DENN - Earnings call transcript Q1 2021

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Operator

Good day, and welcome to the Denny's Corporation Q1 2021 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Curt Nichols, Vice President, Investor Relations and Financial Planning and Analysis. Please go ahead.

Curt Nichols

good and Tony, you, afternoon, everyone. Thank for Earnings Conference you joining us XXXX Quarter First Denny's Call. for Thank With me Verostek, today Executive from Officer. management are John Wolfinger, President Chief President; Vice Officer; Miller, Denny's and Executive Robert Denny's and Financial Mark Denny's Chief website on to find to the release call our earnings any non-GAAP our reconciliation with today. the Please of quarter financial press investor.dennys.com refer first along measures mentioned our of is the an webcast site being later available be call today. This archive on webcast, will and update. business a with call today's begin will John Mark comments our will some franchisees and capacities, then our restaurant provide on development. and our And trends. Robert recap a will provide first of quarter financial results current After that, it questions. for we'll open up

ended cause or may statements. Chief by that, of actual company's the risks Denny's will Miller, I materially now to XX-K in uncertainties any Annual call forth statements. that on let Before such matters XXXX, by discussed most call of during Such set XX-Q. Private factors begin, considering during the With Litigation in current to trends Safe to this implied reports that management provisions members earnings me Officer. year XX, we John and are for subsequent any knows constitute statements in this are Securities the quarterly and subject such turn performance accordance December Form XXXX, Forms other with certain remind its may you the recent of provided Reform urges the be the different X-K on from in of on risk, Act factors outlook Harbor that and Executive company the and over and the be Report performance call caution Management indicated forward-looking Denny's to Form

John Miller

into the and an have balance uncertainty encouraged dining that, and to is work back stimulus, the about the I started our I'm easing on as good of due restrictions rooms deployment, teams dedication hard a our have say hope labor This of with to to testament update off business April. challenges. we each. guest-centric Welcoming We focus quarter the we to by approaching and reopened. I'm still remained levels themes, near-term guests Denny's. XXXX stickiness of off-premise vaccine shared last afternoon, dining focused our safely maintain you Curt, you, sales are more and of federal while now growing and on in re-openings pace I'll And first healthy Thank quickly off-premise the since and comfort convenience, safe happy of each value, expanding four even our briefly our and on key reassurance, touch business. on remain everyone.

return it important guests to our we and than ensure of our ever the more teams is and As health guests. restaurants, that safety

consistently dining by We executing to a that enhanced guests procedures reassuring and points. are committed all safe at Denny's experience sanitation provides consumer touch our cleanliness our

bundled value. Our guest. We in comprehensive value our abundance, meaning the convenience second between be area of a of consider for approach understand to and We value type balance comes different -- that has and different each focus a is price, value. forms

our reinforce is the as rules by shown build guests team is due number enhanced bowls that everyone relaxed than as or of for where welcoming treated to guest the our area bring in to retain to as strive a been melts, dine-in feedback Denny's, to time of area their of everyone our value platform expect Heritage system one, in number critical and the transactions as challenges, well-established We ability place the options for convenience. feel start to with comfortable. reminding inviting been pandemic, a brands. third connections consumer dine Denny's And whether dining additionally, face the we we And hiring evolved. respect. our like largely need Demand consistently and This restaurants will entire dining continues our image, is is or We our both We've reflected even off-premise off-premise focus guests established and environment which comfort received is its believe which focus on welcome Our restaurant ensure new that experience, large party is feel. kindness in valued. operations have through by, technology as pleased and doubled that our virtual final the and one, at three, positive is and comfort. to our of to well family, continue welcome to we experience is guests our two, viewed with Whether since our Denny’s a Denny's more is for even have number everyone our expectations our including live to favorite guest, believe at sales, new an

testing restaurants. brand. sales April. substantially in already we confidence more $XXX specifics tests our initiated of completed rollout us us Results established of concept will great Turning the gave Burger focus our pantry, strengths, the of to national the new ingredients encouraging with one were I'm success per our Robert we using to restaurant. during excited these Den during varieties that, to and The the rollout to on virtual of This the burgers, performance per on in criteria week and of allows a brands, say give

are flavor kitchen concept brand our that However, called to maximize these and sandwich is leverage melts efficiency. handcrafted exclusive DoorDash a features fresh labor second highly transactions underutilized virtual with and And Meltdown unique The combinations. incremental ingredients

Test the approximately utilize innovative products with to team slow craveable during our the locations be our quarter. new ends. able crafted launching been items have as premium for Meltdown of currently ingredients, smoked second our will brisket results such is encouraging half burnt brand XX% and has culinary in pantry, domestic over of similarly this While The

labor also the charge guest late a provide These a not transactions fact, but week. and weekend. In already and delighted dining number to closing, seeing launched week and an rooms. underutilized only locations meaningful brands we we've the opportunities over during dinner of are to expected launch simply leverage to In XXX return of XXX this additional are versus kitchen we space, the see night

are place people on another pre-pandemic approaching Denny's optimistic We our extraordinary sales sit food, franchisees and can opportunities about launch a team horizon virtual with our of new the a suppliers. come continued safety also exceptional guests, great down where brand. and members, of brands, I'm one with on place share With health this and future levels of but two to market still group of the very of employees in, connect and and the focus the

call President, Denny's more development. Mark? discuss turn our that, the over to with about So, Wolfinger, Mark I'll to and franchisees

Mark Wolfinger

team Denny's franchise Thank too system to of want this John, and I what comments the brand can the and I you, look year. add about our to forward your balance accomplish to and outstanding during

experienced restaurants very considering and XX% capacity XX months capacity I'm effective say with restaurants This only dining our temporarily XX/X closed, operations are approximately of restaurants the encouraging quarter. is open pleased XX%. domestic While two during approximately our just of domestic an have nearly ago, improvement with in we that slight We had of rooms that an dining we open our of all currently very have rooms XX%. effective to operating domestic

a have XX X day, However, we a our domestic only still days of franchise one-third approximately week. restaurants hours operating

for franchisees availability and opening night. late we challenges are is Denny's this primary facing mentioned, the labor from John at As headwind

career So the our the a be open our need on XX,XXX hired, since to website greater positions to estimated visibility employees online enhance potential we've allowing our applicants. with that franchisees order provide with course that engaged to will to vendor recruiting, in

a hosting as and are America's historical that's challenges our hiring XX-hour be will national We believe in to reestablish ability in June, these diners. we position next month. we Additionally, are event staffing our temporary confident

during Turning including restaurants franchisees two international to the restaurants. development, open three quarter,

our of take of within franchisees four health restaurant, measurement the yielding see Additionally, confidence franchisees locations. total opportunities a the would and one underscores decline X,XXX to and net moments on our to brand. update the number you I This now franchise few during to restaurants future deceleration quarter, closed like only system. the strong our a declines franchise of over of the XX% sales exceeded bringing improve. over restaurants domestic to XX% as month XXXX both franchisee of the continue required sales. positive reopen, With pleased In to of dining are see domestic XX% even threshold off-premise of fixed costs and generated our rooms cover April, very sales in the remaining system profitability we to restaurants variable

the are of historic franchise gives and of the We efforts us ability only this recovery of in pandemic fundings development strategy. net to and on and refranchising including commitments, second system's approximately to the round have sales, other one We franchisees over additional imply restaurants funding Improving our during the franchise prevail currently that quarter those side ever. more restaurant received emerge our our Franchisees driven in to XX% backed recently representing of fund. to of the the to future decline than look forward the and their revitalization in commitments first also focused federal restaurant and net XX restaurant stimulus in available second international to-date. unfold domestic confidence seeing completed growth and returning supporting existing domestic PPP, secure by from approximately the of the and XX% PPP restaurants our round franchisees

to do XXXX independent to not market additional capture through while impact we share locations convert of space do Additionally, opportunity closures we beyond. believe will vacated celebrate and disproportionate into and move an it we the as small Denny's present chains and restaurants,

locations. Officer approximately teams our less a performance. enhanced for capital-intensive and discuss locations. the converting Denny's Robert last have landscape now Denny's Denny's XX the years, for conversions. assessing our turn Verostek, already of opportunities We Chief to been into spaces of development Robert? the have In I'll quarterly openings existing provide Financial These franchisees call proven ROIs is experienced record to future the XX%

Robert Verostek

I like and everyone. brief Mark, would good first results you, our quarter to and current review a afternoon, share of Thank trends. now

be and our more this informative representation will of As I a reminder, provide XXXX recovery. to consistent same-store will XXXX, domestic sales we a believe comparing comparison our as system-wide

comparing system-wide to first XX% as experienced the XXXX prior basis orders a press improvement sales same-store in during our capacity year during Additionally, our standard to practice and quarter quarter on release. we monthly began stay-at-home will compared Domestic declined sequential the of restrictions continue We the ease. first to XXXX.

are we changes. with mix steadily seeing pricing, slight higher transactions While improving from are mostly check only

Specifically, we seeing $X, items. more Menu our and streamlined trades lunch $X, and into dinner $X, are $X

operating our Same-store with first first through March. sales approximately approximately capacities total open restrictions. system-wide sales at to only various approximately January decline However, those of same-store domestic XX% during weighed restaurants restaurants XX% heavily and a X was of dining result by of at restaurants easing to point declined restricted prior during the restaurants located fiscal percentage These closed rooms of to the California dining operating quarter. XX% are the on February domestic of California middle toward with off-premise domestic where compared the weighted rooms. domestic approximately were results quarter the Consequently,

addition during the the hours of stores business, In our we weight to restrictions government-imposed on operating impact have of also limited discussed with the pandemic.

moments percentage with sales easing dine-in sales brands and of virtual preliminary being pre-pandemic fiscal availability the in restaurants only rollout the approximately April restrictions QX XXXX results dining our We domestic were on for open operation, sales brand. a percentage detail X mentioned, approximately restaurants results to of the our of quarter said, first results a Mark April the at Domestic limited points our had path in from to also operating coupled with stimulus levels. sales hours. sales I opened with providing by XX-hour restaurants that operating yielded overall points restaurants of With want encouraged same-store were domestic XX/X. a toward the our approximately preliminary continues new As XX We that one-third X spend few same-store impacted two decline of with estimate to XX% virtual same-store XX-hours rooms. of operating limited restaurants with launch XXX which XX-hours our decline of labor for challenge the open XX% to versus compared more within were increased hours. that of XX%

are these underutilized leverage John incremental transactions highly efficiency. mentioned, to As labor maximize and kitchen

brand, check leveraging late-night The In dayparts, for The underutilized similar are the an also sales leverage to dayparts Burger approximately the Burger opportunities to and of of locations of the XX% over only are approximately dinner to per approximately we with $XXX. from to These based The indexes The average transactions XX% based transactions Burger Den approximately during labor. brand. average brand. Den XX% live the transactions. of Not weekdays occurred restaurant Burger additional weekday, fact, with Den occurred transactions Approximately Den Denny's are compared locations XX% compared based compared Denny's the Over during X,XXX underutilized but Denny's to during the Denny's weekly generating from providing off-premise

being While off-premise incremental cost late-night XX% Denny's low to at sales, for dinner highly from after range these compared margins fees over-indexing and XX% to efficiencies. delivery, base transactions and mid labor product considering and the brand

XX.X% year revenue bad $XX.X expense and of change prior was items sales million, plan or on the which COVID-XX XX.X% prior to of Now $X.X Company Total This to was sales equivalent do in was license to valuation impact sales quarter. deferred restaurants quarter. of year turning in million to the an This fewer or XX.X% due results, were to margin million or margin the prior impact expense impact primarily quarter the market and impact XX.X% quarter. million million non-cash offset of franchise sales of $XX.X in fewer the to $X.X franchise margin our abatements $XX.X are primarily debt due COVID-XX adjusted units. $XX.X and margin general compensation and in decreased partially and compared operating quarter. compared million $X.X compared to equivalent to pandemic and down the prior-year share-based the This units. COVID-XX not Franchise operating units. decrease million units, and to revenue change or XX.X% Company on restaurant was in changes EBITDA. to year franchise on sales and of expenses both dollars recorded and equivalent pandemic fewer of compared first impact the at increase in administrative the fewer compensation and license were equivalent due $XX.X restaurant the on million by due XX.X% our liabilities, was primarily in and

hand, in bottom the beginning And million of related to $X.X highest EBITDA increases line. was and every reversed XX magnitude As of included our million last the $X.X the the contributed in quarter. of capital of adjusted prior taxes debt XX.X%. cash a with cash which due credit meaningful We to collectively four three of plans somewhere in EBITDA. we cost $X.XX Adjusted a total a facility net These adjusted is net million a income reflected income reminder, duration dollar estimate per expense targeted conservative expenses, incentive uncertainty to been The of our since $X.X and approximately in both short-term of in remaining of liquidity times of adjusted primarily have yielding the portion We the $XXX and amount flow -- we year of improvement. free the of that provision had the us share we certainly have first times of to partially annualized quarter. approximately savings the on in credit $X.X cash was this savings outstanding, initiatives the EBITDA prior share capital between implemented pleased year cash income considering decrease pandemic, prior year rate to a results start available million. under quarter, $XXX flow end income the first philosophy. significant the adjusted $XX.X After realized compensation quarter, long-term million for an over of current term million free expenditures, Prior has the by we million, $XXX,XXX to our was at quarter. total administrative given the liquidity I after offset pandemic. very of for including permanent million generated the were debt which our both longer and corporate the the $X.XX pandemic, pandemic covenants, our months, ended pandemic. adjusted facility. These say The maintenance compared capacity $XX during that the the of million of quarter tax to adjusted bringing compared under effective leverage affirmed am per approximately $X.X leverage would to value

comfortable three between and two we However, more times times. currently with are range of a

As current our an paid $XX on end we our quarter, to such, facility, $XXX outstanding first down balance additional subsequent the million. revolving the million bringing of credit to

cannot and December our to operations Turning evolving we impact anticipated XXXX extent pandemic recovery, dynamic a reasonably the business the outlook, and provide at given fiscal year the about the ending our this COVID-XX timing business time. our of outlook XX, for uncertainty and on of

stores challenges recruiting, near-term ongoing to a optimistic As are our a as impact hiring trends. cost XX/X could said, we upon proceed sales more to sales staffing additional building and we employees growth, With associated and new on and training return that have overcome may consequence, about work operations, with temporary margins.

the compensation corporate and -- deferred -- QX deferred in core sorry, adjustments, based with excluding expect G&A and the results. incentive core and share-based move Additionally, share-based, which market, be compensation the second we valuation our quarter, will for with line compensation --

reminder, capital $XXX quarter quarter million million covenant first and As levels first followed through more reduced on on the expenditures credit an from This Under $XXX in restricted revolver December XXXX of $XX XXXX, mid-May and are to the we introduction additional XXXX. of of through of step quarters to amendment, our waived the third second the day has third existing are down of XXXX. the XX, the amendment covenants third to maintenance facility. entered quarter XXXX a of by favorable the the into to million the commitment XXXX. third Financial

available. quarter first the with through million $X $X approximately an utilized million have We additional

our investments deploy Therefore, intend third cash look fourth liquidity repurchases as continue making to while our down enhance paying during we until revolver position. constraints we quarter prohibited shareholders, from toward from also we to business. deliver forward practice Additionally, and to long-standing returning stock of overall paying our quarter to and emerging We general capital the the are our continuing in other these dividends, investing we results.

sheet of continuously and Finally, off-premise, I am cost Denny's have we I our franchisees dine-in business of how I remained mention asset-light remarks. team, proud begin now prepared the In leverage of success on guests, to to Denny's serving post-pandemic to balance recovery. focused our the want the brand. support dedicated our call of while portion to fortify will have up or and so, whether That continue safely this franchisees the to business and our our wraps who over ensure the strength doing model turn operator and to call. will the managing our entire Q&A

Operator

[Operator first take you. Please Thank Instructions] Rutherford our Inc. Stephens, James We'll from ahead. from question go

James Rutherford

Hey, and improvement, taking April. in thanks really the especially on congrats questions for the impressive. That's here

Robert Verostek

Thanks, James.

James Rutherford

fees? comment includes investment marketing I what then in that want -- I've today you think, I those broader And brands level wanted as the virtual to to -- on you of how clarification question that, on ask and delivery do virtual the a that heard low-XXs to long-term? mid-XXs to margin. for sustain brand, the the I are just are a about to those marketing is yes, I the wanted necessary think whether running ask

Robert Verostek

This start. I'll Robert. James, Hey, is

I to that that. So related impact the fees can tell that you the mid-XXs to low-XXs clarifying from does question, include regard with the to

leverage has I'll seek it and it it we're John gains. have focus does traffic about that where talking marketing So for over a late-night of to -- those dayparts labor that dinner it question. typically some into and we the is pass focused that to inclusive underutilized it's as

John Miller

go want The association with are and they're and advisory great and at the kinds a a that worked that's have John some move and looking Brand franchisee there along or Marketing Sam and dining, to Officer, topics and Chief that these somewhere our brand they they the DoorDash used experimental resist come but being in during from Wilensky, Council he marketing are they new with just family our build leads when to quality for skipped on channels, Chair equity, it's online who he interesting sort Brand food category corporate Advisory our side, may James, COVID. We something they brand Hey, up. question. deep equities outlets, are other of and Dillon fatigue of work council for those to home

high there period trial to new so brands. where exploring And is are people going be a

we've here it's sort virtual and got just two think promoting right a the for that we balance of touch brands, it's is if headline, soft you're looking disclosed So by there these prepared it's where but they're but not the it it. Denny's, of

as promoting the ways even Down in through assisting And menu fund. at brand-building social some time, These over using same we're exclusive Denny's both in our mildly. on DoorDash of show generated side. front the Melt Denny's we media then by believe, brands core being to they're sort are that brand a are the and in other can brand so, Denny's Denny's The sales with our And up brands in melt these time. through and the are and and that only we launch that on of build promotion through so the equities things inside virtual these core going right now is

James Rutherford

of you result the system opened the feel XX/X something like unique for Thank of a helpful. then or of comp level you when you sustain they that do on how XX/X that rest And in think as you. will of April, about the That's long sales? it And that replicated sort restaurants by of kind those? do positive open then XX% kind is can the be

John Miller

at pace obviously, we so where challenge. way is be with guide. it's the it staff very our which shows We're pleased like third through will It are. does. Well, we early that Sure. promising. We're can feeling to The

you'd -- also period those to staffing to we a this abate to those and open, issue, become five pleased them trial five, going areas, as expect after -- shifts expand after the positive. in has also being obviously trial ordering higher our and We're equities fully these more with positioning not and night the so home cover a ability our capacity is challenges at see then And have doesn't on more a daypart both daypart become promising. it's to brands people lot in late virtual in that used and go to our

that is staff part they of are So a been their and it a to to part is is that of good available do open and and that fact food available the guest giving experience. serve that

a the does from an early of promising. expectation both whole It's how it will to perform. So, culinary and system guide availability expectation, too capacity look

James Rutherford

Okay. Appreciate those thoughts. Thank you.

Robert Verostek

Thanks, James.

Operator

Thank you. We'll take our next question Securities. from Nick go Please Setyan with ahead. Wedbush

Nick Setyan

Good with think you. refranchising in on we Thank be line post levels. a margin trends world, we in specifically? almost pre-COVID to there. an pre-COVID to going and the expectation with about margins should to was company margins substantially in closer see to are levels own April Obviously, were post-COVID How XX% XXXX refranchise sales should of back there company

Robert Verostek

Nick. hear Hey, This Yes. is Robert. your Good to voice.

with to those XXXX, So, XX% talk did about puts the XX% right refranchising are regard of Handful of and yes, that to correct margins. that. now process you we during takes

the kind dinner good -- that the and benefits. yes being come first we that from sold, experiencing we're be on moving that more benefits, mix to through away value and -- dinner some So of mixed seeing side are through would late-night of plates the --

pricing, through So not check through is that more up, through but mix. really but

evolves that how understand to have clarity need we'll the we through move crystal on pandemic. don't as We that. So

speed, and that there Again, We commodity would will with historically. be With not Historically, through leveraging is these that that give Labor in staff these leveraging late-night that, you we about Conversely, guide -- benefit brands have putting have dinner inflation. a other to initiative, we to a The areas and That's need there talked although up traffic them just John X% the efficiently, to get units, pretty staffing that there, priced the and too driving efficiency, we those tell that of restaffing the would dayparts. between regard again not short June to the talked gaining looking to puts of more that those point. many mentioned, as the in cost of one our traffic day. kind X%. up takes about through be surprises do just these that's and virtual staff dayparts it. will term, just our underutilized XX/X. these getting our into on of take and to Mark there.

about -- on a minimum near-term will a pleased to hit. still wage is moved that provide increases, looking see So -- chart you holding be were deck investor at seeing in have talking a even the we be with we've that the timeframe. the we will term the throughout into to then which And are longer administration dealing that'll very the April, pandemic. off-premise off-premise about XX slide I as we to think $X,XXX $XX,XXX similar which very what of the sales, was Packaging,

those. all And rate the So that properties definitely the over through penny from various even pandemic. account that's of that we course holding. That although margins comes worked doesn't margins, with an increased cost benefited on that of will initiatives although the weigh

waste meaningful saved line group services op offset money. some save would to was be to commodity. Our amount various the finding We ways on which

dealing takes of lot the the various thinking ultimately we're to that that you to is best toward have components. now don't to a about be with look give we're clarity we that, perfect a of right But gain and there's I and how we reguide. So able I puts sense can give think clarity you

Nick Setyan

territory? progressed? talk, helpful. That's positive in exit April, very did trends I is, ask can trying how April I'm April what you to we guess maybe

Robert Verostek

because in spring down so wouldn't a kind the you points choppy. Nick, level, XXXX, break to over So two-week out. talking two as Easter about rolled insight rolling way two-week -- we're a between the were I I give pretty April's pre-pandemic two think much we and XXXX think you of as offset

kind some So way there's progressed. choppiness in the been of April

not think helpful probably that's So at this didn't as as don't we think point. -- it's it and you might I why give

Nick Setyan

Okay, okay. about any and guess think G&A? do on commentary, the year QX And I -- year should G&A, then for the how we in for the appreciate

Robert Verostek

Yes.

about like the lot the talked we of of of permanent We talked much cost we to, speak -- approximately about chart did QX. permanent. that again, the slide script, investor at in from capture $X reductions in chart that we is on million talked the that and about what deck, $X on million. if QX we said We go you my captured refranchising we half of XX a pretty look So being savings would which look we, pandemic did

a So, kind while giving little were that into calling the of Again, out not next really we quarter, it future. far too really comfortable but tough.

move there and focus to really country. but will we coy, things We Again, around be speak quarter. the start begin to to when trying about we you next moving around on the want and not ramp-ups to

Nick Setyan

very Thank Okay. much. you

Robert Verostek

Nick. Thanks,

Operator

Thank question you. Todd ahead. Brooks our next go Please King take & from CL We'll Associates. now from

Todd Brooks

afternoon, Hey, to the on Congratulations Great back see. bounce everybody. good here.

Robert Verostek

Thanks, Todd. Yes.

Todd Brooks

and a on you -- clock not If you when get guys there. for putting

to the volumes look on come to the burdening brands, would like -- at much if it range If went X.X pre-pandemic. you out you guys looking it specific year? relative fiscal as Denny's take in franchise Where the to of pandemic looks looking what retain virtual in to without back hoping far would as we of incrementality that what like in XXXX build X.X are to you how off-premise

John Miller

great a It's Yes. question. John. That's

at I its XX,XXX speak relationship a I'll the consumer, brand for just second. from think with feet and a

same to to in for but things productive sort Our America's away with dayparts Diner that neighborhood. home from home, four different is the active goal do consumers, of be

you breakfast then weekend got got and So breakfast. you

lunch, weekend lunch. have You and

we pancakes things. dinner have foundational night. weekends then service the invested fresh or environment, and do things better the appeal We and four We're focused the the the burger in eight buttermilk a and nine you lunch. some to model getting all late few expanded line, share our trying And and the and a where in and shakes, You better breakfast in last to for -- on slightly program of different put on years, and value have right some almond propositions weekends. frequency put

focused momentum X.X right. And we've dayparts, built on so positive some basically

dayparts fast Once transform post-pandemic how building QX. is to brand we guide diner. to be And I right And of so all dayparts there in the and at for But like continue and would now, four unload When a to hard unlock traffic get goal. to as able our we credibility goal equities four deep just potential from the think I where is to all end the here stand is did to to build and years compared and very not question power buying toward on on unlock several capabilities. but much evidences last to this momentum view brand. the I answer things, less think specifically, power we really quite question. over that some breakfast is advertising can we provide upside like potential we get marketplace ready brands lunch, We're with smaller the these more in our my your of other color to

Todd Brooks

labor you've more of inefficiency overtime standpoint. current really, late Okay, to September when a and to guess, the seen that John. I many demand reopen start see able second great. is hopefully secondly, the the it operations in reopenings. to XX/X course a it it understanding Thanks, expectation over the can the for expiration ease really being market make Thanks. was to around transitory question have into we fairly requiring benefits March availability expecting and the And of you questions. that get the I push the I stores any the is this two the or that And enhanced at service from to labor in pinch April? is all? guess, XX/X then you're highlighted kind One, against and not model. Is of that is spike

John Miller

going you exactly described What just right. exactly what's on. that's think is I

We the have see is on store, the cooking or general headwinds a the depending of manager, shifts situational broad in late-night strength manager the to cover. array of area of circumstantial

I do in don't a say staff. night until a invest want Some I cook into can ready. I guests. can convert I time, abuse until hours those can't like limit the really for daytime get now I let's to of so those

go let's say they try it bit, little and Some complaints a so up pullback. guests'

have to that the period or serve overtime service, normally not. people to strong not but of motivated cook after people two-thirds there, Because the able. a earlier is missing, they're mitigate view it for before map. it will So there know. hiring franchisees a expires rest motivated. highly as those that direction the wait a that's our back-to-school are hard few Others won't some third we of all say, see It's see people grab -- wake We till you'll highly and system their weeks are last of yes, minute or the already because to September, in jobs. think have outperformance move one of if consequences soon system, to full up some as over as sort want than It's do of

it. don't time. think question P&L I just no, for we modeling-related in you So will pass due or answered had I do Robert this or know if if a And

Todd Brooks

No, a when level it's it into now, was through the really scrambling are kind thought just people might and to it of view operational mitigated. you restaurant then pinch as get

So Thanks. that was great.

Operator

from then Company. Thank Oppenheimer Please you. next and on move to And Michael go ahead. our question Tamas with

Michael Tamas

Hope well. Hi, thanks. is doing everybody

John Miller

Hey, Mike.

Michael Tamas

hey, April compare look of on-premise in better the you're sales that -- a the to on-premise. implied on When bit that have kind system XX% April focus than across you XXXX. the guys. disclosed I capacity I says doing of look and and that for roughly would little The When of just math volumes

the Thanks. be that to It sales wondering you think seems sort do a against what fairly then capacity of Just higher is? you're you that do think that? common is able from on-premise restaurants. across we're And generate to seeing theme off-premise your what How separating and accurate?

John Miller

Yes.

are that's think dayparts week. in I not a funding the flow So of of equal. sort All

capacity number, was you up made it's with or a XXX% a but even your XXXX. for probably capacity XX% be Monday So capacity, to illustration. need That night, XX% whether total of

XX still but from only X, share. people to hand, the -- whereas you're on on you So the you Saturday when number in compromised other XX% can of had

have So course until late you California QX, throughout of quarter, open. the still not in is the

math you dayparts apply So exactly it's XX% the the capacity are to the figure It's quarter set where a busiest. is number. a for a to out to have it real -- whole tricky funding of

third-parties to the higher restricted really most a more of then have areas. states footprint our compared sort percentage footprint see chains. that see You how and our total overweight we to helped to after They have is toward national five we've in have late-night of had and

in -- the sort table added to to you of helps that I've there to It's answer turn So think I'm confusion think unfolds. it. clarity, there if sure. probably instead but explain is I I that not helps. a it's of really some that earnings And release, of how

Michael Tamas

no, in on were all. unit to first And and quarter. were No, they then low they closures, see great problem no the really just the at

first is were sales has those wondering, update the where Just sort help that that seen that point we've out? boost the recently guys the any to that ultimately of maybe terms you think there timing Thanks. Was the the just you in longer of on table have in or quarter no where shakes a are the unit closures economics some that on table? of

Mark Wolfinger

It's hi. address to question your Mark. Michael, here. I'll try

on of I you we think, number all first four just repeat stores. the and first as and quarter, in opened to have dive in closures we three

in a that, or a XX QX had so Certainly year the back actually of there's haven't anybody data recall, that hit lot was At normal year believe, in that not part lowest one in QX. closed years obviously in went XXXX, last guidance during is of the we last fact total given it, outlook a any toward us, prove for closures. XXXX. number first I that lot but this was eight that's to you of certainly point, of that actually closures XX like although the were double history. a obviously obviously, loss that's the we comment. if So, We We year. look else, unit. XX And we in closed number. If closure We stores in of net take the we and at last

we're type of franchisees it's of finishing, in comments our about around XXX% very support have support government nearly and one We is other entirely round PPP PPP. close not PPP our franchise system. well for to which two the obviously, received Around programs to Second yet. finished two talked of but worked

of that But about XX an year, side that's of were which you'll but remember the it those the four volume, and closures, lower really you the perhaps just we as closures, would to were part I clearly QX. encouraging only in last low the that same tell were well. closed, matter led low those volume much four as all four and domestic So volume a pattern XX recall, closures of again,

in the closure the it So commentary but behind guidance again, of clear bit quarters, to you this at a future like give you gives can sometime perhaps point little number.

Michael Tamas

Thank sense. make very Yes, you much.

John Miller

the April our outlook might since our our we in live add and our and February our initiatives first I we that were community among positive quite our it time completed positive was vendor quick both and year, with direction together also franchisees enthusiastic the franchisees, last real strategic the of meeting brand. about of

it sort to So system. on that's guidance hold of I sentiment sort as a think, there the is again of as but much of desire is our to locations, not

Michael Tamas

Thanks again.

Robert Verostek

Michael. Thanks,

Operator

you. question next Thank Securities. from with take Bartlett Truist our We'll Jake

Jake Bartlett

on it's just moving so referenced, you really like if you the out? and off-premise off-premise My where we're high particular the -- April idea off-premise pretty sales March sales impressive then Great. have whether taking and just of question. as to I'm Thanks or sales was much. see as wondering, did And or And your special at first sales anything not. the for that the off-premise sales chart increasing there's question, anything just in restrictions could on-premise to the looking remaining or offers maybe answering you any expectation support any where as -- settle are that

Robert Verostek

yes. Robert. Hey, is This

is an impressive it chart. yes, So,

actually, pleased We with that are very Jake. chart

segment We two-week free there of was believe activity? where over for promotional on of the delivery business a to, the we our that I was had going last a way was at that in there, program the regard there, with that looking out run completely norm any over strength but in there year. Curt. nothing we've So

back. is that So on-premise nothing transactions propping up online came be significantly would that or

So encouraging again very there. that's result still a

to of sorry, of completely. was units on-prem So That's that part -- the question, the where our are your eventually we complement question, Because million-dollar I'm a a cap of XXX% out? not other right? will back

here some the was this the you and is that call tell of I we've the have information moved. last can some segments interesting what So way over captured

up that thought some transactions, quite largely well but and on. some And that as were concern, less was requiring held furloughs a such of of may So timeframe. have a receive area an they This consumer that over we held our our information boomers, with they we insight basis in captured the on things of actually the percentage that information we is by pandemic insight been they that job. interestingly, impacted

believe We as they they dining through. come they've and more aggressively move vaccinated. that will more more become part, large in on-prem So, back in to

susceptible the as trail. thought maybe in So the by insight, consumer millennial an job pandemic actually insight, impacted were reductions, losing to actually Conversely, we that They area in jobs. compared less the were actually there. our they itself the to furloughs group there upside is -- and boomers,

towards off-prem don't think a that of was we're We They pretty But back going was utilizing I coy know as thought the to from makeup, -- how trail just working All land. that where are to Again, dining at say still that now to Again, we skewed older, historically, here percentage trying younger. that again, or older predominant you right, It's off-prem through to that. to is, left not were that, about talked they on-prem on-prem that's are skewed information. right? either. younger interesting chart boomers actually to be slightly. They about So when looked they moving coming if our we off-prem. back.

brands, We X,XXX sales. with The the if that about optimistic. details virtual unit on, Again, in I units are per very $XXX a Burger week you Den think particularly, gave

We are that. encouraged by very

fall where here guide what where will chart We the seeing out. But just slide are on by ultimately -- to again, very that on that don't encouraged know XX. we're

to want here. Just some convey optimism

Jake Bartlett

I up how concepts some are particular of whether Would you the forces still have -- appreciate answer here? we're on rely trending breakfast, breakfast, I sales at have question knew drag that versus the there's if whether that breakfast impressive But meaningful frame operations been number maybe my actually open Got I'm question. also concepts. to sales hearing other is to it. dining been that the here, about we've wondering casual mean, it. a would you that from as is limiting exposure XX/X a No, don't what started work the to versus how next

John Miller

varies So, by it now and this again, again. hours. operating -- John is Right

brands, breakfast performed improved daypart have good, dinner of So, best breakfast where well for -- overall, well. we've It's actually sales, we're as are late-night breakfast, opening then pretty And course, virtual equities. dayparts looks this us with performing year-to-date. our because weekend has and performing deepest best the done we really

people us say, it day a of a it's ahead go complication want all a will And what so and the with advertise it. out far, go, and bit. menu more breakfast the But I'd So, you and managing quite breakfast to is loud great do question. all and air and give the help the on go

unfold. these of some of part We breakfast. initiatives to see happy were selling You're

Jake Bartlett

But market now Great, you're question hired. have those we're people? is now? eases. do this you the lower how labor great. I and maybe how one meaning, you're long that question, to people last a purely -- higher And I really the the you And Does to if longer guess on understand you near-term or get just on -- If pressures you when do seeing think wages can't it's anxious have there's, wages, that pressure tail impact tracking big a the term effect, piece.

Robert Verostek

this individuals don't would can't issue just been really find at think time. has Robert currently. work I We interview or point at staffed again. it's Jake, it say salary wages has in in part, that, even through that to getting large this. we the I that been will the

have Mark will as hiring in we too, spoke a So June. day

additional to consultants the help deployed and have recruiters staff. franchisee We

both that. than I'm that, running training So the up sure in wages company Candidly, franchise, We'll labor that. not we're would what near-term the this. periods staffing like. issue be and across The the less will the all to if through current we hand the and work

minimum believe even what wage term, but in beyond, in question would leveraging we and to probably wages the actually, think moderate approach wages But is is bring, way. general it's And a a for. line we labor really the more in tempered I how the than that evolve. minimum do will care what So longer increase the will pandemic

that. continue at will think And to understand will to look that's how impact pandemic us. we'll what that, term the So bigger we'll us. that longer through that throw I than work But the upon focus influence and at

Jake Bartlett

Got it. Makes appreciated. sense,

Robert Verostek

Jake. Thanks,

Operator

We'll you. Fargo. hear next Jon Tower Thank Wells from with

Jon Tower

leveled franchise equation help model guess, and Great, costs been in side and at some the if the of I'll here kind the least around trending us and to XXXX It below there, I about, XXXX? that my the settle looks be you've costs early debt some question. curious side think even bad it cost if you have first where I'm I And first might of of into occupancy was out like occupancy maybe jump could of may. thanks. -- That's maybe digging could tied late where direct the in which particularly out the overtime? expense.

Robert Verostek

is Robert. Hey, Jon, this

you off our those that are we What's year, about we that And those a franchisees, that of to when XX then, XX units we but real franchisees. leases to And lease roll about of own about it's XXX leases. there? So of happening we every the then think XX have sublease to that so XX another franchise have believe pattern pretty of or we and I and -- the -- units. sublease very on portfolio estate our under XX master we consistent about sit those we own.

revenue corresponding those, P&L, place. in had that expenses the you're what concert. the working with XXXX, lose corresponding you'll put occupancy we in Over of the so work deferrals So kind on franchise and various

So to that and we up. leave made to into expense choppy. of we that is be the as XXXX, million will some of that'll XXXX have regard have to bad and over that begun deferrals those year-over-year And off we itself a made moved roll we function put deferrals. can bad that course of those, on put have a related deferrals repaid, those make margin debt franchise debt. the that around With there The $X.X assumptions corresponding think year, look that we I pretty the is we

we there expense prior improvement for in the think the that $XXX,XXX the year. in current quarter, rolled have there for is booked So bad we I margin debt off a debt -- had

than in leases of subleases that general XX% lot the peel the isolated pieces of expense, every the master. dramatic off nothing but a other of occupancy on are about there, So year, those master overly the moving to we

Jon Tower

of trying I'm the margin levels ability out mean that I out is line just not question percentage, in guess, going all profit yes. to of thinking I about Okay, terms forward like and back to seem it the franchise soon. anytime say to figure does get at XXXX an

think not in mistaken. I'm X if that's I XXXX, XX

Robert Verostek

Yes.

The lower just because factor a another makes is room It rev other into it is collected came about of year we're were that piece the this the higher. there, too, the rec way complicating the flowing dollars percent of on way in marketing the base that talking and look advertising in through year. margin last

of neutral, more collections look cost advertising a margins to makes and to it rev rate level some pressure on that. is were full back franchise advertising royalties permanent moves that Prior EBITDA dollar our it of Again, the funky. that rec, XX%. but put So pretty may

make the advertising that line look odd again, time, that can movement So, pretty within from so.

Jon Tower

challenging. costs thinking the late-night, about perhaps is is you you're there all mean that kitchen that on, some about, maybe XX% sales will thinking is out. some just It like virtual which to need It that need have of But time you and of success move incremental keep then, the transactions these know sales I or exactly ability of those margin today, great an as so of might And side to you in particularly, or what but see terms fees obviously, sounds is grow? brands, kind the where sort in Okay. check? the of great. supplies, cost another in the in seeing in to there're will equation simply early with over incremental XX% on settle come that that governors cook higher place

John Miller

variable governor a per is traditional model. There se, Yes. fixed no just

will fundamentally labor get for all transactions come, Denny's more you labor scheduling no works, the get as So being exception. held restaurant you

a the labor allocated. forget transactions, check be more for minute, the more So we'd

of reached sort net the a during soft leverage add more it but then stair get, more another So improve. daypart, those incremental the -- the step the that of a could margin the idea complexity And could learn pennies it's to incremental. for is around, get has brands of fact chefs, long the what that and complementary down cook so highly still moment, when may We a you The finally a having of are in all station transactions cases. sort manage. couple threshold and to come in virtual you to a cook, like of

they’re in within really speak. things so They So the that we sell our wheelhouse, of brands not the are operating multiple and sort out brand. kinds to

not and and to I in and not think, virtual side? them time you're as therefore precision sense, be profitable any that's margin know, whether there treat over prove and beneficial again like to but virtual the you Robert anything I So And profitable fixed transaction, they're incremental. are trying the they'll the incremental, new are They brands I don't the as I they add variable model no go understand But dine-in, transaction, to zero some that near model. matter -- term, here go. these the they're in What's what. think, if get are on so around complicated. to to complicating want and to

Robert Verostek

deployed to we've brands. previously into out the that mid-'XXs transactions, base brand fact for account Yes, to that the to the the we In with suggest high-teens would where that did been regard things the that, with to leveraging regard virtual John. are regard -- we on margin, us. out the Jon, run has called to low-XXs the most that, from dayparts it I Demand labor Denny's we called mid-XXs efficiently take With not

number have people into of on of that come have the the regardless cooks line We to units. the

the So differential. that is

range. low part, that underutilized large if of accounted XX% in XX% capturing in underutilized, we've that for So, to efficiency that the

Jon Tower

No, color. to that following it. kind appreciate earlier. unit Got I conversation just of lastly, up of some And then the

about curious stores, some of conversion it, might place? taking are I be opening in closure units think for reaccelerating on the think I'm remarks out, the having started recovery of I an the some but the are discussions early franchisees more there there and idea. you talked bit the Mark, perhaps coming little on we've or the piece about prepared talked something. Yes, side. picking conversation to is be in those there still it phase to that about out growth, too side, up Have appetite kind unit a for

Mark Wolfinger

to in I jump pieces referenced you going here two come well. in John will the mean I'm and question off conference the maybe answer franchisee. with as just the

is has we've specifically. the in of it April come obviously two seen assistance is, and time, Jon, but that both the in same of obviously all discussed, mentioned, at the early the PPP rounds still, of as sales So, I fact month but the turnaround that we also March,

And the unit far openings as out over system. before, said much there our imagine we're is the can as in that last unit talked openings we've franchise nearly new new pretty an really machine decade fact conversions conversion have really I decade the brand. existing building. really as a building last as our XX% over think energy we've And about really You of we're of been a the

we've out that we of dynamic got estate are we is lot opportunity, a as there's So know a a there's through a real this in recovery. system landlords and brand franchise a a in building There's and still go there, low. lot of lot flexibility way of rates interest

your what seeing. we're it's question, answer I the delimit of to but of not a So just think John? specific more

John Miller

came we I that in the thing is script members only agree of about, I XX he these that development there effort. is, you add And XX said remember believe over March refranchising from precisely. I'd Yes. talked

so, hard unfold your will let's up lean early go And and about step these little say, to it time. in those question a in And for to timing, us is commitments. hey,

are it believe that opportunities favor there programs development they grace but -- when of those development will the and the predict will will economics that time, that numbers, conversion solid we So is some too because was unit in early our come restarting the around remodels kicks and in. to

Jon Tower

appreciate it. Thanks. questions. the the I Got time and taking

Robert Verostek

Thanks, Jon.

Operator

with We'll question KeyBanc you. Capital Markets. Thank next Gonzalez Eric from our take

Eric Gonzalez

you in keep your pace have Can Just marketing save with that funds the time you sales. I'm your marketing much makes may staffing plans it Maybe how in for plan in to about for a right question and marketing Hi. year. terms this good Thanks evening, curious Demand altering the thanks, and everyone. about spending how position are curious to sense? about I'm flexibility curious -- are and on surplus supply net exceeds run add fund? you your now advertising? not be

John Miller

that can Yes, getting part XX on the the with imagine advertising how delay, press and into broadcast tested into both hard stop, you wait as weeks instead buyers, of -- we through and digital limits of commitments those. XXXX,

So of we've that. done a bit quite

and think staffed want recovery. response breakfast of you where having -- we're brand are. a to equities and generally, we generally That's deeper at our I had official breakfast the the are advertising stronger invitation biting, we've

So initiatives of some out afraid push now. to we're right breakfast our not

we quarter, a of weeks of free and with pancakes. in first the with During couple delivery couple had free

which just QX, are people makes and lifted go quit is sort getting not weren't third-party supporting delivery yet. during restrictions out sense they those, well, still of, So we're to

how think with expectations I year the the trying So unfolds. we're of things to time

expect and the entrée we specific holiday, Turkey the and will that dinners holidays usually As But if promotions accordingly. we holiday we pies is by alike specials into media balance staffed then. get a then we'll and be not, and plan

Eric Gonzalez

so That's helpful.

store margins as the I how the build rest at other on model late-night to incentives was level late-night to over-time look those store how may the addition dayparts. that you some staff the in one of or I'm add currently labor. labor back the economic wondering to conditions base. business? change you that environment. to have the some in daypart pay your could Wondering to another you Just -- wondering how impact be perhaps have current Presumably, of

John Miller

open It another and daypart roster. to view accurately. as to first it come and But for adding get then their labor. have on described You daypart that process trained the incremental to is the the on support have those when personnel you you with that a of moved transactions back

So it's system handful XX-hour safer our XX-plus operation locations a step function in change. We've for been years. or

staffing our that's it is rigor a to So, challenge familiar brand. and scheduling

filling And people challenges industry, filled done be dayparts. by entire those with far so of the there for clearly, by it over not positions It Near-term, too staffing excess stretching or done regularly during Denny's. just challenges, roster over because time. not some are would the be would

Eric Gonzalez

just question capital on Got the maybe And it. allocation. me last from

so. over next seemingly hosted imagine year are are or a recovery at sales XXXX follow recovery that full recovery versus will for EBITDA that versus Now, the

on discuss past the allocation plans So, with thinking and that, three above to could you in times. leverage capital your other current take the

Just cautious year? and model stress test is once times wondering, above consider that perhaps earlier pandemic so confident if the level more three and it's needs more to that you moving this having permissible might do

Robert Verostek

us with we opportunity in place. on Hey, really that the Eric, to benefited the we With the question. Robert. from for profile regard least is talk near-term philosophy Appreciate pandemic at that this to cement that. Yes. Excellent the had did near-term our in really leverage lower

come the you leverage about prior a today coming back, times the followed three about refranchising being reality XXXX, comfortable debt three in in back as because we strategy talked is, we through two signed, range. give while sales the ultimate point taking four the will flexibility. to December, So one to hands, And up. We had just of to of talked amendment I then back, talked and in up range. us we really as we times EBITDA May about come our that -- talked signed

capital are earnings. report hands to shareholders returning value tied QX our we Our until from

that QX. put into us So will

that's of we're cash that can it generating generating, So we're off the EBITDA will that go. where deploy against credit the that, facility, we our

Our a to value degree to shareholders, capital tied tied CapEx. they're shareholders with to are returning hands with

date. a the revolving on additional So, I million post sheet an of $XX noted, paid we down as balance

to million facility said, to Again, credit EBITDA So set with we we what to you yes, regard as return, continue -- sales our $XXX grow. currently. will

in to shareholders really beginning XX, that down XX% We'll just revolver in cash shareholders XXXX. some reduction We million capital beyond talk net our of slide the on but and $XXX to product That returning we've We shares a our doing returned our the so. deck. reassess about we pay will represented in over short-term. in to outstanding $XX that was that investor do use price with that, value

very are do we flexibility once to of in so that look we and proud that chart, beginning we So, add to chart in have QX. that to

Eric Gonzalez

questions. you Very the helpful. for Thank

Robert Verostek

you. Thank

Operator

take Brett Thank from you. we'll final our And Partners. Levy question with MKM

Brett Levy

the for taking job Thanks Great. on the question. Good numbers.

John Miller

Thank you.

Brett Levy

a this little us And Does the -- you with average open second them. brands little need might the success a you've gave given in some of respect and virtual? terms any just change to in that remodels I are to if on-demand more virtual question numbers different XX/X, pause the ability with Heritage, behavior you might questions. the the to a brand? of could yourself bit is, what you in given on numbers. granular then into do is what seeing or from just or guess, thoughts terms the bit seeing you're and want virtual have established But in earliest give One good two XX/X been you those insight in of

John Miller

portfolio. XX/X answer I if and virtual. with Robert, the you then will the start can

Robert Verostek

Sure.

John Miller

our did was franchisees role it. confidence through felt a over important remodels, the in We critically to important played think And like those it's while long-term, challenges, So we tremendous regain on that they PPP and we give footing. sensitivities and a relationships their their the that, assuring for pause. to it come

is how return PPP more You lining dedicated so, long -- things don't all go from development. here. know regular last, have, entire a our those program. certain meetings there discussions about from where development things related just the obviously, We things do silver as But you're now the brand the into franchisees entering and again, on the we're and council coming on to wide to lot body in group where representing advisory franchise of are through a

of on they they guests data. imagery, they the on cost focused optimization and consumer focus they bit Heritage So parts prototype those of remodel managing on little insight of focused focused what and on the schemes, sort

be, share can were that return pause, sort able of enrich of in amount mid-single-digit and we've over while the Heritage this the remodel body, on we've how taken to so, a lifts to modest with And powerful remodel of next the round they continue we to programs that data investment.

we of There the process committed. which matter really them a are remodel franchisees of engage they creating our the like So just like They get back no objection. is and a timing in and in talk providing again, program scopes. It's to Robert, if track balance little haven't the you and guided precision the question. yet. around we more on want then, to And XX/X about

Robert Verostek

Yes.

specificity Robert. XX/X, is With to additional give this regard I with the Brett, you hey, regard to virtual brands in the virtual So, brands. some

You I slides chart have the can XXX XX and really of XX, are chart Den. XX% Burger on Den, it's XX/X to that there where the brands units regard Burger the The -- of units, rolled exciting deployed put we see specifically actually and The within map the bullet kind about, the with talked show that is reality out.

dinner month dayparts, strength the So, coming where... helps about that XX% deployed XX% it'll talk that And and number late-night in that, April that again, positive into the they had of seen those again, Burger The Den. have XXX to lead of it we into from areas because add

John Miller

staff. them Help

Robert Verostek

helps the staff, there. them Help Yes. within sales

reiterate and are again, just on unit Den to with $XXX units did exciting to be here, regard sales, as -- you sales of can X,XXX units of XX we really slide to Burger week. have see We the it's So, that. units, point, those weekly those the the among The deployed average per per

math are suggest Burger that almost The would we from itself. coming So, $X a million the Den simple

We regard Down. The additional to provide clarity will with Melt

XXX rolled those to are launch XXX equally the soon. We excited are that about out but just of we so the in as brand, next getting ready first very and

would Burger calls Den. the we as provide same The you did on that through we data previous -- Melt see, insight, work we we that as with promised the be mature can Down. as The once will previous that So, That

Operator

does for that Nichols to question-and-answer that, back closing session. any Mr. with I'd conclude And like you. remarks. additional the turn our over conference Thank to or

Curt Nichols

I'd early next you you, our call Cody. conference everyone us look again on Thank like August. for joining to earnings thank with We forward today's to speaking in on call.

a During this, have evening. we you all will great and discuss our results. XXXX Thank quarter second

Operator

your for Thank does Thank That conference. you conclude you. participation. all today's

You disconnect. may now

Denny's (DENN) 5 May 212021 Q1 Earnings call transcript