Denny's Press Release

First Quarter 2011 Summary:

• Opened 18 new units, including 12 Flying J Travel Center conversion sites and 2 units at university locations at Auburn and Kansas State Universities.
• System-wide same-store sales decreased 1.7% with a 1.3% decrease at company units and 1.7% decrease at franchised units.
• Same-store guest count decrease of 1.1% was impacted by not repeating a 2010 Super Bowl promotional event and the Easter-Spring Break calendar shift.
• Franchise operating margin of $19.7 million grew $2.3 million, or 13.2%, compared to the prior year quarter.
• Franchise operating margin, as a percentage of franchise and license revenue, increased 4.5 percentage points to 63.0%, compared with the same quarter last year.
• Net income of $4.1 million, or $0.04 per diluted share. Net income was impacted by $1.4 million in expenses associated with re-pricing the Company's credit facility, $0.5 million for a one-time franchisee settlement, and $0.5 million for an unfavorable workers' compensation claims development.
• Adjusted income before taxes* of $6.2 million was also impacted by the one-time franchisee settlement and the unfavorable workers' compensation claims development.
• Re-priced $290 million credit facility, reduced outstanding term debt by $10 million during the quarter, and increased availability under the revolver by $10 million.
• Board of Directors approved a new share repurchase program for up to six million shares, after completing the three million share repurchase program previously announced on November 9, 2010.

For more information: contact Whit Kincaid at 877-784-7167 (Investors Relations) or Liz Brady at 646-277-1226 (Media Relations).

Source: Dennys.com website. Image: Logo from Denny's' website.