DENNY’S CORPORATION REPORTS RESULTS FOR SECOND QUARTER 2022

SPARTANBURG, S.C., August 2, 2022 - Denny’s Corporation (NASDAQ: DENN), franchisor and operator of one of America's largest franchised full-service restaurant chains, today reported results for its second quarter ended June 29, 2022 and provided a business update on the Company’s operations.

Kelli Valade, Chief Executive Officer and President, stated, "We were pleased to have delivered Adjusted EBITDA* within our guided range despite the many inflationary pressures weighing on our performance and impacting consumer trends as we moved through the second quarter. While there is a level of volatility within the macroeconomic environment, we take pride in Denny’s being an iconic brand that is cycle-tested and resilient with deeply embedded value attributes. Moreover, our company has a solid foundation with significant competitive advantages that we believe can help us unlock shareholder value.”

Ms. Valade continued, "Last month, we welcomed the Keke’s Breakfast Café team and franchisees to the Denny’s family. We believe Keke’s has attractive unit economics and strong potential within the fast-growing A.M. eatery segment which provides expansion opportunities as a complementary concept to the Denny's brand. We are excited to have Keke’s as part of our restaurant portfolio.”

Second Quarter 2022 Highlights

•Total operating revenue grew 8.3% to $115.0 million compared to the prior year quarter.

•Domestic system-wide same-store sales** grew 2.5% compared to the equivalent fiscal period in 2021, including a 2.4% increase at domestic franchised restaurants and a 3.8% increase at company restaurants.

•Opened four franchised restaurants, including one international location.

•Completed 11 remodels, including 7 franchised restaurants.

•Operating income was $13.9 million compared to $18.3 million in the prior year quarter.

•Franchise Operating Margin* was $30.6 million, or 46.4% of franchise and license revenue, and Company Restaurant Operating Margin* was $4.3 million, or 8.8% of company restaurant sales.

•Net income was $23.0 million, or $0.37 per diluted share.

•Adjusted Net Income* and Adjusted Net Income Per Share* were $7.0 million and $0.11, respectively.

•Adjusted EBITDA* was $17.2 million.

•Cash provided by (used in) operating, investing, and financing activities was $16.7 million, ($2.9) million, and ($18.5) million, respectively.

•Adjusted Free Cash Flow* was $6.6 million.

•Repurchased $37.4 million of common stock.

1

Second Quarter Results

Denny’s total operating revenue increased 8.3% to $115.0 million compared to $106.2 million in the prior year quarter.

Franchise and license revenue was $65.9 million compared to $58.6 million in the prior year quarter. Royalties were $28.8 million compared to $27.1 million in the prior year quarter. Advertising revenue was $19.5 million compared to $18.6 million in the prior year quarter. Initial and other fees were $7.8 million, including $5.7 million related to the kitchen modernization rollout, compared to $2.1 million in the prior year. Occupancy revenue was $9.8 million compared to $10.8 million in the prior year quarter.

Company restaurant sales were $49.2 million compared to $47.6 million in the prior year quarter. This increase was primarily due to price increases and changes in product mix.

Franchise Operating Margin* was $30.6 million, or 46.4% of franchise and license revenue, compared to $29.9 million, or 51.0%, in the prior year quarter. This margin dollar increase was primarily due to the improvement in sales performance at franchised restaurants. The margin rate was impacted by approximately 450 basis points due to the kitchen modernization rollout.

Company Restaurant Operating Margin* was $4.3 million, or 8.8% of company restaurant sales, compared to $9.8 million, or 20.5%, in the prior year quarter. This margin change was primarily due to approximately $2.3 million of unfavorable legal reserve adjustments and commodity and labor inflation, partially offset by the improvement in sales performance at company restaurants.

Total general and administrative expenses were $16.6 million, compared to $17.5 million in the prior year quarter. This improvement was primarily due to a benefit from deferred compensation valuation adjustments and a reduction in corporate incentive compensation, partially offset by an increase in corporate administrative expenses.

The provision for income taxes was $7.8 million, reflecting an effective tax rate of 25.3%. Approximately $4.2 million in cash taxes were paid during the quarter.

Net income was $23.0 million, or $0.37 per diluted share, compared to net loss of $0.8 million, or $0.01 per diluted share, in the prior year quarter. Adjusted Net Income* per share was $0.11 compared to $0.18 in the prior year quarter.

Denny’s ended the quarter with $199.0 million of total debt outstanding, including $187.0 million of borrowings under its credit facility.

Adjusted Free Cash Flow* and Capital Allocation

Denny’s generated $6.6 million of Adjusted Free Cash Flow* in the quarter after investing $3.0 million in cash capital expenditures, including the remodel of four company restaurants and facilities maintenance.

During the quarter, the Company allocated $37.4 million to share repurchases resulting in approximately $168 million remaining under its existing repurchase authorization.

2

Business Outlook

The following expectations for the fiscal third quarter ending September 28, 2022, inclusive of Keke's Breakfast Café, reflect management's expectations that the current consumer and economic environment will not change materially.

•Denny's domestic system-wide same-store sales** between 0% and 2%.

•Consolidated total general and administrative expenses between $17.5 million and $18.5 million, including approximately $2 million related to share-based compensation expense.

•Consolidated Adjusted EBITDA* between $19 million and $21 million.

* Please refer to the Reconciliation of Net Income and Net Cash Provided by (Used In) Operating Activities to Non-GAAP Financial Measures, as well as the Reconciliation of Operating Income to Non-GAAP Financial Measures included in the following tables. The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most directly comparable U.S. generally accepted accounting principles (GAAP) estimates without unreasonable efforts because it is unable to predict, forecast or determine the probable significance of the items impacting these estimates, including gains, losses and other charges, with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP estimates are not provided.

** Same-store sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-store sales and domestic system-wide same-store sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP.

Conference Call and Webcast Information

Denny’s will provide further commentary on the results for the second quarter ended June 29, 2022 on its quarterly investor conference call today, Tuesday, August 2, 2022 at 4:30 p.m. Eastern Time. Interested parties are invited to listen to a live broadcast of the conference call accessible through the Denny's investor relations website at investor.dennys.com.

About Denny’s

Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of June 29, 2022, Denny’s had 1,631 franchised, licensed, and company restaurants around the world including 154 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom. For further information on Denny's, including news releases, links to SEC filings, and other financial information, please visit the Denny's investor relations website at investor.dennys.com.

About Keke’s Breakfast Café

Keke’s Breakfast Café is the franchisor and operator of a full-service A.M. eatery concept, currently consisting of 52 domestic restaurants in Florida, including 44 franchised locations. For further information on Keke’s, please visit kekes.com.

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Cautionary Language Regarding Forward-Looking Statements

The Company urges caution in considering its current trends and any outlook on earnings disclosed in this press release. In addition, certain matters discussed in this release may constitute forward-looking statements. These forward-looking statements, which reflect management's best judgment based on factors currently known, are intended to speak only as of the date such statements are made and involve risks, uncertainties, and other factors that may cause the actual performance of Denny’s Corporation, its subsidiaries, and underlying restaurants to be materially different from the performance indicated or implied by such statements. Words such as “expect”, “anticipate”, “believe”, “intend”, “plan”, “hope”, "will", and variations of such words and similar expressions are intended to identify such forward-looking statements. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Factors that could cause actual performance to differ materially from the performance indicated by these forward-looking statements include, among others: the evolving COVID-19 pandemic and related containment measures, including the potential for further operational disruption from government mandates affecting restaurants; economic, public health and political conditions that impact consumer confidence and spending, including COVID-19; commodity and labor inflation; the ability to effectively staff restaurants; the Company's ability to maintain adequate levels of liquidity for its cash needs, including debt obligations, payment of dividends, planned share repurchases and capital expenditures as well as the ability of its customers, suppliers, franchisees and lenders to access sources of liquidity to provide for their own cash needs; competitive pressures from within the restaurant industry; the Company's ability to integrate and derive the expected benefits from our acquisition of Keke's Breakfast Cafe; the level of success of the Company’s operating initiatives and advertising and promotional efforts; adverse publicity; health concerns arising from food-related pandemics, outbreaks of flu viruses or other diseases; changes in business strategy or development plans; terms and availability of capital; regional weather conditions; overall changes in the general economy (including with regard to energy costs), particularly at the retail level; political environment and geopolitical events (including acts of war and terrorism); and other factors from time to time set forth in the Company’s SEC reports and other filings, including but not limited to the discussion in Management’s Discussion and Analysis and the risks identified in Item 1A. Risk Factors contained in the Company’s Annual Report on Form 10-K for the year ended December 29, 2021 (and in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K).

Investor Contact:

Curt Nichols

877-784-7167

Media Contact:

Hadas Streit, Allison+Partners

646-428-0629

4

DENNY’S CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
($ in thousands)												6/29/22						12/29/21
Assets
			Current assets
						Cash and cash equivalents						$	1,360					$	30,624
						Investments						3,529						2,551
						Receivables, net						23,193						19,621
						Inventories						12,208						5,060
						Assets held for sale						1,319						—
						Prepaid and other current assets						7,829						11,393
									Total current assets			49,438						69,249
			Property, net									92,934						91,176
			Financing lease right-of-use assets, net									7,103						7,709
			Operating lease right-of-use assets, net									124,176						128,727
			Goodwill									36,884						36,884
			Intangible assets, net									49,581						50,226
			Deferred financing costs, net									2,654						2,971
			Deferred income taxes, net									—						11,502
			Other noncurrent assets									30,048						37,083
									Total assets			$	392,818					$	435,527
Liabilities
			Current liabilities
						Current finance lease liabilities						$	1,896					$	1,952
						Current operating lease liabilities						15,051						15,829
						Accounts payable						16,675						15,595
						Other current liabilities						56,680						64,146
									Total current liabilities			90,302						97,522
			Long-term liabilities
						Long-term debt						187,000						170,000
						Noncurrent finance lease liabilities						10,117						10,744
						Noncurrent operating lease liabilities						121,807						126,296
						Liability for insurance claims, less current portion						7,386						8,438
						Deferred income taxes, net						1,994						—
						Other noncurrent liabilities						32,920						87,792
									Total long-term liabilities			361,224						403,270
									Total liabilities			451,526						500,792
Shareholders' deficit
						Common stock						650						642
						Paid-in capital						138,347						135,596
						Deficit						(71,583)						(116,441)
						Accumulated other comprehensive loss, net						(46,281)						(54,470)
						Treasury stock						(79,841)						(30,592)
									Total shareholders' deficit			(58,708)						(65,265)
									Total liabilities and shareholders' deficit			$	392,818					$	435,527
Debt Balances
			Credit facility revolver due 2026									$	187,000					$	170,000
			Finance lease liabilities									12,013						12,696
						Total debt						$	199,013					$	182,696

5

DENNY’S CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
									Quarter Ended
($ in thousands, except per share amounts)									6/29/22						6/30/21
Revenue:
			Company restaurant sales						$	49,167					$	47,572
			Franchise and license revenue						65,850						58,593
						Total operating revenue			115,017						106,165
Costs of company restaurant sales, excluding depreciation and amortization									44,828						37,813
Costs of franchise and license revenue, excluding depreciation and amortization									35,265						28,735
General and administrative expenses									16,623						17,548
Depreciation and amortization									3,590						3,897
Operating (gains), losses and other charges, net									846						(113)
						Total operating costs and expenses, net			101,152						87,880
Operating income									13,865						18,285
Interest expense, net									2,878						4,066
Other nonoperating expense (income), net									(19,795)						16,251
Income (loss) before income taxes									30,782						(2,032)
Provision for (benefit from) income taxes									7,779						(1,204)
Net income (loss)									$	23,003					$	(828)
Net income (loss) per share - basic									$	0.37					$	(0.01)
Net income (loss) per share - diluted									$	0.37					$	(0.01)
Basic weighted average shares outstanding									62,306						65,294
Diluted weighted average shares outstanding									62,430						65,294
Comprehensive income (loss)									$	25,411					$	(578)
General and Administrative Expenses
			Corporate administrative expenses						$	13,162					$	10,345
			Share-based compensation						3,505						3,388
			Incentive compensation						1,639						3,032
			Deferred compensation valuation adjustments						(1,683)						783
						Total general and administrative expenses			$	16,623					$	17,548

6

DENNY’S CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
									Two Quarters Ended
($ in thousands, except per share amounts)									6/29/22						6/30/21
Revenue:
			Company restaurant sales						$	93,143					$	81,141
			Franchise and license revenue						124,981						105,600
						Total operating revenue			218,124						186,741
Costs of company restaurant sales, excluding depreciation and amortization									83,453						67,977
Costs of franchise and license revenue, excluding depreciation and amortization									65,934						52,493
General and administrative expenses									33,581						34,495
Depreciation and amortization									7,138						7,558
Operating (gains), losses and other charges, net									846						419
						Total operating costs and expenses, net			190,952						162,942
Operating income									27,172						23,799
Interest expense, net									5,838						8,343
Other nonoperating income, net									(39,410)						(13,797)
Income before income taxes									60,744						29,253
Provision for income taxes									15,886						6,900
Net income									$	44,858					$	22,353
Net income per share - basic									$	0.71					$	0.34
Net income per share - diluted									$	0.71					$	0.34
Basic weighted average shares outstanding									62,822						65,273
Diluted weighted average shares outstanding									63,003						65,789
Comprehensive income									$	53,047					$	25,678
General and Administrative Expenses
			Corporate administrative expenses						$	24,545					$	21,217
			Share-based compensation						7,520						6,860
			Incentive compensation						3,758						5,118
			Deferred compensation valuation adjustments						(2,242)						1,300
						Total general and administrative expenses			$	33,581					$	34,495

7

DENNY’S CORPORATION

Reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures

(Unaudited)

The Company believes that, in addition to U.S. generally accepted accounting principles (GAAP) measures, certain non-GAAP financial measures are appropriate indicators to assist in the evaluation of operating performance and liquidity on a period-to-period basis. The Company uses Adjusted EBITDA, Adjusted Free Cash Flow, Adjusted Net Income and Adjusted Net Income Per Share internally as performance measures for planning purposes, including the preparation of annual operating budgets, and for compensation purposes, including incentive compensation for certain employees. Adjusted EBITDA is also used in the calculation of financial covenant ratios in accordance with the Company’s credit facility. Adjusted Free Cash Flow is also used as a non-GAAP liquidity measure by Management to assess the Company’s ability to generate cash and plan for future operating and capital actions. Management believes that the presentation of Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share and Adjusted Free Cash Flow provide useful information to investors and analysts about the Company’s operating results, financial condition or cash flows. However, each of these non-GAAP financial measures should be considered as a supplement to, not a substitute for, operating income, net income (loss), net income (loss) per share, net cash provided by operating activities, or other financial performance and liquidity measures prepared in accordance with GAAP.

									Quarter Ended												Two Quarters Ended
($ in thousands)									6/29/22						6/30/21						6/29/22						6/30/21
Net income (loss)									$	23,003					$	(828)					$	44,858					$	22,353
Provision for (benefit from) income taxes									7,779						(1,204)						15,886						6,900
Operating (gains), losses and other charges, net									846						(113)						846						419
Other nonoperating expense (income), net									(19,795)						16,251						(39,410)						(13,797)
Share-based compensation expense									3,505						3,388						7,520						6,860
Deferred compensation plan valuation adjustments									(1,683)						783						(2,242)						1,300
Interest expense, net									2,878						4,066						5,838						8,343
Depreciation and amortization									3,590						3,897						7,138						7,558
Cash payments for restructuring charges and exit costs									(208)						(869)						(381)						(1,274)
Cash payments for share-based compensation									(2,693)						(69)						(5,147)						(1,565)
Adjusted EBITDA									$	17,222					$	25,302					$	34,906					$	37,097

8

DENNY’S CORPORATION
Reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures Continued
(Unaudited)
									Quarter Ended												Two Quarters Ended
($ in thousands)									6/29/22						6/30/21						6/29/22						6/30/21
Net cash provided by operating activities									$	16,673					$	33,136					$	9,609					$	43,371
Capital expenditures									(2,993)						(1,525)						(5,771)						(3,108)
Cash payments for restructuring charges and exit costs									(208)						(869)						(381)						(1,274)
Cash payments for share-based compensation									(2,693)						(69)						(5,147)						(1,565)
Deferred compensation plan valuation adjustments									(1,683)						783						(2,242)						1,300
Other nonoperating expense (income), net									(19,795)						16,251						(39,410)						(13,797)
Gains (losses) on investments									(158)						5						(223)						(3)
Gains (losses) on early termination of debt and leases									—						106						(24)						72
Amortization of deferred financing costs									(159)						(344)						(317)						(688)
Gains (losses) and amortization on interest rate swap derivatives, net									21,671						(17,227)						41,924						12,506
Interest expense, net									2,878						4,066						5,838						8,343
Cash interest expense, net (1)									(3,449)						(4,455)						(7,175)						(9,041)
Deferred income tax (expense) benefit									(6,330)						1,888						(10,766)						(2,211)
Provision for (benefit from) income taxes									7,779						(1,204)						15,886						6,900
Income taxes paid, net									(4,195)						(1,521)						(4,644)						(1,942)
Changes in operating assets and liabilities
Receivables									(148)						(404)						3,419						(757)
Inventories									2,380						111						7,148						98
Other current assets									(112)						(1,383)						(3,563)						(6,677)
Other noncurrent assets									(2,040)						1,116						(6,125)						1,317
Operating lease assets and liabilities									222						217						466						821
Accounts payable									(864)						(3,800)						1,541						(5,620)
Accrued payroll									(1,754)						(3,696)						5,721						(1,992)
Accrued taxes									337						(814)						338						(434)
Other accrued liabilities									(2,485)						(3,454)						5,003						(4,649)
Other noncurrent liabilities									3,711						887						6,211						2,036
Adjusted Free Cash Flow									$	6,585					$	17,801					$	17,316					$	23,006

(1) Includes cash interest expense, net and cash payments of approximately $0.7 million and $1.7 million for dedesignated interest rate swap derivatives for the quarter and year-to-date periods ended June 29, 2022, respectively. Includes cash interest expense, net and cash payments of approximately $0.8 million and $1.6 million for dedesignated interest rate swap derivatives for the quarter and year-to-date periods ended June 30, 2021, respectively.

9

DENNY’S CORPORATION
Reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures Continued
(Unaudited)
									Quarter Ended												Two Quarters Ended
($ in thousands, except per share amounts)									6/29/22						6/30/21						6/29/22						6/30/21
Adjusted EBITDA									$	17,222					$	25,302					$	34,906					$	37,097
Cash interest expense, net (1)									(3,449)						(4,455)						(7,175)						(9,041)
Cash paid for income taxes, net									(4,195)						(1,521)						(4,644)						(1,942)
Cash paid for capital expenditures									(2,993)						(1,525)						(5,771)						(3,108)
Adjusted Free Cash Flow									$	6,585					$	17,801					$	17,316					$	23,006
Net income (loss)									$	23,003					$	(828)					$	44,858					$	22,353
Gains (losses) and amortization on interest rate swap derivatives, net									(21,671)						17,227						(41,924)						(12,506)
Gains on sales of assets and other, net									(99)						(65)						(245)						(1,007)
Impairment charges									266						—						266						—
Tax effect (2)									5,451						(4,756)						10,979						3,189
Adjusted Net Income									$	6,950					$	11,578					$	13,934					$	12,029
Adjusted diluted weighted average shares outstanding									62,430						65,829						63,003						65,789
Net Income (Loss) Per Share - Diluted									$	0.37					$	(0.01)					$	0.71					$	0.34
Adjustments Per Share									$	(0.26)					$	0.19					$	(0.49)					$	(0.16)
Adjusted Net Income Per Share									$	0.11					$	0.18					$	0.22					$	0.18

(1)			Includes cash interest expense, net and cash payments of approximately $0.7 million and $1.7 million for dedesignated interest rate swap derivatives for the quarter and year-to-date periods ended June 29, 2022, respectively. Includes cash interest expense, net and cash payments of approximately $0.8 million and $1.6 million for dedesignated interest rate swap derivatives for the quarter and year-to-date periods ended June 30, 2021, respectively.
(2)			Tax adjustments for the quarter and year-to-date periods ended June 29, 2022 reflect an effective tax rates of 25.3% and 26.2%, respectively. Tax adjustments for the quarter and year-to-date periods ended June 30, 2021 reflect an effective tax rates of 27.7% and 23.6%, respectively.

10

DENNY’S CORPORATION

Reconciliation of Operating Income to Non-GAAP Financial Measures

(Unaudited)

The Company believes that, in addition to GAAP measures, certain other non-GAAP financial measures are appropriate indicators to assist in the evaluation of restaurant-level operating efficiency and performance of ongoing restaurant-level operations. The Company uses Restaurant-level Operating Margin, Company Restaurant Operating Margin and Franchise Operating Margin internally as performance measures for planning purposes, including the preparation of annual operating budgets, and these three non-GAAP measures are used to evaluate operating effectiveness.

The Company defines Restaurant-level Operating Margin as operating income excluding the following three items: general and administrative expenses, depreciation and amortization, and operating (gains), losses and other charges, net. Restaurant-level Operating Margin is presented as a percent of total operating revenue. The Company excludes general and administrative expenses, which include primarily non-restaurant-level costs associated with 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 special items, included within operating (gains), losses and other charges, net, to provide investors with a clearer perspective of its ongoing operating performance and a more relevant comparison to prior period results.

Restaurant-level Operating Margin is the total of Company Restaurant Operating Margin and Franchise Operating Margin. The Company defines Company Restaurant Operating Margin as company restaurant sales less costs of company restaurant sales (which include product costs, company restaurant level payroll and benefits, occupancy costs, and other operating costs including utilities, repairs and maintenance, marketing and other expenses) and presents it as a percent of company restaurant sales. The Company defines Franchise Operating Margin as franchise and license revenue (which includes franchise royalties and other non-food and beverage revenue streams such as initial franchise and other fees, advertising revenue and occupancy revenue) less costs of franchise and license revenue and presents it as a percent of franchise and license revenue.

These non-GAAP financial measures provide a meaningful comparison between periods and enable investors to focus on the performance of restaurant-level operations by excluding revenues and costs unrelated to food and beverage sales in addition to corporate general and administrative expense, depreciation and amortization, and operating (gains), losses and other charges, net. However, each of these non-GAAP financial measures should be considered as a supplement to, not a substitute for, operating income, net income or other financial performance measures prepared in accordance with U.S. generally accepted accounting principles. Restaurant-level Operating Margin, Company Restaurant Operating Margin and Franchise Operating Margin do not accrue directly to the benefit of shareholders because of the aforementioned excluded items and are not indicative of the overall results for the Company.

			Quarter Ended												Two Quarters Ended
($ in thousands)			6/29/22						6/30/21						6/29/22						6/30/21
Operating income			$	13,865					$	18,285					$	27,172					$	23,799
General and administrative expenses			16,623						17,548						33,581						34,495
Depreciation and amortization			3,590						3,897						7,138						7,558
Operating (gains), losses and other charges, net			846						(113)						846						419
Restaurant-level Operating Margin			$	34,924					$	39,617					$	68,737					$	66,271
Restaurant-level Operating Margin consists of:
Company Restaurant Operating Margin (1)			$	4,339					$	9,759					$	9,690					$	13,164
Franchise Operating Margin (2)			30,585						29,858						59,047						53,107
Restaurant-level Operating Margin			$	34,924					$	39,617					$	68,737					$	66,271

(1)			Company Restaurant Operating Margin is calculated as operating income plus general and administrative expenses; depreciation and amortization; operating (gains), losses and other charges, net; and costs of franchise and license revenue; less franchise and license revenue.
(2)			Franchise Operating Margin is calculated as operating income plus general and administrative expenses; depreciation and amortization; operating (gains), losses and other charges, net; and costs of company restaurant sales; less company restaurant sales.

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DENNY’S CORPORATION
Operating Margins
(Unaudited)
												Quarter Ended
($ in thousands)												6/29/22									6/30/21
Company restaurant operations: (1)
			Company restaurant sales									$	49,167		100.0		%				$	47,572		100.0		%
			Costs of company restaurant sales:
						Product costs						13,168			26.8		%				11,447			24.1		%
						Payroll and benefits						18,336			37.3		%				16,970			35.7		%
						Occupancy						3,782			7.7		%				2,844			6.0		%
						Other operating costs:
									Utilities			1,650			3.4		%				1,390			2.9		%
									Repairs and maintenance			889			1.8		%				635			1.3		%
									Marketing			1,330			2.7		%				1,365			2.9		%
									Other direct costs			5,673			11.5		%				3,162			6.6		%
			Total costs of company restaurant sales									$	44,828		91.2		%				$	37,813		79.5		%
			Company restaurant operating margin (non-GAAP) (2)									$	4,339		8.8		%				$	9,759		20.5		%
Franchise operations: (3)
			Franchise and license revenue:
			Royalties									$	28,759		43.7		%				$	27,117		46.3		%
			Advertising revenue									19,486			29.6		%				18,600			31.7		%
			Initial and other fees									7,779			11.8		%				2,066			3.5		%
			Occupancy revenue									9,826			14.9		%				10,810			18.4		%
			Total franchise and license revenue									$	65,850		100.0		%				$	58,593		100.0		%
			Costs of franchise and license revenue:
			Advertising costs									$	19,486		29.6		%				$	18,600		31.7		%
			Occupancy costs									6,064			9.2		%				6,879			11.7		%
			Other direct costs									9,715			14.8		%				3,256			5.6		%
			Total costs of franchise and license revenue									$	35,265		53.6		%				$	28,735		49.0		%
			Franchise operating margin (non-GAAP) (2)									$	30,585		46.4		%				$	29,858		51.0		%
Total operating revenue (4)												$	115,017		100.0		%				$	106,165		100.0		%
Total costs of operating revenue (4)												80,093			69.6		%				66,548			62.7		%
Restaurant-level operating margin (non-GAAP) (4)(2)												$	34,924		30.4		%				$	39,617		37.3		%
Other operating expenses: (4)(2)
			General and administrative expenses									$	16,623		14.5		%				$	17,548		16.5		%
			Depreciation and amortization									3,590			3.1		%				3,897			3.7		%
			Operating (gains), losses and other charges, net									846			0.7		%				(113)			(0.1)		%
			Total other operating expenses									$	21,059		18.3		%				$	21,332		20.1		%
Operating income (4)												$	13,865		12.1		%				$	18,285		17.2		%
(1)						As a percentage of company restaurant sales.
(2)						Other operating expenses such as general and administrative expenses and depreciation and amortization relate to both company and franchise operations and are not allocated to costs of company restaurant sales and costs of franchise and license revenue. As such, operating margin is considered a non-GAAP financial measure. Operating margins should be considered as a supplement to, not as a substitute for, operating income, net income (loss) or other financial measures prepared in accordance with U.S. generally accepted accounting principles.
(3)						As a percentage of franchise and license revenue.
(4)						As a percentage of total operating revenue.

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DENNY’S CORPORATION
Operating Margins
(Unaudited)
												Two Quarters Ended
($ in thousands)												6/29/22									6/30/21
Company restaurant operations: (1)
			Company restaurant sales									$	93,143		100.0		%				$	81,141		100.0		%
			Costs of company restaurant sales:
						Product costs						24,412			26.2		%				19,719			24.3		%
						Payroll and benefits						35,422			38.0		%				29,935			36.9		%
						Occupancy						7,022			7.5		%				5,694			7.0		%
						Other operating costs:
									Utilities			3,227			3.5		%				2,615			3.2		%
									Repairs and maintenance			1,714			1.8		%				1,168			1.4		%
									Marketing			2,537			2.7		%				2,332			2.9		%
									Other direct costs			9,119			9.8		%				6,514			8.0		%
			Total costs of company restaurant sales									$	83,453		89.6		%				$	67,977		83.8		%
			Company restaurant operating margin (non-GAAP) (2)									$	9,690		10.4		%				$	13,164		16.2		%
Franchise operations: (3)
			Franchise and license revenue:
			Royalties									$	55,284		44.2		%				$	47,961		45.4		%
			Advertising revenue									37,692			30.2		%				32,711			31.0		%
			Initial and other fees									12,286			9.8		%				3,904			3.7		%
			Occupancy revenue									19,719			15.8		%				21,024			19.9		%
			Total franchise and license revenue									$	124,981		100.0		%				$	105,600		100.0		%
			Costs of franchise and license revenue:
			Advertising costs									$	37,692		30.2		%				$	32,711		31.0		%
			Occupancy costs									12,441			10.0		%				13,418			12.7		%
			Other direct costs									15,801			12.6		%				6,364			6.0		%
			Total costs of franchise and license revenue									$	65,934		52.8		%				$	52,493		49.7		%
			Franchise operating margin (non-GAAP) (2)									$	59,047		47.2		%				$	53,107		50.3		%
Total operating revenue (4)												$	218,124		100.0		%				$	186,741		100.0		%
Total costs of operating revenue (4)												149,387			68.5		%				120,470			64.5		%
Restaurant-level operating margin (non-GAAP) (4)(2)												$	68,737		31.5		%				$	66,271		35.5		%
Other operating expenses: (4)(2)
			General and administrative expenses									$	33,581		15.4		%				$	34,495		18.5		%
			Depreciation and amortization									7,138			3.3		%				7,558			4.0		%
			Operating (gains), losses and other charges, net									846			0.4		%				419			0.2		%
			Total other operating expenses									$	41,565		19.1		%				$	42,472		22.7		%
Operating income (4)												$	27,172		12.5		%				$	23,799		12.7		%
(1)						As a percentage of company restaurant sales.
(2)						Other operating expenses such as general and administrative expenses and depreciation and amortization relate to both company and franchise operations and are not allocated to costs of company restaurant sales and costs of franchise and license revenue. As such, operating margin is considered a non-GAAP financial measure. Operating margin should be considered as a supplement to, not as a substitute for, operating income, net income (loss) or other financial measures prepared in accordance with U.S. generally accepted accounting principles.
(3)						As a percentage of franchise and license revenue.
(4)						As a percentage of total operating revenue.

13

DENNY’S CORPORATION
Statistical Data
(Unaudited)
Changes in Same-Store Sales (1) vs. Prior Year									Quarter Ended															Two Quarters Ended
(Increase (decrease))									6/29/22						6/30/21									6/29/22						6/30/21
			Company Restaurants						3.8		%				172.1		%							14.9		%				46.8		%
			Domestic Franchised Restaurants						2.4		%				113.2		%							11.2		%				30.8		%
			Domestic System-wide Restaurants						2.5		%				117.0		%							11.5		%				31.9		%
Average Unit Sales									Quarter Ended															Two Quarters Ended
($ in thousands)									6/29/22						6/30/21									6/29/22						6/30/21
			Company Restaurants						$	761					$	732								$	1,443					$	1,257
			Franchised Restaurants						$	442					$	416								$	846					$	742
															Franchised
Restaurant Unit Activity									Company						& Licensed									Total
Ending Units March 30, 2022									65						1,569									1,634
			Units Opened						—						4									4
			Units Closed						—						(7)									(7)
						Net Change			—						(3)									(3)
Ending Units June 29, 2022									65						1,566									1,631
Equivalent Units
			Second Quarter 2022						64						1,567									1,631
			Second Quarter 2021						65						1,582									1,647
						Net Change			(1)						(15)									(16)
															Franchised
Restaurant Unit Activity									Company						& Licensed									Total
Ending Units December 29, 2021									65						1,575									1,640
			Units Opened						—						9									9
			Units Closed						—						(18)									(18)
						Net Change			—						(9)									(9)
Ending Units June 29, 2022									65						1,566									1,631
Equivalent Units
			Year-to-Date 2022						64						1,570									1,634
			Year-to-Date 2021						65						1,583									1,648
						Net Change			(1)						(13)									(14)
(1)						Same-store sales include sales at company restaurants and non-consolidated franchised and licensed restaurants that were open during the comparable periods noted. Total operating revenue is limited to company restaurant sales and royalties, advertising revenue, fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-store sales and domestic system-wide same-store sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP.

14