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Segment Information | 9 Months Ended
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Sep. 27, 2023
Segment Reporting [Abstract] |
Segment Information | Segment Information We manage our business by brand and as a result have identified two operating segments, Denny’s and Keke’s. In addition, we have identified Denny’s as a reportable segment. The Denny’s reportable segment includes the results of all company and franchised and licensed Denny’s restaurants. Our Keke’s operating segment, which includes the results of all company and franchised Keke's restaurants, is included in Other. The primary sources of revenues for all operating segments are the sale of food and beverages at our company restaurants and the collection of royalties, advertising revenue, initial and other fees, including occupancy revenue, from restaurants operated by our franchisees. We do not rely on any major customer as a source of sales and the customers and assets of all operating segments are located predominantly in the United States. There are no material transactions between segments. Management’s measure of segment income is restaurant-level operating margin. The Company defines restaurant-level operating margin as operating income excluding the following three items: general and administrative expenses, depreciation and amortization, and operating (gains), losses and other charges, net. 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 operating (gains), losses and other charges, net, to provide a clearer perspective of its ongoing operating performance. Restaurant-level operating margin is used by our chief operating decision maker (“CODM”) to evaluate restaurant-level operating efficiency and performance. The following tables present revenues by segment and a reconciliation of restaurant-level operating margin to net income:
| Quarter Ended |  | Three Quarters Ended
| September 27, 2023 |  | September 28, 2022 |  | September 27, 2023 |  | September 28, 2022
Revenues by operating segment: | (In thousands)
Denny’s | $ | 109,136 |  |  | $ | 113,725 |  |  | $ | 332,952 |  |  | $ | 331,849 |
Other | 5,047 |  |  | 3,731 |  |  | 15,617 |  |  | 3,731 |
Total operating revenue | $ | 114,183 |  |  | $ | 117,456 |  |  | $ | 348,569 |  |  | $ | 335,580 |
Segment income: |  |  |  |  |  |  |
Denny’s | $ | 36,944 |  |  | $ | 33,227 |  |  | $ | 111,525 |  |  | $ | 101,964 |
Other | 1,536 |  |  | 1,199 |  |  | 5,434 |  |  | 1,199 |
Total restaurant-level operating margin | $ | 38,480 |  |  | $ | 34,426 |  |  | $ | 116,959 |  |  | $ | 103,163 |
General and administrative expenses | $ | 18,237 |  |  | $ | 16,607 |  |  | $ | 58,515 |  |  | $ | 50,188 |
Depreciation and amortization | 3,605 |  |  | 3,914 |  |  | 10,878 |  |  | 11,052 |
Operating (gains), losses and other charges, net | 2,620 |  |  | (1,897) |  |  | 2,467 |  |  | (1,051) |
Total other operating expenses | 24,462 |  |  | 18,624 |  |  | 71,860 |  |  | 60,189 |
Operating income | 14,018 |  |  | 15,802 |  |  | 45,099 |  |  | 42,974 |
Interest expense, net | 4,381 |  |  | 3,691 |  |  | 13,288 |  |  | 9,529 |
Other nonoperating expense (income), net | 43 |  |  | (10,461) |  |  | 9,470 |  |  | (49,871) |
Income before income taxes | 9,594 |  |  | 22,572 |  |  | 22,341 |  |  | 83,316 |
Provision for income taxes | 1,686 |  |  | 5,489 |  |  | 5,298 |  |  | 21,375 |
Net income | $ | 7,908 |  |  | $ | 17,083 |  |  | $ | 17,043 |  |  | $ | 61,941 |
| September 27, 2023 |  | December 28, 2022
Segment assets: | (In thousands)
Denny’s | $ | 376,123 |  |  | $ | 394,051 |
Other | 103,712 |  |  | 104,284 |
Total assets | $ | 479,835 |  |  | $ | 498,335 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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