Introduction and Basis of Reporting
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
Free historical financial statements for Denny's Corp..
See how revenue, income, cash flow, and balance sheet financials have changed over 51 quarters since 2012. Compare with DENN stock chart to see long term trends.
Data imported from Denny's Corp. SEC filings. Check original filings before making any investment decision.