Denny’s Corporation Reports Results for Third Quarter 2025

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. 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. 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.

Author: Denny's Corporation

---