Introduction and Basis of Reporting

12 Months Ended

Dec. 29, 2021

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 50 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 starting in the year ended December 30, 2020 with impacts continuing through the year ended December 29, 2021. 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. During the year ended December 29, 2021, many of our company and franchised and licensed restaurants have not returned to full operating hours, particularly at the late night daypart. Our operating results substantially depend upon the sales volumes, restaurant profitability, and financial stability of our company and franchised and licensed restaurants.

As a result of recent increases in COVID-19 cases due to unforeseen variants, we cannot currently estimate the duration or future negative financial impact of the COVID-19 pandemic on our business. 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 29, 2021, the Denny’s brand consisted of 1,640 restaurants, 1,575 of which were franchised or licensed restaurants and 65 of which were company restaurants. Changes in restaurant counts are as follows:


	Fiscal Year Ended
	December 29, 2021	December 30, 2020	December 25, 2019
Company restaurants, beginning of period	65	68	173
Units opened	—	—	—

Units sold to franchisees	—	—	(105)
Units closed	—	(3)	—
End of period	65	65	68

Franchised and licensed restaurants, beginning of period	1,585	1,635	1,536
Units opened	20	20	30
Units purchased from Company	—	—	105

Units closed	(30)	(70)	(36)
End of period	1,575	1,585	1,635
Total restaurants, end of period	1,640	1,650	1,703