711 792 1,840 Restructuring charges and exit costs 662 997 1,280 2,759 Operating (gains), losses and other charges, net $ 746 $ 2,620 $ 1,984 $ 2,467 (1) Impairment charges include impairments related to property, operating right-of-use assets, finance right-of-use assets, franchise agreements, and reacquired franchise rights.
Schedule of Restructuring Charges and Exit Costs	Restructuring charges and exit costs consisted of the following: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 (In thousands) Exit costs $ 231 $ 12 $ 322 $ 64 Severance and other restructuring charges 431 985 958 2,695 Total restructuring charges and exit costs $ 662 $ 997 $ 1,280 $ 2,759

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 25, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Total Share-based Compensation	Total share-based compensation included as a component of general and administrative expenses was as follows: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 (In thousands) Employee share awards $ 2,773 $ 2,659 $ 7,753 $ 7,793 Restricted stock units for board members 233 205 653 684 Total share-based compensation $ 3,006 $ 2,864 $ 8,406 $ 8,477

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 25, 2024
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income Per Share	The amounts used for the basic and diluted net income per share calculations are summarized below: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 (In thousands, except per share amounts) Net income $ 6,516 $ 7,908 $ 14,775 $ 17,043 Weighted average shares outstanding - basic 52,148 55,869 52,635 56,764 Effect of dilutive share-based compensation awards 59 213 104 209 Weighted average shares outstanding - diluted 52,207 56,082 52,739 56,973 Net income per share - basic $ 0.12 $ 0.14 $ 0.28 $ 0.30 Net income per share - diluted $ 0.12 $ 0.14 $ 0.28 $ 0.30 Anti-dilutive share-based compensation awards 618 735 758 788

Shareholders' Deficit (Tables)

Shareholders' Deficit (Tables)	9 Months Ended
	Sep. 25, 2024
Equity [Abstract]
Schedule of Components of Accumulated Other Comprehensive Income (Loss)	The components of the change in accumulated other comprehensive loss, net were as follows: Defined Benefit Plans Derivatives Accumulated Other Comprehensive Loss, Net (In thousands) Balance as of December 27, 2023 $ (337) $ (41,322) $ (41,659) Amortization of net loss (1) 60 — 60 Settlement loss recognized 26 — 26 Changes in the fair value of cash flow hedges — 1,650 1,650 Reclassification of cash flow hedges to interest expense, net (2) — (4,626) (4,626) Amortization of unrealized losses related to interest rate swaps to interest expense, net — 502 502 Income tax expense related to items of other comprehensive income (loss) (23) 625 602 Balance as of September 25, 2024 $ (274) $ (43,171) $ (43,445) (1) Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss, net and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Income during the year-to-date period ended September 25, 2024. (2) Amounts reclassified from accumulated other comprehensive loss, net into interest expense, net in our Consolidated Statements of Income represent payments either (received from) or made to the counterparty for the interest rate hedges. See Note 7 for additional details.

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 25, 2024
Supplemental Cash Flow Information [Abstract]
Schedule of Supplemental Cash Flow Information	Three Quarters Ended September 25, 2024 September 27, 2023 (In thousands) Income taxes paid, net $ 4,344 $ 6,531 Interest paid $ 12,469 $ 9,346 Noncash investing and financing activities: Accrued purchase of property $ 513 $ 102 Issuance of common stock, pursuant to share-based compensation plans $ 3,815 $ 5,638 Execution of finance leases $ 1,514 $ 593 Treasury stock payable, including excise taxes $ 528 $ 1,053

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 25, 2024
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following tables present revenues by segment and a reconciliation of restaurant-level operating margin to net income: Quarter Ended Three Quarters Ended September 25, 2024 September 27, 2023 September 25, 2024 September 27, 2023 Revenues by operating segment: (In thousands) Denny’s $ 105,365 $ 109,136 $ 318,728 $ 332,952 Other 6,394 5,047 18,932 15,617 Total operating revenue $ 111,759 $ 114,183 $ 337,660 $ 348,569 Segment income: Denny’s $ 35,015 $ 36,944 $ 102,750 $ 111,525 Other 925 1,536 2,593 5,434 Total restaurant-level operating margin $ 35,940 $ 38,480 $ 105,343 $ 116,959 General and administrative expenses $ 19,831 $ 18,237 $ 61,539 $ 58,515 Depreciation and amortization 3,622 3,605 10,938 10,878 Goodwill impairment charges — — 20 — Operating (gains), losses and other charges, net 746 2,620 1,984 2,467 Total other operating expenses 24,199 24,462 74,481 71,860 Operating income 11,741 14,018 30,862 45,099 Interest expense, net 4,571 4,381 13,564 13,288 Other nonoperating (income) expense, net (824) 43 (1,685) 9,470 Income before income taxes 7,994 9,594 18,983 22,341 Provision for income taxes 1,478 1,686 4,208 5,298 Net income $ 6,516 $ 7,908 $ 14,775 $ 17,043 September 25, 2024 December 27, 2023 Segment assets: (In thousands) Denny’s $ 320,642 $ 340,136 Other 140,981 124,682 Total assets $ 461,623 $ 464,818

Introduction and Basis of Pre_2

Introduction and Basis of Presentation (Details)	Sep. 25, 2024 restaurant
Franchisor Disclosure [Line Items]
Number of restaurants	1,586
Denny's Brand
Franchisor Disclosure [Line Items]
Number of restaurants	1,525
Keke's
Franchisor Disclosure [Line Items]
Number of restaurants	61
Franchised/licensed Restaurants
Franchisor Disclosure [Line Items]
Number of restaurants	1,514
Franchised/licensed Restaurants | Denny's Brand
Franchisor Disclosure [Line Items]
Number of restaurants	1,464
Franchised/licensed Restaurants | Keke's
Franchisor Disclosure [Line Items]
Number of restaurants	50
Company Restaurants
Franchisor Disclosure [Line Items]
Number of restaurants	72
Company Restaurants | Denny's Brand
Franchisor Disclosure [Line Items]
Number of restaurants	61
Company Restaurants | Keke's
Franchisor Disclosure [Line Items]
Number of restaurants	11

Receivables - Schedule of Recei

Receivables - Schedule of Receivables, Net (Details) - USD ($) $ in Thousands	Sep. 25, 2024	Dec. 27, 2023
Receivables, net:
Trade accounts receivable from franchisees	$ 12,363	$ 14,092
Notes and loan receivables from franchisees	235	584
Allowance for credit losses	(560)	(201)
Total receivables, net	17,038	21,391
Vendor receivables
Receivables, net:
Other receivables, gross, current	1,941	4,059
Credit card receivables
Receivables, net:
Other receivables, gross, current	657	995
Other
Receivables, net:
Other receivables, gross, current	$ 2,402	$ 1,862

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Schedule of Goodwill by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Goodwill [Roll Forward]
Balance, beginning of year			$ 65,908
Reclassifications from Keke's assets held for sale			469
Impairment charges related to Denny's	$ 0	$ 0	(20)	$ 0
Balance, end of period	66,357		66,357
Total goodwill	66,357		66,357
Denny’s
Goodwill [Roll Forward]
Balance, beginning of year			37,527
Balance, end of period	37,507		37,507
Total goodwill	37,507		37,507
Other
Goodwill [Roll Forward]
Balance, beginning of year			28,381
Balance, end of period	28,850		28,850
Total goodwill	$ 28,850		$ 28,850

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of Finite-Lived and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 25, 2024	Dec. 27, 2023
Intangible Assets
Trade names	$ 79,687	$ 79,687
Liquor licenses	120	120
Finite-Lived Intangible Assets [Line Items]
Accumulated Amortization	7,433	6,549
Intangible assets, net	99,545	99,977
Reacquired franchise rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	9,135	9,470
Accumulated Amortization	5,990	5,614
Franchise agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	10,603	10,700
Accumulated Amortization	$ 1,443	$ 935

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for intangible assets	$ 0.4	$ 0.4	$ 1.1	$ 1.2

Other Current Liabilities (Deta

Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 25, 2024	Dec. 27, 2023
Other Liabilities, Current [Abstract]
Accrued payroll	$ 14,896	$ 16,400
Current portion of liability for insurance claims	3,732	3,758
Accrued taxes	6,027	4,699
Accrued advertising	10,474	10,664
Gift cards	5,932	7,838
Accrued legal settlements	4,367	7,488
Accrued interest	4,826	4,530
Other	6,220	7,691
Other current liabilities	$ 56,474	$ 63,068

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Sep. 25, 2024	Dec. 27, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	$ 11,063	$ 12,225
Interest rate swaps	5,912	8,888
Investments	2,902	1,281
Total	19,877	22,394
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	11,063	12,225
Interest rate swaps	0	0
Investments	0	0
Total	11,063	12,225
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	0	0
Interest rate swaps	5,912	8,888
Investments	2,902	1,281
Total	8,814	10,169
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	0	0
Interest rate swaps	0	0
Investments	0	0
Total	$ 0	$ 0

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Non - Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held and used, impairment charges	$ 78	$ 1,711	$ 792	$ 1,840
Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held and used, impairment charges	78
Significant Unobservable Inputs (Level 3) | Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held and used, including goodwill and other intangible assets	$ 0		$ 0

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Fair Value Disclosures [Abstract]
Impairment charges	$ 78	$ 1,711	$ 792	$ 1,840

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023	Jun. 26, 2024	Dec. 27, 2023	Jun. 28, 2023	Mar. 29, 2023	Mar. 28, 2023	Dec. 28, 2022
Line of Credit Facility [Line Items]
Notional Amount	$ 230,000,000		$ 230,000,000
Total shareholders' deficit	(54,483,000)	$ (35,798,000)	(54,483,000)	$ (35,798,000)	$ (53,243,000)	$ (62,686,000)	$ (42,618,000)			$ (37,116,000)
Derivatives
Line of Credit Facility [Line Items]
Reclassification			(4,626,000)
Total shareholders' deficit	(43,171,000)		(43,171,000)			$ (41,322,000)
Amortization of unrealized losses related to interest rate swaps to interest expense, net
Line of Credit Facility [Line Items]
Reclassification			502,000
Interest Rate Swap 2020-2033
Line of Credit Facility [Line Items]
Notional Amount	60,000,000		60,000,000
Termination fee				1,500,000
Interest Rate Swap 2020-2033 | Maximum
Line of Credit Facility [Line Items]
Notional Amount	335,000,000		335,000,000					$ 335,000,000	$ 425,000,000
Effective Interest Rate Swaps
Line of Credit Facility [Line Items]
Derivative asset	5,900,000		5,900,000
Reclassification			4,600,000
Expected reclassification within next twelve months			6,600,000
Dedesignated Interest Rate Swaps | Other Nonoperating Income (Expense)
Line of Credit Facility [Line Items]
Unrealized loss on derivatives				10,600,000
Dedesignated Interest Rate Swaps | Derivatives
Line of Credit Facility [Line Items]
Total shareholders' deficit	63,700,000		63,700,000
Dedesignated Interest Rate Swaps | Amortization of unrealized losses related to interest rate swaps to interest expense, net
Line of Credit Facility [Line Items]
Reclassification	200,000	100,000	$ 500,000	200,000
Dedesignated Interest Rate Swaps | Derivatives
Line of Credit Facility [Line Items]
Expected reclassification within next twelve months		$ 2,300,000		$ 2,300,000
Senior Secured Revolver
Line of Credit Facility [Line Items]
Line of credit facility, term (in years)			5 years
Line of credit facility, current borrowing capacity	400,000,000		$ 400,000,000
Line of credit facility, accordion feature, increase limit	450,000,000		450,000,000
Outstanding amount under credit facility	261,000,000		261,000,000
Availability under the credit facility	$ 122,900,000		$ 122,900,000
Basis spread on variable rate debt (as a percent)			2.25%
Commitment fee, percent			0.35%
Weighted-average interest rate	7.68%		7.68%			7.41%
Senior Secured Revolver | Interest Rate Swap
Line of Credit Facility [Line Items]
Weighted-average interest rate	5.14%		5.14%			5.04%
Letter of Credit
Line of Credit Facility [Line Items]
Line of credit facility, current borrowing capacity	$ 25,000,000		$ 25,000,000
Outstanding amount of letters of credit	$ 16,100,000		$ 16,100,000
Interest rate	2.38%		2.38%

Long-Term Debt - Schedule of In

Long-Term Debt - Schedule of Interest Rate Swaps (Details) - USD ($)	Sep. 25, 2024	Mar. 29, 2023	Mar. 28, 2023
Derivative [Line Items]
Notional Amount	$ 230,000,000
Fair Value	5,912,000
Interest Rate Swap 2018-2025
Derivative [Line Items]
Notional Amount	120,000,000
Fair Value	$ 1,159,000
Fixed Rate	2.34%
Interest Rate Swap 2018-2026
Derivative [Line Items]
Notional Amount	$ 50,000,000
Fair Value	$ 811,000
Fixed Rate	2.37%
Interest Rate Swap 2020-2033
Derivative [Line Items]
Notional Amount	$ 60,000,000
Fair Value	$ 3,942,000
Fixed Rate	3.09%
Interest Rate Swap 2020-2033 | Maximum
Derivative [Line Items]
Notional Amount	$ 335,000,000	$ 335,000,000	$ 425,000,000

Revenues - Schedule of Disaggre

Revenues - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Disaggregation of Revenue [Line Items]
Total operating revenue	$ 111,759	$ 114,183	$ 337,660	$ 348,569
Company restaurant sales
Disaggregation of Revenue [Line Items]
Total operating revenue	52,701	53,153	159,391	161,486
Royalties
Disaggregation of Revenue [Line Items]
Total operating revenue	29,101	29,703	88,421	90,106
Advertising revenue
Disaggregation of Revenue [Line Items]
Total operating revenue	20,172	19,297	59,098	58,818
Initial and other fees
Disaggregation of Revenue [Line Items]
Total operating revenue	1,639	3,388	5,903	10,994
Occupancy revenue
Disaggregation of Revenue [Line Items]
Total operating revenue	8,146	8,642	24,847	27,165
Franchise and license revenue
Disaggregation of Revenue [Line Items]
Total operating revenue	$ 59,058	$ 61,030	$ 178,269	$ 187,083

Revenues - Schedule of Componen

Revenues - Schedule of Components of Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Revenue from Contract with Customer [Abstract]
Operating lease revenue	$ 6,063	$ 6,461	$ 18,262	$ 20,015
Variable lease revenue	2,083	2,181	6,585	7,150
Total occupancy revenue	$ 8,146	$ 8,642	$ 24,847	$ 27,165

Revenues - Schedule of Compon_2

Revenues - Schedule of Components of the Change in Deferred Franchise Revenue (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 25, 2024	Dec. 27, 2023
Movement In Deferred Revenue Roll Forward
Balance, December 27, 2023	$ 19,150
Fees received from franchisees	522
Revenue recognized	(2,345)
Balance, September 25, 2024	17,327	$ 19,150
Less current portion included in other current liabilities	1,946
Deferred franchise revenue included in other noncurrent liabilities	$ 15,381
Deferred revenue recognized		$ 2,100

Revenues - Schedule of Change I

Revenues - Schedule of Change In Contract Assets (Details) $ in Thousands	9 Months Ended
	Sep. 25, 2024 USD ($)
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward]
Balance, December 27, 2023	$ 6,608
Franchisee deferred costs	293
Contract asset amortization	(980)
Balance, September 25, 2024	5,921
Less current portion included in other current assets	941
Contract assets included in other noncurrent assets	$ 4,980

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023	Dec. 27, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue recognized	$ 111,759	$ 114,183	$ 337,660	$ 348,569
Contract with customer	17,038		17,038		$ 21,391
Liability balance	1,946		1,946
Deferred revenue recognized					2,100
Gift Card Redemption
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Liability balance	5,900		5,900		7,800
Deferred revenue recognized			400
Franchise Equipment Programs
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue recognized	100	$ 1,700	600	$ 4,600
Inventory related to franchise equipment programs	300		300		600
Contract with customer	$ 200		$ 200		$ 300

Revenues - Schedule of Deferred

Revenues - Schedule of Deferred Revenue (Details) $ in Thousands	Sep. 25, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 11,406
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-26
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 306
Revenue, remaining performance obligation, expected timing of satisfaction, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-26
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 1,123
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 1,121
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 1,091
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-12-30
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 966
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-12-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred franchise revenue expected to be recognized	$ 6,799
Revenue, remaining performance obligation, expected timing of satisfaction, period

Operating (Gains), Losses and_3

Operating (Gains), Losses and Other Charges, Net - Schedule of Operating Gains Losses and Other Charges, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Other Income and Expenses [Abstract]
Losses (gains) on sales of assets and other, net	$ 6	$ (88)	$ (88)	$ (2,132)
Impairment charges	78	1,711	792	1,840
Restructuring charges and exit costs	662	997	1,280	2,759
Operating (gains), losses and other charges, net	$ 746	$ 2,620	$ 1,984	$ 2,467

Operating (Gains), Losses and_4

Operating (Gains), Losses and Other Charges, Net - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024 USD ($) restaurant	Sep. 27, 2023 USD ($)	Sep. 25, 2024 USD ($) restaurant	Sep. 27, 2023 USD ($)	Dec. 27, 2023 USD ($) parcel restaurant
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of restaurants | restaurant	1,586		1,586
Assets held for sale	$ 0		$ 0		$ 1,455
Impairment charges	78	$ 1,711	792	$ 1,840
Property impairment			600
Severance and other restructuring charges	700		700		1,400
Reacquired franchise rights
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment of franchisee rights			100
Franchise agreements
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment of franchisee rights	100		100
Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property					$ 900
Number of restaurants | restaurant					3
Assets held for sale	$ 0		$ 0		$ 1,500
Goodwill					500
Other assets					$ 100
Number of real estate properties | parcel					1

Operating (Gains), Losses and_5

Operating (Gains), Losses and Other Charges, Net - Schedule of Restructuring Charges and Exit Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Restructuring charges and exit costs [Abstract]
Exit costs	$ 231	$ 12	$ 322	$ 64
Severance and other restructuring charges	431	985	958	2,695
Total restructuring charges and exit costs	$ 662	$ 997	$ 1,280	$ 2,759

Share-Based Compensation - Sche

Share-Based Compensation - Schedule of Total Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	$ 3,006	$ 2,864	$ 8,406	$ 8,477
Employee share awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	2,773	2,659	7,753	7,793
Restricted stock units for board members
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	$ 233	$ 205	$ 653	$ 684

Share-Based Compensation - Narr

Share-Based Compensation - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended
	Sep. 25, 2024 USD ($) installment $ / shares shares
Certain Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $	$ 16.6
Unrecognized contractual term (in years)	1 year 10 months 24 days
PSUs, TSR | Certain Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in periods (in shares)	0.6
Fair value of units granted (in dollars per share) | $ / shares	$ 15.48
Performance Shares | Certain Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of performance	3 years
Performance Shares | Certain Employee | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target achievement	0%
Performance Shares | Certain Employee | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target achievement	200%
Restricted Stock Units | Certain Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in periods (in shares)	0.7
Fair value of units granted (in dollars per share) | $ / shares	$ 10.63
Period of performance	3 years
Restricted Stock Units | Board Members
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in periods (in shares)	0.1
Fair value of units granted (in dollars per share) | $ / shares	$ 8.09
Period of performance	1 year
Common stock, shares issued (in shares)	0.1
Unrecognized compensation cost | $	$ 0.6
Unrecognized contractual term (in years)	7 months 6 days
Number of annual installments | installment	3
PSUs and RSUs | Certain Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares issued (in shares)	0.4
Shares paid for tax withholding (in shares)	0.2

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Income Tax Disclosure [Abstract]
Effective tax rate expense (benefit), percent	18.50%	17.60%	22.20%	23.70%
Share-based compensation, percent		(2.50%)	0.10%	0.40%

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
Earnings Per Share [Abstract]
Net income	$ 6,516	$ 7,908	$ 14,775	$ 17,043
Weighted average shares outstanding - basic (in shares)	52,148	55,869	52,635	56,764
Effect of dilutive share-based compensation awards (in shares)	59	213	104	209
Weighted average shares outstanding - diluted (in shares)	52,207	56,082	52,739	56,973
Net income per share - basic (in dollars per share)	$ 0.12	$ 0.14	$ 0.28	$ 0.30
Net income per share - diluted (in dollars per share)	$ 0.12	$ 0.14	$ 0.28	$ 0.30
Anti-dilutive share-based compensation awards (in shares)	618	735	758	788

Shareholders' Deficit - Narrati

Shareholders' Deficit - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended			9 Months Ended
	Sep. 25, 2024	Dec. 27, 2023	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023	Dec. 25, 2019
Equity, Class of Treasury Stock [Line Items]
Purchase of treasury stock (in shares)				1,300
Purchase of treasury stock	$ 1,766,000		$ 16,536,000	$ 11,231,000	$ 35,926,000
Retirement of shares (in shares)		12,800
Weighted average share price (in dollars per share)		$ 11.02
Treasury stock, at cost (in shares)	2,016	667		2,016
Share Repurchase Program 2019
Equity, Class of Treasury Stock [Line Items]
Share repurchase, authorized amount						$ 250,000,000
Purchase of treasury stock				$ 160,800,000
Remaining shares to be repurchased	$ 89,200,000			$ 89,200,000

Shareholders' Deficit - Schedul

Shareholders' Deficit - Schedule of Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023	Sep. 25, 2024	Sep. 27, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of beginning of period	$ (53,243)	$ (42,618)	$ (62,686)	$ (37,116)
Income tax expense related to items of other comprehensive income (loss)			602
Balance as of end of period	(54,483)	(35,798)	(54,483)	(35,798)
Defined Benefit Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of beginning of period			(337)
Settlement loss recognized			26
Income tax expense related to items of other comprehensive income (loss)			(23)
Balance as of end of period	(274)		(274)
Amortization of net loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification			60
Derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of beginning of period			(41,322)
Reclassification			(4,626)
Changes in the fair value of cash flow hedges			1,650
Income tax expense related to items of other comprehensive income (loss)			625
Balance as of end of period	(43,171)		(43,171)
Amortization of unrealized losses related to interest rate swaps to interest expense, net
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification			502
Accumulated Other Comprehensive Loss, Net
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance as of beginning of period	(34,461)	(40,321)	(41,659)	(42,697)
Balance as of end of period	$ (43,445)	$ (27,760)	$ (43,445)	$ (27,760)

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 25, 2024	Sep. 27, 2023
Supplemental Cash Flow Information [Abstract]
Income taxes paid, net	$ 4,344	$ 6,531
Interest paid	12,469	9,346
Noncash investing and financing activities:
Accrued purchase of property	513	102
Issuance of common stock, pursuant to share-based compensation plans	3,815	5,638
Execution of finance leases	1,514	593
Treasury stock payable, including excise taxes	$ 528	$ 1,053

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2024 USD ($)	Sep. 27, 2023 USD ($)	Sep. 25, 2024 USD ($) segment	Sep. 27, 2023 USD ($)	Dec. 27, 2023 USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			2
Segment Reporting Information [Line Items]
Total operating revenue	$ 111,759	$ 114,183	$ 337,660	$ 348,569
General and administrative expenses	19,831	18,237	61,539	58,515
Depreciation and amortization	3,622	3,605	10,938	10,878
Goodwill impairment charges	0	0	20	0
Operating (gains), losses and other charges, net	746	2,620	1,984	2,467
Total other operating expenses	24,199	24,462	74,481	71,860
Operating income	11,741	14,018	30,862	45,099
Interest expense, net	4,571	4,381	13,564	13,288
Other nonoperating (income) expense, net	(824)	43	(1,685)	9,470
Income before income taxes	7,994	9,594	18,983	22,341
Provision for income taxes	1,478	1,686	4,208	5,298
Net income	6,516	7,908	14,775	17,043
Total assets	461,623		461,623		$ 464,818
Operating Segments
Segment Reporting Information [Line Items]
Total operating revenue	111,759	114,183	337,660	348,569
Total restaurant-level operating margin	35,940	38,480	105,343	116,959
Total assets	461,623		461,623		464,818
Operating Segments | Denny’s
Segment Reporting Information [Line Items]
Total operating revenue	105,365	109,136	318,728	332,952
Total restaurant-level operating margin	35,015	36,944	102,750	111,525
Total assets	320,642		320,642		340,136
Operating Segments | Other
Segment Reporting Information [Line Items]
Total operating revenue	6,394	5,047	18,932	15,617
Total restaurant-level operating margin	925	$ 1,536	2,593	$ 5,434
Total assets	$ 140,981		$ 140,981		$ 124,682