Introduction and Basis of Reporting

12 Months Ended

Dec. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Denny’s Corporation, Denny’s, or the Company, is one of America’s largest franchised full-service restaurant chains based on number of restaurants. Denny’s restaurants are operated in 49 states, the District of Columbia, two U.S. territories and 11 foreign countries with principal concentrations in California (23% of total restaurants), Texas (12%) and Florida (8%).

The global crisis resulting from the spread of coronavirus ("COVID-19") has had a substantial impact on our restaurant operations for the year ended December 30, 2020, which is expected to continue, with the timing of a recovery uncertain. During the year ended December 30, 2020, many of our company and franchised and licensed restaurants were temporarily closed and most of the restaurants that remained open had limited operations. Our operating results substantially depend upon the sales volumes, restaurant profitability, and financial stability of our company and franchised and licensed restaurants.

We cannot currently estimate the duration or future negative financial impact of the COVID-19 pandemic on our business; however, we expect the COVID-19 pandemic will continue to impact our results of operations through at least 2021. Ongoing material adverse effects of the COVID-19 pandemic for an extended period could negatively affect our business, results of operations, liquidity and financial condition and could impact our impairment assessments of accounts receivable, intangible assets, long-lived assets and goodwill.

At December 30, 2020, the Denny’s brand consisted of 1,650 restaurants, 1,585 of which were franchised/licensed restaurants and 65 of which were company restaurants. Changes in restaurant counts are as follows:


	Fiscal Year Ended
	December 30, 2020	December 25, 2019	December 26, 2018
Company restaurants, beginning of period	68	173	178
Units opened	—	—	1
Units acquired from franchisees	—	—	6
Units sold to franchisees	—	(105)	(8)
Units closed	(3)	—	(4)
End of period	65	68	173

Franchised and licensed restaurants, beginning of period	1,635	1,536	1,557
Units opened	20	30	29
Units purchased from Company	—	105	8
Units acquired by Company	—	—	(6)
Units closed	(70)	(36)	(52)
End of period	1,585	1,635	1,536
Total restaurants, end of period	1,650	1,703	1,709