Earnings release
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1 DENNY’S CORPORATION REPORTS RESULTS FOR THIRD QUARTER 2025 SPARTANBURG, S.C., November 3, 2025 - Denny’s Corporation (the "Company") (NASDAQ: DENN), owner and operator of Denny's Inc. ("Denny's") and Keke's Inc. ("Keke's") today reported results for its third quarter ended September 24, 2025 and provided a business update on the Company’s operations. Kelli Valade, Chief Executive Officer, stated, "Our third quarter progress on strategic initiatives demonstrates our ability to remain agile and focused on what is within our control amid a choppy industry backdrop. These achievements are the direct result of our incredible teams and franchisees maintaining their unwavering commitment to our brands and our guests." "Denny’s is evolving its value offerings to meet the guest where they are, strengthening its brand relevance with an enhanced digital presence, a movie collaboration, and the launch of its highly-anticipated new loyalty program. Keke’s is capitalizing on continued portfolio growth and exceptional guest satisfaction while maintaining its position as a brand leader in the fastest growing segment. We will remain agile and continue working closely with our franchisees to navigate this dynamic consumer environment." Third Quarter 2025 Highlights • Total operating revenue was $113.2 million and total operating income was $10.4 million. • Denny's domestic system-wide same-restaurant sales** were (2.9%) compared to the prior year quarter. • Keke's domestic system-wide same-restaurant sales** increased 1.1% compared to the prior year quarter. • Denny's opened one franchised restaurant. • Denny's completed 10 remodels, including two at company restaurants. • Keke's opened four new cafes, including three franchised locations. • Keke's completed three remodels, including two at company cafes. • Adjusted franchise operating margin* was $29.1 million, or 52.0% of franchise and license revenue, and adjusted company restaurant operating margin* was $7.8 million, or 13.5% of company restaurant sales. • Net income was $0.6 million, or $0.01 per diluted share. • Adjusted net income* and adjusted net income per share* were $4.2 million and $0.08, respectively. • Adjusted EBITDA* was $19.3 million.
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2 Third Quarter 2025 Results Total operating revenue was $113.2 million compared to $111.8 million for the prior year quarter. This increase was primarily driven by additional Keke's company equivalent units and partially offset by the Company's previously communicated strategy to intentionally close lower volume Denny's franchised restaurants to improve the overall health of the brand. Franchise and license revenue was $55.9 million compared to $59.1 million for the prior year quarter. This change was primarily due to fewer Denny's franchise equivalent units and softer Denny's same-restaurant sales**. Company restaurant sales were $57.4 million compared to $52.7 million for the prior year quarter. This increase was primarily driven by additional Keke's equivalent units. Adjusted franchise operating margin* was $29.1 million, or 52.0% of franchise and license revenue, compared to $30.1 million, or 50.9% for the prior year quarter. This margin change was primarily due to fewer Denny's equivalent units and softer Denny's same-restaurant sales**. Adjusted company restaurant operating margin* was $7.8 million, or 13.5% of company restaurant sales, compared to $6.1 million, or 11.5% for the prior year quarter. This increase was primarily due to a $1.5 million benefit related to excess credit card fees charged by Visa and Mastercard between 2004 and 2019, partially offset by higher occupancy costs and inherent inefficiencies associated with new cafe openings. Total general and administrative expenses were $22.6 million compared to $19.8 million in the prior year quarter. This change was primarily due to additional incentive compensation and transaction costs, partially offset by lower corporate administrative expenses. The provision for income taxes was $1.3 million, reflecting an effective tax rate of 67.4% for the current quarter, compared to $1.5 million and an effective tax rate of 18.5% in the prior year quarter. The higher effective income tax rate for the current quarter included discrete items related to share-based compensation which were not comparable to the prior year quarter. Net income was $0.6 million, or $0.01 per diluted share. Adjusted net income* was $4.2 million, or $0.08 per diluted share. The Company ended the quarter with $269.2 million of total debt outstanding, including $259.5 million of borrowings under its credit facility. Capital Allocation The Company invested $9.3 million in cash capital expenditures during the current quarter, which included Keke's new cafe development and remodels at both Denny's and Keke's company locations.
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3 Conference Call and Business Outlook The Company announced today it had entered into a definitive agreement to be acquired by a group consisting of TriArtisan Capital Advisors LLC, Treville Capital Group, and Yadav Enterprises, Inc. The merger is expected to close in the first quarter of 2026, subject to customary conditions, including approval by the Company's stockholders and satisfaction of regulatory approvals. Upon completion of the transaction, Denny's common stock will no longer be listed on the Nasdaq. As customary during the pendency of such a transaction, the Company will not host a conference call or provide financial guidance for fiscal year 2025. * Please refer to the Reconciliation of Net Income to Non-GAAP Financial Measures, as well as the Reconciliation of Operating Income to Non-GAAP Financial Measures included in the tables below. ** Same-restaurant 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, initial and other fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP . About Denny's Corporation Denny’s Corporation is one of America’s largest full-service restaurant chains based on number of restaurants. As of September 24, 2025, the Company consisted of 1,537 restaurants, 1,452 of which were franchised and licensed restaurants and 85 of which were company operated. The Company consists of the Denny’s brand and the Keke’s brand. As of September 24, 2025, the Denny's brand consisted of 1,459 global restaurants, 1,397 of which were franchised and licensed restaurants and 62 of which were company operated. As of September 24, 2025, the Keke's brand consisted of 78 restaurants, 55 of which were franchised restaurants and 23 of which were company operated. For further information on Denny's Corporation, including news releases, links to SEC filings, and other financial information, please visit investor.dennys.com. Non-GAAP Definition Changes The Company has evolved its definition of non-GAAP financial measures to provide more clarity and comparability relative to peers. Denny's Corporation management uses certain non-GAAP measures in analyzing operating performance and believes that the presentation of these measures provides investors and analysts with information that is beneficial to gaining an understanding of the Company's financial results. Non- GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP. The Company excludes certain legal settlement expenses not considered to be normal and recurring, pre- opening expenses, and other items management does not consider in the evaluation of its ongoing core operating performance from adjusted operating margin*, adjusted net income*, adjusted net income per share*, and adjusted EBITDA*. In addition, the Company no longer deducts cash payments for restructuring and exit costs, or cash payments for share-based compensation from Adjusted EBITDA*.
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4 Reconciliations of these non-GAAP measures are included in the tables of this press release and a recast of historical non-GAAP financial measures can be found on the Company's website, or its most recent investor presentation. 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: economic, public health and political conditions that impact consumer confidence and spending, commodity and labor inflation; the potential impacts of tariffs; the ability to effectively staff restaurants and support personnel; 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 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 25, 2024 (and in the Company’ s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). Investor Contact: 877-784-7167 Media Contact: 864-597-8005
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5 DENNY’S CORPORATION Consolidated Balance Sheets (Unaudited) ($ in thousands) 9/24/25 12/25/24 Assets Current assets Cash and cash equivalents $ 2,224 $ 1,698 Investments — 1,106 Receivables, net 16,137 24,433 Inventories 2,122 1,747 Assets held for sale 891 381 Prepaid and other current assets 12,226 10,628 Total current assets 33,600 39,993 Property, net 123,827 111,417 Finance lease right-of-use assets, net 5,397 6,200 Operating lease right-of-use assets, net 135,464 124,738 Goodwill 68,532 66,357 Intangible assets, net 89,271 91,739 Deferred financing costs, net 589 1,066 Other noncurrent assets 46,238 54,764 Total assets $ 502,918 $ 496,274 Liabilities Current liabilities Current finance lease liabilities $ 1,347 $ 1,284 Current operating lease liabilities 15,215 15,487 Accounts payable 23,833 19,985 Other current liabilities 54,651 58,842 Total current liabilities 95,046 95,598 Long-term liabilities Long-term debt 259,500 261,300 Noncurrent finance lease liabilities 8,376 9,284 Noncurrent operating lease liabilities 132,007 120,841 Liability for insurance claims, less current portion 5,904 5,866 Deferred income taxes, net 8,731 9,964 Other noncurrent liabilities 26,048 27,446 Total long-term liabilities 440,566 434,701 Total liabilities 535,612 530,299 Shareholders' deficit Common stock 519 513 Paid-in capital 6,882 — Retained earnings (deficit) 929 (2,499) Accumulated other comprehensive loss, net (39,429) (32,039) Treasury stock (1,595) — Total shareholders' deficit (32,694) (34,025) Total liabilities and shareholders' deficit $ 502,918 $ 496,274 Debt Balances Credit facility revolver due 2026 $ 259,500 $ 261,300 Finance lease liabilities 9,723 10,568 Total debt $ 269,223 $ 271,868
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6 DENNY’S CORPORATION Condensed Consolidated Statements of Income (Unaudited) Quarter Ended ($ in thousands, except per share amounts) 9/24/25 9/25/24 Revenue: Company restaurant sales $ 57,375 $ 52,701 Franchise and license revenue 55,869 59,058 Total operating revenue 113,244 111,759 Costs of company restaurant sales, excluding depreciation and amortization 50,170 46,820 Costs of franchise and license revenue, excluding depreciation and amortization 26,808 28,999 General and administrative expenses 22,567 19,831 Depreciation and amortization 4,434 3,622 Operating (gains), losses and other charges, net (1,129) 746 Total operating costs and expenses, net 102,850 100,018 Operating income 10,394 11,741 Interest expense, net 5,318 4,571 Other nonoperating expense (income), net 3,137 (824) Income before income taxes 1,939 7,994 Provision for income taxes 1,307 1,478 Net income $ 632 $ 6,516 Net income per share - basic $ 0.01 $ 0.12 Net income per share - diluted $ 0.01 $ 0.12 Basic weighted average shares outstanding 52,054 52,148 Diluted weighted average shares outstanding 52,175 52,207 Comprehensive income (loss) $ (822) $ (2,468) General and Administrative Expenses Corporate administrative expenses $ 15,516 $ 15,875 Share-based compensation 3,249 3,006 Incentive compensation 2,028 447 Deferred compensation valuation adjustments 682 503 Transaction costs 1,092 — Total general and administrative expenses $ 22,567 $ 19,831
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7 DENNY’S CORPORATION Condensed Consolidated Statements of Income (Unaudited) Three Quarters Ended ($ in thousands, except per share amounts) 9/24/25 9/25/24 Revenue: Company restaurant sales $ 169,670 $ 159,391 Franchise and license revenue 172,868 178,269 Total operating revenue 342,538 337,660 Costs of company restaurant sales, excluding depreciation and amortization 152,540 142,516 Costs of franchise and license revenue, excluding depreciation and amortization 84,379 89,801 General and administrative expenses 64,042 61,539 Depreciation and amortization 12,919 10,938 Goodwill impairment charges — 20 Operating (gains), losses and other charges, net 4,482 1,984 Total operating costs and expenses, net 318,362 306,798 Operating income 24,176 30,862 Interest expense, net 15,120 13,564 Other nonoperating expense (income), net 2,736 (1,685) Income before income taxes 6,320 18,983 Provision for income taxes 2,892 4,208 Net income $ 3,428 $ 14,775 Net income per share - basic $ 0.07 $ 0.28 Net income per share - diluted $ 0.07 $ 0.28 Basic weighted average shares outstanding 52,146 52,635 Diluted weighted average shares outstanding 52,256 52,739 Comprehensive income (loss) $ (3,962) $ 12,989 General and Administrative Expenses Corporate administrative expenses $ 45,986 $ 46,843 Share-based compensation 9,016 8,406 Incentive compensation 7,044 4,868 Deferred compensation valuation adjustments 904 1,422 Transaction costs 1,092 — Total general and administrative expenses $ 64,042 $ 61,539
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8 DENNY’S CORPORATION Reconciliation of Net Income to Non-GAAP Financial Measures (Unaudited) The Company believes that, in addition to GAAP measures, certain non-GAAP financial measures are useful information to investors and analysts to assist in the evaluation of operating performance on a period-to-period basis. However, non-GAAP measures should be considered as a supplement to, not a substitute for, operating income, net income, and net income per share, or other financial performance measures prepared in accordance with GAAP. The Company uses adjusted EBITDA, 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. These non-GAAP measures are adjusted for certain items the Company does not consider in the evaluation of its ongoing core operating performance. These adjustments are either non- recurring in nature or vary from period to period without correlation to the Company's ongoing core operating performance. Quarter Ended Three Quarters Ended ($ in thousands, except per share amounts) 9/24/25 9/25/24 9/24/25 9/25/24 Net income $ 632 $ 6,516 $ 3,428 $ 14,775 Provision for income taxes 1,307 1,478 2,892 4,208 Goodwill impairment charges — — — 20 Operating (gains), losses and other charges, net (1,129) 746 4,482 1,984 Other nonoperating expense (income), net (1) 3,137 (824) 2,736 (1,685) Share-based compensation expense 3,249 3,006 9,016 8,406 Deferred compensation plan valuation adjustments 682 503 904 1,422 Interest expense, net 5,318 4,571 15,120 13,564 Depreciation and amortization 4,434 3,622 12,919 10,938 Non-recurring legal settlement expenses 91 (10) 409 2,165 Pre-opening expenses 473 209 1,827 766 Other adjustments (2) 1,123 — 1,186 2,640 Adjusted EBITDA $ 19,317 $ 19,817 $ 54,919 $ 59,203 Net income $ 632 $ 6,516 $ 3,428 $ 14,775 Losses and amortization on interest rate swap derivatives, net 913 194 2,051 502 Costs of discontinued refinancing 3,709 — 3,709 — Goodwill impairment charges — — — 20 Operating (gains), losses and other charges, net (1,129) 746 4,482 1,984 Non-recurring legal settlement expenses 91 (10) 409 2,165 Pre-opening expenses 473 209 1,827 766 Other adjustments (2) 1,123 — 1,186 2,640 Tax effect (3) (1,603) (72) (3,894) (1,793) Adjusted net income $ 4,209 $ 7,583 $ 13,198 $ 21,059 Diluted weighted average shares outstanding 52,175 52,207 52,256 52,739 Net income per share - diluted $ 0.01 $ 0.12 $ 0.07 $ 0.28 Adjustments per share 0.07 0.03 0.18 0.12 Adjusted net income per share $ 0.08 $ 0.15 $ 0.25 $ 0.40 (1) Other nonoperating expense (income), net for the quarter and year-to-date period ended September 24, 2025 includes costs of discontinued refinancing. (2) Other adjustments for the quarter and year-to-date period ended September 24, 2025 include transaction costs and leadership transition costs. Other adjustments for the year-to-date period ended September 24, 2024 include a distribution to franchisees related to a review of advertising costs. (3) Tax adjustments for the quarter and year-to-date period ended September 24, 2025 reflect effective tax rates of 30.9% and 28.5%, respectively. Tax adjustments for the quarter and year-to-date period ended September 25, 2024 reflect effective tax rates of 6.3% and 22.2%., respectively
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9 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 useful information to investors and analysts to assist in the evaluation of restaurant-level operating efficiency and performance of ongoing restaurant-level operations. However, non-GAAP measures should be considered as a supplement to, not a substitute for, operating income, net income, and net income per share, or other financial performance measures prepared in accordance with GAAP. 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 for compensation purposes, including incentive compensation for certain employees. Restaurant-level operating margin is the total of company restaurant operating margin and franchise operating margin and excludes: (i) 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; (ii) 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; (iii) 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. Company restaurant operating margin is defined 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. Adjusted company operating restaurant margin is defined as company restaurant operating margin less certain items such as legal settlement expenses, pre-opening expenses, and other items the Company does not consider in the evaluation of its ongoing core operating performance. Franchise operating margin is defined 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. Adjusted franchise operating margin is defined as franchise operating margin less certain items the Company does not consider in the evaluation of its ongoing core operating performance. Adjusted restaurant-level operating margin is the total of adjusted company restaurant operating margin and adjusted franchise operating margin and is defined as restaurant-level operating margin adjusted for certain items the Company does not consider in the evaluation of its ongoing core operating performance. These adjustments are either non-recurring in nature or vary from period to period without correlation to the Company's ongoing core operating performance. Quarter Ended Three Quarters Ended ($ in thousands) 9/24/25 9/25/24 9/24/25 9/25/24 Operating income $ 10,394 $ 11,741 $ 24,176 $ 30,862 General and administrative expenses 22,567 19,831 64,042 61,539 Depreciation and amortization 4,434 3,622 12,919 10,938 Goodwill impairment charges — — — 20 Operating (gains), losses and other charges, net (1,129) 746 4,482 1,984 Restaurant-level operating margin $ 36,266 $ 35,940 $ 105,619 $ 105,343 Restaurant-level operating margin consists of: Company restaurant operating margin (1) $ 7,205 $ 5,881 $ 17,130 $ 16,875 Franchise operating margin (2) 29,061 30,059 88,489 88,468 Restaurant-level operating margin $ 36,266 $ 35,940 $ 105,619 $ 105,343 Adjustments (3) 564 199 2,236 5,571 Adjusted restaurant-level operating margin $ 36,830 $ 36,139 $ 107,855 $ 110,914 (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, excluding depreciation and amortization; 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, excluding depreciation and amortization; less company restaurant sales. (3) Adjustments include non-recurring legal settlement expenses, pre-opening costs, and other adjustments the Company does not consider in the evaluation of its ongoing core operating performance. Adjustments for the year-to-date period ended September 25, 2024 include a $2.6 million distribution to franchisees related to a review of advertising costs.
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10 DENNY’S CORPORATION Operating Margins (Unaudited) Quarter Ended ($ in thousands) 9/24/25 9/25/24 Company restaurant operations: (1) Company restaurant sales $ 57,375 100.0 % $ 52,701 100.0 % Costs of company restaurant sales, excluding depreciation and amortization: Product costs 14,623 25.5 % 13,611 25.8 % Payroll and benefits 21,698 37.8 % 19,838 37.6 % Occupancy 5,482 9.6 % 4,443 8.4 % Other operating costs: Utilities 2,137 3.7 % 1,959 3.7 % Repairs and maintenance 799 1.4 % 964 1.8 % Marketing 2,037 3.6 % 1,859 3.5 % Legal settlements 330 0.6 % 152 0.3 % Pre-opening costs 473 0.8 % 209 0.4 % Other direct costs 2,591 4.5 % 3,785 7.2 % Total costs of company restaurant sales, excluding depreciation and amortization $ 50,170 87.4 % $ 46,820 88.8 % Company restaurant operating margin (non-GAAP) (2) $ 7,205 12.6 % $ 5,881 11.2 % Adjustments (3) 564 1.0 % 199 0.4 % Adjusted company restaurant operating margin (non-GAAP) (2) $ 7,769 13.5 % $ 6,080 11.5 % Franchise operations: (4) Franchise and license revenue: Royalties $ 27,745 49.7 % $ 29,101 49.3 % Advertising revenue 18,604 33.3 % 20,172 34.2 % Initial and other fees 1,772 3.2 % 1,639 2.8 % Occupancy revenue 7,748 13.9 % 8,146 13.8 % Total franchise and license revenue $ 55,869 100.0 % $ 59,058 100.0 % Costs of franchise and license revenue, excluding depreciation and amortization: Advertising costs $ 18,604 33.3 % $ 20,172 34.2 % Occupancy costs 4,897 8.8 % 5,256 8.9 % Other direct costs 3,307 5.9 % 3,571 6.0 % Total costs of franchise and license revenue, excluding depreciation and amortization $ 26,808 48.0 % $ 28,999 49.1 % Franchise operating margin (non-GAAP) (2) $ 29,061 52.0 % $ 30,059 50.9 % Total operating revenue (5) $ 113,244 100.0 % $ 111,759 100.0 % Total costs of operating revenue (5) 76,978 68.0 % 75,819 67.8 % Restaurant-level operating margin (non-GAAP) (5) $ 36,266 32.0 % $ 35,940 32.2 % (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 and adjusted operating margin are considered non-GAAP financial measures and should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with GAAP. (3) Adjustments include non-recurring legal settlement expenses, pre-opening costs, and other adjustments the Company does not consider in the evaluation of its ongoing core operating performance. (4) As a percentage of franchise and license revenue. (5) As a percentage of total operating revenue.
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11 DENNY’S CORPORATION Operating Margins (Unaudited) Three Quarters Ended ($ in thousands) 9/24/25 9/25/24 Company restaurant operations: (1) Company restaurant sales $ 169,670 100.0 % $ 159,391 100.0 % Costs of company restaurant sales, excluding depreciation and amortization: Product costs 43,920 25.9 % 40,554 25.4 % Payroll and benefits 64,663 38.1 % 60,805 38.1 % Occupancy 15,722 9.3 % 13,687 8.6 % Other operating costs: Utilities 5,660 3.3 % 5,309 3.3 % Repairs and maintenance 2,482 1.5 % 2,977 1.9 % Marketing 6,451 3.8 % 5,339 3.3 % Legal settlements 1,126 0.7 % 1,809 1.1 % Pre-opening costs 1,827 1.1 % 766 0.5 % Other direct costs 10,689 6.3 % 11,270 7.1 % Total costs of company restaurant sales, excluding depreciation and amortization $ 152,540 89.9 % $ 142,516 89.4 % Company restaurant operating margin (non-GAAP) (2) $ 17,130 10.1 % $ 16,875 10.6 % Adjustments (3) 2,236 1.3 % 2,931 1.8 % Adjusted company restaurant operating margin (non-GAAP) (2) $ 19,366 11.4 % $ 19,806 12.4 % Franchise operations: (4) Franchise and license revenue: Royalties $ 84,673 49.0 % $ 88,421 49.6 % Advertising revenue 57,167 33.1 % 59,098 33.2 % Initial and other fees 7,450 4.3 % 5,903 3.3 % Occupancy revenue 23,578 13.6 % 24,847 13.9 % Total franchise and license revenue $ 172,868 100.0 % $ 178,269 100.0 % Costs of franchise and license revenue, excluding depreciation and amortization: Advertising costs $ 57,167 33.1 % $ 59,098 33.2 % Occupancy costs 14,702 8.5 % 15,482 8.7 % Other direct costs 12,510 7.2 % 15,221 8.5 % Total costs of franchise and license revenue, excluding depreciation and amortization $ 84,379 48.8 % $ 89,801 50.4 % Franchise operating margin (non-GAAP) (2) $ 88,489 51.2 % $ 88,468 49.6 % Adjustments (3) — — % 2,640 1.5 % Adjusted franchise operating margin (non-GAAP) (2) $ 88,489 51.2 % $ 91,108 51.1 % Total operating revenue (5) $ 342,538 100.0 % $ 337,660 100.0 % Total costs of operating revenue (5) 236,919 69.2 % 232,317 68.8 % Restaurant-level operating margin (non-GAAP) (5) $ 105,619 30.8 % $ 105,343 31.2 % (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 and adjusted operating margin are considered non-GAAP financial measures and should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with GAAP. (3) Adjustments include non-recurring legal settlement expenses, pre-opening costs, and other adjustments the Company does not consider in the evaluation of its ongoing core operating performance. Adjustments for the year-to-date period ended September 25, 2024 include a $2.6 million distribution to franchisees related to a review of advertising costs. (4) As a percentage of franchise and license revenue. (5) As a percentage of total operating revenue.
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12 DENNY’S CORPORATION Statistical Data (Unaudited) Denny's Keke's Changes in Same-Restaurant Sales (1) Quarter Ended Three Quarters Ended Quarter Ended Three Quarters Ended (Increase (decrease) vs. prior year) 9/24/25 9/25/24 9/24/25 9/25/24 9/24/25 9/25/24 9/24/25 9/25/24 Company Restaurants (1.4%) (0.4%) (0.8%) (2.0%) 5.2% (1.7%) 2.9% (2.4%) Domestic Franchise Restaurants (3.0%) (0.1%) (2.5%) (0.6%) 0.2% (0.9%) 2.8% (3.2%) Domestic System-wide Restaurants (2.9%) (0.1%) (2.4%) (0.7%) 1.1% (1.0%) 2.8% (3.1%) Average Unit Sales ($ in thousands) Company Restaurants $765 $771 $2,312 $2,288 $432 $423 $1,278 $1,323 Franchised Restaurants $463 $465 $1,393 $1,395 $441 $439 $1,431 $1,368 (1) Same-restaurant 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, initial and other fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-wide same-restaurant sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP. Restaurant Unit Activity Denny's Keke's Franchised Franchised Company & Licensed Total Company & Licensed Total Ending Units June 25, 2025 62 1,422 1,484 22 52 74 Units Opened — 1 1 1 3 4 Units Reacquired — — — — — — Units Refranchised — — — — — — Units Closed — (26) (26) — — — Net Change — (25) (25) 1 3 4 Ending Units September 24, 2025 62 1,397 1,459 23 55 78 Equivalent Units Third Quarter 2025 62 1,411 1,473 23 54 77 Third Quarter 2024 62 1,470 1,532 11 50 61 Net Change — (59) (59) 12 4 16 Ending Units December 25, 2024 61 1,438 1,499 14 55 69 Units Opened — 10 10 7 8 15 Units Reacquired 1 (1) — 5 (5) — Units Refranchised — — — (3) 3 — Units Closed — (50) (50) — (6) (6) Net Change 1 (41) (40) 9 — 9 Ending Units September 24, 2025 62 1,397 1,459 23 55 78 Equivalent Units Year-to-Date 2025 61 1,424 1,485 22 49 71 Year-to-Date 2024 63 1,485 1,548 10 50 60 Net Change (2) (61) (63) 12 (1) 11