D E N N Y ' S C O R P O R AT I O N

INVESTOR PRESENTATION

O C T O B E R T H R O U G H D E C E M B E R 2 0 2 3

FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES

The Company urges caution in considering its current trends and any outlook on earnings disclosed either in this presentation or in its press releases. In addition, certain matters discussed in either this presentation or related press releases 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 this presentation was published 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: economic, public health and political conditions that impact consumer confidence and spending; commodity and labor inflation; 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 Company's ability to integrate and derive the expected benefits from its acquisition of Keke's Breakfast Cafe; 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. Risk Factors contained in the Company's Annual Report on Form 10-K for the year ended December 28, 2022 (and in the Company's subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K).

The presentation includes references to the Company's non-GAAP financials measures. All such measures are designated by an asterisk (*). The Company believes that, in addition to U.S. generally accepted accounting principles (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 income per share, net cash provided by (used in) operating activities, or other financial performance and liquidity measures prepared in accordance with U.S. generally accepted accounting principles. See Appendix for non-GAAP reconciliations to the following GAAP measures:

$ Millions

2018

2019

2020

2021

2022

YTD Sep

(except per share amounts)

2023

Operating Income

$73.6

$165.0

$6.7

$104.1

$60.6

$45.1

Net Income (Loss)

$43.7

$117.4

($5.1)

$78.1

$74.7

$17.0

Net Income (Loss) per Share

$0.67

$1.90

($0.08)

$1.19

$1.23

$0.30

Cash Provided By (Used In):

Operating Activities

$73.7

$43.3

($3.1)

$76.2

$39.5

$50.8

Investing Activities

($32.0)

$105.0

$4.7

$29.0

($86.6)

($3.0)

Financing Activities

($41.6)

($150.0)

($1.0)

($78.5)

$20.0

($50.2)

2

Q3 2023 HIGHLIGHTS

Total Operating Revenue

$114.2M

Adjusted EBITDA*

Denny's Domestic System-Wide

Same-Restaurant Sales 1

1.8%

Versus 2022

Adjusted Free Cash Flow*

  • of Denny's Domestic Units Operating at
    Least 18 Hours Per Day

93%

At End of Quarter

Share Repurchases

Portfolio

Seven New

One New

Openings

Opening

Including Two

International

Openings

Total Debt to Adjusted EBITDA*

Leverage Ratio

$22.2M

$12.0M

$16.5M

2.99x

15.5% Increase vs Prior

37.5% Increase vs Prior

1.7M Shares Repurchased

Year Quarter

Year Quarter

Same-restaurant 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, initial and other fees and occupancy revenue from non- consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-widesame-restaurant sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP.

* See Appendix for reconciliation of Net Income (Loss) and Net Cash Provided by Operating Activities to Non-GAAP Financial Measures, as well as the reconciliation of Operating Income (Loss) to Non-GAAP Financial Measures.

3

DENNY'S INC.

DENNY'S DOMESTIC AVERAGE WEEKLY SALES 3 & SAME-

RESTAURANT SALES 1

Denny's Q3 '23 Domestic Average Weekly Sales Outperformed Q3 '22 by 3.9%

Average Weekly Sales ($000s) 3

$40.0

$35.0

$30.0

$25.0

$20.0

$15.0

$10.0

$5.0

$0.0

Denny's Off-Premise Sales

Virtual Brands Off-Premise Sales

Denny's On-Premise Sales

2

Denny's Total Sales

Denny's Domestic System-WideSame-Restaurant Sales

$30.8

$35.2

$35.7

$35.1

$36.5

$36.7

$37.5

$36.5

1

$34.1

$34.5

$34.3

$33.6

$33.1

30%

Sales

1%

2%

-6%

$22.4

$23.3

$26.6

1%

2%

2%

3%

8%

3%

2%

10%

Restaurant

-1%

0%

-2%

-20%

$25.3

$26.2

$27.0

$25.2

$28.3

$28.1

$28.9

$29.1

$30.3

$29.6

-10%

Same-

$29.7

$30.0

$14.9

$26.5

$17.3

-33%

Wide

$14.4

-30%

-34%

$0.4

$1.1

-

$6.4

System

$1.0

$1.0

$0.9

$0.9

$0.9

$1.1

$1.1

$1.0

$1.0

-50%

Domestic

$3.8

$4.1

$4.2

-57%

$8.0

$7.9

$8.8

$8.1

$7.0

$7.2

$7.0

$6.5

$6.1

$6.5

$6.5

$6.2

$6.0

-70%

Q3 '19

Q4 '19

Q1 '20

Q2 '20

Q3 '20

Q4 '20

Q1 '21

Q2 '21

Q3 '21

Q4 '21

Q1 '22

Q2 '22

Q3 '22

Q4 '22

Q1 '23

Q2 '23

Q3 '23

Same-restaurant 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, initial and other fees and occupancy revenue from non-consolidated franchised and licensed restaurants. Accordingly, domestic franchise same-restaurant sales and domestic system-widesame-restaurant sales should be considered as a supplement to, not a substitute for, the Company's results as reported under GAAP.

2021 and 2022 Denny's domestic system-widesame-restaurant sales 1 are versus 2019.

5

Domestic average weekly sales reflect sales for company and franchised restaurants on Denny's proprietary point of sale (POS) system.

DENNY'S OFF-PREMISE SALES

Off-Premise Sales Over-Index At the Dinner & Late-Night Dayparts, Which Are More Popular With

Younger Generations and More Diverse Guests.

Domestic Off-Premise Sales By Channel

Delivery -

100%

5%

3%

3%

2%

2%

2%

2%

1%

1%

1%

2%

Online

Dispatch

80%

43% 50% 52% 53% 56% 55% 54% 56% 57% 56% 56%

Delivery - 3rd

60%

Party (Includes

Virtual Brands)

40%

52% 47% 46% 44% 42% 43% 44% 42% 41% 43% 41%

Carry Out

20%

0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023

The Burger Den is currently active in over 1,200 domestic l o c a t i o n s .

The Meltdown is currently active in over 1,000 domestic locations .

Breakfast & Lunch

Dinner & Late-Night

Weekday Weekend

100%

80%

60%

40%

20%

0%

80%

60%

40%

20%

0%

Sales Mix by Daypart1

68%

51%49%

76%

66%

32%

24%

34%

Dine In

Off-Premise

Sales Mix Weekday vs. Weekend1

60%40%

63%

69%

69%

37%

31%

31%

Dine In

Off-Premise

Data for the Fiscal Third Quarter 2023.

6

DENNY'S DOMESTIC FOOTPRINT

Total of 1,422 Restaurants in the U.S. with Strongest Presence in California, Texas, Florida, and Arizona 1

5

3

5

16

25

2

6

Top 10 U . S . Markets 1

DMA

Number of

Restaurants

Los Angeles

172

Houston

66

Phoenix

66

Dallas/Ft. Worth

53

Sacramento/Stockton

44

Orlando/Daytona

40

San Francisco/Oakland

39

San Diego

38

Miami/Ft. Lauderdale

34

Las Vegas

33

% of Domestic System

41%

Data through Fiscal September ended September 27, 2023.

7

DENNY'S INTERNATIONAL FOOTPRINT

International Presence of 166 Restaurants in 14 Countries and U.S. Territories

Grown by ~91% Since Year End 2010 1

International Footprint 1

Country

United States Canada

Number of Restaurants

1,422

86

Puerto Rico

16

Mexico

15

Philippines

15

New Zealand

7

Honduras

6

United Arab Emirates

5

Guatemala

4

Costa Rica

El Salvador

Guam

Indonesia

Curaçao

United Kingdom

Total System

3

3

2

2

1

1

1,588

Data through Fiscal September ended September 27, 2023.

8

DENNY'S STRONG PARTNERSHIP WITH FRANCHISEES

Well Diversified, Experienced, and Energetic Group of 210 Franchisees 1

• 35 franchisees with more than 10 restaurants each

collectively comprise approximately 66% of the franchise

Ownership of 1,522 Franchisee Restaurants 1

system.

• Approximately 20% of our franchisees operate multiple

concepts1 providing a well-rounded perspective within the

industry.

Number of

Franchised

Units

1

2-5

6-10

11-15

16-30

>30

Total

Number of

Franchisees as

Franchisees

% of Total

75

36%

72

34%

28

13%

13

6%

9

4%

13

6%

210

100%

Total

Franchised

Franchised

Units as % of

Units

Total

75

5%

224

15%

221

15%

167

11%

185

12%

65043%

1,522 100%

Data through Fiscal September ended September 27, 2023.

9

KEKE'S

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Disclaimer

Denny's Corporation published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 20:50:03 UTC.