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Denny's Corporation (DENN)

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Previous Close17.41
Open17.52
Bid17.43 x 1000
Ask17.51 x 1800
Day's Range17.24 - 17.71
52 Week Range7.87 - 20.02
Volume47,430
Avg. Volume551,122
Market Cap1.134B
Beta (5Y Monthly)1.80
PE Ratio (TTM)126.29
EPS (TTM)0.14
Earnings DateJul 26, 2021 - Jul 30, 2021
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est20.11
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  • Denny's Corp (DENN) Q1 2021 Earnings Call Transcript
    Motley Fool

    Denny's Corp (DENN) Q1 2021 Earnings Call Transcript

    DENN earnings call for the period ending March 31, 2021.

  • Denny's (DENN) Misses Q1 Earnings Estimates
    Zacks

    Denny's (DENN) Misses Q1 Earnings Estimates

    Denny's (DENN) delivered earnings and revenue surprises of -50.00% and 1.64%, respectively, for the quarter ended March 2021. Do the numbers hold clues to what lies ahead for the stock?

  • Denny’s Corporation Reports Results for First Quarter 2021
    GlobeNewswire

    Denny’s Corporation Reports Results for First Quarter 2021

    SPARTANBURG, S.C., May 04, 2021 (GLOBE NEWSWIRE) -- Denny’s Corporation (NASDAQ: DENN), franchisor and operator of one of America's largest franchised full-service restaurant chains, today reported results for its first quarter ended March 31, 2021 and provided a business update on the impact of the COVID-19 pandemic on the Company’s operations. John Miller, Chief Executive Officer, stated, “We entered 2021 confident in the resilience of Denny's given the strength of our franchisees and team that continues to persevere and deliver a great experience to our guests. Our initial optimism is now being supported by sequential sales improvements, as our dining rooms have reopened in various capacities with the increase of vaccine distributions. The easing of dine-in restrictions, coupled with fiscal stimulus and the rollout of our new virtual brands, have resulted in our same-store sales trending toward pre-pandemic levels." First Quarter 2021 Highlights Total Operating Revenue was $80.6 million.Domestic system-wide same-store sales** decreased 20.0% compared to the equivalent fiscal period in 2019.Domestic system-wide same-store sales** decreased 9.7% compared to the equivalent fiscal period in 2020.Opened three franchised restaurants, including two international locations.Operating Income was $5.5 million.Franchise Operating Margin* was $23.2 million, or 49.5% of franchise and license revenue, and Company Restaurant Operating Margin* was $3.4 million, or 10.1% of company restaurant sales.Net Income was $23.2 million, or $0.35 per diluted share.Adjusted Net Income* was $0.5 million, or $0.01 per diluted share.Adjusted EBITDA* was $11.8 million.Cash provided by operating, investing, and financing activities was $10.2 million, $0.2 million, and $0.2 million, respectively.Adjusted Free Cash Flow* was $5.2 million. Current Trends Domestic system-wide same-store sales** sequentially improved on a monthly basis during the first quarter ended March 31, 2021, compared to the equivalent fiscal periods in 2019. This is due to expanding vaccine deployment which has led to the easing of stay-at-home orders and capacity restrictions. As the number of Denny's restaurants operating with open dining rooms steadily improved to 98% of the domestic system, off-premise sales have remained strong. Additionally, the Company began a phased rollout of its first virtual brand, The Burger Den, during the first quarter. In April 2021, the Burger Den rollout was substantially complete at over 1,100 domestic locations, and the Company began the phased rollout of its second virtual brand, The Meltdown. Transactions for these two virtual brands are highly incremental and leverage labor during underutilized dayparts. Furthermore, subsequent to the end of the first quarter, the Company paid down an additional $15 million on its revolving credit facility bringing the outstanding balance as of April 30, 2021 to $200 million. In an effort to provide greater transparency due to the COVID-19 pandemic, Denny's is providing the following tables that present monthly results for 2021 compared to the equivalent fiscal periods in 2019: Domestic System-Wide Same-Store Sales** Compared to 2019 Fiscal Periods and Domestic Average Units for 2021 Fiscal Periods Domestic System-Wide Same-Store Sales** Fiscal Year 20211 JanFebMarApr 1 System(31%)(25%)(9%)(2%) Open Dining Rooms(15%)(17%)(5%)(2%) Closed Dining Rooms(55%)(40%)(23%)(7%) 24/7 Units(20%)(16%)2%11% Limited Hour Units(38%)(32%)(16%)(11%) 1. April results are preliminary. Domestic Average Units Fiscal Year 20211 JanFebMarApr 1 System1,5041,5011,5011,498 Open Dining Rooms9271,0381,2531,472 Closed Dining Rooms53142222815 24/7 Units519532569565 Limited Hour Units939928912922 Temporary Closures46412011 1. April results are preliminary. Domestic Capacity Restrictions as of April 30, 20211: % of Domestic System 75% Capacity or Social Distancing39% 50% - 66% Capacity29% 25% - 33% Capacity9% Off-Premise Only1% No Restrictions22% Temporarily Closed<1% Total100% 1. Preliminary results. First Quarter Results Denny’s total operating revenue was $80.6 million compared to $96.7 million in the prior year quarter. Franchise and license revenue was $47.0 million compared to $54.4 million in the prior year quarter. Company restaurant sales were $33.6 million compared to $42.3 million in the prior year quarter. These changes were primarily due to the impact of the COVID-19 pandemic on sales and fewer equivalent units. Franchise Operating Margin* was $23.2 million, or 49.5% of franchise and license revenue, compared to $25.2 million, or 46.4%, in the prior year quarter. This margin decrease was primarily due to the impact of the COVID-19 pandemic on sales and fewer equivalent units, partially offset by abatements and bad debt expense recorded in the prior year quarter. Company Restaurant Operating Margin* was $3.4 million, or 10.1% of company restaurant sales, compared to $6.2 million, or 14.6%, in the prior year quarter. This change in margin was primarily due to the impact of the COVID-19 pandemic on sales and fewer equivalent units. Total general and administrative expenses were $16.9 million, compared to $7.7 million in the prior year quarter. This change was primarily due to increases in share-based compensation expense, market valuation changes in the Company's deferred compensation plan liabilities, and performance-based incentive compensation compared to the prior year quarter. These increases were partially offset by a $0.9 million improvement in corporate administrative expenses related to previous reductions in personnel due to the COVID-19 pandemic and other cost savings initiatives. Denny’s ended the quarter with $229.9 million of total debt outstanding, including $215.0 million of borrowings under its credit facility. The provision for income taxes was $8.1 million, compared to $2.3 million in the prior year quarter, reflecting an effective tax rate of 25.9%. Approximately $0.4 million in cash taxes were paid during the quarter. Net income was $23.2 million, or $0.35 per diluted share, compared to net income of $9.0 million, or $0.16 per diluted share, in the prior year quarter. Adjusted Net Income* per diluted share was $0.01 compared to Adjusted Net Income* per diluted share of $0.17 in the prior year quarter. Adjusted Free Cash Flow* and Capital Allocation Denny’s Adjusted Free Cash Flow* in the quarter was $5.2 million after investing $1.6 million in cash capital expenditures, including maintenance capital. Business Outlook Given the dynamic and evolving impact of the COVID-19 pandemic on the Company's operations and uncertainty about the timing and extent of an anticipated recovery, the Company cannot reasonably provide a business outlook for the fiscal year ending December 29, 2021 at this time. *Please refer to the Reconciliation of Net Income and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures, as well as the Reconciliation of Operating Income to Non-GAAP Financial Measures included in the following tables. **Same-store 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, fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-store sales and domestic system-wide same-store sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP. Conference Call and Webcast Information Denny’s will provide further commentary on the results for the first quarter ended March 31, 2021 on its quarterly investor conference call today, Tuesday, May 4, 2021 at 4:30 p.m. Eastern Time. 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 investor.dennys.com. About Denny’s Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of March 31, 2021, Denny’s had 1,649 franchised, licensed, and company restaurants around the world including 148 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom. 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 at investor.dennys.com. 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: the rapidly evolving COVID-19 pandemic and related containment measures, including the potential for further operational disruption from government mandates affecting restaurants; economic, public health, social and political conditions that impact consumer confidence and spending with respect to social unrest and the COVID-19 pandemic; 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 (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 30, 2020 (and in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). DENNY’S CORPORATIONCondensed Consolidated Balance Sheets(Unaudited) (In thousands)3/31/21 12/30/20Assets Current assets Cash and cash equivalents$14,508 $3,892 Investments2,064 2,272 Receivables, net20,821 21,349 Assets held for sale1,620 1,125 Other current assets14,721 20,028 Total current assets53,734 48,666 Property, net83,963 86,154 Financing lease right-of-use assets, net9,401 9,830 Operating lease right-of-use assets, net135,004 139,534 Goodwill36,884 36,884 Intangible assets, net51,226 51,559 Deferred income taxes, net18,052 23,210 Other noncurrent assets, net34,661 35,112 Total assets$422,925 $430,949 Liabilities Current liabilities Current finance lease liabilities$1,808 $1,839 Current operating lease liabilities16,210 16,856 Accounts payable10,632 12,021 Other current liabilities47,169 46,462 Total current liabilities75,819 77,178 Long-term liabilities Long-term debt215,000 210,000 Noncurrent finance lease liabilities13,116 13,530 Noncurrent operating lease liabilities133,051 137,534 Other88,011 123,153 Total long-term liabilities449,178 484,217 Total liabilities524,997 561,395 Shareholders' deficit Common stock641 640 Paid-in capital125,950 123,833 Deficit(171,333) (194,514) Accumulated other comprehensive loss, net(57,330) (60,405) Total shareholders' deficit(102,072) (130,446) Total liabilities and shareholders' deficit$422,925 $430,949 Debt Balances(In thousands)3/31/21 12/30/20Credit facility revolver due 2022$215,000 $210,000 Finance lease liabilities14,924 15,369 Total debt$229,924 $225,369 DENNY’S CORPORATIONCondensed Consolidated Statements of Operations(Unaudited) Quarter Ended(In thousands, except per share amounts)3/31/21 3/25/20Revenue: Company restaurant sales$33,569 $42,291 Franchise and license revenue47,007 54,404 Total operating revenue80,576 96,695 Costs of company restaurant sales, excluding depreciation and amortization30,164 36,118 Costs of franchise and license revenue, excluding depreciation and amortization23,758 29,170 General and administrative expenses16,947 7,742 Depreciation and amortization3,661 4,146 Operating (gains), losses and other charges, net532 1,473 Total operating costs and expenses, net75,062 78,649 Operating income5,514 18,046 Interest expense, net4,277 3,951 Other nonoperating expense (income), net(30,048) 2,763 Income before income taxes31,285 11,332 Provision for income taxes8,104 2,319 Net income$23,181 $9,013 Basic net income per share$0.36 $0.16 Diluted net income per share$0.35 $0.16 Basic weighted average shares outstanding65,251 56,300 Diluted weighted average shares outstanding65,749 58,106 Comprehensive income (loss)$26,256 $(23,659) General and Administrative Expenses Quarter Ended(In thousands)3/31/21 3/25/20Corporate administrative expenses$10,872 $11,781 Share-based compensation3,472 (1,537) Incentive compensation2,086 14 Deferred compensation valuation adjustments517 (2,516) Total general and administrative expenses$16,947 $7,742 DENNY’S CORPORATIONReconciliation of Net Income and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures(Unaudited) The Company believes that, in addition to GAAP measures, certain non-GAAP financial measures are appropriate indicators to assist in the evaluation of operating performance and liquidity on a period-to-period basis. The Company uses Adjusted EBITDA, Adjusted Free Cash Flow, 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. Adjusted EBITDA is also used in the calculation of financial covenant ratios in accordance with the Company’s credit facility. Adjusted Free Cash Flow is also used as a non-GAAP liquidity measure by Management to assess the Company’s ability to generate cash and plan for future operating and capital actions. Management believes that the presentation of Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share and Adjusted Free Cash Flow provide useful information to investors and analysts about the Company’s operating results, financial condition or cash flows. However, each of these non-GAAP financial measures should be considered as a supplement to, not a substitute for, operating income, net income, net cash provided by operating activities, or other financial performance and liquidity measures prepared in accordance with U.S. generally accepted accounting principles. Quarter Ended(In thousands)3/31/21 3/25/20Net income$23,181 $9,013 Provision for income taxes8,104 2,319 Operating (gains), losses and other charges, net532 1,473 Other nonoperating expense (income), net(30,048) 2,763 Share-based compensation expense (benefit)3,472 (1,537) Deferred compensation plan valuation adjustments517 (2,516) Interest expense, net4,277 3,951 Depreciation and amortization3,661 4,146 Cash payments for restructuring charges and exit costs(405) (684) Cash payments for share-based compensation(1,496) (3,211) Adjusted EBITDA$11,795 $15,717 DENNY’S CORPORATIONReconciliation of Net Income and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures(Unaudited) Quarter Ended(In thousands)3/31/21 3/25/20Net cash provided by operating activities$10,235 $1,901 Capital expenditures(1,583) (2,818) Cash payments for restructuring charges and exit costs(405) (684) Cash payments for share-based compensation(1,496) (3,211) Deferred compensation plan valuation adjustments517 (2,516) Other nonoperating expense (income), net(30,048) 2,763 Gains (losses) on investments(8) 116 Losses on termination of leases(34) (28) Amortization of deferred financing costs(344) (152) Gains on interest rate swap derivatives, net29,733 — Interest expense, net4,277 3,951 Cash interest expense, net (1)(4,586) (3,720) Deferred income tax (expense) benefit(4,099) 2,577 Provision for income taxes8,104 2,319 Income taxes paid, net(421) (224) Changes in operating assets and liabilities Receivables(353) (15,815) Inventories(13) 4 Other current assets(5,294) (4,111) Other noncurrent assets201 (1,578) Operating lease assets and liabilities604 18 Accounts payable(1,820) 7,465 Accrued payroll1,704 12,783 Accrued taxes380 971 Other accrued liabilities(1,195) 6,337 Other noncurrent liabilities1,149 2,607 Adjusted Free Cash Flow$5,205 $8,955 (1)Includes cash interest expense, net and cash payments of approximately $0.8 million for dedesignated interest rate swap derivatives for the quarter ended March 31, 2021. DENNY’S CORPORATIONReconciliation of Net Income and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures(Unaudited) Quarter Ended(In thousands)3/31/21 3/25/20Adjusted EBITDA$11,795 $15,717 Cash interest expense, net (1)(4,586) (3,720) Cash paid for income taxes, net(421) (224) Cash paid for capital expenditures(1,583) (2,818) Adjusted Free Cash Flow$5,205 $8,955 Quarter Ended(In thousands, except per share amounts)3/31/21 3/25/20Net income$23,181 $9,013 Gains on interest rate swap derivatives, net(29,733) — Gains on sales of assets and other, net(942) (1,070) Impairment charges— 2,181 Tax effect (2)7,945 (228) Adjusted Net Income$451 $9,896 Diluted weighted average shares outstanding65,749 58,106 Diluted Net Income Per Share$0.35 $0.16 Adjustments Per Share$(0.34) $0.01 Adjusted Net Income Per Share$0.01 $0.17 (1)Includes cash interest expense, net and cash payments of approximately $0.8 million for dedesignated interest rate swap derivatives for the quarter ended March 31, 2021.(2)Tax adjustments for the quarter ended March 31, 2021 reflect an effective tax rate of 25.9%. Tax adjustments for the quarter ended March 25, 2020 are calculated using an effective tax rate of 20.5%. DENNY’S CORPORATIONReconciliation 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 appropriate indicators to assist in the evaluation of restaurant-level operating efficiency and performance of ongoing restaurant-level operations. 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 these three non-GAAP measures are used to evaluate operating effectiveness. The Company defines Restaurant-level Operating Margin as operating income excluding the following three items: general and administrative expenses, depreciation and amortization, and operating (gains), losses and other charges, net. Restaurant-level Operating Margin is presented as a percent of total operating revenue. The Company excludes 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. The Company excludes 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. The Company excludes 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. Restaurant-level Operating Margin is the total of Company Restaurant Operating Margin and Franchise Operating Margin. The Company defines Company Restaurant Operating Margin 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. The Company defines Franchise Operating Margin as franchise and license revenue (which includes franchise royalties and other non-food and beverage revenue streams such as initial franchise fees, advertising revenue and occupancy revenue) less costs of franchise and license revenue and presents it as a percent of franchise and license revenue. These non-GAAP financial measures provide a meaningful comparison between periods and enable investors to focus on the performance of restaurant-level operations by excluding revenues and costs unrelated to food and beverage sales in addition to corporate general and administrative expense, depreciation and amortization, and operating (gains), losses and other charges, net. However, each of these non-GAAP financial measures should be considered as a supplement to, not a substitute for, operating income, net income or other financial performance measures prepared in accordance with U.S. generally accepted accounting principles. Restaurant-level Operating Margin, Company Restaurant Operating Margin and Franchise Operating Margin do not accrue directly to the benefit of shareholders because of the aforementioned excluded items, and are not indicative of the overall results for the Company. Quarter Ended(In thousands)3/31/21 3/25/20Operating income$5,514 $18,046 General and administrative expenses16,947 7,742 Depreciation and amortization3,661 4,146 Operating (gains), losses and other charges, net532 1,473 Restaurant-level Operating Margin$26,654 $31,407 Restaurant-level Operating Margin consists of: Company Restaurant Operating Margin (1)$3,405 $6,173 Franchise Operating Margin (2)23,249 25,234 Restaurant-level Operating Margin$26,654 $31,407 (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; 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; less company restaurant sales. DENNY’S CORPORATIONOperating Margins(Unaudited) Quarter Ended(In thousands)3/31/21 3/25/20Company restaurant operations: (1) Company restaurant sales$33,569 100.0% $42,291 100.0% Costs of company restaurant sales: Product costs8,272 24.6% 10,130 24.0% Payroll and benefits12,965 38.6% 17,106 40.4% Occupancy2,850 8.5% 3,163 7.5% Other operating costs: Utilities1,225 3.6% 1,436 3.4% Repairs and maintenance533 1.6% 789 1.9% Marketing967 2.9% 1,119 2.6% Other direct costs3,352 10.0% 2,375 5.6% Total costs of company restaurant sales$30,164 89.9% $36,118 85.4% Company restaurant operating margin (non-GAAP) (2)$3,405 10.1% $6,173 14.6% Franchise operations: (3) Franchise and license revenue: Royalties$20,844 44.4% $23,847 43.8% Advertising revenue14,111 30.0% 17,526 32.2% Initial and other fees1,838 3.9% 1,697 3.1% Occupancy revenue10,214 21.7% 11,334 20.8% Total franchise and license revenue$47,007 100.0% $54,404 100.0% Costs of franchise and license revenue: Advertising costs$14,111 30.0% $17,526 32.2% Occupancy costs6,539 13.9% 7,409 13.6% Other direct costs3,108 6.6% 4,235 7.8% Total costs of franchise and license revenue$23,758 50.5% $29,170 53.6% Franchise operating margin (non-GAAP) (2)$23,249 49.5% $25,234 46.4% Total operating revenue (4)$80,576 100.0% $96,695 100.0%Total costs of operating revenue (4)53,922 66.9% 65,288 67.5%Restaurant-level operating margin (non-GAAP) (4)(2)$26,654 33.1% $31,407 32.5% Other operating expenses: (4)(2) General and administrative expenses$16,947 21.0% $7,742 8.0% Depreciation and amortization3,661 4.5% 4,146 4.3% Operating (gains), losses and other charges, net532 0.7% 1,473 1.5% Total other operating expenses$21,140 26.2% $13,361 13.8% Operating income (4)$5,514 6.8% $18,046 18.7% (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 is considered a non-GAAP financial measure. Operating margin should be considered as a supplement to, not as a substitute for, operating income, net income or other financial measures prepared in accordance with U.S. generally accepted accounting principles.(3) As a percentage of franchise and license revenue.(4) As a percentage of total operating revenue. DENNY’S CORPORATIONStatistical Data(Unaudited) Changes in Same-Store Sales (1)Quarter Ended (decrease vs. 2019)3/31/21 Company Restaurants(23.9)% Domestic Franchised Restaurants(19.6)% Domestic System-wide Restaurants(20.0)% Changes in Same-Store Sales (1)Quarter Ended (decrease vs. prior year)3/31/21 3/25/20 Company Restaurants(9.4)% (9.4)% Domestic Franchised Restaurants(9.7)% (6.0)% Domestic System-wide Restaurants(9.7)% (6.3)% Average Unit SalesQuarter Ended (In thousands)3/31/21 3/25/20 Company Restaurants$523 $627 Franchised Restaurants$326 $384 Franchised Restaurant Unit ActivityCompany & Licensed TotalEnding Units December 30, 202065 1,585 1,650 Units Opened— 3 3 Units Closed— (4) (4) Net Change— (1) (1) Ending Units March 31, 202165 1,584 1,649 Equivalent Units Year-to-Date 202164 1,583 1,647 Year-to-Date 202067 1,631 1,698 Net Change(3) (48) (51) (1)Same-store 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, fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-store sales and domestic system-wide same-store sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP.CONTACT: Investor Contact: Curt Nichols 877-784-7167 Media Contact: Hadas Streit, Allison+Partners 646-428-0629