Denny’s Corporation, one of America’s largest full-service family restaurant chains, has reported results for its first quarter ended March 30, 2011.

First Quarter 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.

John Miller, President and Chief Executive Officer, stated, “Denny’s continued to build on the positive achievements realized in the second half of 2010. In the first quarter, same-store guest trends continued to improve as we executed on our marketing strategies that emphasize everyday affordability combined with attractive “Limited Time Offers.” We are pleased that our efforts resulted in continued progress despite inflationary pressures and economic uncertainty impacting our customers. In addition, we opened 18 new units in the quarter after completing a company record opening of 136 new unit openings last year.”

Mr. Miller concluded, “Our growing free cash flow, which was further enhanced by the re-pricing of our credit facility, has enabled us to continue to strengthen the balance sheet and bring value to shareholders through share repurchases. Our leadership team is committed to executing successfully on our strategies to further strengthen our position as America`s favorite diner in 2011 and beyond.”

First Quarter Results

For the first quarter of 2011, Denny’s reported total operating revenue, including company restaurant sales and franchise revenue, of $135.8 million compared with $137.6 million in the prior year quarter. Company restaurant sales decreased $3.2 million due to four fewer equivalent company restaurants compared with the prior year quarter, and the decrease in same-store sales for the quarter. During the first quarter, we opened five new company-owned Flying J Travel Center conversion sites, closed two restaurants and sold nine restaurants to franchisees.

Company restaurant operating margin (as a percentage of company restaurant sales) was 12.1%, a decrease of 1.5 percentage points compared with the same period last year. Product costs increased 0.7 percentage points to 24.5% primarily due to the impact of increased commodity costs and a higher mix of value priced items. Payroll and benefit costs increased 1.3 percentage points to 42.3% primarily due to higher restaurant manager incentive compensation, and $0.5 million in unfavorable workers’ compensation claims development compared to the prior year. Occupancy costs decreased 0.3 percentage points to 6.6% due to favorable developments in general liability claims. Other operating costs decreased 0.1 percentage points to 14.6% primarily due to the corporate investment in media in the prior year quarter, partially offset by higher new store opening expenses associated with the opening of 16 company-owned Flying J units in the last two quarters.

Franchise and license revenue increased by $1.5 million to $31.3 million compared with $29.8 million in the prior year quarter. The increase in franchise revenue included a $1.3 million increase in royalties and $0.5 million increase in franchise fees, partially offset by a $0.3 million decrease in occupancy revenue. The royalty revenue increase was due to 110 additional equivalent franchise restaurants, partially offset by the effects of lower same-store sales. The franchise fee increase resulted from opening 13 franchise and license units in the first quarter of this year, which included seven Flying J Travel Center conversion sites, and two university locations at Auburn and Kansas State Universities. Denny’s franchisees closed nine restaurants, and purchased nine company restaurants.

Franchise operating margin increased $2.3 million to $19.7 million, primarily due to the $1.3 million increase in franchise royalties from the additional 110 equivalent franchise restaurants, a $0.7 million decrease in direct franchise costs, and a $0.5 million increase in franchise fees, offset by a $0.2 million decrease in franchise occupancy margin. Franchise operating margin (as a percentage of franchise and license revenue) was 63.0%, an increase of 4.5 percentage points compared with the same quarter last year. The increase in margin was primarily driven by the increase in franchise royalties and fees and decrease in direct franchise costs, offset by the lower occupancy margin.

General and administrative expenses, which were primarily driven by higher incentive compensation accruals relative to the prior year quarter, increased $1.1 million from the same period last year.

Depreciation and amortization expense declined by $0.2 million compared with the prior year quarter primarily as a result of the sale of restaurants and real estate over the past year, offset by the addition of 25 new units in the last 12 months. Operating gains, losses and other charges, net, which reflect restructuring charges, exit costs, impairment charges and gains or losses on the sale of assets, increased $1.0 million in the quarter. This increase resulted from higher gains on the sale of company restaurants to franchisees, and lower closed store exit costs.

Operating income for the quarter increased $0.3 million from the prior year period to $11.5 million, primarily due to the $2.3 million increase in franchise margin, partially offset by a $2.0 million decrease in gross profit from our company operations.

Interest expense decreased $0.7 million, or 11.0%, to $5.7 million as a result of the lower interest rates under the refinanced and re-priced credit facility, and a $20.1 million reduction in total gross debt from the prior year period. Other non-operating expense increased $1.5 million in the quarter primarily due to expenses associated with the re-pricing of the Company’s debt.

Denny’s net income was $4.1 million for the first quarter 2011, or $0.04 per diluted share, compared with prior year period net income of $4.6 million, or $0.05 per diluted share. Adjusted income before taxes*, Denny’s metric for earnings guidance, was $6.2 million compared with prior year period adjusted income of $6.6 million.

Business Outlook

Mark Wolfinger, Executive Vice President, Chief Administrative Officer and Chief Financial Officer, stated, “Our transition to a franchise focused business model continues to enable growth in unit development and profitability while enabling us to grow free cash flow. With our increased financial flexibility, we expect to continue to strengthen our balance sheet and pursue additional shareholder friendly activities.”

Based on the interest savings generated by the re-pricing of our credit facility in the first quarter, Denny’s is updating its financial guidance for full-year 2011 adjusted income before taxes by $2 million.

Denny’s is one of America’s largest full-service family restaurant chains, currently operating more than 1,650 franchised, licensed, and company-owned restaurants across the United States, Canada, Costa Rica, Mexico, Honduras, Guam, Puerto Rico and New Zealand.

The Chipotle Mexican Grill chain has announced new details surrounding their newly developed Asian theme restaurant project. The chain will be called ShopHouse Southeast Asian Kitchen and is inspired by the fresh markets of Asia where owners live in the level above their store. Fresh grilled meats and a variety of toppings and garnishes straight from Asian cuisine will create the core of the menu.

33 million Americans have announced their plans to eat out at a favorite restaurant this Easter Sunday. The National Restaurant Association says that the lunch and dinner meals are the busiest times on Easter, and that buffets will be big due to families with different tastes and dietary needs dining together. 14 of adults surveyed said that they planned to eat out at least once over the Easter holiday.

As the interest in nutrition and healthy eating habits picks up among consumers, even the most unlikely restaurants are revealing healthier menus. Denny’s, Applebee’s and IHOP are all developing new low calorie and low fat dishes to balance out the cheesy, greasy or fattening offerings on their existing menus. Applebee’s even saw one of their steak and shrimp diet meals become a monthly best seller.

The mass coupon sales model developed by websites like Groupon has spread like wildfire, and restaurants are being bombarded with sales pitches. Unfortunately, while the restaurants do get exposure, they usually cut their profits so low on the deals that running then regularly would put them out of business. Also, recent research is showing that coupon users may not always return to make a full priced purchase.

The two day extension on tax filings this years pushes the deadline to April 18^th and ensures that many Americans will be working furiously to complete returns starting the 15^th. Arby’s has decided to help time strapped tax payers by designating the 15^th Free FryDay. All visitors to the restaurant chain will receive a free small fry with a print out of the online coupon available from their Facebook page.

Dunkin’ Donuts has redesigned their website to help consumers find nutritional information and new store locations. The Trip Planner highlights Dunkin’ Donuts locations along the path of your next road or airplane trip. All of the drinks and foods at their chain locations is now listed with correct nutritional information to help visitors make diet choices. Each visitor will also see localized content on the homepage of the site.

Carl’s Jr. has opened its first location in Istanbul, Turkey. Located in the thriving hub of Istanbul, is the first of 25 planned locations in the country. Carl’s Jr. is popular in many international locations.  After 70 years of development the company is now focusing on the international market.

The fifth location of the new chain Ling & Louie’s Asian Bar & Grill opened in Boise, Idaho recently. Other locations are spread across Colorado and Arizona. The restaurant concept combines fresh Asian cuisine, an extended drink menu and an energetic atmosphere. The locations combine American and Asian styles in both the menu and décor.

Lynne Zappone has been named the Chief Talent Officer for AFC Enterprises. AFC manages the national chain Popeyes, and Ms. Zappone will be in charge of finding and hiring the best talent to help promote and grow the brand. She’s had more than 20 years of human resource management experience, both in the restaurant industry and others.

This nutritional U-turn is taking place at some of the unlikeliest of eateries, including Denny’s, IHOP, Friendly’s, Sizzler and even at the nation’s biggest casual dining chain, Applebee’s, where the numbers are eye-popping.

For the first two months of 2011, the top-selling entree at Applebee’s wasn’t a gloppy burger or flashy fajita plate. It was a sirloin and shrimp entree from the chain’s diet menu. This marks the first time that a low-calorie item ever ranked as the chain’s best seller for a single month — let alone two in a row.

“I’ve been in the restaurant business for 30 years, and I’ve never seen anything like this,” says Mike Archer, president of Applebee’s. More typically, he says, consumers say in surveys that they want healthier choices, but when they come into the restaurant, they order the junkier stuff. “We’re seeing a sea change in consumer behavior.”

Continue reading . . .

McDonald’s is holding a national hiring event to bring in as many as 50,000 new part time and full time workers at nearly 14,000 franchise locations. The event will occur on April 18^th and the new employees will cost the company $3.5 million a day in increased payroll costs.

Sbarro has reached an agreement on most of its debt with lien holders, and will begin a reorganization and restructuring of the company soon. Part of the restructuring effort includes filing for Chapter 11 bankruptcy.

Tilman J. Fertitta is offering $9.25 per share of McCormick & Schmick’s Seafood Restaurants. He currently owns over 10% of the company’s stock. The tender offer is worth approximately 30% of the stock’s closing price on April 1^st.  McCormick & Schmick’s responded by stating that they have not solicited or discussed the offer with Fertitta.

Chef Adolfo Garcia has built an empire around his New Orleans restaurants, but is not well know like the many celebrity chefs that surround him. He is a primary partner in four restaurants in the city, including Mano, RioMar and Gusto. He plans to open a Southern cooking restaurant and a high end pizza place specializing in the Naples style.

Dunkin’ Donuts is about to add a new line of “Hearty Snacks” to their popular donut and breakfast menu. The snacks are designed to be filling but portable for people on the go. Options include a Warm Apple Pie, two different flavors of Bagel Twists and savory Stuffed Breadsticks. The snacks will be available all day.

When Tax Day rolls around on April 18^th, you can head down to your local Cinnabon for free cinnamon bites. To help frazzled tax payers all Cinnabon, Schlotzsky’s Deli and Carvel locations will hand out two free Classic Cinnabon Bites per visitor. They are also hosting a Twitter based contest for a $100 Cinnabon Gift Card.

Benihana has seen steady sales growth in the last month, quarter and year according to their new sales figures for 2011. The sales increased an average of 7%. Benihana Teppanyaki also saw an 8% rise in overall traffic. The company’s Haru chain saw a nearly 4% drop in sales, however.

Denny’s is starting a stock repurchase program approved by the Board of Directors. The company plans to purchase about 6 million shares of its common stock from private investors. Denny’s has nearly a billion shares currently out of company hands. The exact timing of the purchase will depend on market conditions.

Jamba Juice now has a location in the Philadelphia International Airport thanks to RJ Franchise 2 and principal owner Ray Jones. The new retail operation opened in Terminal D, which includes boarding areas for Delta, United and Airtran airlines. Jamba Juice restaurants offer fresh smoothies, hot oatmeal and flatbread sandwiches.

The newest North Carolina Krispy Kreme location has opened in Fuquay-Varina. The first 50 customers in line all received a free year of donuts, with the first customer receiving a dozen Original Glazed donuts per week. The store will also begin its Krispy Kreme Drive for 45 to benefit Victory Junction, a camp for children with life threatening illnesses.

Denny’s Corporation, one of America’s largest full-service family restaurant chains, today announced that its Board of Directors has approved a new share repurchase program authorizing the Company to repurchase up to 6 million shares of its common stock. Under the program, the Company may purchase common stock from time to time in the open market or in privately negotiated transactions.

In addition, the Company announced that it has completed its previous 3 million share stock repurchase program announced November 9, 2010.

The amount and timing of any purchases will depend upon a number of factors, including the price and availability of the Company’s shares, trading volume and general market conditions. As of March 30, 2011, the Company had 98,817,552 shares of common stock outstanding.

The ice cream sundae celebrates its 119th birthday Sunday, April 3rd.

Since that time, ice cream sundaes have become a mainstay in the restaurant industry.  The traditional ice cream sundae is made up of vanilla ice cream with a flavored sauce or syrup topping, whipped cream and a maraschino cherry.  Over time, however, the ice cream sundae has evolved and given birth to a new generation of restaurant sundaes including the McFlurry and the Blizzard, although some may not necessarily consider those sundaes.

RestaurantNews.com takes a look at ice cream sundaes offered up by some of your favorite restaurants.

For going on seventy-five years, Friendly’s restaurants have been using their own homemade ice cream to bring Sundae smiles to their guests.  Friendly’s ice cream sundaes include the Forbidden Fudge Brownie, a Sweet Cinnamon Roll sundae, and the Caramel Cone Crunch, among others.  The Jim Dandy comes with five scoops of ice cream, a fresh split banana, walnuts, sprinkles, chocolate topping and strawberry or pineapple.

Dairy Queen restaurants have been scooping up ice cream sundaes for over sixty years, but the ice cream icon also offers soft-serve ice cream sundaes delivered in freshly-baked waffle bowls.  Waffle Bowl Sundaes are available like Chocolate Covered Strawberries, Fudge Brownie Temptation and Turtle.  You can also shake your ice cream world up with the Oreo Brownie Earthquake – an Oreo Brownie, soft serve ice cream, marshmallow topping, whipped topping and hot fudged and crushed Oreo cookies.

Baskin-Robbins offers a full line of Classic and Premium ice cream sundaes.  The Classic Sundae line includes a Banana Royale Sundae, a Brownie Sundae and a Classic Banana Split.  Premium Sundaes include Reese’s Peanut Butter Cup Sundae, Snickers Sundae, Oreo Layered Sundae and the Chocolate Chip Cookie Dough Sundae.  If you’re one of the more adventurous, Baskin-Robbins also lets you Build Your Own Sundae.

Cold Stone Creamery offers up seven delicious sundaes including No Fair Funnel Cake, Hunka Chunka Burnin’ Fudge, Who You Callin’ Shortcake, Churro Caramel Crave and more.  Cold Stone also provides a full line of Signature Creation treats like the Apple Pie A La Cold Stone, the Banana Caramel Crunch adn the Birthday Cake Remix.

Marble Slab Creamery has three new Tasty Creation Sundaes.  The Cherry Chocolate Crisp Sundae, the Double Toffee Sundae and the Peanut Butter Bliss Sundae.  Happy Sundae!

Sonic Drive-In offers classic Single Topping Sundaes including Hot Fudge, Strawberry, Chocolate, Pineapple and Caramel.  In addition, the chain also carries its own Sonic Blast line of ice cream and candy treats including Oreo, M&M’s, Reese’s Peanut Butter Cups, Butterfinger and Snickers.

Applebee’s Strawberry Cheesecake comes with cheesecake, strawberry sauce, graham cracker crumbs and whipped cream.  The Chocolate Chip Cookie Sundae includes a big, warm chocolate chip cookie topped with vanilla ice cream, hot fudge, whipped cream and Oreo Cookie pieces.  Applebee’s also offers a traditional Hot Fudge Sundae.

And, for a limited time, Denny’s restaurants boast a Maple Bacon Sundae on their new Celebration of Bacon menu.  Yes, creamy vanilla ice cream, hickory-smoked bacon and maple-flavored syrup.  Put a little sizzle in your sundae!

OpenTable has used over 7 million reviews from diners to compile a list of the Top 50 restaurants in the country. 11 winners were located in Los Angeles, followed by New York with 8 and Florida with 6. The top three restaurants were Beauty & Essex in New York City, Searsucker in San Diego and Lavo-NYC in New York City. The reviews were gathered between March 2010 and February 2011.

The crispy, skin-on fries from Wendy’s were part of a revitalizing move to increase fry sales for the chain. The previous fries were mostly limp and soggy, and customers have given the new fries positive feedback measurable by sale increases. Sea salt is used on the new fry line for better taste and lower sodium.

The Give Me More Stripes loyalty campaign at T.G.I. Friday’s national chains is getting a make over says the company. New surprises and increase recognition is coming to the system, along with faster rewards. Guests can join by visiting the website or texting JOIN to 698443. One stripe is awarded for each dollar spent at a participating restaurant.

The National Restaurant Association visited Congress recently to explain how the restaurant industry works and the effect that the new health care bill passed last year will have on it. The Patient Protection and Affordable Care Act will impact the restaurant industry negatively unless it is altered says the Association. The law will force many restaurant owners to expand the health care coverage for their employees, raising costs significantly.

Smashburger has had a very successful first three years. Since their launch they’ve grown explosively, with almost $140 million dollars in total sales. The success was a combination of a focus on quality burgers and fast service combined with a $20 million dollar investment capital that drove quick expansion.

The 3,000 international Dunkin’ Donuts location has been opened in China. The 71^st Chinese location for the company, it helps put Dunkin’ Donuts in the category of one of the fastest growing quick service chains during 2010. Russia and India are next, with over 600 restaurants currently in development or planning for openings in the next 15 years.

“Baconalia! A Celebration of Bacon” is currently underway at Denny’s restaurants in the form of a new bacon-focused menu. Seven new dishes are available that feature bacon as the main ingredient. Included on the menu are treats like the Maple Bacon Sunday and Triple Bacon Sampler. One guest will also win a trip to Baconfest 2011.

Delayed by the recent icestorms, Wingstop’s World Wing Eating Championship is back on. On April 16^th the world’s top competitive eaters, including number one eater Joey Chestnut, will enter the AT&T Arena in Dallas to compete with wings provided by Wingstop. Whoever eats the most wings in 12 minutes will win $10,000.

Stephen Loftis has been appointed as the new vice president of marketing for the FATZ casual southern dining chain. With over 40 locations in Tennessee, Georgia, the Carolinas and Virginia, the chain is switching its name from Fatz Cafe to FATZ as part of a re-structuring marketing campaign. New health conscious food choices will also be added to the menu.

Washington D.C.’s Silver Diner, one of the most popular modern diners in the country, has opened auditions for their new commercial. Homemade audition videos will be accepted of children between 5 and 12 years old through YouTube submission. The commercial will communicate Silver Diner’s commitment to health eating and family friendly choices.

Denny’s is paying homage to America’s love for all things bacon with the launch of “Baconalia! A Celebration of Bacon.”  No longer relegated to a side dish, bacon is now front and center within seven new mouthwatering ways to enjoy bacon.

Baconalia! is set to send bacon lovers rejoicing with a sizzling celebration in honor of America’s love affair with bacon. The new menu boasts a medley of both traditional bacon favorites, such as Bacon Meatloaf, to more unconventional items such as the Maple Bacon Sundae – a classic ice cream sundae piled high with maple-flavored syrup and a generous sprinkling of hickory-smoked bacon – yes, Denny’s really did put bacon in everything.

Not only are there seven meaty new menu items for customers to get their teeth into, there will also be a whole host of Baconalia! fun over the coming weeks. Bacon fans can get involved in lots of sizzling surprises, including a Facebook sweepstakes to send one bacon lover and a guest to Baconfest 2011 in Chicago on April 9.

The weeklong sweepstake, beginning today and ending at 9 a.m. ET on April 4, will see one lucky winner receive flights, accommodation and full VIP access to Baconfest. Five lucky runner-ups will also receive $100 gift cards to Denny’s so they can immerse themselves fully in the Baconalia! Celebrations.  To register, simply go to the Denny’s Facebook page and click on the Bacon Sweepstakes tab.

The limited time Baconalia! menu will have mouths watering with its pork-tastic variety of dishes, from the Ultimate Bacon Breakfast, six delicious strips of hickory-smoked bacon with two eggs, hash browns and choice of bread, to the Triple Bacon Sampler, featuring two tasty strips of hickory-smoked bacon, new pepper bacon and turkey bacon, all served with two eggs and hash browns, complete with more diced hickory-smoked bacon and cheddar cheese.

“The average American consumes more than 18 pounds of bacon per year*, so Denny’s decided to answer to the appetites of the nation and introduce a dedicated menu to the beauty that is bacon,” said John Dillon, Denny’s vice president of marketing and product development. “Denny’s continually strives to meet the wants and needs of its customers, and with over 67 percent of Americans describing bacon as flavorful and satisfying**, we’re sure the Baconalia! menu will please all those crackling cravings.”

Denny’s knows that bacon makes everything better – so whether it’s packed tightly in a BBBLT Sandwich, a triple-decker BLT with eight strips of hickory-smoked bacon, garden fresh lettuce and sliced tomato; sweet and salty in new Bacon Flapjacks, savory hickory-smoked bacon pancakes baked to perfection, or with a kick in new Pepper Bacon and Eggs, delicious black pepper rubbed bacon served with eggs, hash browns and bread – taking a bite out of the Baconalia! menu is sure to put a smile into anyone’s day.

And what better way to finish off your bacon than with one of Denny’s delicious real fruit smoothies, in four refreshing new flavors including Sweet Georgia Peach and Strawberry Banana Bliss – the perfect way to wind down your breakfast, lunch or dinner.

Launched nationwide on March 22, the seven-item Baconalia! menu is available all day, every day for a limited time only and offers price points starting from $2.99. The menu includes breakfast, lunch, dinner and dessert items -and with a certified seal of approval from the National Pork Board this is one celebration bacon connoisseurs won’t want to miss.

*Statistics from a study by onlineschools.org conducted in 2010

**Statistics from The National Pork Board Study Conducted in 2010

Olive Garden is giving away an 8 day tour of Italy, complete with a visit to the Culinary Institute of Tuscany. A daily first prize will also be awarded consisting of a $20 gift card. Visitors can enter through the company’s Facebook page, and additional entries will be granted for guests who check in during their visit to Foursquare or Facebook.

Denny’s restaurants have issued a challenge to ‘Man vs. Food’ star Adam Richman. The challenge involves him eating at least $40 worth of food from their $2 $4 $6 $8 Value Menu. Denny’s has also pledged to donate $12,468 to the Special Olympics if he takes the challenge. 16 items are featured on the menu.

The National Restaurant Association has spoken up to oppose S. 575, which will allow card swipe companies to put off revealing and restructuring their fee structures for another two years. Banks would be forced to compete for business, or could only charge fair and reasonable fees without compeition. The regulations only affect banks with assets over $10 billion. Representatives from the Association say that the delay would cost the restaurant industry $1.3 billion a month.

The new Coca-Cola Freestyle machine, containing over 100 drink options in the same footprint as a regular 8 nozzle drink dispenser, launched on March 15^th at Anthony’s Pizza & Pasta in Denver. 50 more machines will be tested for four years in restaurants throughout Georgia and Southern California. The new drink options include flavored waters and sparkling fruit juice beverages.

Smashburger is a multi-national chain that focuses on regional options and favorites in each of their restaurants. Currently available in 19 states, each location offers visitors the signature combinations and flavors of their city. For example, the local burger of San Diego features avocado and sour cream, while the Las Vegas version is topped with fried egg and bacon.

Saladworks, a new chain franchise specializing in tossed salads, is offering personal visits from the top three executives of the company to new franchisee owners. The team will take two trips a month to visit new developments in previously untapped markets. The franchisee can combine their knowledge of the local market with the executives’ expertise in the brand. Franchisees may find new expansion locations due to the real estate knowledge of the company.

New smoothies from Jamba Juice are designed to provide at least three full servings of fruits and vegetables in a 16 oz size cup. The three new flavors include Orange Carrot Karma, Apple n’ Greens and Berry UpBEET. The recipes combine vegetables and fruits to make sweet, tasty smoothies with a greater health benefit.

Dunkin’ Donuts has renewed their focus on new franchisee growth this year. Their main focus lies in Iowa this time, specifically around the Des Moines, Cedar Rapids and Sioux City. Operators in these marketers can take advantage of reduced royalties for three years and generous local marketing help if the stores open on time.

Cha Cha’s Tacos & Tequilas, located in Brea, California, is holding a celebration for Erendida Jacobo, a bartender who has been with the restaurant since the opening. Due to her recent diagnosis with breast cancer, the restaurant will donate 25% of all bar sales on the upcoming Erendida Day to help her pay for medical expenses. Local philanthropist Dwight Manley will match the restaurant’s donations.

On March 17^th and 18^th the first rounds of March Madness will be played, and Hooters is inviting basketball fans to visit their restaurants to watch the games. The chain is providing a joke Doctor’s Note for workers who are supposed to report to work, as well as a variety of coupons. Visitors can watch the first round games and enjoy wonderful food and a wide variety of beer and mixed drinks.

Denny’s, in partnership with Will Arnett and Jason Bateman’s digital content and production studio, DumbDumb and Ben Silverman’s multimedia studio, Electus, an operating business of IAC (Nasdaq: IACI), announced today the launch of its premier celebrity Web series, “Always Open.” The show is an extension of Denny’s latest nationwide campaign developed by NY ad agency Gotham and adds depth to the new “America’s Diner is always open” platform, allowing even more consumers access to the Denny’s experience of a warm and welcoming place where friends and family get together and “open up.”  Ensemble, the branded entertainment arm of Interpublic Group’s Mediabrands, played a key role in the development of the partnership and series.”

Hosted by comedic actor, David Koechner, of Anchorman, SNL and The Office fame, “Always Open” launches its first episode today at www.collegehumor.com/alwaysopen and seats Koechner in a Denny’s booth with Jason Bateman.  Also set to grace upcoming episodes are Will Arnett, Sarah Silverman, Amy Poehler, Will Forte and Kristin Bell.  All episodes take place on premise in a live, working Denny’s restaurant, where Koechner meets up with his comedic celeb cohorts for an anything-goes, 3-minute interview.  Everyone from diners and employees of Denny’s to talk show guests will interact together in this entertaining, spontaneous environment, providing further integration of brand and content.  ”Always Open” will be distributed across CollegeHumor.com, Denny’s.com, DumbDumb.com and will also be accessible via YouTube, Facebook and other social platforms.  

“We at DumbDumb are excited to be partnering with Denny’s in delivering a talent like Dave Koechner within a format that’s perfectly suited to showcase his unique comedic slant,” said Will Arnett and Jason Bateman.  “Going forward, we hope that “Always Open” establishes itself as a natural destination for many of today’s top figures in the entertainment industry. Frankly, we think this show is a grand slamwich.”

“For more than 50 years Denny’s has been a place where people come together to enjoy good food and conversation,” said Denny’s Chief Marketing Officer Frances Allen.  “The ‘Always Open’ series utilizes celebrities to draw attention to the kinds of dialog you’ll overhear all the time at Denny’s – sometimes funny, sometimes heartwarming, but always authentic.”

The idea for an interview segment was conceived by Gotham Inc. of the Interpublic Group of Companies (IPG).

“When we created the ‘always open’ brand platform for Denny’s, we did it with every intention of spreading that message across all media platforms,” explains Marty Orzio, Chief Creative Officer at Gotham. “The partnership with DumbDumb and Electus gives Denny’s the chance to speak to their customers in a fresh, fun way, while reinforcing its new brand positioning.”

The content, which is created and executive produced by Arnett and Bateman with Denny’s serving as a co-producer, utilizes web production and development expertise from leading online content site CollegeHumor.com, part of the Electus studio system, whose original content creations have been viewed over 300 million times with its viewers watching 100 years worth of video content each month.

“Major forward-thinking brands like Denny’s recognize that the traditional advertising model has transformed significantly over the last few years and are embracing new ways of reaching their consumers online,” said Laura Caraccioli-Davis, EVP of Advertising Solutions of Electus. “As one of America’s most iconic brands, we are excited to team up with Denny’s to not only create great content, but to help the brand express its values and personality to a broad audience, and to truly enhance its presence nationwide.”

The first webisode is currently available with the following two episodes airing on Wednesday, March 23rd and Wednesday, April 6th.

The Denny’s Development department has announced the recipients of its Vendor of the Year and General Contractor of the Year awards for the year 2010. The Vendor of the Year award, the seventh annual award Denny’s has issued, goes to A-1, Inc., of Burley, Idaho. A-1 is a full service booth and mill work manufacturer that also has provided stainless steel equipment to Denny’s restaurants. The recipient of the General Contractor of the Year award is On Site Management, of Farmington Hills, Michigan. On Site provides architectural engineering and construction management services to Denny’s.

“A-1 and On Site Management are valued partners to the Denny’s Development department and have continually demonstrated their commitment to the Denny’s brand,” commented Steve Dunn, Vice President of Development for Denny’s. “Both partners have consistently exceeded expectations by meeting deadlines on time and within budget which allows our Development team to execute on our growth and renovation plans accordingly.”

A-1, Inc. completed over 70 projects for Denny’s Development department in 2010, including the conversion of 35 Flying J Travel Center restaurants to Denny’s restaurants.

On Site Management has worked with the Denny’s Development department for the past 12 years, providing architectural design and construction management services to Denny’s corporate restaurants. On Site Management handled over 45 projects for Denny’s in 2010, including 15 Flying J conversions.

A-1, Inc. and On Site Management were presented with their awards at a luncheon in their honor earlier this month.

Denny’s Corporation (NASDAQ: DENN) one of America’s largest full-service family restaurant chains, today reported results for its fourth quarter and year ended December 29, 2010.

Full Year Summary

• Completed new management team with the addition of industry veteran John C. Miller as President and CEO.
• Opened 136 new units, including 100 Flying J Travel Center conversion sites and 6 units at university locations. In 2010, Denny’s had the highest number of domestic openings in its history.
• Refinanced debt to a lower cost $300 million credit facility, reduced outstanding debt by $15 million.
• Repurchased one million shares in the fourth quarter.
• Same-store sales decreased 3.6% at company units and 3.7% at franchised units. For the year, same-store guest counts decreased 1.9% at company units, although the last six months of the year increased 1.1%.
• Net income of $22.7 million, or $0.22 per diluted share. Net income was negatively impacted by a reduction of $9.9 million in gains from the sale of 57 fewer restaurants to franchisees as the FGI program continued to wind down, a $4.6 million reduction in workers’ compensation claims development benefit, $4.5 million in expenses related to the refinancing of the Company’s debt, and $2.0 million of expenses related to the proxy contest.
• Adjusted income before taxes* of $27.3 million. Adjusted income was also negatively impacted by the reduction in workers’ compensation claims development benefit noted above.

Fourth Quarter Summary

• Opened 58 new units, including 47 Flying J Travel Center conversion sites.
• Same-store guest counts decreased 0.2% which included an estimated negative impact of 0.5 percentage points from the severe weather across the United States during the fourth quarter.
• Same-store sales decreased 1.6% at company units and 1.4% at franchised units.
• Net income of $2.7 million, or $0.03 per diluted share. Net income was negatively impacted by a reduction of $8.0 million in gains from the sale of restaurants to franchisees, $4.3 million in expenses related to the refinancing of the Company’s debt, and a $3.9 million reduction in workers’ compensation claims development benefit.
• Adjusted income before taxes* of $5.1 million. Adjusted income was also impacted by the reduction in workers’ compensation claims development benefit noted above.
• Subsequent to the fourth quarter: Denny’s Corporation is pursuing an opportunistic re-pricing of its credit facility to take advantage of lower interest rates available in the current senior secured debt market.

Mark Wolfinger, Executive Vice President, Chief Administrative Officer and Chief Financial Officer, stated, “In 2010, the Company effectively executed its key areas of focus. In the second half of the year we drove positive same-store guest count growth, successfully converted Flying J Travel Centers at an accelerated pace, continued to deliver profitability, refinanced our debt to a lower cost facility, and repurchased shares.”

Mr. Wolfinger concluded, “With the recent addition of John Miller as CEO, our leadership team is now in place to execute on our growth strategy and to strengthen our position as America’s favorite diner. This will include building on the initial success of our everyday affordability strategy and leveraging the record number of new restaurants the Company opened in 2010. We look forward to building upon these successes in 2011.”

Fourth Quarter Results

For the fourth quarter of 2010, Denny’s reported total operating revenue, including company restaurant sales and franchise revenue, of $135.9 million compared with $140.5 million in the prior year quarter. Company restaurant sales decreased $7.6 million primarily due to 17 fewer equivalent company restaurants compared with the prior year quarter. The decrease in restaurants resulted from the sale of company restaurants to franchisees under Denny’s refranchising program.

Company restaurant operating margin (as a percentage of company restaurant sales) was 12.3%, a decrease of 4.0 percentage points compared with the same period last year. The operating margin was negatively impacted by a $3.9 million reduction in workers’ compensation claims development benefit and new store opening expenses related to the opening of 11 company-owned Flying J units.

Product costs increased 1.3 percentage points to 25.0% primarily due to the impact of increased commodity costs and a higher mix of value priced items. Payroll and benefit costs increased 3.3 percentage points to 41.9% primarily due to a $3.9 million reduction in workers’ compensation claims development benefit compared to the prior year. Other operating costs decreased 0.6 percentage points to 14.5% due to corporate investment in media in the prior year quarter, favorable legal claims development, lower utility expenses and lower repairs and maintenance costs. These decreases were partially offset by new store opening expenses associated with the opening of 11 company-owned Flying J units in the fourth quarter and a favorable credit card settlement in the prior year quarter.

Franchise and license revenue increased by $3.0 million to $32.2 million compared with $29.2 million in the prior year quarter. The increase in franchise revenue included a $1.5 million increase in franchise fees and $1.4 million increase in royalties. The franchise fee increase resulted from opening 44 franchise and license units in the fourth quarter of this year, which included 36 Flying J Travel Center conversions, one university location, and one international location. The royalty revenue increase was due to 106 additional equivalent franchise restaurants. In addition to opening 44 franchise units during the fourth quarter, Denny’s franchisees closed 11 restaurants, relocated 2 restaurants, and purchased 13 company restaurants.

Franchise operating margin increased $1.9 million to $20.7 million, primarily due to the $1.5 million increase in franchise fee revenue and an additional 106 equivalent franchise restaurants, partially offset by the effects of lower same-store sales. Franchise operating margin (as a percentage of franchise and license revenue) was 64.3%, a decrease of 0.3 percentage points compared with the same quarter last year. The decrease in margin was primarily driven by temporary overhead costs associated with converting the Flying J sites.

General and administrative expenses increased $1.8 million from the same period last year. This increase was primarily driven by the timing of incentive compensation accruals as general and administrative expenses for the full year decreased $1.7 million compared to 2009.

Depreciation and amortization expense declined by $0.1 million compared with the prior year quarter primarily as a result of the sale of restaurants and real estate over the past year, offset by the addition of 24 new units in 2010. Operating gains, losses and other charges, net, which reflect restructuring charges, exit costs, impairment charges and gains or losses on the sale of assets, decreased $5.0 million in the quarter. This decrease resulted from lower gains on the sale of company restaurants and real estate to franchisees, offset by lower severance and other restructuring charges.

Operating income for the quarter decreased $10.3 million from the prior year period to $14.1 million, primarily due to the decrease in gains on the sale of assets and a $4.6 million decrease in total operating revenue attributable to the sale of company restaurants.

Interest expense decreased $1.3 million, or 16.3%, to $6.5 million as a result of the termination of an interest rate swap in late 2009, a $15.4 million reduction in debt from the prior year period, and lower interest rates under the new $300 million credit facility. Other nonoperating expense increased $6.1 million in the quarter primarily due to expenses associated with the refinancing of the Company’s debt.

Denny’s reported net income of $2.7 million for the fourth quarter, or $0.03 per diluted common share, compared with prior year period net income of $17.9 million, or $0.18 per diluted common share. Adjusted income before taxes*, Denny’s metric for earnings guidance, was $5.1 million compared with prior year period income of $9.1 million.

Business Outlook

Mark Wolfinger, Executive Vice President, Chief Administrative Officer and Chief Financial Officer, stated,

“We anticipate building on the momentum we established in the second half of 2010. We expect that our ongoing transition to a franchise focused business model will continue to enable growth in unit development and profitability while delivering increased free cash flow generation that will be used to strengthen our balance sheet and pursue other shareholder friendly activities.”

The following financial guidance for full-year 2011 is based on 2010 results and management’s expectations at this time:

• Both company and franchise same-store sales from (2.0%) to 1.0% with the first quarter expected to be the lowest of the year given the impact of the 2010 Super Bowl promotion
• 70 to 75 new restaurant openings, including:
  • approximately 25 Flying J conversions, of which 5 – 10 will be company operated
  • 10 university sites
  • 2 company operated fast-casual Denny’s Café test sites
• Adjusted EBITDA* between $80 million and $85 million
• Adjusted Income before taxes* between $36 million and $40 million
• Cash interest expense of $19 million
• Cash capital expenditures of $18 million

Denny’s Corporation is pursuing an opportunistic re-pricing of its credit facility to take advantage of lower interest rates available in the current senior secured debt market. The potential impact of this re-pricing is not reflected in the above guidance.

Further Information

Denny’s will provide further commentary on the results for the full year and fourth quarter of 2010 and its outlook for 2011 on its quarterly investor conference call today, Tuesday, February 15, 2011 at 5:00 p.m. ET. Interested parties are invited to listen to a live broadcast of the conference call accessible through the investor relations section of Denny’s website at ir.dennys.com. A replay of the call may be accessed at the same location later in the day and will remain available for 30 days.

Denny’s is one of America’s largest full-service family restaurant chains, currently operating more than 1,600 franchised, licensed, and Company-owned restaurants across the United States, Canada, Costa Rica, Mexico, Honduras, Guam, Puerto Rico and New Zealand. 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.

Denny’s Corporation has unveiled its new America’s Diner brand positioning to the nation; reminding consumers that ‘America’s Diner is Always Open’ and celebrating the open and authentic diner experience that has welcomed Denny’s guests for more than 50 years. Extending well beyond its 24/7 hours of operation, the openness theme represents a renewed brand spirit for the national chain that will serve as the platform for all communications across its advertising, employees, menu and in-restaurant marketing programs.

Frances Allen, Chief Marketing Officer for Denny’s commented: “Diners are an iconic fixture in America, whether customers live around the corner or are passing through town they provide a welcome environment and genuine sense of community. As America’s only national diner chain, we are proud to showcase our rich diner heritage along with the core attributes of the Denny’s brand: openness, warmth, comfort and familiarity.”

The ‘America’s Diner is Always Open’ campaign includes the initial launch of four television spots, called “Dinersodes.” The spots, which include both 30 second and 15 second versions and began to air on January 19^th, centers around the possibilities that emerge when an environment is open in every sense of the word. The “Dinersodes” depict the open dialogue between guests and Denny’s servers as a way to communicate and dramatize the warm, familiar atmosphere that guests experience at Denny’s.

Ms. Allen continued: “This brand initiative is significant for Denny’s because it brings the company back to its roots. The “Dinersodes” showcase the open and welcoming experience that guests already enjoy at our 1,600+ restaurants and serve as our next step in recapturing the hearts and stomachs of American consumers. For Denny’s, openness is about much more than our 24/7 hours of operation, it also includes a truly diverse menu that covers all price points and dietary preferences, with the enjoyment of a ‘come as you are’ attitude that makes all guests feel right at home.”

“My goal with the ‘America’s Diner is Always Open’ campaign is to remind our regular customers of Denny’s accessibility and value-oriented menu, while also serving as a platform to introduce the next generation of Denny’s guests to the joys of classic American comfort food at whatever time of the day or night they may choose,” added Ms. Allen.

In addition to the television spots, Denny’s is incorporating the brand spirit of openness into all communications, including the development of an ‘Open Manifesto’ for all restaurant employees, encouraging them to be open to suggestions from guests and open to feedback in order to deliver better service. The openness theme will also be delivered through a redesigned website experience, social media, including Denny’s Facebook and Twitter accounts, as well as menu design and certain in-store marketing initiatives.

Gotham CEO, Peter McGuinness, added: “This campaign emerged directly from the Denny’s brand itself. The diner experience is genuine, interactive and open. We are pleased to have our inaugural campaign capture the shift in emphasis from just talking about being open in terms of hours to being open in our attitude and embracing openness in the fullest sense. This was an exciting breakthrough for us and we’re confident that the differentiation of the in-store experience as well as the food will build the brand and drive the business.”

Denny’s Corporation, one of America’s largest full-service family restaurant chains, today announced the appointment of Chief Financial Officer, F. Mark Wolfinger to the Board of Directors, effective January 26, 2011. The Company also appointed newly hired President and Chief Executive Officer, John C. Miller to the Board of Directors, effective February 1, 2011.

Mr. Wolfinger currently serves as Executive Vice President, Chief Administrative Officer and Chief Financial Officer. Mr. Wolfinger is responsible for the overall financial direction of the company in addition to overseeing the Development, Information Technology, Purchasing and Legal functions. Mr. Wolfinger joined Denny’s in September 2005 and has been instrumental in helping to strengthen the brand and solidify the company’s capital structure.

Brenda Lauderback, chair of Denny’s Corporate Governance and Nominating Committee, stated, “Mark has proven through his contributions and increasing responsibilities over the past six years to be a significant asset to Denny’s and we look forward to adding his expertise, judgment and insight to the Board. Among his many meaningful contributions, Mark has led our successful Franchise Growth Initiative (FGI) which has transformed Denny’s business model to a more heavily franchised system, he has strengthened the Company’s capital structure, and most recently he spearheaded our strong development effort that resulted in the opening of more new domestic restaurants in 2010 than in any year in the brand’s 57 year history.”

Denny’s Corporation (NASDAQ: DENN), one of America’s largest full-service family restaurant chains, today announced the appointment of John C. Miller to the position of President and Chief Executive Officer, effective February 1, 2011. Mr. Miller succeeds Debra Smithart-Oglesby who has filled the position on an interim basis since June 2010. Ms. Smithart-Oglesby will continue to serve as board chair for Denny’s.

“John is a proven leader in the restaurant industry who has the talent and experience to build upon our current momentum and accelerate the resurgence of the Denny’s business and brand,” commented Louis P. Neeb, head of the board’s CEO search committee. “We conducted an extensive international search including dozens of highly-qualified candidates and believe that John has the right combination of skills and experience to further our growth and create additional value. He brings a passion for understanding and building brands, extensive operating skills at all levels of the business, a talent for leading management teams and working with franchisees, along with a proven ability to deliver growth and financial performance.”

Mr. Neeb also commented, “Debra has done an outstanding job as interim CEO over the past six months in leading a turnaround at Denny’s and creating considerable forward momentum. The Company is indebted to her and looks forward to her continued guidance and leadership as board chair.”

Mr. Miller joins Denny’s management team with more than 30 years of restaurant industry experience. Since 2005, he has served as Chief Executive Officer and President at Taco Bueno Restaurants, Inc., an operator and franchisor of quick service Mexican eateries with 190 units. Prior to Taco Bueno, Mr. Miller spent 17 years at Brinker International where he held numerous management positions. From 1997 to 2004, he served as President at Romano’s Macaroni Grill where he helped reverse three years of declining sales and growth, generating 15 consecutive quarters of sales and profit increases, and more than doubling the company’s size. Mr. Miller also served as President of Brinker’s Mexican Concepts, responsible for overseeing On the Border and Cozymel’s, two of the Company’s high growth concepts. Early in his career, Mr. Miller held various operations and restaurant management positions at Unigate Restaurant/Casa Bonita in Dallas, Texas.

Debra Smithart-Oglesby, Denny’s board chair, added: “I know John well from my time at Brinker and he will be an outstanding leader for Denny’s. Together with Mark Wolfinger, our CAO and CFO, and Frances Allen and Robert Rodriguez, who recently joined as CMO and COO, respectively, we have built a first-class leadership team at Denny’s. I am very proud of the progress we have made during the second half of last year and I look forward to working closely with John, the rest of our executive team and my fellow board members to build upon this momentum and enhance value for our investors, franchisees, partners and employees going forward.”

The Compensation and Incentives Committee of Denny’s Board of Directors approved the following incentive awards to Mr. Miller as an inducement to his employment: (i) 200,000 performance-based restricted stock units, and (ii) a non-qualified stock option to purchase up to 200,000 shares of common stock.

The performance-based restricted stock units represent the right to earn up to 200,000 shares of Denny’s common stock, based on the closing price of the common stock exceeding specific price hurdles for 20 consecutive trading days, and subject to Mr. Miller’s continued employment with Denny’s.

The stock options will have an exercise price per share equal to the fair market value of the underlying shares as of the grant date. The options will vest in equal annual installments on each of the first three anniversaries of the grant date, subject to Mr. Miller’s continued employment with Denny’s. The stock options have a maximum term of ten (10) years.

The awards were negotiated and approved as an inducement to Mr. Miller’s entering into employment with Denny’s in accordance with NASDAQ Listing Rule 5635(c)(4).

Denny’s, one of the world’s most recognized restaurant brands, and Chartwells Higher Education Dining Services on the Auburn University campus in Alabama are gearing up students for an exciting all-nighter.

Denny’s AllNighter concept is a quick-serve model with counter service ordering that caters to the night-owl college crowd interested in late night dining on campus. Hungry students looking for a safe and comfortable place to eat can socialize at the Denny’s location at the campus food court until 1:00 AM.

Steve Sweeney, Chartwells’ President and CEO said, “We feel that there is student demand for late-night dining, and with our partnership with Denny’s, we’re able to provide a unique service to accommodate the needs of not only Auburn University’s active campus but for many of our clients.”

“We conducted campus surveys at Tiger Dining locations and the main draw was the all day/all night breakfast option and great value for the price.  Denny’s is best known for both of these offerings.” said Fred Heaviside, Chartwells’ Regional Vice President.

Denny’s Greg Powell, Vice President – Concept Development agrees.  “We’re excited about our partnership with Chartwells. We have successfully opened other locations on college campuses and are confident that the Denny’s AllNighter concept will create a great dining experience for Auburn University students during traditional and late night dining hours.”

Students, faculty and the public can enjoy Denny’s popular Grand Slam® breakfast any time, including the new Grandslamwich®, juicy hand-pressed burgers, salads, and health conscious Better-For-You menu choices exclusive to Denny’s. A downsized menu also fits the lifestyle of the busy student on-the-go with late-night snack options such as sliders or the AllNighter Sampler.

David Robinson, Director, Business Development for Auxiliary Services at Auburn University said, “Auburn University is excited to add Denny’s to the lineup of on-campus dining.  We believe Denny’s variety and quality will satisfy student appetites for that late night meal.”

Denny’s AllNighter dining concept will open January 10th within West View Dining in The Village on the Auburn University campus at 520 Thach Circle. Visit the Chartwells Tiger Dining website at http://www.dineoncampus.com/auburn/ for hours and details.

Denny’s Corporation (NASDAQ: DENN) today announced the adoption of a pre-arranged stock trading plan for the purpose of repurchasing a limited number of Denny’s Corporation (the “Company”) common stock in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934 and the Company’s policies regarding stock transactions. This plan has been established in accordance with, and as a part of, the Company’s stock repurchase program previously announced on November 9, 2010.

Rule 10b5-1 allows a company to adopt a written, pre-arranged stock trading plan at a time when it does not have material, non-public information and avoid concerns about whether it had material, non-public information at the time of the repurchase transactions pursuant to the plan.

Repurchases under the Company’s 10b5-1 plan will be administered through an independent broker. The plan will cover the repurchase of shares commencing no earlier than January 13, 2011 and expiring June 14, 2011. Repurchases are subject to SEC regulations as well as certain price, market volume and timing constraints specified in the plan.

Denny’s is one of America’s largest full-service family restaurant chains, currently operating over 1,600 franchised, licensed, and Company-owned restaurants across the United States, Canada, Costa Rica, Mexico, Guam, Honduras, Puerto Rico and New Zealand. 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.

Denny’s Corporation (NASDAQ: DENN) today announced the opening of its first Denny’s Café location, marking the first fast-casual restaurant for the company. Denny’s Café offers a smaller version of the traditional Denny’s experience that caters to guests with a more streamlined menu, counter service ordering and a smaller real estate footprint that allows for easier entrance into urban, more densely populated markets.

The opening of the first Denny’s Café location will take place on November 12, 2010, in Orange, California. Denny’s Café leverages the traditional Denny’s brand image to offer diners the same family restaurant experience in a setting that provides a faster service model, where guests will be able to order from menu boards at the counter, select their table and have the food delivered directly to them. Denny’s Café features a more abbreviated menu, offering most of the traditional favorites found at Denny’s, including the ‘$2 $4 $6 $8’ value menu.

“We saw a unique opportunity to continue growing the Denny’s brand in markets where our full size traditional restaurant does not fit due to real estate size constraints,” commented Steve Dunn, Vice President, Development for Denny’s Corporation. “The Denny’s brand has a strong following and Denny’s Café allows us to leverage our expertise by offering a similar concept that is more compatible with the real estate opportunities available to us in many desirable markets.”

The second Denny’s Café is expected to open in Livermore, California in December 2010. Both locations will be company-owned restaurants. Denny’s Café locations will seat 75 to 90 guests and will be approximately 3,000 square feet in size. The restaurant will operate between 7am and 10pm daily.

Denny’s Corporation (NASDAQ: DENN), one of America’s largest full-service family restaurant chains, today announced that its Board of Directors has approved a share repurchase program authorizing the Company to repurchase up to 3.0 million shares of its common stock. Under the program, the Company may purchase common stock from time to time through December 31, 2011 in the open market or in privately negotiated transactions.

The amount and timing of any purchases will depend upon a number of factors, including the price and availability of the Company’s shares, trading volume and general market conditions.

As of September 29, 2010, the Company had 99,627,084 shares of common stock outstanding.

Denny’s is one of America’s largest full-service family restaurant chains, currently operating 1,600 franchised, licensed, and Company-owned restaurants across the United States, Canada, Costa Rica, Mexico, Guam, Puerto Rico and New Zealand. 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.

Denny’s Corporation (NASDAQ: DENN) today announced that the tender offer (the “Tender Offer”) by Denny’s Holdings, a wholly owned subsidiary of Denny’s Corporation, for its 10% Senior Notes due 2012, guaranteed by Denny’s Corporation (the “Notes”) (CUSIP No. 24869QAB8) expired at 11:59 p.m., New York City time, on October 6, 2010 (the “Expiration Time”). At the Expiration Time, an aggregate of $125,279,000 in principal amount of the Notes (71.59% of the original amount of the Notes) had been validly tendered and not validly withdrawn in the Tender Offer. Of that amount, as of September 22, 2010, at 5:00 p.m. New York City time (the “Consent Date”), $125,266,000 in principal amount of the Notes had been validly tendered and not validly withdrawn. On September 30, 2010, Denny’s Holdings paid $1,002.50 (the “Total Consideration”) for each $1,000 principal amount of the Notes validly tendered on or prior to the Consent Date, which included a consent payment of $10.00 per $1,000 principal amount of Notes, plus accrued and unpaid interest on the purchased Notes up to, but not including, September 30, 2010. On October 7, 2010, Denny’s Holdings paid $992.50 for each $1,000 principal amount of the Notes tender after the Consent Date but before the Expiration Time, plus accrued and unpaid interest on such purchased Notes up to, but not including, October 7, 2010. After giving effect to the Notes purchased in the Tender Offer an aggregate of $49,721,000 principal amount of the Notes currently remain outstanding.

On October 1, 2010, Denny’s Holdings gave a notice of redemption pursuant to the Indenture dated as of October 5, 2004 (as amended by Supplemental Indenture dated as of September 22, 2010, the “Indenture”) among Denny’s Holdings, Denny’s Corporation and U.S. Bank National Association, as trustee, providing that it will redeem all of the aggregate principal amount of the Notes not purchased in the Tender Offer at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date. The redemption date for such Notes is November 1, 2010.

This press release is neither an offer to purchase, nor a solicitation for acceptance of an offer to sell, the Notes. Denny’s Holdings made the Tender Offer only by, and pursuant to the terms of, the Offer to Purchase and the related Letter of Transmittal.

BofA Merrill Lynch and Wells Fargo Securities acted as exclusive Dealer Managers and Solicitation Agents for the Tender Offer. Questions regarding the Tender Offer may be directed to BofA Merrill Lynch at 888-292-0070 (toll-free) and 646-855-3401 (collect) and Wells Fargo Securities at 866-309-6316 (toll-free) and 704-715-8341 (collect).