DENNY'S CORP, 10-K filed on 2/27/2023
Annual Report
v3.22.4
Cover - USD ($)
12 Months Ended
Dec. 28, 2022
Feb. 23, 2023
Jun. 29, 2022
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 28, 2022    
Current Fiscal Year End Date --12-28    
Document Transition Report false    
Entity File Number 0-18051    
Entity Registrant Name DENNY’S CORPORATION    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 13-3487402    
Entity Address, Address Line One 203 East Main Street    
Entity Address, City or Town Spartanburg,    
Entity Address, State or Province SC    
Entity Address, Postal Zip Code 29319-9966    
City Area Code 864    
Local Phone Number 597-8000    
Title of 12(b) Security $.01 Par Value, Common Stock    
Trading Symbol DENN    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 432,398,476
Entity Common Stock, Shares Outstanding   56,424,922  
Documents Incorporated by Reference Portions of the registrant’s definitive Proxy Statement for the 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K.    
Entity Central Index Key 0000852772    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.22.4
Audit Information
12 Months Ended
Dec. 28, 2022
Audit Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Greenville, SC
Auditor Firm ID 185
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 28, 2022
Dec. 29, 2021
Current assets:    
Cash and cash equivalents $ 3,523 $ 30,624
Investments 1,746 2,551
Receivables, net 25,576 19,621
Inventories 5,538 5,060
Assets held for sale 1,403 0
Prepaid and other current assets 12,529 11,393
Total current assets 50,315 69,249
Property, net of accumulated depreciation of $153,334 and $151,836, respectively 94,469 91,176
Financing lease right-of-use assets, net of accumulated amortization of $9,847 and $11,210, respectively 6,499 7,709
Operating lease right-of-use assets, net 126,065 128,727
Goodwill 72,740 36,884
Intangible assets, net 95,034 50,226
Deferred financing costs, net 2,337 2,971
Deferred income taxes, net 0 11,502
Other noncurrent assets 50,876 37,083
Total assets 498,335 435,527
Current liabilities:    
Current finance lease liabilities 1,683 1,952
Current operating lease liabilities 15,310 15,829
Accounts payable 19,896 15,595
Other current liabilities 56,762 64,146
Total current liabilities 93,651 97,522
Long-term liabilities:    
Long-term debt 261,500 170,000
Noncurrent finance lease liabilities 9,555 10,744
Noncurrent operating lease liabilities 123,404 126,296
Liability for insurance claims, less current portion 7,324 8,438
Deferred income taxes, net 7,419 0
Other noncurrent liabilities 32,598 87,792
Total long-term liabilities 441,800 403,270
Total liabilities 535,451 500,792
Commitments and contingencies
Shareholders’ deficit    
Common stock $0.01 par value; shares authorized - 135,000; December 28, 2022: 64,998 shares issued and 56,728 shares outstanding; December 29, 2021: 64,200 shares issued and 62,210 shares outstanding 650 642
Paid-in capital 142,136 135,596
Deficit (41,729) (116,441)
Accumulated other comprehensive loss, net (42,697) (54,470)
Treasury stock, at cost, 8,270 and 1,990 shares, respectively (95,476) (30,592)
Total shareholders’ deficit (37,116) (65,265)
Total liabilities and shareholders’ deficit $ 498,335 $ 435,527
v3.22.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 28, 2022
Dec. 29, 2021
Assets    
Less accumulated depreciation $ 153,334 $ 151,836
Accumulated amortization $ 9,847 $ 11,210
Shareholders’ deficit    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized (in shares) 135,000,000 135,000,000
Common stock, issued (in shares) 64,998,000 64,200,000
Common stock, outstanding (in shares) 56,728,000 62,210,000
Treasury stock, at cost (in shares) 8,270,000 1,990,000
v3.22.4
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Revenue:      
Total operating revenue $ 456,429 $ 398,174 $ 288,605
Costs of company restaurant sales, excluding depreciation and amortization:      
Product costs 53,617 42,982 29,816
Payroll and benefits 76,412 65,337 51,684
Occupancy 15,154 11,662 11,241
Other operating expenses 34,275 26,951 21,828
Total costs of company restaurant sales, excluding depreciation and amortization 179,458 146,932 114,569
Costs of franchise and license revenue 135,327 109,140 94,348
General and administrative expenses 67,173 68,686 55,040
Depreciation and amortization 14,862 15,446 16,161
Operating (gains), losses and other charges, net (1,005) (46,105) 1,808
Total operating costs and expenses, net 395,815 294,099 281,926
Operating income 60,614 104,075 6,679
Interest expense, net 13,769 15,148 17,965
Other nonoperating income, net (52,585) (15,176) (4,171)
Net income (loss) before income taxes 99,430 104,103 (7,115)
Provision for (benefit from) income taxes 24,718 26,030 (1,999)
Net income (loss) $ 74,712 $ 78,073 $ (5,116)
Net income (loss) per share - basic (in dollars per share) $ 1.23 $ 1.20 $ (0.08)
Net income (loss) per share - diluted (in dollars per share) $ 1.23 $ 1.19 $ (0.08)
Basic weighted average shares outstanding (in shares) 60,771 65,171 60,812
Diluted weighted average shares outstanding (in shares) 60,879 65,573 60,812
Company restaurant sales      
Revenue:      
Total operating revenue $ 199,753 $ 175,017 $ 118,160
Franchise and license revenue      
Revenue:      
Total operating revenue $ 256,676 $ 223,157 $ 170,445
v3.22.4
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 74,712 $ 78,073 $ (5,116)
Other comprehensive income (loss), net of tax:      
Minimum pension liability adjustment, net of tax of $113, $35 and $(67), respectively 345 78 (197)
Changes in the fair value of cash flow derivatives, net of tax of $3,214, $1,386 and $(12,345), respectively 10,405 2,889 (34,565)
Reclassification of cash flow derivatives to interest expense, net of tax of $309, $1,179 and $874, respectively 1,001 2,844 2,286
Reclassification of loss related to dedesignation of derivatives to other nonoperating income, net of tax of $0, $0 and $1,892, respectively 0 0 5,462
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net of tax of $7, $42 and $214, respectively 22 124 569
Other comprehensive income (loss) 11,773 5,935 (26,445)
Total comprehensive income (loss) $ 86,485 $ 84,008 $ (31,561)
v3.22.4
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Statement of Comprehensive Income [Abstract]      
Minimum pension liability adjustment, tax $ 113 $ 35 $ (67)
Changes in the fair value of cash flow derivatives, tax 3,214 1,386 (12,345)
Reclassification of cash flow derivatives to interest expense, tax 309 1,179 874
Reclassification of loss related to dedesignation of derivatives to other nonoperating expense (income), tax 0 0 1,892
Amortization of unrealized losses related to dedesignated derivatives to interest expense, tax $ 7 $ 42 $ 214
v3.22.4
Consolidated Statements of Shareholders' Deficit - USD ($)
$ in Thousands
Total
Common Stock
Treasury Stock
Paid-in Capital
(Deficit)
Accumulated Other Comprehensive Loss, Net
Balance as of beginning period (in shares) at Dec. 25, 2019   109,415,000        
Balance as of beginning period at Dec. 25, 2019 $ (138,064) $ 1,094 $ (519,780) $ 603,980 $ (189,398) $ (33,960)
Balance as of beginning of period, treasury stock (in shares) at Dec. 25, 2019     (52,320,000)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) (5,116)       (5,116)  
Other comprehensive income (loss) (26,445)         (26,445)
Issuance of common stock (in shares)   8,000,000        
Issuance of common stock 69,571 $ 80   69,491    
Share-based compensation on equity classified awards, net $ 3,374     3,374    
Purchase of treasury stock (in shares) (1,700,000)   (1,690,000)      
Purchase of treasury stock $ (34,193)   $ (34,193)      
Retirement of shares (in shares)   (54,010,000) 54,010,000      
Retirement of treasury stock 0 $ (540) $ 553,973 (553,433)    
Issuance of common stock for share-based compensation (in shares)   447,000        
Issuance of common stock for share-based compensation 0 $ 5   (5)    
Exercise of common stock options (in shares)   110,000        
Exercise of common stock options 427 $ 1   426    
Balance as of end of period (in shares) at Dec. 30, 2020   63,962,000        
Balance as of end of period at Dec. 30, 2020 (130,446) $ 640 $ 0 123,833 (194,514) (60,405)
Balance as of end of period, treasury stock (in shares) at Dec. 30, 2020     0      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) 78,073       78,073  
Other comprehensive income (loss) 5,935         5,935
Share-based compensation on equity classified awards, net $ 11,649     11,649    
Purchase of treasury stock (in shares) (2,000,000)   (1,990,000)      
Purchase of treasury stock $ (30,592)   $ (30,592)      
Issuance of common stock for share-based compensation (in shares)   208,000        
Issuance of common stock for share-based compensation 0 $ 2   (2)    
Exercise of common stock options (in shares)   30,000        
Exercise of common stock options $ 116     116    
Balance as of end of period (in shares) at Dec. 29, 2021 64,200,000 64,200,000        
Balance as of end of period at Dec. 29, 2021 $ (65,265) $ 642 $ (30,592) 135,596 (116,441) (54,470)
Balance as of end of period, treasury stock (in shares) at Dec. 29, 2021 (1,990,000)   (1,990,000)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) $ 74,712       74,712  
Other comprehensive income (loss) 11,773         11,773
Share-based compensation on equity classified awards, net $ 6,548     6,548    
Purchase of treasury stock (in shares) (6,300,000)   (6,280,000)      
Purchase of treasury stock $ (64,884)   $ (64,884)      
Issuance of common stock for share-based compensation (in shares)   798,000        
Issuance of common stock for share-based compensation $ 0 $ 8   (8)    
Exercise of common stock options (in shares) 0          
Balance as of end of period (in shares) at Dec. 28, 2022 64,998,000 64,998,000        
Balance as of end of period at Dec. 28, 2022 $ (37,116) $ 650 $ (95,476) $ 142,136 $ (41,729) $ (42,697)
Balance as of end of period, treasury stock (in shares) at Dec. 28, 2022 (8,270,000)   (8,270,000)      
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Cash flows from operating activities:      
Net income (loss) $ 74,712 $ 78,073 $ (5,116)
Adjustments to reconcile net income (loss) to cash flows provided by (used in) operating activities:      
Depreciation and amortization 14,862 15,446 16,161
Operating (gains), losses and other charges, net (1,005) (46,105) 1,808
Gains and amortization on interest rate swap derivatives, net (54,989) (12,629) (2,164)
Amortization of deferred financing costs 634 1,105 876
(Gains) losses on investments 305 21 (123)
(Gains) losses on early termination of debt and leases (37) (523) 224
Deferred income tax expense 14,732 14,097 3,981
Increase (decrease) of tax valuation allowance 546 (5,031) (3,041)
Share-based compensation expense 11,400 13,602 7,948
Changes in assets and liabilities, excluding acquisitions and dispositions:      
Receivables (5,892) 1,373 6,378
Inventories (460) (3,879) 101
Prepaids and other current assets (1,138) 7,454 (3,872)
Other assets (2,129) (1,881) (1,816)
Operating lease assets and liabilities (696) (1,521) 844
Accounts payable 3,918 6,608 (10,682)
Accrued payroll (2,850) 3,113 (2,835)
Accrued taxes (81) (317) (774)
Other accrued liabilities (5,867) 12,684 (5,525)
Other noncurrent liabilities (6,513) (5,517) (5,510)
Net cash flows provided by (used in) operating activities 39,452 76,173 (3,137)
Cash flows from investing activities:      
Capital expenditures (11,844) (7,355) (6,962)
Acquisitions of restaurant and real estate (750) (10,369) 0
Acquisition of Keke’s Breakfast Cafe (82,500) 0 0
Collections (deposits) on real estate acquisitions 3,624 (3,624) 0
Proceeds from sales of real estate and other assets 4,144 50,098 9,398
Investment purchases (1,200) (500) (1,400)
Proceeds from sale of investments 1,700 200 2,900
Collections on notes receivable 246 684 1,814
Issuance of notes receivable (16) (120) (1,099)
Net cash flows provided by (used in) investing activities (86,596) 29,014 4,651
Cash flows from financing activities:      
Revolver borrowings 175,325 185,000 140,500
Revolver payments (83,825) (225,000) (170,500)
Long-term debt payments (2,020) (2,118) (1,570)
Tax withholding on share-based payments (4,781) (1,516) (4,331)
Deferred financing costs 0 (1,853) (1,758)
Purchase of treasury stock (64,975) (29,959) (36,008)
Proceeds from issuance of common stock 0 0 69,571
Proceeds from exercise of stock options 0 116 427
Net bank overdrafts 319 (3,125) 2,675
Net cash flows provided by (used in) financing activities 20,043 (78,455) (994)
Increase (decrease) in cash and cash equivalents (27,101) 26,732 520
Cash and cash equivalents at beginning of period 30,624 3,892 3,372
Cash and cash equivalents at end of period $ 3,523 $ 30,624 $ 3,892
v3.22.4
Introduction and Basis of Reporting
12 Months Ended
Dec. 28, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Introduction and Basis of Reporting Introduction and Basis of Reporting
 
Denny’s Corporation, or the Company, is one of America’s largest franchised full-service restaurant chains based on number of restaurants. As of December 28, 2022, the Company consisted of 1,656 restaurants, 1,582 of which were franchised/licensed restaurants and 74 of which were company operated. The Company consists of the Denny’s brand (“Denny’s”) and the Keke’s Breakfast Café brand (“Keke’s”). Keke’s was acquired on July 20, 2022. See Note 3 for details.

At December 28, 2022, the Denny’s brand consisted of 1,602 restaurants, 1,536 of which were franchised or licensed restaurants and 66 of which were company restaurants. Denny’s restaurants are operated in 50 states, the District of Columbia, two U.S. territories and 12 foreign countries with principal concentrations in California (23% of total restaurants), Texas (13%) and Florida (8%).
At December 28, 2022, the Keke's brand consisted of 54 restaurants, 46 of which were franchised restaurants and eight of which were company operated. All Keke’s restaurants are located in Florida.
Starting in 2020 and continuing through 2022, the global economic crisis resulting from the spread of the coronavirus (“COVID-19”), along with government and consumer responses, has had a substantial impact on our restaurant operations, including impacts on labor and commodity costs and the ability of many Denny’s franchise restaurants to return to 24/7 operations. During 2020, many of our company and franchised and licensed restaurants were temporarily closed and most of the restaurants that remained open had limited operations. Through 2022, many Denny’s restaurants have not returned to full operating hours, particularly at the late night daypart. Our operating results substantially depend upon the sales volumes, restaurant profitability, and financial stability of our company and franchised and licensed restaurants.

We cannot currently estimate the duration or future negative financial impact of these economic conditions on our business. Ongoing material adverse effects of these economic conditions for an extended period could negatively affect our business, results of operations, liquidity and financial condition and could impact our impairment assessments of accounts receivable, intangible assets, long-lived assets and goodwill.
v3.22.4
Summary of Significant Accounting Policies
12 Months Ended
Dec. 28, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
 
The following accounting policies significantly affect the preparation of our Consolidated Financial Statements:
 
Use of Estimates. In preparing our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (GAAP), management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates.

Consolidation Policy. Our Consolidated Financial Statements include the financial statements of Denny’s Corporation and its wholly-owned subsidiaries: Denny’s, Inc., DFO, LLC, Denny’s Realty, LLC, Keke’s Inc., Keke’s Franchise Organization and East Main Insurance Company. All significant intercompany balances and transactions have been eliminated in consolidation.
 
Fiscal Year. Our fiscal year ends on the last Wednesday in December. As a result, a fifty-third week is added to a fiscal year every five or six years. Fiscal 2020 included 53 weeks of operation, whereas 2021 and 2022 each included 52 weeks of operations.

Cash and Cash Equivalents. Our policy is to invest cash in excess of operating requirements in short-term highly liquid investments with an original maturity of three months or less, which we consider to be cash equivalents. Cash and cash equivalents include short-term investments of $0.4 million and $0.1 million at December 28, 2022 and December 29, 2021, respectively. 
 
Receivables. Receivables, which are recorded at net realizable value, primarily consist of trade accounts receivables and financing receivables from franchisees, vendor receivables and credit card receivables. Trade accounts receivables from franchisees consist of royalties, advertising and rent. Financing receivables from franchisees primarily consist of notes from franchisees related to the roll-out of restaurant equipment. We accrue interest on notes receivable based on the contractual
terms. The allowance for doubtful accounts is based on management’s estimates of expected credit losses based on historical write-off experience. Receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts.
 
Inventories. Inventories consist primarily of food, beverages and, in some periods, equipment and are valued at the lower of first-in, first-out cost or net realizable value.

Property and Depreciation. Owned property is stated at cost. Property under finance leases is stated at the lesser of its fair value or the net present value of the related minimum lease payments at the lease inception. Maintenance and repairs are expensed as incurred. We depreciate owned property over its estimated useful life using the straight-line method. We amortize property held under finance leases (at capitalized value) over the lesser of its estimated useful life or the lease term. Building assets are assigned estimated useful lives that range from five to 30 years. Other property and equipment assets are assigned lives that range from two to ten years. Leasehold improvements are generally assigned lives between five and 15 years limited by the expected lease term.

Goodwill. Amounts recorded as goodwill primarily represent excess reorganization value recognized as a result of our 1998 bankruptcy and from our acquisition of Keke’s in 2022. We also record goodwill in connection with the acquisition of restaurants from franchisees. Likewise, upon the sale of restaurant operations to franchisees, goodwill is decremented. We test goodwill for impairment at each fiscal year end and more frequently if circumstances indicate impairment may exist. Such indicators include, but are not limited to, a significant decline in our expected future cash flows, a significant adverse decline in our stock price, significantly adverse legal developments and a significant change in the business climate.
 
Intangible Assets. Intangible assets consist primarily of trade names, franchise agreements and reacquired franchise rights. Trade names are considered indefinite-lived intangible assets and are not amortized. Franchise agreements are amortized using the straight-line basis over the term of the related franchise agreement. Reacquired franchise rights are amortized using the straight-line basis over the term of the related franchise agreement. Franchise agreements and reacquired franchise rights resulting from acquisitions are accounted for using the purchase method of accounting and are estimated by management based on the fair value of the assets received.

We test trade name assets for impairment at each fiscal year end, and more frequently if circumstances indicate impairment may exist. We assess impairment of reacquired franchise rights and franchise agreements whenever changes or events indicate that the carrying values may not be recoverable. Costs incurred to renew or extend the term of recognized intangible assets are recorded in general and administrative expenses in our Consolidated Statements of Operations.
 
Marketable Securities. Marketable securities included in investments consist of available for sale equity instruments and are recorded at fair market value in our Consolidated Balance Sheets. The aggregate cost and fair value of these marketable securities was $1.9 million and $1.7 million, respectively, at December 28, 2022 and $2.5 million and $2.6 million, respectively, at December 29, 2021. Unrealized gains (losses) included in fair value were losses of $0.2 million, gains of $0.1 million and losses of $0.1 million at December 28, 2022, December 29, 2021 and December 30, 2020, respectively.

Marketable securities included in other noncurrent assets consist of trading debt and equity mutual funds and are recorded at fair market value in our Consolidated Balance Sheets. These securities represent the plan assets of our nonqualified deferred compensation plan (the “plan assets”). The plan assets are held in a rabbi trust. Each plan participant’s account consists of their contribution, our matching contribution (made prior to 2016) and each participant’s share of earnings or losses in the plan. We have recorded offsetting deferred compensation liabilities as a component of other noncurrent liabilities in our Consolidated Balance Sheets.

The realized and unrealized holding gains and losses related to marketable securities are recorded in other nonoperating income with an offsetting amount recorded in general and administrative expenses related to deferred compensation plan liabilities. During 2022, 2021 and 2020, we incurred a net loss of $2.2 million and net gains of $2.2 million and $1.8 million, respectively, related to marketable securities.
 
Deferred Financing Costs. Costs related to the issuance of debt are deferred and amortized as a component of interest expense using the effective interest method over the terms of the respective debt issuances.
 
Self-insurance Liabilities. We record liabilities for insurance claims during periods in which we have been insured under large deductible programs or have been self-insured for our medical claims and workers’ compensation, general, product and automobile insurance liabilities. The liabilities represent estimated incurred losses. These estimates include assumptions
regarding claims frequency and severity as well as changes in our business environment, medical costs and the regulatory environment that could impact our overall self-insurance costs.

Total workers’ compensation, general, product and automobile insurance liabilities at December 28, 2022 and December 29, 2021 were $9.7 million and $11.5 million, respectively.

Income Taxes. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. All deferred taxes are reported as noncurrent in our Consolidated Balance Sheets. A valuation allowance reduces our net deferred tax asset to the amount that is more likely than not to be realized. We make certain estimates and judgments in the calculation of our provision for incomes taxes, in the resulting tax liabilities, and in the recoverability of deferred tax assets.

We recognize positions taken or expected to be taken in a tax return in the Consolidated Financial Statements when it is more-likely-than-not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit with greater than 50% likelihood of being realized upon ultimate settlement. We recognize any interest and penalties related to unrecognized tax benefits in income tax expense. Assessment of uncertain tax positions requires judgments relating to the amounts, timing and likelihood of resolution. 
Leases and Subleases.

Lessee

We lease certain real estate and equipment for our restaurants and support facilities. At contract inception, we determine whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. We recognize a lease liability and a right-of-use (“ROU”) asset at the lease commencement date.

For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. For finance leases, the lease liability is initially measured in the same manner and date as for operating leases, and is subsequently measured at amortized cost using the effective interest method.

Operating lease ROU assets are initially and subsequently measured throughout the lease term at the carrying amount of the lease liability adjusted for initial direct costs, prepayments, accrued payments and lease incentives, if any. Lease cost is recognized on a straight-line basis over the lease term. Operating lease payments are classified as cash flows for operating activities with ROU asset amortization and the change in the lease liability combined as "Operating lease assets/liabilities" in the reconciliation of net income (loss) to net cash flows provided by (used in) operating activities in the Consolidated Statement of Cash Flows. Finance lease ROU assets are initially measured at cost and subsequently amortized on a straight-line basis over the lesser of the useful life or the lease term. Finance lease payments are classified as cash flows used in financing activities in the Consolidated Statement of Cash Flows. Operating and finance lease ROU assets are assessed for impairment using long-lived assets impairment guidance.

We use a consistent lease term for calculating the depreciation period for the related assets, classifying the lease and computing periodic rent expense where the lease terms include escalations in rent over the lease term.

The lease guidance provides for certain practical expedients and accounting elections. We elected the practical expedient to not separate nonlease components (such as common area maintenance) from lease components in regard to all leases and the portfolio approach in applying the discount rate to our leases.

Key estimates and judgments include how we determine (1) lease payments, (2) lease term and (3) the discount rate used to discount the unpaid lease payments to present value.

We have certain lease agreements structured with both a fixed base rent and a contingent rent based on a percentage of sales over contractual levels, others with only contingent rent based on a percentage of sales and some with a fixed base rent adjusted periodically for inflation or changes in the fair market rent rate. Contingent rent is recognized as sales occur. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The exercise of lease renewal options is at our sole discretion, except in certain sublease situations in which we have determined that it is reasonably certain that one or more options will be exercised, including where the exercise of a sublease
option compels us to exercise the renewal option of the underlying master lease. Renewal option periods are included in the measurement of lease ROU asset and lease liability where the exercise is reasonably certain to occur. 

The discount rate used to determine the present value of the lease payments is our estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as we generally cannot determine the interest rate implicit in the lease.

Abatements or deferrals in rents received from landlords as a result of the COVID-19 pandemic are recognized as reductions in variable lease payments.

Lessor

We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are the same as the lessee leases described above. Contingent rental income is recognized when earned. Similar to our lessee accounting, we elected the lessor practical expedient to not separate nonlease components from lease components in regard to all leases.

Employee Benefit Plans. Each year we measure and recognize the funded status of our defined benefit plans in our Consolidated Balance Sheets as of December 31. That date represents the month-end that is closest to our fiscal year-end. The funded status is adjusted for any contributions or significant events (such as a plan amendment, settlement, or curtailment that calls for a remeasurement) that occurs between our fiscal year-end and December 31.

Derivative Instruments. We use derivative financial instruments to manage our exposure to interest rate risk. We do not enter into derivative instruments for trading or speculative purposes. All derivatives are recognized on our Consolidated Balance Sheets at fair value. Changes in the fair values of derivatives are recorded in earnings or other comprehensive income (OCI), based on whether the instrument is designated as a hedge transaction. Gains or losses on derivative instruments reported in OCI are classified to earnings in the period the hedged item affects earnings. If the underlying hedge transaction ceases to exist, any associated amounts reported in OCI are reclassified to earnings. By entering into derivative instruments, we are exposed to counterparty credit risk. When the fair value of a derivative instrument is in an asset position, the counterparty has a liability to us, which creates credit risk for us. We manage our exposure to this risk by selecting counterparties with investment grade credit ratings and regularly monitoring our market position with each counterparty.
 
Contingencies and Litigation. We are subject to legal proceedings involving ordinary and routine claims incidental to our business, as well as legal proceedings that are nonroutine and include compensatory or punitive damage claims. Settlement costs are accrued when they are deemed estimable and probable. Our ultimate legal and financial liability with respect to such matters cannot be estimated with certainty and requires the use of estimates in recording liabilities for potential litigation settlements. When the reasonable estimate is a range, the recorded loss will be the best estimate within the range. We record legal settlement costs as other operating expenses in our Consolidated Statements of Operations as those costs are incurred.
 
Comprehensive Income (Loss). Comprehensive income (loss) includes net income (loss) and OCI items that are excluded from net income (loss) under U.S. generally accepted accounting principles. OCI items include additional minimum pension liability adjustments, the effective unrealized portion of changes in the fair value of cash flow hedges, and the reclassification and amortization of loss related to the dedesignation of cash flow derivatives.

Revenues.

Company Restaurant Revenue. Company restaurant revenue is recognized at the point in time when food and beverage products are sold at company restaurants. We present company restaurant sales net of sales-related taxes collected from customers and remitted to governmental taxing authorities.

Franchise Revenue. Franchise and license revenues consist primarily of royalties, advertising revenue, initial and other fees and occupancy revenue.

Under franchise agreements we provide franchisees with a license of our respective brands’ symbolic intellectual property, administration of advertising programs (including local co-operatives), and other ongoing support functions. These services are highly interrelated so we do not consider them to be individually distinct performance obligations, and therefore account for them as a single performance obligation.
Royalty and advertising revenues represent sales-based royalties that are recognized in the period in which the sales occur. Sales-based royalties are variable consideration related to our performance obligation to our franchisees to maintain the intellectual property being licensed. Under our franchise agreements, franchisee advertising contributions must be spent on marketing and related activities. Advertising revenues and expenditures are recorded on a gross basis within the Consolidated Statements of Operations.

Initial and other fees include initial, successor and assignment franchise fees (“initial franchise fees”). Initial franchise fees are billed and received upon the signing of the franchise agreement. Recognition of these fees is deferred until the commencement date of the agreement and occurs over time based on the term of the underlying franchise agreement. Acquired initial franchise fees are recognized from the acquisition date over time based on the term of the underlying franchise agreement. In the event a franchise agreement is terminated, any remaining deferred fees are recognized in the period of termination.

Initial and other fees also include revenue that are distinct from the franchise agreement and are separate performance obligations. Training and other franchise services fees are billed and recognized at a point in time as services are rendered. Equipment revenues are billed and recognized as the equipment is installed. Similar to advertising revenue, equipment revenues and other franchise services fees are recorded on a gross basis within the Consolidated Statements of Operations.

We record contract assets related to incentives and subsidies provided to franchisees related to new unit openings and/or equipment upgrades. These contract assets are presented within prepaid and other current assets and other noncurrent assets in our Consolidated Balance Sheets. These assets are amortized as a reduction to franchise and license revenue within our Consolidated Statements of Operations over the remaining term of the underlying franchise agreement.

Occupancy revenue results from leasing or subleasing restaurants to franchisees and is recognized over the term of the lease agreement.

With the exception of initial and other franchise fees, revenues are typically billed and collected on a weekly basis. For 2022, 2021 and 2020, our ten largest franchisees accounted for 37%, 37% and 39% of our franchise revenues, respectively.

Gift cards. Company restaurants, franchised restaurants and certain third party retailers sell gift cards which have no stated expiration dates. We recognize revenue when a gift card is redeemed in one of our company restaurants. We maintain a gift card liability for cards sold in our company restaurants and for cards sold by third parties. Gift card breakage is recognized proportionally as redemptions occur. Our gift card breakage primarily relates to cards sold by third parties and is recorded as advertising revenue (included as a component of franchise and license revenue).

Advertising Costs. We expense production costs for radio and television advertising in the year in which the commercials are initially aired and other advertising costs as incurred. Advertising costs for company restaurants are recorded as a component of other operating expenses in our Consolidated Statements of Operations and were $5.3 million, $4.6 million and $3.9 million for 2022, 2021 and 2020, respectively. Advertising costs related to franchised restaurants are recorded as a component of franchise and license costs and were $75.9 million, $70.0 million and $53.7 million in 2022, 2021 and 2020, respectively. Under our franchise agreements, advertising contributions received from franchisees must be spent on advertising, product development, marketing and related activities. As the Company is contractually required to spend these contributions on advertising costs, the obligations are accrued and advertising costs expensed when the related revenues are recognized.
 
Restructuring and Exit Costs. Restructuring and exit costs are included as a component of operating (gains), losses and other charges, net in our Consolidated Statements of Operations. Restructuring costs consist primarily of severance and other restructuring charges for terminated employees. Amounts recorded as exit costs include period costs related to closed units.
 
Disposal or Impairment of Long-lived Assets. We evaluate our long-lived assets for impairment at the restaurant level on a quarterly basis, when assets are identified as held for sale or whenever changes or events indicate that the carrying value may not be recoverable. For assets identified as held for sale, we use the market approach and consider proceeds from similar asset sales. We assess impairment of restaurant-level assets based on the operating cash flows of the restaurant, expected proceeds from the sale of assets and our plans for restaurant closings. For underperforming assets, we use the income approach to determine both the recoverability and estimated fair value of the assets. To estimate future cash flows, we make certain assumptions about expected future operating performance, such as revenue growth, operating margins, risk-adjusted discount rates, and future economic and market conditions. If the long-lived assets of a restaurant are not recoverable based upon estimated future, undiscounted cash flows, we write the assets down to their fair value. If these estimates or their related assumptions change in the future, we may be required to record additional impairment charges. These charges are included as a component of operating (gains), losses and other charges, net in our Consolidated Statements of Operations.
Assets held for sale consist of real estate properties and/or restaurant operations that we expect to sell within the next year. The assets are reported at the lower of carrying amount or fair value less costs to sell. Fair value is based upon Level 2 inputs, which include sales agreements. We cease recording depreciation on assets that are classified as held for sale. If the determination is made that we no longer expect to sell an asset within the next year, the asset is reclassified out of held for sale.

Discontinued Operations. We evaluate restaurant closures and assets reclassified to assets held for sale for potential disclosure as discontinued operations. Only disposals resulting in a strategic shift that will have a major effect on our operations and financial results are reported as discontinued operations. There have been no such disposals, nor any disposals of individually significant components. The gains and losses related to restaurant closures and assets reclassified to assets held for sale are included as a component of operating (gain), losses and other charges, net in our Consolidated Statements of Operations.
 
Gains and Losses on Sales of Restaurants Operations to Franchisees, Real Estate and Other Assets. Generally, gains and losses on sales of restaurant operations to franchisees (which may include real estate), real estate properties and other assets are recognized when the sales are consummated and certain other gain recognition criteria are met. Total gains and losses are included as a component of operating (gains), losses and other charges, net in our Consolidated Statements of Operations.
 
Share-based Compensation. Share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period. Share-based compensation expense is included as a component of general and administrative expenses in our Consolidated Statements of Operations. We account for forfeitures as they occur. Excess tax benefits recognized related to share-based compensation are included as a component of provision for (benefit from) income taxes in our Consolidated Statements of Operations and are classified as operating activities in our Consolidated Statements of Cash Flows.

Generally, compensation expense related to performance share units and restricted stock units is based on the number of units granted, the period over which they are expected to vest and the fair market value of our common stock on the date of the grant. For restricted stock units and performance share units that contain a market condition, compensation expense is based on the Monte Carlo valuation method, which utilizes multiple input variables to determine the probability of the Company achieving the market condition and the fair value of the award. The key assumptions used include expected volatility and risk-free interest rates over the term of the award.

We generally recognize compensation cost associated with performance share units over the entire performance period on a straight-line basis. For performance share units awarded to certain retirement eligible individuals with accelerated vesting terms, compensation cost is recognized on a graded-vesting basis. We generally recognize compensation cost associated restricted stock units on a straight-line basis over the entire performance period of the award.

Subsequent to the vesting period, earned stock-settled restricted stock units and performance share units (both of which are equity classified) are paid to the holder in shares of our common stock, provided the holder was still employed with the Company or an affiliate as of the vesting date.
  
Earnings (Losses) Per Share. Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding during the period.

Business Combinations. We account for acquisitions using the acquisition method of accounting. Accordingly, assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess of purchase price over fair value of net assets acquired, including the amount assigned to identifiable intangible assets, is recorded as goodwill.

Newly Adopted Accounting Standards

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which was later clarified in January 2021 by ASU 2021-01, “Reference Rate Reform (Topic 848): Scope”. Additionally, in December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which allows ASU 2020-04 to be adopted and applied prospectively to contract modifications made on or before December 31, 2024. The guidance provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The Company adopted ASU 2020-04 on March 12, 2020. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on the Company’s consolidated financial position or results of operations. The guidance is effective through December 31, 2024.
In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, which modifies Topic 740 to simplify the accounting for income taxes. ASU 2019-12 is effective for financial statements issued for annual periods beginning after December 15, 2020, and for the interim periods therein. The adoption of ASU 2019-12 did not have a significant impact on the Company’s consolidated financial position or results of operations.

Additional new accounting guidance became effective for us as of December 28, 2022 that we reviewed and concluded was either not applicable to our operations or had no material effect on our Consolidated Financial Statements and related disclosures.

Accounting Standards to be Adopted

We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our Consolidated Financial Statements as a result of future adoption.
v3.22.4
Acquisition of Keke's Breakfast Cafe
12 Months Ended
Dec. 28, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisition of Keke's Breakfast Cafe Acquisition of Keke’s Breakfast Cafe
On July 20, 2022, the Company completed its acquisition of Keke's pursuant to that certain Asset Purchase Agreement (the "Purchase Agreement"), dated May 3, 2022, which was subsequently amended by the First Amendment to Asset Purchase Agreement (the "First Amendment"), dated July 11, 2022, by and between the Company, as purchaser, and K2 Restaurants, Inc. together with the other sellers and principals party thereto, for the acquisition of certain assets and assumption of certain liabilities of the franchise business, consisting of 44 franchised restaurants, and eight company owned and operated restaurants.

Pursuant to the Purchase Agreement, we agreed to purchase Keke's for a purchase price of $82.5 million. The purchase price was funded by utilizing cash on hand as well as funds from the Company's revolving credit facility.

The acquisition was accounted for as a business combination using the acquisition method of accounting. The preliminary allocation of the purchase price is based on management's analysis, including work performed by third party valuation specialists. We will continue to obtain information to assist in determining the fair value of net assets acquired during the measurement period.

The components of the preliminary purchase price allocation were as follows:

(In thousands)
Total consideration paid$82,500 
Assets:
Property2,015 
Operating lease ROU assets7,908 
Franchise agreements10,700 
Trade name35,600 
Liabilities:
Operating lease liabilities7,908 
Deferred franchise revenue992 
Other liabilities36 
Net assets acquired, excluding goodwill47,287 
Goodwill$35,213 

The Keke's trade name has been assigned an indefinite life, and therefore, will not be amortized, but rather tested annually for impairment. At the acquisition date, franchise agreements had a weighted average useful life of approximately 15 years. Goodwill attributable to the Keke's acquisition will be deductible and amortized for tax purposes. Goodwill is considered to represent the value associated with the workforce and synergies anticipated to be realized as a combined company.

Acquisition transaction costs totaling approximately $0.6 million during the year ended December 28, 2022 were recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations.

Results of operations starting from the date of acquisition of Keke's have been included in our Consolidated Financial Statements for the year ended December 28, 2022. The Keke's acquisition is not material to our Consolidated Financial
Statements, and therefore, supplemental pro forma financial information for the year ended December 28, 2022 and the respective prior year periods related to the acquisition is not included herein.
v3.22.4
Receivables
12 Months Ended
Dec. 28, 2022
Receivables [Abstract]  
Receivables Receivables
 
Receivables, net consisted of the following:
 
 December 28, 2022December 29, 2021
 (In thousands)
Receivables, net:  
Trade accounts receivable from franchisees$13,314 $13,430 
Other receivables from franchisees6,731 1,027 
Vendor receivables3,466 4,041 
Credit card receivables896 747 
Other1,545 950 
Allowance for doubtful accounts(376)(574)
Total receivables, net$25,576 $19,621 
Other noncurrent assets:
  
Financing receivables from franchisees$— $293 
  
We recorded $1.5 million of expected credit losses during the year ended December 30, 2020. During the years ended December 29, 2021 and December 28, 2022 we recorded reversals of credit losses of $1.1 million and $0.1 million, respectively, based on actual and expected losses on franchise-related receivables, primarily as a result of uncertainties related to the impacts of the COVID-19 pandemic.
v3.22.4
Property
12 Months Ended
Dec. 28, 2022
Property, Plant and Equipment [Abstract]  
Property Property
 
Property, net consisted of the following:
 
 December 28, 2022December 29, 2021
 (In thousands)
Land$42,374 $43,742 
Buildings and leasehold improvements164,782 163,264 
Other property and equipment40,647 36,006 
Total property247,803 243,012 
Less accumulated depreciation153,334 151,836 
Property, net$94,469 $91,176 
  
The following table reflects the property assets, included in the table above, and buildings with finance leases which were leased to franchisees:
 
 December 28, 2022December 29, 2021
 (In thousands)
Land$23,825 $25,192 
Buildings and leasehold improvements67,283 69,656 
Total property owned, leased to franchisees91,108 94,848 
Less accumulated depreciation57,253 60,674 
Property owned, leased to franchisees, net33,855 34,174 
Buildings held under finance leases, leased to franchisees7,047 8,060 
Less accumulated amortization4,339 4,781 
Property held under finance leases, leased to franchisees, net2,708 3,279 
Total property leased to franchisees, net$36,563 $37,453 
 
Depreciation expense, including amortization of property under finance leases, for 2022, 2021 and 2020 was $12.8 million, $13.3 million and $13.2 million, respectively. Substantially all owned property is pledged as collateral for our Credit Facility. See Note 10.
v3.22.4
Goodwill and Intangible Assets
12 Months Ended
Dec. 28, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
     
The following table reflects the changes in carrying amounts of goodwill and goodwill by segment:
 
 December 28, 2022December 29, 2021
 (In thousands)
Balance, beginning of year$36,884 $36,884 
Additions related to acquisition of Keke’s35,213 — 
Adjustments related to the acquisition of a Denny’s franchise unit643 — 
Balance, end of year$72,740 $36,884 
Goodwill by segment
Denny’s$37,527 $36,884 
Other35,213 — 
Total goodwill$72,740 $36,884 
 
Intangible assets consist of the following:
 
 December 28, 2022December 29, 2021
 Gross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated Amortization
 (In thousands)
Intangible assets with indefinite lives:    
Trade names$79,687 $— $44,087 $— 
Liquor licenses120 — 120 — 
Intangible assets with definite lives:  
Reacquired franchise rights10,489 5,697 12,218 6,199 
Franchise agreements10,700 265 — — 
Intangible assets, net$100,996 $5,962 $56,425 $6,199 
 
The weighted-average life of reacquired franchise rights is approximately seven years. The weighted-average life of franchise agreements is approximately 14 years. The amortization expense for definite-lived intangibles and other assets for 2022, 2021 and 2020 was $2.0 million, $2.1 million and $3.0 million, respectively. Estimated amortization expense for intangible assets with definite lives in the next five years is as follows: 
 (In thousands)
2023$1,550 
20241,480 
20251,424 
20261,256 
20271,207 
 
We performed an annual impairment test as of December 28, 2022 and determined that none of the recorded goodwill or other intangible assets with indefinite lives were impaired.
v3.22.4
Other Current Liabilities
12 Months Ended
Dec. 28, 2022
Other Liabilities Disclosure [Abstract]  
Other Current Liabilities Other Current Liabilities
 
Other current liabilities consisted of the following:
 
 December 28, 2022December 29, 2021
 (In thousands)
Accrued payroll$17,903 $20,676 
Accrued insurance, primarily current portion of liability for insurance claims
3,492 4,285 
Accrued taxes4,452 4,533 
Accrued advertising6,069 15,355 
Gift cards7,675 7,170 
Accrued legal settlements5,446 3,173 
Other11,725 8,954 
Other current liabilities$56,762 $64,146 
v3.22.4
Fair Value of Financial Instruments
12 Months Ended
Dec. 28, 2022
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis
 
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
 TotalQuoted Prices in Active Markets for Identical Assets/Liabilities
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
 
(In thousands)
Fair value measurements as of December 28, 2022:
Deferred compensation plan investments (1)
$10,818 $10,818 $— $— 
Interest rate swaps (2)
20,047 — 20,047 — 
Investments (3)
1,746 — 1,746 — 
Total$32,611 $10,818 $21,793 $— 
Fair value measurements as of December 29, 2021:
Deferred compensation plan investments (1)
$13,726 $13,726 $— $— 
Interest rate swaps (2)
(52,121)— (52,121)— 
Investments (3)
2,551 — 2,551 — 
Total$(35,844)$13,726 $(49,570)$— 

(1)    The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments and are included in other noncurrent assets in our Consolidated Balance Sheets.
(2)    The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates, forward yield curves and credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For disclosures about the fair value measurements of our derivative instruments, see Note 10.
(3)    The fair value of investments is valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments.
 
Those assets and liabilities measured at fair value on a nonrecurring basis are summarized below:
 
 Significant Unobservable Inputs
(Level 3)
Impairment Charges
 (In thousands)
Fair value measurements as of December 29, 2021:
Assets held and used (1)
$313 $442 

(1)At December 29, 2021, impaired assets were written down to their fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, we may be required to recognize impairment charges in future periods.

Assets that are measured at fair value on a non-recurring basis include property, operating right-of-use assets, finance right-of-use assets and reacquired franchise rights. During the year ended December 28, 2022 and December 29, 2021, we recognized impairment charges of $1.0 million and $0.4 million, respectively, related to certain of these assets. See Note 14.

The carrying amounts of cash and cash equivalents, accounts receivables, accounts payable and accrued expenses are deemed to approximate fair value due to the immediate or short-term maturity of these instruments. The fair value of notes receivable approximates the carrying value after consideration of recorded allowances and related risk-based interest rates. The liabilities under our credit facility are carried at historical cost, which approximates fair value. The fair value of our senior secured revolver approximates its carrying value since it is a variable rate facility (Level 2). The determinations of fair values of certain tangible and intangible assets for purposes of the application of the acquisition method of accounting to the acquisition of Keke’s were based on Level 3 inputs.
v3.22.4
Leases
12 Months Ended
Dec. 28, 2022
Leases [Abstract]  
Leases Leases
 
Lessee

Our operations utilize property, facilities and equipment leased from others. Buildings and facilities are primarily used for restaurants and support facilities. Many of our restaurants are operated under lease arrangements which generally provide for a fixed base rent, and, in many instances, contingent rent based on a percentage of gross revenues. Initial terms of land and restaurant building leases generally range from 10 to 20 years, exclusive of options to renew, which are typically for five year periods. Leases of equipment consist primarily of restaurant equipment, computer equipment and vehicles. Initial terms of equipment leases generally range from three to five years.

Lessor

We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above.

The components of lease costs were as follows:
 Fiscal Year Ended
 ClassificationDecember 28, 2022December 29, 2021
 (In thousands)
Lease costs
Finance lease costs:
Amortization of right-of-use assets
Depreciation and amortization
$1,704 $1,895 
Interest on lease liabilitiesInterest expense, net2,350 2,960 
Operating lease costs:
Operating lease costs - company
Occupancy
7,624 6,394 
Operating lease costs - franchise
Costs of franchise and license revenue
15,541 17,106 
Operating lease costs - general and administrative
General and administrative expenses564 432 
Operating lease costs - closed storesRestructuring charges and exit costs201 356 
Variable lease costs:
Variable lease costs - companyOccupancy3,988 3,275 
Variable lease costs - franchiseCosts of franchise and license revenue6,596 7,172 
Variable lease costs - general and administrative
General and administrative expenses
255 218 
Variable lease costs - closed stores
Restructuring charges and exit costs
34 48 
Sublease income:
Sublease income - franchise
Franchise and license revenue
(27,445)(30,607)
Sublease income - closed stores
Restructuring charges and exit costs(229)(160)
Total lease costs
$11,183 $9,089 


Lease terms and discount rates were as follows:
 December 28, 2022December 29, 2021
Weighted-average remaining lease term (in years):
Finance leases
8.48.5
Operating leases9.410.0
Weighted-average discount rate:
Finance leases23.5 %23.4 %
Operating leases5.8 %5.7 %
The components of lease income were as follows:
 Fiscal Year Ended
 ClassificationDecember 28, 2022December 29, 2021
 (In thousands)
Lease income
Operating lease income - franchise
Franchise and license revenue
$28,473 $30,767 
Operating lease income - closed stores
Restructuring charges and exit costs
183 109 
Operating lease income - general and administrativeGeneral and administrative expenses140 65 
Variable lease income - franchise
Franchise and license revenue
10,124 10,999 
Variable lease income - closed stores
Restructuring charges and exit costs
46 51 
Total lease income$38,966 $41,991 

Cash and supplemental noncash amounts were as follows:
 Fiscal Year Ended
 December 28, 2022December 29, 2021
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases
$2,350 $2,960 
Operating cash flows from operating leases$24,626 $25,578 
Financing cash flows from finance leases$2,020 $2,118 
Right-of-use assets obtained in exchange for new finance lease liabilities
$537 $998 
Right-of-use assets obtained in exchange for new operating lease liabilities (1)
$16,040 $8,513 
    
(1)    Right-of-use assets obtained in 2022 includes $7.9 million from the acquisition of Keke’s. See Note 3.

Maturities of lease liabilities and receipts as of December 28, 2022 were as follows:
 Lease LiabilitiesLease Receipts
 FinanceOperatingOperating
 (In thousands)
2023$3,768 $23,031 $25,816 
20243,047 21,538 24,454 
20252,911 20,267 24,220 
20262,576 19,427 23,768 
20272,197 17,525 22,195 
Thereafter11,514 80,781 138,095 
Total undiscounted cash flows26,013 182,569 $258,548 
Less: interest14,775 43,855  
Present value of lease liabilities11,238 138,714  
Less: current lease liabilities1,683 15,310 
Long-term lease liabilities$9,555 $123,404 
Leases Leases
 
Lessee

Our operations utilize property, facilities and equipment leased from others. Buildings and facilities are primarily used for restaurants and support facilities. Many of our restaurants are operated under lease arrangements which generally provide for a fixed base rent, and, in many instances, contingent rent based on a percentage of gross revenues. Initial terms of land and restaurant building leases generally range from 10 to 20 years, exclusive of options to renew, which are typically for five year periods. Leases of equipment consist primarily of restaurant equipment, computer equipment and vehicles. Initial terms of equipment leases generally range from three to five years.

Lessor

We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above.

The components of lease costs were as follows:
 Fiscal Year Ended
 ClassificationDecember 28, 2022December 29, 2021
 (In thousands)
Lease costs
Finance lease costs:
Amortization of right-of-use assets
Depreciation and amortization
$1,704 $1,895 
Interest on lease liabilitiesInterest expense, net2,350 2,960 
Operating lease costs:
Operating lease costs - company
Occupancy
7,624 6,394 
Operating lease costs - franchise
Costs of franchise and license revenue
15,541 17,106 
Operating lease costs - general and administrative
General and administrative expenses564 432 
Operating lease costs - closed storesRestructuring charges and exit costs201 356 
Variable lease costs:
Variable lease costs - companyOccupancy3,988 3,275 
Variable lease costs - franchiseCosts of franchise and license revenue6,596 7,172 
Variable lease costs - general and administrative
General and administrative expenses
255 218 
Variable lease costs - closed stores
Restructuring charges and exit costs
34 48 
Sublease income:
Sublease income - franchise
Franchise and license revenue
(27,445)(30,607)
Sublease income - closed stores
Restructuring charges and exit costs(229)(160)
Total lease costs
$11,183 $9,089 


Lease terms and discount rates were as follows:
 December 28, 2022December 29, 2021
Weighted-average remaining lease term (in years):
Finance leases
8.48.5
Operating leases9.410.0
Weighted-average discount rate:
Finance leases23.5 %23.4 %
Operating leases5.8 %5.7 %
The components of lease income were as follows:
 Fiscal Year Ended
 ClassificationDecember 28, 2022December 29, 2021
 (In thousands)
Lease income
Operating lease income - franchise
Franchise and license revenue
$28,473 $30,767 
Operating lease income - closed stores
Restructuring charges and exit costs
183 109 
Operating lease income - general and administrativeGeneral and administrative expenses140 65 
Variable lease income - franchise
Franchise and license revenue
10,124 10,999 
Variable lease income - closed stores
Restructuring charges and exit costs
46 51 
Total lease income$38,966 $41,991 

Cash and supplemental noncash amounts were as follows:
 Fiscal Year Ended
 December 28, 2022December 29, 2021
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases
$2,350 $2,960 
Operating cash flows from operating leases$24,626 $25,578 
Financing cash flows from finance leases$2,020 $2,118 
Right-of-use assets obtained in exchange for new finance lease liabilities
$537 $998 
Right-of-use assets obtained in exchange for new operating lease liabilities (1)
$16,040 $8,513 
    
(1)    Right-of-use assets obtained in 2022 includes $7.9 million from the acquisition of Keke’s. See Note 3.

Maturities of lease liabilities and receipts as of December 28, 2022 were as follows:
 Lease LiabilitiesLease Receipts
 FinanceOperatingOperating
 (In thousands)
2023$3,768 $23,031 $25,816 
20243,047 21,538 24,454 
20252,911 20,267 24,220 
20262,576 19,427 23,768 
20272,197 17,525 22,195 
Thereafter11,514 80,781 138,095 
Total undiscounted cash flows26,013 182,569 $258,548 
Less: interest14,775 43,855  
Present value of lease liabilities11,238 138,714  
Less: current lease liabilities1,683 15,310 
Long-term lease liabilities$9,555 $123,404 
Leases Leases
 
Lessee

Our operations utilize property, facilities and equipment leased from others. Buildings and facilities are primarily used for restaurants and support facilities. Many of our restaurants are operated under lease arrangements which generally provide for a fixed base rent, and, in many instances, contingent rent based on a percentage of gross revenues. Initial terms of land and restaurant building leases generally range from 10 to 20 years, exclusive of options to renew, which are typically for five year periods. Leases of equipment consist primarily of restaurant equipment, computer equipment and vehicles. Initial terms of equipment leases generally range from three to five years.

Lessor

We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above.

The components of lease costs were as follows:
 Fiscal Year Ended
 ClassificationDecember 28, 2022December 29, 2021
 (In thousands)
Lease costs
Finance lease costs:
Amortization of right-of-use assets
Depreciation and amortization
$1,704 $1,895 
Interest on lease liabilitiesInterest expense, net2,350 2,960 
Operating lease costs:
Operating lease costs - company
Occupancy
7,624 6,394 
Operating lease costs - franchise
Costs of franchise and license revenue
15,541 17,106 
Operating lease costs - general and administrative
General and administrative expenses564 432 
Operating lease costs - closed storesRestructuring charges and exit costs201 356 
Variable lease costs:
Variable lease costs - companyOccupancy3,988 3,275 
Variable lease costs - franchiseCosts of franchise and license revenue6,596 7,172 
Variable lease costs - general and administrative
General and administrative expenses
255 218 
Variable lease costs - closed stores
Restructuring charges and exit costs
34 48 
Sublease income:
Sublease income - franchise
Franchise and license revenue
(27,445)(30,607)
Sublease income - closed stores
Restructuring charges and exit costs(229)(160)
Total lease costs
$11,183 $9,089 


Lease terms and discount rates were as follows:
 December 28, 2022December 29, 2021
Weighted-average remaining lease term (in years):
Finance leases
8.48.5
Operating leases9.410.0
Weighted-average discount rate:
Finance leases23.5 %23.4 %
Operating leases5.8 %5.7 %
The components of lease income were as follows:
 Fiscal Year Ended
 ClassificationDecember 28, 2022December 29, 2021
 (In thousands)
Lease income
Operating lease income - franchise
Franchise and license revenue
$28,473 $30,767 
Operating lease income - closed stores
Restructuring charges and exit costs
183 109 
Operating lease income - general and administrativeGeneral and administrative expenses140 65 
Variable lease income - franchise
Franchise and license revenue
10,124 10,999 
Variable lease income - closed stores
Restructuring charges and exit costs
46 51 
Total lease income$38,966 $41,991 

Cash and supplemental noncash amounts were as follows:
 Fiscal Year Ended
 December 28, 2022December 29, 2021
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases
$2,350 $2,960 
Operating cash flows from operating leases$24,626 $25,578 
Financing cash flows from finance leases$2,020 $2,118 
Right-of-use assets obtained in exchange for new finance lease liabilities
$537 $998 
Right-of-use assets obtained in exchange for new operating lease liabilities (1)
$16,040 $8,513 
    
(1)    Right-of-use assets obtained in 2022 includes $7.9 million from the acquisition of Keke’s. See Note 3.

Maturities of lease liabilities and receipts as of December 28, 2022 were as follows:
 Lease LiabilitiesLease Receipts
 FinanceOperatingOperating
 (In thousands)
2023$3,768 $23,031 $25,816 
20243,047 21,538 24,454 
20252,911 20,267 24,220 
20262,576 19,427 23,768 
20272,197 17,525 22,195 
Thereafter11,514 80,781 138,095 
Total undiscounted cash flows26,013 182,569 $258,548 
Less: interest14,775 43,855  
Present value of lease liabilities11,238 138,714  
Less: current lease liabilities1,683 15,310 
Long-term lease liabilities$9,555 $123,404 
v3.22.4
Long-Term Debt
12 Months Ended
Dec. 28, 2022
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
 
Long-term debt consisted of the following:
 December 28, 2022December 29, 2021
 (In thousands)
Revolving loans$261,500 $170,000 
Finance lease obligations11,238 12,696 
Total long-term debt272,738 182,696 
Less current maturities of finance lease obligations1,683 1,952 
Noncurrent portion of long-term debt$271,055 $180,744 
 
There are no scheduled maturities of our revolving loans due in 2023 through 2025. The $261.5 million of revolving loans are due August 26, 2026.

The Company and certain of its subsidiaries have a credit facility consisting of a five-year $400 million senior secured revolver (with a $25 million letter of credit sublimit). The credit facility includes an accordion feature that would allow us to increase the size of the revolver to $450 million. Borrowings bear a tiered interest rate, which is based on the Company's consolidated leverage ratio. The credit facility contains provisions specifying alternative interest rate calculations to be used at such time LIBOR ceases to be available as a benchmark due to reference rate reform. The maturity date for the credit facility is August 26, 2026.

The credit facility is available for working capital, capital expenditures and other general corporate purposes. The credit facility is guaranteed by the Company and its material subsidiaries and is secured by assets of the Company and its subsidiaries, including the stock of its subsidiaries (other than its insurance captive subsidiary). It includes negative covenants that are usual for facilities and transactions of this type. The credit facility also includes certain financial covenants with respect to a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. We were in compliance with all financial covenants as of December 28, 2022.

As of December 28, 2022, we had outstanding revolver loans of $261.5 million and outstanding letters of credit under the credit facility of $12.3 million. These balances resulted in unused commitments of $126.2 million as of December 28, 2022 under the credit facility.

As of December 28, 2022, borrowings under the credit facility bore interest at a rate of LIBOR plus 2.25% and the commitment fee, paid on the unused portion of the credit facility, was set to 0.35%.

Prior to considering the impact of our interest rate swaps, described below, the weighted-average interest rate on outstanding revolver loans was 6.37% and 2.09% as of December 28, 2022 and December 29, 2021, respectively. Taking into consideration our interest rate swaps that are designated as cash flow hedges, the weighted-average interest rate of outstanding revolver loans was 5.31% and 4.44% as of December 28, 2022 and December 29, 2021, respectively.

Interest Rate Hedges

We have receive-variable, pay-fixed interest rate swaps to hedge the forecasted cash flows of our floating rate debt. We initially
designated the interest rate swaps as cash flow hedges of our exposure to variability in future cash flows attributable to variable
interest payments due on forecasted notional amounts. A summary of our interest rate swaps as of December 28, 2022 is as follows:
Trade DateEffective DateMaturity DateNotional AmountFair ValueFixed Rate
(In thousands)
Swaps designated as
cash flow hedges
March 20, 2015March 29, 2018March 31, 2025$120,000 $4,904 2.44 %
October 1, 2015March 29, 2018March 31, 2026$50,000 $2,392 2.46 %
Dedesignated swaps
February 15, 2018March 31, 2020December 31, 2033$130,000 (1)$12,751 3.19 %
Total$300,000 $20,047 

(1)     The notional amount of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $425.0 million on September 28, 2029.

Swaps Designated as Cash Flow Hedges

To the extent the swaps are highly effective in offsetting the variability of the hedged cash flows, changes in the fair value of the swaps are not included in the Consolidated Statements of Operations but are reported as a component of accumulated other comprehensive loss, net. The interest rate swaps entered into in 2015 are designated as cash flow hedges with unrealized gain and losses recorded as a component of accumulated other comprehensive loss, net.

As of December 28, 2022, the fair value of swaps designated as cash flow hedges was an asset of $7.3 million and was recorded as a component of other noncurrent assets with an offsetting amount (before taxes) recorded as a component of accumulated other comprehensive loss, net in our Consolidated Balance Sheets. See Note 18 for the amounts recorded in accumulated other comprehensive loss related to the interest rate swaps. We expect to reclassify approximately $3.3 million from accumulated other comprehensive loss, net as a reduction to interest expense, net in our Consolidated Statements of Operations related to swaps designated as cash flow hedges during the next twelve months.

Dedesignated Interest Rate Hedges

During the year ended December 30, 2020, we determined that a portion of the underlying cash flows related to our hedging relationship entered into in 2018 (“2018 Swaps”) were no longer probable of occurring over the term of the interest rate swaps. Accordingly, we dedesignated the cash flow relationship and discontinued hedge accounting treatment for the 2018 Swaps. As a result, we reclassified approximately $7.4 million of losses from accumulated other comprehensive loss, net to other nonoperating expense (income), net in our Consolidated Statements of Operations and began amortizing the remaining amounts of unrealized losses related to the 2018 Swaps from accumulated other comprehensive loss, net into our Consolidated Statements of Operations as a component of interest expense, net over the remaining term of the 2018 Swaps. We reclassified unrealized losses of less than $0.1 million and approximately $0.2 million to interest expense, net related to the 2018 Swaps, for the years ended December 28, 2022 and December 29, 2021, respectively. At December 28, 2022, approximately $64.2 million (before taxes) of unrealized losses remained in accumulated other comprehensive loss, net. We expect to amortize approximately $0.3 million from accumulated other comprehensive loss, net to interest expense, net in our Consolidated Statements of Operations related to dedesignated interest rate swaps during the next twelve months.    
As a result of the dedesignated cash flow relationship related to the 2018 Swaps, changes in the fair value of the 2018 Swaps are recorded as a component of other nonoperating expense (income), net in our Consolidated Statements of Operations. We recorded income of approximately $55.0 million and $12.8 million as a component of nonoperating income related to the 2018 Swaps resulting from changes in fair value for the years ended December 28, 2022 and December 29, 2021, respectively. As of December 28, 2022, the fair value of the dedesignated interest rate swaps was an asset of $12.8 million, of which $0.1 million was recorded as a component of receivables, net, and $12.7 million was recorded as a component of other noncurrent assets in our Consolidated Balance Sheets.
v3.22.4
Revenues
12 Months Ended
Dec. 28, 2022
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The following table disaggregates our revenue by sales channel and type of good or service:
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Company restaurant sales$199,753 $175,017 $118,160 
Franchise and license revenue:
Royalties113,891 103,425 67,501 
Advertising revenue75,926 69,957 53,745 
Initial and other fees28,262 8,009 7,332 
Occupancy revenue 38,597 41,766 41,867 
Franchise and license revenue 
256,676 223,157 170,445 
Total operating revenue$456,429 $398,174 $288,605 

Balances related to contracts with customers consists of receivables, contract assets, deferred franchise revenue and deferred gift card revenue. See Note 4 for details on our receivables.

Deferred franchise revenue consists primarily of the unamortized portion of initial franchise fees that are currently being amortized into revenue and amounts related to development agreements and unopened restaurants that will begin amortizing into revenue when the related restaurants are opened. Deferred franchise revenue represents our remaining performance obligations to our franchisees, excluding amounts of variable consideration related to sales-based royalties and advertising. The components of the change in deferred franchise revenue are as follows:
 (In thousands)
Balance, December 29, 2021$19,896 
Fees received from franchisees3,435 
Acquired deferred franchise revenue992 
Revenue recognized, net (1)
(3,572)
Balance, December 28, 202220,751 
Less current portion included in other current liabilities2,258 
Deferred franchise revenue included in other noncurrent liabilities$18,493 

(1) Of this amount $2.5 million was included in the deferred franchise revenue balance as of December 29, 2021.

We record contract assets related to incentives and subsidies provided to franchisees related to new unit openings and/or equipment upgrades. These amounts will be recognized as a component of franchise and license revenue over the remaining term of the related franchise agreements.The components of the change in contract assets are as follows:
 (In thousands)
Balance, December 29, 2021$— 
Franchisee deferred costs5,953 
Contract asset amortization(592)
Balance, December 28, 20225,361 
Less current portion included in other current assets580 
Contract assets included in other noncurrent assets$4,781 
During 2021 and 2022, the Company purchased equipment related to a kitchen modernization program for franchise restaurants. We bill our franchisees and recognize revenue when the related equipment is installed, less a total of approximately $5.7 million contributed from the Company, which has been deferred as contract assets and included as a component of franchisee deferred costs in the table above. We recognized $19.1 million and $0.4 million of revenue related to the sale of kitchen equipment to franchisees during the years ended December 28, 2022 and December 29, 2021, respectively. As of December 28, 2022, we had approximately $3.6 million in inventory and $6.6 million in receivables related to the kitchen equipment rollout. As of December 29, 2021, we had approximately $3.7 million in inventory and $0.4 million in receivables related to the kitchen equipment rollout.

As of December 28, 2022, deferred franchise revenue, net of contract asset amortization, expected to be recognized in the future is as follows:
 (In thousands)
2023$1,678 
20241,655 
20251,618 
20261,540 
20271,454 
Thereafter7,445 
Deferred franchise revenue, net$15,390 

Deferred gift card liabilities consist of the unredeemed portion of gift cards sold in company restaurants and at third party locations. The balance of deferred gift card liabilities represents our remaining performance obligations to customers. The balance of deferred gift card liabilities as of December 28, 2022 and December 29, 2021 was $7.7 million and $7.2 million, respectively. During the year ended December 28, 2022, we recognized revenue of $0.5 million from gift card redemptions at company restaurants.
v3.22.4
Employee Benefit Plans
12 Months Ended
Dec. 28, 2022
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
 
We maintain defined contribution plans and defined benefit plans which cover a substantial number of employees.

Defined Contribution Plans

Eligible employees can elect to contribute up to 25% of their compensation to our 401(k) plan. Effective January 1, 2016, the plan was amended and restated to incorporate Safe Harbor Plan design features which included changes to participant eligibility, company contribution amounts and vesting. As a result, we match up to a maximum of 4% of compensation deferred by the participant.

In addition, a non-qualified deferred compensation plan is offered to certain employees. This plan allows participants to defer up to 50% of annual salary and up to 75% of bonuses and incentive compensation awards, on a pre-tax basis. There are no matching contributions made under this plan. 

We made total contributions of $1.7 million, $1.5 million and $1.5 million for 2022, 2021 and 2020, respectively, under these plans.
Defined Benefit Plans
 
Benefits under our defined benefit plans are based upon each employee’s years of service and average salary. The following table provides a reconciliation of the changes in the benefit obligations, plan assets, and funded status of our defined benefit plans:
 December 28, 2022December 29, 2021
 (In thousands)
Change in Benefit Obligation:  
Benefit obligation at beginning of year
$2,219 $2,298 
Interest cost36 26 
Actuarial (gain) loss(261)46 
Benefits paid(151)(151)
Settlements(237)— 
Benefit obligation at end of year
$1,606 $2,219 
Accumulated benefit obligation$1,606 $2,219 
Change in Plan Assets:  
Fair value of plan assets at beginning of year
$— $— 
Employer contributions388 151 
Benefits paid(151)(151)
Settlements(237)— 
Fair value of plan assets at end of year
$— $— 
Unfunded status at end of year$(1,606)$(2,219)
Amounts recognized on the balance sheet:
Other current liabilities $(972)$(944)
Other noncurrent liabilities(634)(1,275)
Net amount recognized $(1,606)$(2,219)
Amounts in accumulated other comprehensive loss not yet reflected in net period benefit cost:
Unamortized actuarial losses, net$(516)$(974)
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss, net:
Benefit obligation actuarial gain (loss)$261 $(46)
Amortization of net loss123 159 
Settlement loss recognized74 — 
Other comprehensive income$458 $113 
 
The components of net periodic benefit cost, which are included in general and administrative expenses in our Consolidated Statements of Operations, were as follows:
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Interest cost$36 $26 $41 
Amortization of net loss123 159 89 
Settlement loss recognized74 — 95 
Net periodic benefit cost$233 $185 $225 

Assumptions

The discount rates used to determine the benefit obligations as of December 28, 2022 and December 29, 2021 were 5.26% and 1.99%, respectively. The discount rates used to determine net period pension costs for 2022, 2021 and 2020 were 1.99%, 1.34% and 2.56%, respectively.
 
In determining the discount rates, we have considered long-term bond indices of bonds having similar timing and amounts of cash flows as our estimated defined benefit payments. We use a yield curve based on high quality, long-term corporate bonds to calculate the single equivalent discount rate that results in the same present value as the sum of each of the plan’s estimated benefit payments discounted at their respective spot rates.

Contributions and Expected Future Benefit Payments

We made contributions of $0.4 million and $0.2 million to our defined benefit plans during the years ended December 28, 2022 and December 29, 2021, respectively. We expect to contribute $1.0 million to our defined benefit plans during 2023.

Benefits expected to be paid for each of the next five years and in the aggregate for the five fiscal years from 2028 through 2032 are as follows:
 Defined Benefit Plans
 (In thousands)
2023$972 
2024144 
2025121 
2026119 
202791 
2028 through 2032314 
v3.22.4
Share-Based Compensation
12 Months Ended
Dec. 28, 2022
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
 
Share-Based Compensation Plans

The Denny’s Corporation 2021 Omnibus Incentive Plan (the “2021 Omnibus Plan”) is used to grant share-based compensation to selected employees, officers and directors of Denny’s and its affiliates. However, we reserve the right to pay discretionary bonuses, or other types of compensation, outside of this plan. At December 28, 2022, there were 3.0 million shares available for grant under the 2021 Omnibus Plan. In addition, we have 0.7 million shares available to be issued outside of the 2021 Omnibus Plan pursuant to the grant or exercise of employment inducement awards of stock options and restricted stock units in accordance with Nasdaq Listing Rule 5635(c)(4).
 
Share-Based Compensation Expense
 
Total share-based compensation expense included as a component of net income (loss) was as follows:
 
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Employee share awards$10,470 $12,708 $7,104 
Restricted stock units for board members930 894 844 
Total share-based compensation$11,400 $13,602 $7,948 
 
The income tax benefits recognized as a component of the provision for (benefit from) income taxes in our Consolidated Statements of Operations related to share-based compensation expense were approximately $2.9 million, $3.4 million and $2.0 million during the years ended December 28, 2022, December 29, 2021 and December 30, 2020, respectively.


Employee Share Awards

Employee share awards consist of performance share units (“PSUs”) and restricted stock units ("RSUs") (which are equity classified). The number of shares that are ultimately issued is dependent upon the level of obtainment of the market and performance conditions. The following table summarizes the employee share awards activity during the year ended December 28, 2022:
 UnitsWeighted Average Grant Date
Fair Value
 
 (In thousands)
Outstanding, beginning of year2,076 $15.57 
Granted1,065 $16.22 
Converted(1,415)$12.33 
Forfeited(429)$19.62 
Outstanding, end of year1,297 $18.30 
Convertible, end of year159 $15.38 

During the year ended December 28, 2022, we granted certain employees approximately 0.3 million performance share units ("PSUs") with a weighted average grant date fair value of $21.05 per share that vest based on the total shareholder return (“TSR”) of our common stock compared to the TSRs of a group of peer companies and approximately 0.3 million PSUs with a weighted average grant date fair value of $14.12 per share that vest based on our Adjusted EPS growth rate versus plan, as defined under the terms of the award. As the TSR based PSUs contain a market condition, a Monte Carlo valuation was used to determine the grant date fair value. The performance period for these PSUs is the three year fiscal period beginning December 30, 2021 and ending December 25, 2024. The PSUs will completely vest and be earned at the end of the performance period at which point the relative TSR and Adjusted EPS growth rate achievement percentages will be applied to the vested units (from 0% to 200% of the target award).

We also granted certain employees approximately 0.4 million RSUs with a weighted average grant date fair value of $14.08 per share. The RSUs generally vest evenly over the three year period ending December 25, 2024, and are paid annually.

For 2022, 2021 and 2020, the weighted average grant date fair value of awards granted was $16.22, $21.83 and $10.47, respectively.

The following table presents the weighted-average assumptions used in the Monte Carlo simulations to determine the fair value of PSU awards at the grant date, along with the related weighted-average grant date fair value of PSU awards:

 December 28, 2022December 29, 2021December 30, 2020
Risk-free interest rate1.96%0.18%0.16%
Expected term (in years)2.83.01.25
Expected volatility66.0%64.9%59.5%
Expected dividend yield0.0%0.0%0.0%
Grant date fair value per unit$21.05$24.74$8.24

The risk-free interest rate was based on U.S. Treasury bond yield with a term equal to the expected life assumed at the date of grant. The expected term represents the period of time the awards are expected to be outstanding. Expected volatility was based on historical volatility of the Company. The expected dividend yield is based on the Company’s history and expectations of dividend payouts at the time of grant.

We made payments of $0.4 million, $0.2 million and $0.4 million during 2022, 2021 and 2020, respectively, related to converted performance and restricted share units. Payments relate to the payment of payroll taxes. The fair value of units converted was $13.8 million, $4.3 million and $12.0 million during 2022, 2021 and 2020, respectively. As of December 28, 2022, we had $9.7 million of unrecognized compensation cost related to unvested employee share awards, which is expected to be recognized over a weighted average of 1.7 years.
 
Restricted Stock Units for Board Members
 
During the year ended December 28, 2022, we granted approximately 0.1 million RSUs (which are equity classified) with a weighted average grant date fair value of $9.93 per unit to non-employee members of our Board. The restricted stock units vest after a one year service period. A director may elect to convert these awards into shares of common stock on a specific date in the future (while still serving as a member of our Board), upon termination as a member of our Board or in three equal annual
installments commencing after termination of service as a member of our Board. During the year ended December 28, 2022, less than 0.1 million restricted stock units were converted into shares of common stock.

There were 0.8 million and 0.8 million RSUs outstanding as of December 28, 2022 and December 29, 2021, respectively. As of December 28, 2022, we had approximately $0.4 million of unrecognized compensation cost related to all unvested RSU awards outstanding, which is expected to be recognized over a weighted average of 0.4 years.

Stock Options

Prior to 2012, stock options were granted that vest evenly over three years, have a 10-year contractual life and are issued at the market value at the date of grant. There were no options granted in 2022, 2021 or 2020. There were no stock options outstanding at December 28, 2022, and there were no stock options exercised for the year ended December 28, 2022. The total intrinsic value of the options exercised was $0.3 million and $0.8 million during the years ended December 29, 2021 and December 30, 2020, respectively.
v3.22.4
Operating (Gains), Losses and Other Charges, Net
12 Months Ended
Dec. 28, 2022
Other Income and Expenses [Abstract]  
Operating (Gains), Losses and Other Charges, Net Operating (Gains), Losses and Other Charges, Net
Operating (gains), losses and other charges, net consists of the following:
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Gains on sales of assets and other, net$(3,378)$(47,822)$(4,678)
Restructuring charges and exit costs1,410 1,275 2,403 
Impairment charges963 442 4,083 
Operating (gains), losses and other charges, net$(1,005)$(46,105)$1,808 

Gains on sales of assets and other, net of $3.4 million for the year ended December 28, 2022 were primarily related to the sales of two parcels of real estate. Gains on sales of assets and other, net of $47.8 million for the year ended December 29, 2021 were primarily related to the sales of three parcels of real estate. Gains on sales of assets and other, net of $4.7 million for the year ended December 30, 2020 were primarily related to the sales of parcels of real estate.
Restructuring charges and exit costs consists of the following: 
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Exit costs$86 $323 $204 
Severance and other restructuring charges1,324 952 2,199 
Total restructuring charges and exit costs$1,410 $1,275 $2,403 

Exit costs primarily consists of costs related to closed restaurants. Exit cost liabilities related to lease costs are included as a component of operating lease liabilities in our Consolidated Balance Sheets. See Note 9.

Severance and other restructuring charges for the year ended December 28, 2022 primarily consist of severance costs. Severance and other restructuring charges for the year ended December 29, 2021 were primarily related to the relocation of certain support functions to our support center in the Dallas, Texas area. Severance and other restructuring charges for the year ended December 30, 2020 were primarily related to positions eliminated as a cost reduction effort in response to the COVID-19 pandemic. As of December 28, 2022 and December 29, 2021, we had accrued severance and other restructuring charges of $0.7 million and $0.1 million, respectively. The balance as of December 28, 2022 is expected to be paid during the next 12 months.

We recorded impairment charges of $1.0 million for the year ended December 28, 2022 primarily resulting from underperforming units. The $1.0 million included $0.6 million related to property, $0.3 million related to operating lease ROU assets, and less than $0.1 million related to finance lease ROU assets. We recorded impairment charges of $0.4 million for the year ended December 29, 2021 primarily resulting from an underperforming unit. The $0.4 million included $0.3 million related to property, $0.1 million related to finance lease ROU assets, and less than $0.1 million related to operating lease ROU
assets. We recorded impairment charges of $4.1 million for the year ended December 30, 2020 resulting from the impacts of the COVID-19 pandemic. The $4.1 million included $2.4 million related to property, $1.6 million related to operating lease ROU assets, $0.1 million related to reacquired franchise rights and less than $0.1 million related to finance lease ROU assets.
v3.22.4
Income Taxes
12 Months Ended
Dec. 28, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 
The provisions for (benefits from) income taxes were as follows:
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Current:   
Federal$6,128 $12,997 $(3,497)
State and local2,160 3,105 (109)
Foreign1,152 862 667 
Deferred:   
Federal11,043 6,826 393 
State and local3,689 7,271 3,588 
Increase (decrease) of valuation allowance546 (5,031)(3,041)
Total provision for (benefit from) income taxes$24,718 $26,030 $(1,999)
 
The reconciliation of income taxes at the U.S. federal statutory tax rate to our effective tax rate was as follows: 
 
 December 28, 2022December 29, 2021December 30, 2020
Statutory provision rate21 %21 %21 %
State, foreign and local taxes, net of federal income tax benefit(11)
Change in state valuation allowance— (1)(1)
General business credits generated(1)(2)
Foreign tax credits generated(1)
Carryback of net operating loss rate differential — — 12 
Section 162(m) and share-based compensation— (11)
Insurance premiums— — 
Other— — 
Effective tax rate25 %25 %28 %

For 2022, the difference in the overall effective rate from the U.S. statutory rate was primarily due to state and foreign taxes, partially offset by the generation of employment and foreign tax credits.

For 2021, the difference in the overall effective rate from the U.S. statutory rate was primarily due to state and foreign taxes and the generation of employment credits. The 2021 rate was also impacted by an expense of $1.3 million from disallowed compensation deductions. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law as a response to the economic impacts of the COVID-19 pandemic. As a result of the CARES Act, during 2021 the Company carried back 2020’s net operating loss to years 2015 and forward, to obtain $1.5 million in federal income tax refunds. See Note 16 for a discussion of other items related to the CARES Act.

For 2020, the difference in the overall effective rate from the U.S. statutory rate was primarily due to state and foreign taxes and the generation of employment credits. The 2020 rate was also impacted by a $0.9 million benefit from the statutory rate differential due to a net operating loss carryback to a prior year and an expense of $1.0 million from disallowed compensation deductions.
The following table represents the approximate tax effect of each significant type of temporary difference that resulted in deferred income tax assets or liabilities.  
 December 28, 2022December 29, 2021
 (In thousands)
Deferred tax assets:  
Self-insurance accruals$2,094 $2,594 
Finance lease liabilities1,230 1,281 
Operating lease liabilities33,028 35,545 
Accrued exit costs 21 19 
Interest rate swaps— 13,221 
Pension, other retirement and compensation plans11,239 11,259 
Deferred income4,396 4,675 
Other accruals918 — 
General business and foreign tax credit carryforwards - state and federal2,387 2,218 
Net operating loss carryforwards - state1,157 1,429 
Total deferred tax assets before valuation allowance56,470 72,241 
Less: valuation allowance(2,738)(2,192)
Total deferred tax assets53,732 70,049 
Deferred tax liabilities:  
Intangible assets(15,706)(14,874)
Contract assets(1,360)— 
Deferred finance costs(250)(313)
Operating lease right-of-use assets(29,822)(32,198)
Fixed assets(9,291)(10,134)
Interest rate swaps(4,722)— 
Other accruals— (1,028)
Total deferred tax liabilities(61,151)(58,547)
Net deferred tax asset (liability)$(7,419)$11,502 
 
The Company’s state net operating loss tax asset of approximately $1.2 million includes $0.9 million related to Pennsylvania and South Carolina.
Of the $2.7 million valuation allowance, $0.6 million relates to Pennsylvania and South Carolina net operating loss carryforwards, $1.2 million relates to California enterprise zone credits and $0.9 million relates to foreign tax credit carryforwards, all of which may never be utilized, prior to their expiration.
It is more likely than not that we will be able to utilize all of our existing temporary differences and most of our remaining state tax net operating losses and state credit tax carryforwards, net of existing valuation allowance, prior to their expiration.
The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits:

 December 28, 2022December 29, 2021
 (In thousands)
Balance, beginning of year$1,047 $1,047 
Decreases related to prior year tax positions(178)— 
Balance, end of year$869 $1,047 

There was no interest expense associated with unrecognized tax benefits for the years ended December 28, 2022 and December 29, 2021.
 
We file income tax returns in the U.S. federal jurisdictions and various state jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2019. We remain subject to examination for U.S. federal taxes for 2019-2022, and in the following major state jurisdictions: California (2017-2022), Florida (2019-2022) and Texas (2018-2022).
v3.22.4
Other CARES Act Provisions
12 Months Ended
Dec. 28, 2022
Unusual or Infrequent Items, or Both [Abstract]  
Other CARES Act Provisions Other CARES Act Provisions
The CARES Act allowed eligible employers to claim employee retention tax credits (“ERTC”) for qualified wages paid after March 12, 2020 and before January 1, 2021. The ERTC was extended to June 30, 2021 under the passage of the Taxpayer Certainty and Disaster Relief Act of 2020 (“ACT”) which was signed into law on December 27, 2020. We qualified for credits under the provisions of the CARES Act for the entire period subsequent to March 12, 2020 through January 1, 2021 and for the entire period subsequent to January 1, 2021 through June 30, 2021.

The total amount of credits recorded in 2021 related to the ERTC was $0.8 million, of which $0.3 million was included as a component of costs of company restaurant sales and $0.5 million was included as a component of general and administrative expenses in our Consolidated Statement of Operations for the year ended December 29, 2021.

The total amount of credits recorded in 2020 related to the ERTC was $2.6 million, of which $0.9 million was included as a component of costs of company restaurant sales and $1.7 million was included as a component of general and administrative expenses in our Consolidated Statement of Operations for the year ended December 30, 2020.

In addition, as allowed under the CARES Act, we deferred $3.1 million of our portion of FICA taxes in 2020 which were paid in 2021.
v3.22.4
Net Income (Loss) Per Share
12 Months Ended
Dec. 28, 2022
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per Share
The amounts used for the basic and diluted net income (loss) per share calculations are summarized below: 
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands, except per share amounts)
Net income (loss)$74,712 $78,073 $(5,116)
Weighted average shares outstanding - basic60,771 65,171 60,812 
Effect of dilutive share-based compensation awards108 402 — 
Weighted average shares outstanding - diluted60,879 65,573 60,812 
Net income (loss) per share - basic$1.23 $1.20 $(0.08)
Net income (loss) per share - diluted$1.23 $1.19 $(0.08)
Anti-dilutive share-based compensation awards(1)
709 420 1,682 
(1) For the year ended December 30, 2020, share-based compensation awards have been omitted from the calculations because they have an anti-dilutive effect on loss per share.
v3.22.4
Shareholders' Equity
12 Months Ended
Dec. 28, 2022
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
Share Repurchases

Our credit facility permits the repurchase of Denny’s stock and the payment of cash dividends subject to certain limitations. Our Board of Directors approves share repurchases of our common stock. Under these authorizations, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions, subject to market and business conditions. Currently, we are operating under a $250 million share repurchase authorization approved by the Board of Directors in December 2019. During 2017, the Board approved a share repurchase programs for $200 million of our common stock.
During the quarter ended March 25, 2020, we suspended share repurchases as of February 27, 2020 and terminated our previously approved Rule 10b5-1 Repurchase Plan effective March 16, 2020 in light of uncertain market conditions arising from the COVID-19 pandemic. Prior to refinancing our old credit facility in the third quarter of 2021, share repurchase restrictions were in place. As a result of refinancing our credit facility in the third quarter of 2021, we were able to resume our share repurchase program.

During 2022, we repurchased a total of 6.3 million shares of our common stock for approximately $64.9 million. During 2021, we repurchased a total of 2.0 million shares of our common stock for approximately $30.6 million. During 2020, we repurchased a total of 1.7 million shares of our common stock for approximately $34.2 million, thus completing the 2017 repurchase program.

Repurchased shares as of December 28, 2022 and December 29, 2021, are included as treasury stock in our Consolidated Balance Sheets and our Consolidated Statements of Shareholders’ Deficit.

Retirement of Treasury Stock

In the fourth quarter of fiscal 2020, the Board approved the retirement of 54.0 million shares of Treasury stock at a weighted average share price of $10.26. As of year end December 30, 2020, no shares remained in treasury.

Issuance and Sale of Common Stock

On July 1, 2020, the Company entered into an underwriting agreement with Wells Fargo Securities, LLC, as representative of the several underwriters named therein, for the issuance and sale by the Company of 8,000,000 shares of its common stock, par value $0.01 per share, in an underwritten public offering at a price to the public of $9.15 per share. On July 6, 2020, the Company received net proceeds of $69.6 million from the sale of shares, after deducting the underwriters' discounts and commissions and offering expenses.
Accumulated Other Comprehensive Loss

The components of the change in accumulated other comprehensive loss were as follows:

PensionsDerivativesAccumulated Other Comprehensive Loss
(In thousands)
Balance as of December 25, 2019$(781)$(33,179)$(33,960)
Benefit obligation actuarial loss(448)— (448)
Amortization of net loss (1)
89 — 89 
Settlement loss recognized
95 — 95 
Changes in the fair value of cash flow derivatives— (46,910)(46,910)
Reclassification of cash flow derivatives to interest expense, net (2)
— 3,160 3,160 
Reclassification of loss related to dedesignation of derivatives to other nonoperating expense (income)(3)
— 7,354 7,354 
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net (3)
— 783 783 
Income tax benefit67 9,365 9,432 
Balance as of December 30, 2020$(978)$(59,427)$(60,405)
Benefit obligation actuarial loss(46)— (46)
Amortization of net loss (1)
159 — 159 
Changes in the fair value of cash flow derivatives— 4,275 4,275 
Reclassification of cash flow derivatives to interest expense, net (2)
— 4,023 4,023 
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net (3)
— 166 166 
Income tax expense(35)(2,607)(2,642)
Balance as of December 29, 2021$(900)$(53,570)$(54,470)
Benefit obligation actuarial gain261 — 261 
Amortization of net loss (1)
123 — 123 
Settlement loss recognized74 — 74 
Changes in the fair value of cash flow derivatives— 13,619 13,619 
Reclassification of cash flow derivatives to interest expense, net (2)
— 1,310 1,310 
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net (3)
— 29 29 
Income tax expense(113)(3,530)(3,643)
Balance as of December 28, 2022$(555)$(42,142)$(42,697)

(1)    Before-tax amount that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Operations. See Note 12 for additional details.
(2)    Amounts reclassified from accumulated other comprehensive loss into income represent payments made to the counterparty for the effective portions of the interest rate swaps. These amounts are included as a component of interest expense, net in our Consolidated Statements of Operations. We expect to receive payments from the counterparty and reclassify approximately $3.3 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 10 for additional details.
(3)     During the quarter ended June 24, 2020, we dedesignated the cash flow relationship and discontinued hedge accounting treatment for the 2018 Swaps. As a result, we reclassified approximately $7.4 million of losses from accumulated other comprehensive loss, net to other nonoperating expense (income), net in our Consolidated Statements of Operations related to the portion of forecasted transaction no longer considered probable of occurring. The remaining losses related to the 2018 Swaps will continue to be included in accumulated other comprehensive loss, net and will be amortized as a component of interest expense, net in our Consolidated Statements of Operations over the remaining term of the 2018 Swaps. We expect to amortize less than $0.3 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 10 for additional details.
v3.22.4
Commitments and Contingencies
12 Months Ended
Dec. 28, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
 
Legal Proceedings
There are various claims and pending legal actions against or indirectly involving us, incidental to and arising out of the ordinary course of the business. In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect the Company’s consolidated results of operations or financial position.  
Purchase Obligations

We have commitments related to company and franchised restaurants under purchase contracts for food and non-food products. Many of these agreements do not obligate us to purchase any specific volumes and include provisions that would allow us to cancel such agreements with appropriate notice. Our future purchase obligation payments due by period for both company and franchised restaurants at December 28, 2022 consist of the following:
 (In thousands)
Less than 1 year$216,740 
1-2 years— 
3-4 years— 
5 years and thereafter— 
Total$216,740 
 
For agreements with cancellation provisions, amounts included in the table above represent our estimate of purchase obligations during the periods presented if we were to cancel these contracts with appropriate notice.
v3.22.4
Supplemental Cash Flow Information
12 Months Ended
Dec. 28, 2022
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information Supplemental Cash Flow Information
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Income taxes paid, net$9,296 $9,942 $
Interest paid$12,939 $14,159 $15,889 
Noncash investing and financing activities:
Receipt of real estate receivable$3,000 $— $— 
Accrued purchase of property$283 $231 $133 
Issuance of common stock, pursuant to share-based compensation plans$9,547 $3,087 $7,949 
Execution of finance leases$537 $998 $142 
Treasury stock payable$542 $633 $— 
v3.22.4
Segment Information
12 Months Ended
Dec. 28, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
We manage our business by brand and as a result have identified two operating segments, Denny’s and Keke’s. In addition, we have identified Denny’s as a reportable segment. The Denny’s reportable segment includes the results of all company and franchised and licensed Denny’s restaurants. Our Keke’s operating segment, which includes the results of all company and franchise restaurants, is included in Other.

The primary sources of revenues for all operating segments are the sale of food and beverages at our company restaurants and the collection of royalties, advertising revenue, initial and other fees, including occupancy revenue, from restaurants operated by our franchisees. We do not rely on any major customer as a source of sales and the customers and assets of all operating segments are located predominantly in the United States. There are no material transactions between segments.
Management’s measure of segment income is restaurant-level operating margin. 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. 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 operating (gains), losses and other charges, net, to provide a clearer perspective of its ongoing operating performance and a more relevant comparison to prior period results. Restaurant-level operating margin is used by our chief operating decision maker (“CODM”) to evaluate restaurant-level operating efficiency and performance.

The following tables present revenues by segment and a reconciliation of restaurant-level operating margin to operating income:
Fiscal Year Ended
December 28, 2022December 29, 2021December 30, 2020
Revenues by operating segment:(In thousands)
Denny’s$447,687 $398,174 $288,605 
Other8,742 — — 
Total operating revenue$456,429 $398,174 $288,605 
Segment income:
Denny’s$138,555 $142,102 $79,688 
Other3,089 — — 
Total restaurant-level operating margin$141,644 $142,102 $79,688 
General and administrative expenses$67,173 $68,686 $55,040 
Depreciation and amortization14,862 15,446 16,161 
Operating (gains), losses and other charges, net(1,005)(46,105)1,808 
Total other operating expenses81,030 38,027 73,009 
Operating income60,614 104,075 6,679 
Interest expense, net13,769 15,148 17,965 
Other nonoperating income, net(52,585)(15,176)(4,171)
Net income (loss) before income taxes99,430 104,103 (7,115)
Provision for (benefit from) income taxes24,718 26,030 (1,999)
Net income (loss)$74,712 $78,073 $(5,116)

Fiscal Year Ended
December 28, 2022December 29, 2021
Segment assets:(In thousands)
Denny’s$394,051 $422,852 
Other104,284 12,675 
Total assets$498,335 $435,527 
v3.22.4
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 28, 2022
Accounting Policies [Abstract]  
Use of Estimates Use of Estimates. In preparing our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (GAAP), management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates.
Consolidation Policy Consolidation Policy. Our Consolidated Financial Statements include the financial statements of Denny’s Corporation and its wholly-owned subsidiaries: Denny’s, Inc., DFO, LLC, Denny’s Realty, LLC, Keke’s Inc., Keke’s Franchise Organization and East Main Insurance Company. All significant intercompany balances and transactions have been eliminated in consolidation.
Fiscal Year Fiscal Year. Our fiscal year ends on the last Wednesday in December. As a result, a fifty-third week is added to a fiscal year every five or six years.
Cash and Cash Equivalents Cash and Cash Equivalents. Our policy is to invest cash in excess of operating requirements in short-term highly liquid investments with an original maturity of three months or less, which we consider to be cash equivalents.
Receivables Receivables. Receivables, which are recorded at net realizable value, primarily consist of trade accounts receivables and financing receivables from franchisees, vendor receivables and credit card receivables. Trade accounts receivables from franchisees consist of royalties, advertising and rent. Financing receivables from franchisees primarily consist of notes from franchisees related to the roll-out of restaurant equipment. We accrue interest on notes receivable based on the contractual terms. The allowance for doubtful accounts is based on management’s estimates of expected credit losses based on historical write-off experience. Receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts.
Inventories Inventories. Inventories consist primarily of food, beverages and, in some periods, equipment and are valued at the lower of first-in, first-out cost or net realizable value.
Property and Depreciation Property and Depreciation. Owned property is stated at cost. Property under finance leases is stated at the lesser of its fair value or the net present value of the related minimum lease payments at the lease inception. Maintenance and repairs are expensed as incurred. We depreciate owned property over its estimated useful life using the straight-line method. We amortize property held under finance leases (at capitalized value) over the lesser of its estimated useful life or the lease term. Building assets are assigned estimated useful lives that range from five to 30 years. Other property and equipment assets are assigned lives that range from two to ten years. Leasehold improvements are generally assigned lives between five and 15 years limited by the expected lease term.
Goodwill Goodwill. Amounts recorded as goodwill primarily represent excess reorganization value recognized as a result of our 1998 bankruptcy and from our acquisition of Keke’s in 2022. We also record goodwill in connection with the acquisition of restaurants from franchisees. Likewise, upon the sale of restaurant operations to franchisees, goodwill is decremented. We test goodwill for impairment at each fiscal year end and more frequently if circumstances indicate impairment may exist. Such indicators include, but are not limited to, a significant decline in our expected future cash flows, a significant adverse decline in our stock price, significantly adverse legal developments and a significant change in the business climate.
Intangible Assets
Intangible Assets. Intangible assets consist primarily of trade names, franchise agreements and reacquired franchise rights. Trade names are considered indefinite-lived intangible assets and are not amortized. Franchise agreements are amortized using the straight-line basis over the term of the related franchise agreement. Reacquired franchise rights are amortized using the straight-line basis over the term of the related franchise agreement. Franchise agreements and reacquired franchise rights resulting from acquisitions are accounted for using the purchase method of accounting and are estimated by management based on the fair value of the assets received.

We test trade name assets for impairment at each fiscal year end, and more frequently if circumstances indicate impairment may exist. We assess impairment of reacquired franchise rights and franchise agreements whenever changes or events indicate that the carrying values may not be recoverable. Costs incurred to renew or extend the term of recognized intangible assets are recorded in general and administrative expenses in our Consolidated Statements of Operations.
Marketable Securities Marketable Securities. Marketable securities included in investments consist of available for sale equity instruments and are recorded at fair market value in our Consolidated Balance Sheets. Marketable securities included in other noncurrent assets consist of trading debt and equity mutual funds and are recorded at fair market value in our Consolidated Balance Sheets. These securities represent the plan assets of our nonqualified deferred compensation plan (the “plan assets”). The plan assets are held in a rabbi trust. Each plan participant’s account consists of their contribution, our matching contribution (made prior to 2016) and each participant’s share of earnings or losses in the plan. We have recorded offsetting deferred compensation liabilities as a component of other noncurrent liabilities in our Consolidated Balance Sheets.The realized and unrealized holding gains and losses related to marketable securities are recorded in other nonoperating income with an offsetting amount recorded in general and administrative expenses related to deferred compensation plan liabilities.
Deferred Financing Costs Deferred Financing Costs. Costs related to the issuance of debt are deferred and amortized as a component of interest expense using the effective interest method over the terms of the respective debt issuances.
Self-insurance Liabilities Self-insurance Liabilities. We record liabilities for insurance claims during periods in which we have been insured under large deductible programs or have been self-insured for our medical claims and workers’ compensation, general, product and automobile insurance liabilities. The liabilities represent estimated incurred losses. These estimates include assumptions regarding claims frequency and severity as well as changes in our business environment, medical costs and the regulatory environment that could impact our overall self-insurance costs.
Income Taxes Income Taxes. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. All deferred taxes are reported as noncurrent in our Consolidated Balance Sheets. A valuation allowance reduces our net deferred tax asset to the amount that is more likely than not to be realized. We make certain estimates and judgments in the calculation of our provision for incomes taxes, in the resulting tax liabilities, and in the recoverability of deferred tax assets.We recognize positions taken or expected to be taken in a tax return in the Consolidated Financial Statements when it is more-likely-than-not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit with greater than 50% likelihood of being realized upon ultimate settlement. We recognize any interest and penalties related to unrecognized tax benefits in income tax expense. Assessment of uncertain tax positions requires judgments relating to the amounts, timing and likelihood of resolution.
Leases and Subleases, Lessee
Leases and Subleases.

Lessee

We lease certain real estate and equipment for our restaurants and support facilities. At contract inception, we determine whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. We recognize a lease liability and a right-of-use (“ROU”) asset at the lease commencement date.

For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. For finance leases, the lease liability is initially measured in the same manner and date as for operating leases, and is subsequently measured at amortized cost using the effective interest method.

Operating lease ROU assets are initially and subsequently measured throughout the lease term at the carrying amount of the lease liability adjusted for initial direct costs, prepayments, accrued payments and lease incentives, if any. Lease cost is recognized on a straight-line basis over the lease term. Operating lease payments are classified as cash flows for operating activities with ROU asset amortization and the change in the lease liability combined as "Operating lease assets/liabilities" in the reconciliation of net income (loss) to net cash flows provided by (used in) operating activities in the Consolidated Statement of Cash Flows. Finance lease ROU assets are initially measured at cost and subsequently amortized on a straight-line basis over the lesser of the useful life or the lease term. Finance lease payments are classified as cash flows used in financing activities in the Consolidated Statement of Cash Flows. Operating and finance lease ROU assets are assessed for impairment using long-lived assets impairment guidance.

We use a consistent lease term for calculating the depreciation period for the related assets, classifying the lease and computing periodic rent expense where the lease terms include escalations in rent over the lease term.

The lease guidance provides for certain practical expedients and accounting elections. We elected the practical expedient to not separate nonlease components (such as common area maintenance) from lease components in regard to all leases and the portfolio approach in applying the discount rate to our leases.

Key estimates and judgments include how we determine (1) lease payments, (2) lease term and (3) the discount rate used to discount the unpaid lease payments to present value.

We have certain lease agreements structured with both a fixed base rent and a contingent rent based on a percentage of sales over contractual levels, others with only contingent rent based on a percentage of sales and some with a fixed base rent adjusted periodically for inflation or changes in the fair market rent rate. Contingent rent is recognized as sales occur. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The exercise of lease renewal options is at our sole discretion, except in certain sublease situations in which we have determined that it is reasonably certain that one or more options will be exercised, including where the exercise of a sublease
option compels us to exercise the renewal option of the underlying master lease. Renewal option periods are included in the measurement of lease ROU asset and lease liability where the exercise is reasonably certain to occur. 

The discount rate used to determine the present value of the lease payments is our estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as we generally cannot determine the interest rate implicit in the lease.

Abatements or deferrals in rents received from landlords as a result of the COVID-19 pandemic are recognized as reductions in variable lease payments.
Lessor LessorWe lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are the same as the lessee leases described above. Contingent rental income is recognized when earned. Similar to our lessee accounting, we elected the lessor practical expedient to not separate nonlease components from lease components in regard to all leases.
Employee Benefit Plans Employee Benefit Plans. Each year we measure and recognize the funded status of our defined benefit plans in our Consolidated Balance Sheets as of December 31. That date represents the month-end that is closest to our fiscal year-end. The funded status is adjusted for any contributions or significant events (such as a plan amendment, settlement, or curtailment that calls for a remeasurement) that occurs between our fiscal year-end and December 31.
Derivative Instruments Derivative Instruments. We use derivative financial instruments to manage our exposure to interest rate risk. We do not enter into derivative instruments for trading or speculative purposes. All derivatives are recognized on our Consolidated Balance Sheets at fair value. Changes in the fair values of derivatives are recorded in earnings or other comprehensive income (OCI), based on whether the instrument is designated as a hedge transaction. Gains or losses on derivative instruments reported in OCI are classified to earnings in the period the hedged item affects earnings. If the underlying hedge transaction ceases to exist, any associated amounts reported in OCI are reclassified to earnings. By entering into derivative instruments, we are exposed to counterparty credit risk. When the fair value of a derivative instrument is in an asset position, the counterparty has a liability to us, which creates credit risk for us. We manage our exposure to this risk by selecting counterparties with investment grade credit ratings and regularly monitoring our market position with each counterparty.
Contingencies and Litigation Contingencies and Litigation. We are subject to legal proceedings involving ordinary and routine claims incidental to our business, as well as legal proceedings that are nonroutine and include compensatory or punitive damage claims. Settlement costs are accrued when they are deemed estimable and probable. Our ultimate legal and financial liability with respect to such matters cannot be estimated with certainty and requires the use of estimates in recording liabilities for potential litigation settlements. When the reasonable estimate is a range, the recorded loss will be the best estimate within the range. We record legal settlement costs as other operating expenses in our Consolidated Statements of Operations as those costs are incurred.
Comprehensive Income (Loss) Comprehensive Income (Loss). Comprehensive income (loss) includes net income (loss) and OCI items that are excluded from net income (loss) under U.S. generally accepted accounting principles. OCI items include additional minimum pension liability adjustments, the effective unrealized portion of changes in the fair value of cash flow hedges, and the reclassification and amortization of loss related to the dedesignation of cash flow derivatives.
Revenues
Revenues.

Company Restaurant Revenue. Company restaurant revenue is recognized at the point in time when food and beverage products are sold at company restaurants. We present company restaurant sales net of sales-related taxes collected from customers and remitted to governmental taxing authorities.

Franchise Revenue. Franchise and license revenues consist primarily of royalties, advertising revenue, initial and other fees and occupancy revenue.

Under franchise agreements we provide franchisees with a license of our respective brands’ symbolic intellectual property, administration of advertising programs (including local co-operatives), and other ongoing support functions. These services are highly interrelated so we do not consider them to be individually distinct performance obligations, and therefore account for them as a single performance obligation.
Royalty and advertising revenues represent sales-based royalties that are recognized in the period in which the sales occur. Sales-based royalties are variable consideration related to our performance obligation to our franchisees to maintain the intellectual property being licensed. Under our franchise agreements, franchisee advertising contributions must be spent on marketing and related activities. Advertising revenues and expenditures are recorded on a gross basis within the Consolidated Statements of Operations.

Initial and other fees include initial, successor and assignment franchise fees (“initial franchise fees”). Initial franchise fees are billed and received upon the signing of the franchise agreement. Recognition of these fees is deferred until the commencement date of the agreement and occurs over time based on the term of the underlying franchise agreement. Acquired initial franchise fees are recognized from the acquisition date over time based on the term of the underlying franchise agreement. In the event a franchise agreement is terminated, any remaining deferred fees are recognized in the period of termination.

Initial and other fees also include revenue that are distinct from the franchise agreement and are separate performance obligations. Training and other franchise services fees are billed and recognized at a point in time as services are rendered. Equipment revenues are billed and recognized as the equipment is installed. Similar to advertising revenue, equipment revenues and other franchise services fees are recorded on a gross basis within the Consolidated Statements of Operations.

We record contract assets related to incentives and subsidies provided to franchisees related to new unit openings and/or equipment upgrades. These contract assets are presented within prepaid and other current assets and other noncurrent assets in our Consolidated Balance Sheets. These assets are amortized as a reduction to franchise and license revenue within our Consolidated Statements of Operations over the remaining term of the underlying franchise agreement.

Occupancy revenue results from leasing or subleasing restaurants to franchisees and is recognized over the term of the lease agreement.
With the exception of initial and other franchise fees, revenues are typically billed and collected on a weekly basis.Gift cards. Company restaurants, franchised restaurants and certain third party retailers sell gift cards which have no stated expiration dates. We recognize revenue when a gift card is redeemed in one of our company restaurants. We maintain a gift card liability for cards sold in our company restaurants and for cards sold by third parties. Gift card breakage is recognized proportionally as redemptions occur. Our gift card breakage primarily relates to cards sold by third parties and is recorded as advertising revenue (included as a component of franchise and license revenue).
Advertising Costs Advertising Costs. We expense production costs for radio and television advertising in the year in which the commercials are initially aired and other advertising costs as incurred. Advertising costs for company restaurants are recorded as a component of other operating expenses in our Consolidated Statements of Operations. Advertising costs related to franchised restaurants are recorded as a component of franchise and license costs. Under our franchise agreements, advertising contributions received from franchisees must be spent on advertising, product development, marketing and related activities. As the Company is contractually required to spend these contributions on advertising costs, the obligations are accrued and advertising costs expensed when the related revenues are recognized.
Restructuring and Exit Costs Restructuring and Exit Costs. Restructuring and exit costs are included as a component of operating (gains), losses and other charges, net in our Consolidated Statements of Operations. Restructuring costs consist primarily of severance and other restructuring charges for terminated employees. Amounts recorded as exit costs include period costs related to closed units.
Disposal or Impairment of Long-lived Assets Disposal or Impairment of Long-lived Assets. We evaluate our long-lived assets for impairment at the restaurant level on a quarterly basis, when assets are identified as held for sale or whenever changes or events indicate that the carrying value may not be recoverable. For assets identified as held for sale, we use the market approach and consider proceeds from similar asset sales. We assess impairment of restaurant-level assets based on the operating cash flows of the restaurant, expected proceeds from the sale of assets and our plans for restaurant closings. For underperforming assets, we use the income approach to determine both the recoverability and estimated fair value of the assets. To estimate future cash flows, we make certain assumptions about expected future operating performance, such as revenue growth, operating margins, risk-adjusted discount rates, and future economic and market conditions. If the long-lived assets of a restaurant are not recoverable based upon estimated future, undiscounted cash flows, we write the assets down to their fair value. If these estimates or their related assumptions change in the future, we may be required to record additional impairment charges. These charges are included as a component of operating (gains), losses and other charges, net in our Consolidated Statements of Operations.Assets held for sale consist of real estate properties and/or restaurant operations that we expect to sell within the next year. The assets are reported at the lower of carrying amount or fair value less costs to sell. Fair value is based upon Level 2 inputs, which include sales agreements. We cease recording depreciation on assets that are classified as held for sale. If the determination is made that we no longer expect to sell an asset within the next year, the asset is reclassified out of held for sale.
Discontinued Operations Discontinued Operations. We evaluate restaurant closures and assets reclassified to assets held for sale for potential disclosure as discontinued operations. Only disposals resulting in a strategic shift that will have a major effect on our operations and financial results are reported as discontinued operations. There have been no such disposals, nor any disposals of individually significant components. The gains and losses related to restaurant closures and assets reclassified to assets held for sale are included as a component of operating (gain), losses and other charges, net in our Consolidated Statements of Operations.
Gains and Losses on Sales of Restaurants Operations to Franchisees, Real Estate and Other Assets Gains and Losses on Sales of Restaurants Operations to Franchisees, Real Estate and Other Assets. Generally, gains and losses on sales of restaurant operations to franchisees (which may include real estate), real estate properties and other assets are recognized when the sales are consummated and certain other gain recognition criteria are met. Total gains and losses are included as a component of operating (gains), losses and other charges, net in our Consolidated Statements of Operations.
Share-based Compensation
Share-based Compensation. Share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period. Share-based compensation expense is included as a component of general and administrative expenses in our Consolidated Statements of Operations. We account for forfeitures as they occur. Excess tax benefits recognized related to share-based compensation are included as a component of provision for (benefit from) income taxes in our Consolidated Statements of Operations and are classified as operating activities in our Consolidated Statements of Cash Flows.

Generally, compensation expense related to performance share units and restricted stock units is based on the number of units granted, the period over which they are expected to vest and the fair market value of our common stock on the date of the grant. For restricted stock units and performance share units that contain a market condition, compensation expense is based on the Monte Carlo valuation method, which utilizes multiple input variables to determine the probability of the Company achieving the market condition and the fair value of the award. The key assumptions used include expected volatility and risk-free interest rates over the term of the award.

We generally recognize compensation cost associated with performance share units over the entire performance period on a straight-line basis. For performance share units awarded to certain retirement eligible individuals with accelerated vesting terms, compensation cost is recognized on a graded-vesting basis. We generally recognize compensation cost associated restricted stock units on a straight-line basis over the entire performance period of the award.

Subsequent to the vesting period, earned stock-settled restricted stock units and performance share units (both of which are equity classified) are paid to the holder in shares of our common stock, provided the holder was still employed with the Company or an affiliate as of the vesting date.
Earnings (Losses) Per Share Earnings (Losses) Per Share. Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding during the period.
Business Combinations Business Combinations. We account for acquisitions using the acquisition method of accounting. Accordingly, assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess of purchase price over fair value of net assets acquired, including the amount assigned to identifiable intangible assets, is recorded as goodwill.
Newly Adopted Accounting Standards and Accounting Standards to be Adopted
Newly Adopted Accounting Standards

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which was later clarified in January 2021 by ASU 2021-01, “Reference Rate Reform (Topic 848): Scope”. Additionally, in December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which allows ASU 2020-04 to be adopted and applied prospectively to contract modifications made on or before December 31, 2024. The guidance provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The Company adopted ASU 2020-04 on March 12, 2020. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on the Company’s consolidated financial position or results of operations. The guidance is effective through December 31, 2024.
In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, which modifies Topic 740 to simplify the accounting for income taxes. ASU 2019-12 is effective for financial statements issued for annual periods beginning after December 15, 2020, and for the interim periods therein. The adoption of ASU 2019-12 did not have a significant impact on the Company’s consolidated financial position or results of operations.

Additional new accounting guidance became effective for us as of December 28, 2022 that we reviewed and concluded was either not applicable to our operations or had no material effect on our Consolidated Financial Statements and related disclosures.

Accounting Standards to be Adopted

We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our Consolidated Financial Statements as a result of future adoption.
v3.22.4
Acquisition of Keke's Breakfast Cafe (Tables)
12 Months Ended
Dec. 28, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Preliminary Purchase Price Allocation
The components of the preliminary purchase price allocation were as follows:

(In thousands)
Total consideration paid$82,500 
Assets:
Property2,015 
Operating lease ROU assets7,908 
Franchise agreements10,700 
Trade name35,600 
Liabilities:
Operating lease liabilities7,908 
Deferred franchise revenue992 
Other liabilities36 
Net assets acquired, excluding goodwill47,287 
Goodwill$35,213 
v3.22.4
Receivables (Tables)
12 Months Ended
Dec. 28, 2022
Receivables [Abstract]  
Schedule of Receivables, Net
Receivables, net consisted of the following:
 
 December 28, 2022December 29, 2021
 (In thousands)
Receivables, net:  
Trade accounts receivable from franchisees$13,314 $13,430 
Other receivables from franchisees6,731 1,027 
Vendor receivables3,466 4,041 
Credit card receivables896 747 
Other1,545 950 
Allowance for doubtful accounts(376)(574)
Total receivables, net$25,576 $19,621 
Other noncurrent assets:
  
Financing receivables from franchisees$— $293 
v3.22.4
Property (Tables)
12 Months Ended
Dec. 28, 2022
Property, Plant and Equipment [Abstract]  
Schedule of Property, Net
Property, net consisted of the following:
 
 December 28, 2022December 29, 2021
 (In thousands)
Land$42,374 $43,742 
Buildings and leasehold improvements164,782 163,264 
Other property and equipment40,647 36,006 
Total property247,803 243,012 
Less accumulated depreciation153,334 151,836 
Property, net$94,469 $91,176 
  
The following table reflects the property assets, included in the table above, and buildings with finance leases which were leased to franchisees:
 
 December 28, 2022December 29, 2021
 (In thousands)
Land$23,825 $25,192 
Buildings and leasehold improvements67,283 69,656 
Total property owned, leased to franchisees91,108 94,848 
Less accumulated depreciation57,253 60,674 
Property owned, leased to franchisees, net33,855 34,174 
Buildings held under finance leases, leased to franchisees7,047 8,060 
Less accumulated amortization4,339 4,781 
Property held under finance leases, leased to franchisees, net2,708 3,279 
Total property leased to franchisees, net$36,563 $37,453 
v3.22.4
Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 28, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in Carrying Amounts of Goodwill
The following table reflects the changes in carrying amounts of goodwill and goodwill by segment:
 
 December 28, 2022December 29, 2021
 (In thousands)
Balance, beginning of year$36,884 $36,884 
Additions related to acquisition of Keke’s35,213 — 
Adjustments related to the acquisition of a Denny’s franchise unit643 — 
Balance, end of year$72,740 $36,884 
Goodwill by segment
Denny’s$37,527 $36,884 
Other35,213 — 
Total goodwill$72,740 $36,884 
Schedule of Indefinite-Lived Intangible Assets
Intangible assets consist of the following:
 
 December 28, 2022December 29, 2021
 Gross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated Amortization
 (In thousands)
Intangible assets with indefinite lives:    
Trade names$79,687 $— $44,087 $— 
Liquor licenses120 — 120 — 
Intangible assets with definite lives:  
Reacquired franchise rights10,489 5,697 12,218 6,199 
Franchise agreements10,700 265 — — 
Intangible assets, net$100,996 $5,962 $56,425 $6,199 
Schedule of Finite-Lived Intangible Assets
Intangible assets consist of the following:
 
 December 28, 2022December 29, 2021
 Gross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated Amortization
 (In thousands)
Intangible assets with indefinite lives:    
Trade names$79,687 $— $44,087 $— 
Liquor licenses120 — 120 — 
Intangible assets with definite lives:  
Reacquired franchise rights10,489 5,697 12,218 6,199 
Franchise agreements10,700 265 — — 
Intangible assets, net$100,996 $5,962 $56,425 $6,199 
Schedule of Estimated Amortization Expense for Intangible Assets With Definite Lives Estimated amortization expense for intangible assets with definite lives in the next five years is as follows: 
 (In thousands)
2023$1,550 
20241,480 
20251,424 
20261,256 
20271,207 
v3.22.4
Other Current Liabilities (Tables)
12 Months Ended
Dec. 28, 2022
Other Liabilities Disclosure [Abstract]  
Schedule of Other Current Liabilities
Other current liabilities consisted of the following:
 
 December 28, 2022December 29, 2021
 (In thousands)
Accrued payroll$17,903 $20,676 
Accrued insurance, primarily current portion of liability for insurance claims
3,492 4,285 
Accrued taxes4,452 4,533 
Accrued advertising6,069 15,355 
Gift cards7,675 7,170 
Accrued legal settlements5,446 3,173 
Other11,725 8,954 
Other current liabilities$56,762 $64,146 
v3.22.4
Fair Value of Financial Instruments (Tables)
12 Months Ended
Dec. 28, 2022
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
 TotalQuoted Prices in Active Markets for Identical Assets/Liabilities
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
 
(In thousands)
Fair value measurements as of December 28, 2022:
Deferred compensation plan investments (1)
$10,818 $10,818 $— $— 
Interest rate swaps (2)
20,047 — 20,047 — 
Investments (3)
1,746 — 1,746 — 
Total$32,611 $10,818 $21,793 $— 
Fair value measurements as of December 29, 2021:
Deferred compensation plan investments (1)
$13,726 $13,726 $— $— 
Interest rate swaps (2)
(52,121)— (52,121)— 
Investments (3)
2,551 — 2,551 — 
Total$(35,844)$13,726 $(49,570)$— 

(1)    The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments and are included in other noncurrent assets in our Consolidated Balance Sheets.
(2)    The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models. The key inputs for the valuation models are quoted market prices, interest rates, forward yield curves and credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For disclosures about the fair value measurements of our derivative instruments, see Note 10.
(3)    The fair value of investments is valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments.
Fair Value Measurements, Nonrecurring
Those assets and liabilities measured at fair value on a nonrecurring basis are summarized below:
 
 Significant Unobservable Inputs
(Level 3)
Impairment Charges
 (In thousands)
Fair value measurements as of December 29, 2021:
Assets held and used (1)
$313 $442 

(1)At December 29, 2021, impaired assets were written down to their fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, we may be required to recognize impairment charges in future periods.
v3.22.4
Leases (Tables)
12 Months Ended
Dec. 28, 2022
Leases [Abstract]  
Schedule of Components of Lease Costs and Lease Terms and Discount Rates
The components of lease costs were as follows:
 Fiscal Year Ended
 ClassificationDecember 28, 2022December 29, 2021
 (In thousands)
Lease costs
Finance lease costs:
Amortization of right-of-use assets
Depreciation and amortization
$1,704 $1,895 
Interest on lease liabilitiesInterest expense, net2,350 2,960 
Operating lease costs:
Operating lease costs - company
Occupancy
7,624 6,394 
Operating lease costs - franchise
Costs of franchise and license revenue
15,541 17,106 
Operating lease costs - general and administrative
General and administrative expenses564 432 
Operating lease costs - closed storesRestructuring charges and exit costs201 356 
Variable lease costs:
Variable lease costs - companyOccupancy3,988 3,275 
Variable lease costs - franchiseCosts of franchise and license revenue6,596 7,172 
Variable lease costs - general and administrative
General and administrative expenses
255 218 
Variable lease costs - closed stores
Restructuring charges and exit costs
34 48 
Sublease income:
Sublease income - franchise
Franchise and license revenue
(27,445)(30,607)
Sublease income - closed stores
Restructuring charges and exit costs(229)(160)
Total lease costs
$11,183 $9,089 


Lease terms and discount rates were as follows:
 December 28, 2022December 29, 2021
Weighted-average remaining lease term (in years):
Finance leases
8.48.5
Operating leases9.410.0
Weighted-average discount rate:
Finance leases23.5 %23.4 %
Operating leases5.8 %5.7 %
Cash and supplemental noncash amounts were as follows:
 Fiscal Year Ended
 December 28, 2022December 29, 2021
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases
$2,350 $2,960 
Operating cash flows from operating leases$24,626 $25,578 
Financing cash flows from finance leases$2,020 $2,118 
Right-of-use assets obtained in exchange for new finance lease liabilities
$537 $998 
Right-of-use assets obtained in exchange for new operating lease liabilities (1)
$16,040 $8,513 
    
(1)    Right-of-use assets obtained in 2022 includes $7.9 million from the acquisition of Keke’s. See Note 3.
Schedule of Components of Lease Income
The components of lease income were as follows:
 Fiscal Year Ended
 ClassificationDecember 28, 2022December 29, 2021
 (In thousands)
Lease income
Operating lease income - franchise
Franchise and license revenue
$28,473 $30,767 
Operating lease income - closed stores
Restructuring charges and exit costs
183 109 
Operating lease income - general and administrativeGeneral and administrative expenses140 65 
Variable lease income - franchise
Franchise and license revenue
10,124 10,999 
Variable lease income - closed stores
Restructuring charges and exit costs
46 51 
Total lease income$38,966 $41,991 
Schedule of Finance Lease Liability Maturity
Maturities of lease liabilities and receipts as of December 28, 2022 were as follows:
 Lease LiabilitiesLease Receipts
 FinanceOperatingOperating
 (In thousands)
2023$3,768 $23,031 $25,816 
20243,047 21,538 24,454 
20252,911 20,267 24,220 
20262,576 19,427 23,768 
20272,197 17,525 22,195 
Thereafter11,514 80,781 138,095 
Total undiscounted cash flows26,013 182,569 $258,548 
Less: interest14,775 43,855  
Present value of lease liabilities11,238 138,714  
Less: current lease liabilities1,683 15,310 
Long-term lease liabilities$9,555 $123,404 
Schedule of Lessee Lease Liability Maturity
Maturities of lease liabilities and receipts as of December 28, 2022 were as follows:
 Lease LiabilitiesLease Receipts
 FinanceOperatingOperating
 (In thousands)
2023$3,768 $23,031 $25,816 
20243,047 21,538 24,454 
20252,911 20,267 24,220 
20262,576 19,427 23,768 
20272,197 17,525 22,195 
Thereafter11,514 80,781 138,095 
Total undiscounted cash flows26,013 182,569 $258,548 
Less: interest14,775 43,855  
Present value of lease liabilities11,238 138,714  
Less: current lease liabilities1,683 15,310 
Long-term lease liabilities$9,555 $123,404 
Schedule of Lessor Operating Lease Payments to be Received Maturity
Maturities of lease liabilities and receipts as of December 28, 2022 were as follows:
 Lease LiabilitiesLease Receipts
 FinanceOperatingOperating
 (In thousands)
2023$3,768 $23,031 $25,816 
20243,047 21,538 24,454 
20252,911 20,267 24,220 
20262,576 19,427 23,768 
20272,197 17,525 22,195 
Thereafter11,514 80,781 138,095 
Total undiscounted cash flows26,013 182,569 $258,548 
Less: interest14,775 43,855  
Present value of lease liabilities11,238 138,714  
Less: current lease liabilities1,683 15,310 
Long-term lease liabilities$9,555 $123,404 
v3.22.4
Long-Term Debt (Tables)
12 Months Ended
Dec. 28, 2022
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt
Long-term debt consisted of the following:
 December 28, 2022December 29, 2021
 (In thousands)
Revolving loans$261,500 $170,000 
Finance lease obligations11,238 12,696 
Total long-term debt272,738 182,696 
Less current maturities of finance lease obligations1,683 1,952 
Noncurrent portion of long-term debt$271,055 $180,744 
Schedule of Interest Rate Swaps A summary of our interest rate swaps as of December 28, 2022 is as follows:
Trade DateEffective DateMaturity DateNotional AmountFair ValueFixed Rate
(In thousands)
Swaps designated as
cash flow hedges
March 20, 2015March 29, 2018March 31, 2025$120,000 $4,904 2.44 %
October 1, 2015March 29, 2018March 31, 2026$50,000 $2,392 2.46 %
Dedesignated swaps
February 15, 2018March 31, 2020December 31, 2033$130,000 (1)$12,751 3.19 %
Total$300,000 $20,047 

(1)     The notional amount of the swaps entered into on February 15, 2018 increase periodically until they reach the maximum notional amount of $425.0 million on September 28, 2029.
v3.22.4
Revenues (Tables)
12 Months Ended
Dec. 28, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table disaggregates our revenue by sales channel and type of good or service:
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Company restaurant sales$199,753 $175,017 $118,160 
Franchise and license revenue:
Royalties113,891 103,425 67,501 
Advertising revenue75,926 69,957 53,745 
Initial and other fees28,262 8,009 7,332 
Occupancy revenue 38,597 41,766 41,867 
Franchise and license revenue 
256,676 223,157 170,445 
Total operating revenue$456,429 $398,174 $288,605 
Schedule of Components of the Change in Contract Asset and Contract Liability The components of the change in deferred franchise revenue are as follows:
 (In thousands)
Balance, December 29, 2021$19,896 
Fees received from franchisees3,435 
Acquired deferred franchise revenue992 
Revenue recognized, net (1)
(3,572)
Balance, December 28, 202220,751 
Less current portion included in other current liabilities2,258 
Deferred franchise revenue included in other noncurrent liabilities$18,493 

(1) Of this amount $2.5 million was included in the deferred franchise revenue balance as of December 29, 2021.
The components of the change in contract assets are as follows:
 (In thousands)
Balance, December 29, 2021$— 
Franchisee deferred costs5,953 
Contract asset amortization(592)
Balance, December 28, 20225,361 
Less current portion included in other current assets580 
Contract assets included in other noncurrent assets$4,781 
Schedule of Deferred Franchise Revenue Recognition
As of December 28, 2022, deferred franchise revenue, net of contract asset amortization, expected to be recognized in the future is as follows:
 (In thousands)
2023$1,678 
20241,655 
20251,618 
20261,540 
20271,454 
Thereafter7,445 
Deferred franchise revenue, net$15,390 
v3.22.4
Employee Benefit Plans (Tables)
12 Months Ended
Dec. 28, 2022
Retirement Benefits [Abstract]  
Schedule of Pension and Other Defined Benefit Plan Obligations and Funded Status The following table provides a reconciliation of the changes in the benefit obligations, plan assets, and funded status of our defined benefit plans:
 December 28, 2022December 29, 2021
 (In thousands)
Change in Benefit Obligation:  
Benefit obligation at beginning of year
$2,219 $2,298 
Interest cost36 26 
Actuarial (gain) loss(261)46 
Benefits paid(151)(151)
Settlements(237)— 
Benefit obligation at end of year
$1,606 $2,219 
Accumulated benefit obligation$1,606 $2,219 
Change in Plan Assets:  
Fair value of plan assets at beginning of year
$— $— 
Employer contributions388 151 
Benefits paid(151)(151)
Settlements(237)— 
Fair value of plan assets at end of year
$— $— 
Unfunded status at end of year$(1,606)$(2,219)
Amounts recognized on the balance sheet:
Other current liabilities $(972)$(944)
Other noncurrent liabilities(634)(1,275)
Net amount recognized $(1,606)$(2,219)
Amounts in accumulated other comprehensive loss not yet reflected in net period benefit cost:
Unamortized actuarial losses, net$(516)$(974)
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss, net:
Benefit obligation actuarial gain (loss)$261 $(46)
Amortization of net loss123 159 
Settlement loss recognized74 — 
Other comprehensive income$458 $113 
Components of Net Periodic Benefit Cost
The components of net periodic benefit cost, which are included in general and administrative expenses in our Consolidated Statements of Operations, were as follows:
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Interest cost$36 $26 $41 
Amortization of net loss123 159 89 
Settlement loss recognized74 — 95 
Net periodic benefit cost$233 $185 $225 
Schedule of Expected Benefit Payments
Benefits expected to be paid for each of the next five years and in the aggregate for the five fiscal years from 2028 through 2032 are as follows:
 Defined Benefit Plans
 (In thousands)
2023$972 
2024144 
2025121 
2026119 
202791 
2028 through 2032314 
v3.22.4
Share-Based Compensation (Tables)
12 Months Ended
Dec. 28, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Total Share-Based Compensation
Total share-based compensation expense included as a component of net income (loss) was as follows:
 
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Employee share awards$10,470 $12,708 $7,104 
Restricted stock units for board members930 894 844 
Total share-based compensation$11,400 $13,602 $7,948 
Schedule of Restricted Stock Units Activity The following table summarizes the employee share awards activity during the year ended December 28, 2022:
 UnitsWeighted Average Grant Date
Fair Value
 
 (In thousands)
Outstanding, beginning of year2,076 $15.57 
Granted1,065 $16.22 
Converted(1,415)$12.33 
Forfeited(429)$19.62 
Outstanding, end of year1,297 $18.30 
Convertible, end of year159 $15.38 
Schedule of Grant Date Fair Value and Related Assumptions of PSUs
The following table presents the weighted-average assumptions used in the Monte Carlo simulations to determine the fair value of PSU awards at the grant date, along with the related weighted-average grant date fair value of PSU awards:

 December 28, 2022December 29, 2021December 30, 2020
Risk-free interest rate1.96%0.18%0.16%
Expected term (in years)2.83.01.25
Expected volatility66.0%64.9%59.5%
Expected dividend yield0.0%0.0%0.0%
Grant date fair value per unit$21.05$24.74$8.24
v3.22.4
Operating (Gains), Losses and Other Charges, Net (Tables)
12 Months Ended
Dec. 28, 2022
Other Income and Expenses [Abstract]  
Schedule of Operating (Gains) Losses and Other Charges Net
Operating (gains), losses and other charges, net consists of the following:
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Gains on sales of assets and other, net$(3,378)$(47,822)$(4,678)
Restructuring charges and exit costs1,410 1,275 2,403 
Impairment charges963 442 4,083 
Operating (gains), losses and other charges, net$(1,005)$(46,105)$1,808 
Schedule of Restructuring Charges and Exit Costs
Restructuring charges and exit costs consists of the following: 
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Exit costs$86 $323 $204 
Severance and other restructuring charges1,324 952 2,199 
Total restructuring charges and exit costs$1,410 $1,275 $2,403 
v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 28, 2022
Income Tax Disclosure [Abstract]  
Schedule of Provisions for (Benefits From) Income Taxes
The provisions for (benefits from) income taxes were as follows:
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Current:   
Federal$6,128 $12,997 $(3,497)
State and local2,160 3,105 (109)
Foreign1,152 862 667 
Deferred:   
Federal11,043 6,826 393 
State and local3,689 7,271 3,588 
Increase (decrease) of valuation allowance546 (5,031)(3,041)
Total provision for (benefit from) income taxes$24,718 $26,030 $(1,999)
Schedule of Reconciliation of Income Taxes U.S. Federal Statutory Tax Rate
The reconciliation of income taxes at the U.S. federal statutory tax rate to our effective tax rate was as follows: 
 
 December 28, 2022December 29, 2021December 30, 2020
Statutory provision rate21 %21 %21 %
State, foreign and local taxes, net of federal income tax benefit(11)
Change in state valuation allowance— (1)(1)
General business credits generated(1)(2)
Foreign tax credits generated(1)
Carryback of net operating loss rate differential — — 12 
Section 162(m) and share-based compensation— (11)
Insurance premiums— — 
Other— — 
Effective tax rate25 %25 %28 %
Schedule of Deferred Income Tax Assets or Liabilities
The following table represents the approximate tax effect of each significant type of temporary difference that resulted in deferred income tax assets or liabilities.  
 December 28, 2022December 29, 2021
 (In thousands)
Deferred tax assets:  
Self-insurance accruals$2,094 $2,594 
Finance lease liabilities1,230 1,281 
Operating lease liabilities33,028 35,545 
Accrued exit costs 21 19 
Interest rate swaps— 13,221 
Pension, other retirement and compensation plans11,239 11,259 
Deferred income4,396 4,675 
Other accruals918 — 
General business and foreign tax credit carryforwards - state and federal2,387 2,218 
Net operating loss carryforwards - state1,157 1,429 
Total deferred tax assets before valuation allowance56,470 72,241 
Less: valuation allowance(2,738)(2,192)
Total deferred tax assets53,732 70,049 
Deferred tax liabilities:  
Intangible assets(15,706)(14,874)
Contract assets(1,360)— 
Deferred finance costs(250)(313)
Operating lease right-of-use assets(29,822)(32,198)
Fixed assets(9,291)(10,134)
Interest rate swaps(4,722)— 
Other accruals— (1,028)
Total deferred tax liabilities(61,151)(58,547)
Net deferred tax asset (liability)$(7,419)$11,502 
Summary of Unrecognized Tax Benefits
The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits:

 December 28, 2022December 29, 2021
 (In thousands)
Balance, beginning of year$1,047 $1,047 
Decreases related to prior year tax positions(178)— 
Balance, end of year$869 $1,047 
v3.22.4
Net Income (Loss) Per Share (Tables)
12 Months Ended
Dec. 28, 2022
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Net Income Per Share
The amounts used for the basic and diluted net income (loss) per share calculations are summarized below: 
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands, except per share amounts)
Net income (loss)$74,712 $78,073 $(5,116)
Weighted average shares outstanding - basic60,771 65,171 60,812 
Effect of dilutive share-based compensation awards108 402 — 
Weighted average shares outstanding - diluted60,879 65,573 60,812 
Net income (loss) per share - basic$1.23 $1.20 $(0.08)
Net income (loss) per share - diluted$1.23 $1.19 $(0.08)
Anti-dilutive share-based compensation awards(1)
709 420 1,682 
(1) For the year ended December 30, 2020, share-based compensation awards have been omitted from the calculations because they have an anti-dilutive effect on loss per share.
v3.22.4
Shareholders' Equity (Tables)
12 Months Ended
Dec. 28, 2022
Equity [Abstract]  
Components of Accumulated Other Comprehensive Loss
The components of the change in accumulated other comprehensive loss were as follows:

PensionsDerivativesAccumulated Other Comprehensive Loss
(In thousands)
Balance as of December 25, 2019$(781)$(33,179)$(33,960)
Benefit obligation actuarial loss(448)— (448)
Amortization of net loss (1)
89 — 89 
Settlement loss recognized
95 — 95 
Changes in the fair value of cash flow derivatives— (46,910)(46,910)
Reclassification of cash flow derivatives to interest expense, net (2)
— 3,160 3,160 
Reclassification of loss related to dedesignation of derivatives to other nonoperating expense (income)(3)
— 7,354 7,354 
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net (3)
— 783 783 
Income tax benefit67 9,365 9,432 
Balance as of December 30, 2020$(978)$(59,427)$(60,405)
Benefit obligation actuarial loss(46)— (46)
Amortization of net loss (1)
159 — 159 
Changes in the fair value of cash flow derivatives— 4,275 4,275 
Reclassification of cash flow derivatives to interest expense, net (2)
— 4,023 4,023 
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net (3)
— 166 166 
Income tax expense(35)(2,607)(2,642)
Balance as of December 29, 2021$(900)$(53,570)$(54,470)
Benefit obligation actuarial gain261 — 261 
Amortization of net loss (1)
123 — 123 
Settlement loss recognized74 — 74 
Changes in the fair value of cash flow derivatives— 13,619 13,619 
Reclassification of cash flow derivatives to interest expense, net (2)
— 1,310 1,310 
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net (3)
— 29 29 
Income tax expense(113)(3,530)(3,643)
Balance as of December 28, 2022$(555)$(42,142)$(42,697)

(1)    Before-tax amount that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Consolidated Statements of Operations. See Note 12 for additional details.
(2)    Amounts reclassified from accumulated other comprehensive loss into income represent payments made to the counterparty for the effective portions of the interest rate swaps. These amounts are included as a component of interest expense, net in our Consolidated Statements of Operations. We expect to receive payments from the counterparty and reclassify approximately $3.3 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 10 for additional details.
(3)     During the quarter ended June 24, 2020, we dedesignated the cash flow relationship and discontinued hedge accounting treatment for the 2018 Swaps. As a result, we reclassified approximately $7.4 million of losses from accumulated other comprehensive loss, net to other nonoperating expense (income), net in our Consolidated Statements of Operations related to the portion of forecasted transaction no longer considered probable of occurring. The remaining losses related to the 2018 Swaps will continue to be included in accumulated other comprehensive loss, net and will be amortized as a component of interest expense, net in our Consolidated Statements of Operations over the remaining term of the 2018 Swaps. We expect to amortize less than $0.3 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 10 for additional details.
v3.22.4
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 28, 2022
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Commitments Under Contracts for Food and Non-Food Products Our future purchase obligation payments due by period for both company and franchised restaurants at December 28, 2022 consist of the following:
 (In thousands)
Less than 1 year$216,740 
1-2 years— 
3-4 years— 
5 years and thereafter— 
Total$216,740 
v3.22.4
Supplemental Cash Flow Information (Tables)
12 Months Ended
Dec. 28, 2022
Supplemental Cash Flow Information [Abstract]  
Schedule of Supplemental Cash Flow Information
 Fiscal Year Ended
 December 28, 2022December 29, 2021December 30, 2020
 (In thousands)
Income taxes paid, net$9,296 $9,942 $
Interest paid$12,939 $14,159 $15,889 
Noncash investing and financing activities:
Receipt of real estate receivable$3,000 $— $— 
Accrued purchase of property$283 $231 $133 
Issuance of common stock, pursuant to share-based compensation plans$9,547 $3,087 $7,949 
Execution of finance leases$537 $998 $142 
Treasury stock payable$542 $633 $— 
v3.22.4
Segment Information (Tables)
12 Months Ended
Dec. 28, 2022
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following tables present revenues by segment and a reconciliation of restaurant-level operating margin to operating income:
Fiscal Year Ended
December 28, 2022December 29, 2021December 30, 2020
Revenues by operating segment:(In thousands)
Denny’s$447,687 $398,174 $288,605 
Other8,742 — — 
Total operating revenue$456,429 $398,174 $288,605 
Segment income:
Denny’s$138,555 $142,102 $79,688 
Other3,089 — — 
Total restaurant-level operating margin$141,644 $142,102 $79,688 
General and administrative expenses$67,173 $68,686 $55,040 
Depreciation and amortization14,862 15,446 16,161 
Operating (gains), losses and other charges, net(1,005)(46,105)1,808 
Total other operating expenses81,030 38,027 73,009 
Operating income60,614 104,075 6,679 
Interest expense, net13,769 15,148 17,965 
Other nonoperating income, net(52,585)(15,176)(4,171)
Net income (loss) before income taxes99,430 104,103 (7,115)
Provision for (benefit from) income taxes24,718 26,030 (1,999)
Net income (loss)$74,712 $78,073 $(5,116)

Fiscal Year Ended
December 28, 2022December 29, 2021
Segment assets:(In thousands)
Denny’s$394,051 $422,852 
Other104,284 12,675 
Total assets$498,335 $435,527 
v3.22.4
Introduction and Basis of Reporting - (Narrative) (Details)
12 Months Ended
Dec. 28, 2022
restaurant
state
territory
country
Franchisor Disclosure [Line Items]  
Number of restaurants 1,656
Number of states in which entity operates | state 50
Number of territories in which entity operates | territory 2
Number of foreign countries in which entity operates | country 12
Geographic Concentration Risk | Geographic Area | California  
Franchisor Disclosure [Line Items]  
Percentage of restaurants operated by geographic region 23.00%
Geographic Concentration Risk | Geographic Area | Texas  
Franchisor Disclosure [Line Items]  
Percentage of restaurants operated by geographic region 13.00%
Geographic Concentration Risk | Geographic Area | Florida  
Franchisor Disclosure [Line Items]  
Percentage of restaurants operated by geographic region 8.00%
Denny's Brand  
Franchisor Disclosure [Line Items]  
Number of restaurants 1,602
Keke's  
Franchisor Disclosure [Line Items]  
Number of restaurants 54
Franchise  
Franchisor Disclosure [Line Items]  
Number of restaurants 1,582
Franchise | Denny's Brand  
Franchisor Disclosure [Line Items]  
Number of restaurants 1,536
Franchise | Keke's  
Franchisor Disclosure [Line Items]  
Number of restaurants 46
Company Restaurants  
Franchisor Disclosure [Line Items]  
Number of restaurants 74
Company Restaurants | Denny's Brand  
Franchisor Disclosure [Line Items]  
Number of restaurants 66
Company Restaurants | Keke's  
Franchisor Disclosure [Line Items]  
Number of restaurants 8
v3.22.4
Summary of Significant Accounting Policies - (Cash and Cash Equivalents) (Details) - USD ($)
$ in Millions
Dec. 28, 2022
Dec. 29, 2021
Accounting Policies [Abstract]    
Short-term investments, included as cash and cash equivalents $ 0.4 $ 0.1
v3.22.4
Summary of Significant Accounting Policies - (Property and Depreciation) (Details)
12 Months Ended
Dec. 28, 2022
Building Assets | Minimum  
Property, Plant and Equipment  
Property and equipment, useful life 5 years
Building Assets | Maximum  
Property, Plant and Equipment  
Property and equipment, useful life 30 years
Equipment | Minimum  
Property, Plant and Equipment  
Property and equipment, useful life 2 years
Equipment | Maximum  
Property, Plant and Equipment  
Property and equipment, useful life 10 years
Leasehold Improvements | Minimum  
Property, Plant and Equipment  
Property and equipment, useful life 5 years
Leasehold Improvements | Maximum  
Property, Plant and Equipment  
Property and equipment, useful life 15 years
v3.22.4
Summary of Significant Accounting Policies - (Marketable Securities) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Investment [Line Items]      
Marketable securities $ 1,746 $ 2,551  
Unrealized gain (loss) on marketable securities (2,200) 2,200 $ 1,800
Investments      
Investment [Line Items]      
Unrealized gain (loss) on marketable securities (200) 100 $ (100)
Aggregated Cost      
Investment [Line Items]      
Marketable securities 1,900 2,500  
Estimate of Fair Value Measurement      
Investment [Line Items]      
Marketable securities $ 1,700 $ 2,600  
v3.22.4
Summary of Significant Accounting Policies - (Self-insurance Liabilities) (Details) - USD ($)
$ in Millions
Dec. 28, 2022
Dec. 29, 2021
Accounting Policies [Abstract]    
Discounted insurance liabilities $ 9.7 $ 11.5
v3.22.4
Summary of Significant Accounting Policies - (Derivative Instruments) (Details)
12 Months Ended
Dec. 28, 2022
Accounting Policies [Abstract]  
Derivative Asset, Statement Of Financial Position, Extensible Enumeration Not Disclosed Flag Consolidated Balance Sheets
Derivative Liability, Statement Of Financial Position, Extensible Enumeration Not Disclosed Flag Consolidated Balance Sheets
v3.22.4
Summary of Significant Accounting Policies - (Concentration Risk) (Details)
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Revenue from franchises and licenses risk | Revenue Benchmark | Ten Largest Franchises      
Concentration Risk      
Franchise revenue, percentage 37.00% 37.00% 39.00%
v3.22.4
Summary of Significant Accounting Policies - (Advertising Costs) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Entity Operated Units [Member]      
Franchisor Disclosure [Line Items]      
Advertising expense $ 5.3 $ 4.6 $ 3.9
Franchise      
Franchisor Disclosure [Line Items]      
Advertising expense $ 75.9 $ 70.0 $ 53.7
v3.22.4
Acquisition of Keke's Breakfast Cafe - Narrative (Details)
$ in Thousands
12 Months Ended
Jul. 20, 2022
USD ($)
restaurant
Dec. 28, 2022
USD ($)
restaurant
Business Acquisition [Line Items]    
Number of restaurants   1,656
Franchise agreements    
Business Acquisition [Line Items]    
Weighted average useful life   14 years
Company Restaurants    
Business Acquisition [Line Items]    
Number of restaurants   74
Keke's    
Business Acquisition [Line Items]    
Total purchase price | $ $ 82,500  
Acquisition, transaction costs | $   $ 600
Keke's | Franchise agreements    
Business Acquisition [Line Items]    
Weighted average useful life 15 years  
Keke's | Franchised Location    
Business Acquisition [Line Items]    
Number of restaurants 44  
Keke's | Company Restaurants    
Business Acquisition [Line Items]    
Number of restaurants 8  
v3.22.4
Acquisition of Keke's Breakfast Cafe - Preliminary Purchase Price Allocation (Details) - USD ($)
$ in Thousands
Jul. 20, 2022
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Liabilities:        
Goodwill   $ 72,740 $ 36,884 $ 36,884
Keke's        
Business Acquisition [Line Items]        
Total consideration paid $ 82,500      
Assets:        
Property 2,015      
Operating lease ROU assets 7,908 $ 7,900    
Liabilities:        
Operating lease liabilities 7,908      
Deferred franchise revenue 992      
Other liabilities 36      
Net assets acquired, excluding goodwill 47,287      
Goodwill 35,213      
Keke's | Trade name        
Assets:        
Purchase price allocated to intangible assets 35,600      
Keke's | Franchise agreements        
Assets:        
Purchase price allocated to intangible assets $ 10,700      
v3.22.4
Receivables (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Receivables, net:      
Trade accounts receivable from franchisees $ 13,314 $ 13,430  
Other receivables from franchisees 6,731 1,027  
Allowance for doubtful accounts (376) (574)  
Total receivables, net 25,576 19,621  
Other noncurrent assets:      
Financing receivables from franchisees 0 293  
Expected credit expense (reversal) (100) (1,100) $ 1,500
Vendor receivables      
Receivables, net:      
Other receivable, gross, current 3,466 4,041  
Credit card receivables      
Receivables, net:      
Other receivable, gross, current 896 747  
Other      
Receivables, net:      
Other receivable, gross, current $ 1,545 $ 950  
v3.22.4
Property (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Property, Plant and Equipment      
Total property $ 247,803 $ 243,012  
Less accumulated depreciation 153,334 151,836  
Property, net 94,469 91,176  
Property held under finance leases, leased to franchisees, net 6,499 7,709  
Depreciation expense, including amortization of property under finance leases 12,800 13,300 $ 13,200
Franchise      
Property, Plant and Equipment      
Total property 91,108 94,848  
Less accumulated depreciation 57,253 60,674  
Property, net 33,855 34,174  
Buildings held under finance leases, leased to franchisees 7,047 8,060  
Less accumulated amortization 4,339 4,781  
Property held under finance leases, leased to franchisees, net 2,708 3,279  
Total property leased to franchisees, net 36,563 37,453  
Land      
Property, Plant and Equipment      
Total property 42,374 43,742  
Land | Franchise      
Property, Plant and Equipment      
Total property 23,825 25,192  
Buildings and leasehold improvements      
Property, Plant and Equipment      
Total property 164,782 163,264  
Buildings and leasehold improvements | Franchise      
Property, Plant and Equipment      
Total property 67,283 69,656  
Other property and equipment      
Property, Plant and Equipment      
Total property $ 40,647 $ 36,006  
v3.22.4
Goodwill and Intangible Assets - (Goodwill) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Jul. 20, 2022
Goodwill [Roll Forward]      
Balance, beginning of year $ 36,884 $ 36,884  
Balance, end of year 72,740 36,884  
Goodwill 72,740 36,884  
Denny’s      
Goodwill [Roll Forward]      
Balance, beginning of year 36,884    
Balance, end of year 37,527 36,884  
Goodwill 37,527 36,884  
Other      
Goodwill [Roll Forward]      
Balance, beginning of year 0    
Balance, end of year 35,213 0  
Goodwill 35,213 0  
Keke's      
Goodwill [Roll Forward]      
Addition related to the acquisition 35,213 0  
Goodwill     $ 35,213
Franchise Unit      
Goodwill [Roll Forward]      
Addition related to the acquisition $ 643 $ 0  
v3.22.4
Goodwill and Intangible Assets - (Finite-Lived and Indefinite-Lived Intangible Assets) (Details) - USD ($)
$ in Thousands
Dec. 28, 2022
Dec. 29, 2021
Intangible Assets    
Trade names $ 79,687 $ 44,087
Liquor licenses 120 120
Finite-Lived Intangible Assets [Line Items]    
Accumulated Amortization 5,962 6,199
Intangible assets 100,996 56,425
Reacquired franchise rights    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 10,489 12,218
Accumulated Amortization 5,697 6,199
Franchise agreements    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 10,700 0
Accumulated Amortization $ 265 $ 0
v3.22.4
Goodwill and Intangible Assets - (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Finite-Lived Intangible Assets [Line Items]      
Amortization expense of definite-lived intangible assets and other assets $ 2.0 $ 2.1 $ 3.0
Reacquired franchise rights      
Finite-Lived Intangible Assets [Line Items]      
Weighted average useful life 7 years    
Franchise agreements      
Finite-Lived Intangible Assets [Line Items]      
Weighted average useful life 14 years    
v3.22.4
Goodwill and Intangible Assets - (Estimated Amortization Expense) (Details)
$ in Thousands
Dec. 28, 2022
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2023 $ 1,550
2024 1,480
2025 1,424
2026 1,256
2027 $ 1,207
v3.22.4
Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 28, 2022
Dec. 29, 2021
Other Liabilities Disclosure [Abstract]    
Accrued payroll $ 17,903 $ 20,676
Accrued insurance, primarily current portion of liability for insurance claims 3,492 4,285
Accrued taxes 4,452 4,533
Accrued advertising 6,069 15,355
Gift cards 7,675 7,170
Accrued legal settlements 5,446 3,173
Other 11,725 8,954
Other current liabilities $ 56,762 $ 64,146
v3.22.4
Fair Value of Financial Instruments - (Schedule of Assets and Liabilities on Recurring Basis) (Details) - Recurring - USD ($)
$ in Thousands
Dec. 28, 2022
Dec. 29, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Deferred compensation plan investments $ 10,818 $ 13,726
Interest rate swaps, net 20,047  
Interest rate swaps, net   (52,121)
Investments 1,746 2,551
Total 32,611  
Total   (35,844)
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Deferred compensation plan investments 10,818 13,726
Interest rate swaps, net 0  
Interest rate swaps, net   0
Investments 0 0
Total 10,818 13,726
Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Deferred compensation plan investments 0 0
Interest rate swaps, net 20,047  
Interest rate swaps, net   (52,121)
Investments 1,746 2,551
Total 21,793  
Total   (49,570)
Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Deferred compensation plan investments 0 0
Interest rate swaps, net 0  
Interest rate swaps, net   0
Investments 0 0
Total $ 0 $ 0
v3.22.4
Fair Value of Financial Instruments - (Schedule of Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 28, 2022
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Impairment Charges   $ 963 $ 442 $ 4,083
Fair Value, Nonrecurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Impairment Charges   1,000 $ 400  
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3)        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Assets held and used $ 313 $ 313    
Impairment Charges $ 442      
v3.22.4
Leases - (General) (Details)
Dec. 28, 2022
Lessee, Lease, Description [Line Items]  
Lessee, operating lease, renewal term 5 years
Real Estate | Minimum  
Lessee, Lease, Description [Line Items]  
Lessee, operating lease, term of contract 10 years
Real Estate | Maximum  
Lessee, Lease, Description [Line Items]  
Lessee, operating lease, term of contract 20 years
Equipment | Minimum  
Lessee, Lease, Description [Line Items]  
Lessee, operating lease, term of contract 3 years
Equipment | Maximum  
Lessee, Lease, Description [Line Items]  
Lessee, operating lease, term of contract 5 years
v3.22.4
Leases - (Lease Costs) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Finance lease costs:    
Amortization of right-of-use assets $ 1,704 $ 1,895
Interest on lease liabilities 2,350 2,960
Sublease income:    
Total lease costs 11,183 9,089
Occupancy    
Operating lease costs:    
Operating lease costs 7,624 6,394
Variable lease costs:    
Variable lease costs 3,988 3,275
Costs of franchise and license revenue    
Operating lease costs:    
Operating lease costs 15,541 17,106
Variable lease costs:    
Variable lease costs 6,596 7,172
General and administrative expenses    
Operating lease costs:    
Operating lease costs 564 432
Variable lease costs:    
Variable lease costs 255 218
Restructuring charges and exit costs    
Operating lease costs:    
Operating lease costs 201 356
Variable lease costs:    
Variable lease costs 34 48
Sublease income:    
Sublease income (229) (160)
Franchise and license revenue    
Sublease income:    
Sublease income $ (27,445) $ (30,607)
v3.22.4
Leases - (Lease Terms and Discount Rates) (Details)
Dec. 28, 2022
Dec. 29, 2021
Weighted-average remaining lease term (in years):    
Finance leases 8 years 4 months 24 days 8 years 6 months
Operating leases 9 years 4 months 24 days 10 years
Weighted-average discount rate:    
Finance leases 23.50% 23.40%
Operating leases 5.80% 5.70%
v3.22.4
Leases - (Lease Income) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Lease income    
Total lease income $ 38,966 $ 41,991
Restructuring charges and exit costs    
Lease income    
Operating lease income 183 109
Variable lease income $ 46 51
Operating lease, lease income, statement of income or comprehensive income Other Operating Income (Expense), Net  
General and administrative expenses    
Lease income    
Operating lease income $ 140 65
Operating lease, lease income, statement of income or comprehensive income General and administrative expenses  
Franchise and license revenue    
Lease income    
Operating lease income $ 28,473 30,767
Variable lease income $ 10,124 $ 10,999
Operating lease, lease income, statement of income or comprehensive income Revenue recognized  
v3.22.4
Leases - (Cash and Supplemental Noncash) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Jul. 20, 2022
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash flows from finance leases $ 2,350 $ 2,960    
Operating cash flows from operating leases 24,626 25,578    
Financing cash flows from finance leases 2,020 2,118    
Right-of-use assets obtained in exchange for new finance lease liabilities 537 998 $ 142  
Right-of-use assets obtained in exchange for new operating lease liabilities 16,040 $ 8,513    
Keke's        
Cash paid for amounts included in the measurement of lease liabilities:        
Operating lease ROU assets $ 7,900     $ 7,908
v3.22.4
Leases - (Maturities of Lease Labilities) (Details) - USD ($)
$ in Thousands
Dec. 28, 2022
Dec. 29, 2021
Lease Liabilities, Finance    
2023 $ 3,768  
2024 3,047  
2025 2,911  
2026 2,576  
2027 2,197  
Thereafter 11,514  
Total undiscounted cash flows 26,013  
Less: interest 14,775  
Present value of lease liabilities 11,238 $ 12,696
Less: current lease liabilities 1,683 1,952
Long-term lease liabilities 9,555 10,744
Lease Liabilities, Operating    
2023 23,031  
2024 21,538  
2025 20,267  
2026 19,427  
2027 17,525  
Thereafter 80,781  
Total undiscounted cash flows 182,569  
Less: interest 43,855  
Present value of lease liabilities 138,714  
Less: current lease liabilities 15,310 15,829
Long-term lease liabilities 123,404 $ 126,296
Lease Receipts, Operating    
2023 25,816  
2024 24,454  
2025 24,220  
2026 23,768  
2027 22,195  
Thereafter 138,095  
Total undiscounted cash flows $ 258,548  
v3.22.4
Long-term Debt - (Schedule of Long-term Debt) (Details) - USD ($)
$ in Thousands
Dec. 28, 2022
Dec. 29, 2021
Debt Disclosure [Abstract]    
Revolving loans $ 261,500 $ 170,000
Finance lease obligations 11,238 12,696
Total long-term debt 272,738 182,696
Less current maturities of finance lease obligations 1,683 1,952
Noncurrent portion of long-term debt $ 271,055 $ 180,744
v3.22.4
Long-Term Debt - (Narrative) (Details) - USD ($)
3 Months Ended 12 Months Ended
Jun. 24, 2020
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Line of Credit Facility [Line Items]          
Revolving loans maturity, amount   $ 261,500,000      
Shareholders’ deficit   (37,116,000) $ (65,265,000) $ (130,446,000) $ (138,064,000)
Derivatives          
Line of Credit Facility [Line Items]          
Reclassification   29,000 166,000 783,000  
Derivatives          
Line of Credit Facility [Line Items]          
Reclassification   1,310,000 4,023,000 3,160,000  
Shareholders’ deficit   (42,142,000) (53,570,000) (59,427,000) $ (33,179,000)
Derivatives          
Line of Credit Facility [Line Items]          
Reclassification $ 7,400,000     7,354,000  
Effective Interest Rate Swaps          
Line of Credit Facility [Line Items]          
Derivative asset   7,300,000      
Expect reclassification within next twelve months   3,300,000      
Dedesignated Interest Rate Swaps Member | Other Nonoperating Income (Expense)          
Line of Credit Facility [Line Items]          
Unrealized gain (loss) on derivatives   55,000,000 12,800,000    
Dedesignated Interest Rate Swaps Member | Derivatives          
Line of Credit Facility [Line Items]          
Expect reclassification within next twelve months   300,000      
Reclassification   100,000 $ 200,000    
Dedesignated Interest Rate Swaps Member | Derivatives          
Line of Credit Facility [Line Items]          
Shareholders’ deficit   64,200,000      
Dedesignated Interest Rate Swaps Member | Derivatives          
Line of Credit Facility [Line Items]          
Derivative asset   12,800,000      
Reclassification       $ 7,400,000  
Derivative asset, current   100,000      
Derivative asset, noncurrent   $ 12,700,000      
Senior Secured Revolver          
Line of Credit Facility [Line Items]          
Debt instrument, term   5 years      
Maximum borrowing capacity   $ 400,000,000      
Line of credit facility, accordion feature, increase limit   450,000,000      
Outstanding amount under credit facility   261,500,000      
Availability under the revolving facility   $ 126,200,000      
Commitment fee, percent   0.35%      
Weighted-average interest rate   6.37% 2.09%    
Senior Secured Revolver | Interest Rate Swaps, Net          
Line of Credit Facility [Line Items]          
Weighted-average interest rate   5.31% 4.44%    
Senior Secured Revolver | LIBOR          
Line of Credit Facility [Line Items]          
Basis spread on variable rate debt   2.25%      
Letter of Credit          
Line of Credit Facility [Line Items]          
Maximum borrowing capacity   $ 25,000,000      
Outstanding amount under letter of credit   $ 12,300,000      
v3.22.4
Long-Term Debt - (Schedule of Interest Rate Swaps) (Details)
Dec. 28, 2022
USD ($)
Derivative [Line Items]  
Notional Amount $ 300,000,000
Fair Value 20,047,000
Interest Rate Swaps Maturity 2025  
Derivative [Line Items]  
Notional Amount 120,000,000
Fair Value $ 4,904,000
Fixed Rate 2.44%
Interest Rate Swaps Maturity 2026  
Derivative [Line Items]  
Notional Amount $ 50,000,000
Fair Value $ 2,392,000
Fixed Rate 2.46%
Interest Rate Swaps Maturity 2033  
Derivative [Line Items]  
Notional Amount $ 130,000,000
Fair Value $ 12,751,000
Fixed Rate 3.19%
Maximum  
Derivative [Line Items]  
Notional Amount $ 425,000,000
v3.22.4
Revenues - (Disaggregation of Revenues) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Disaggregation of Revenue [Line Items]      
Total operating revenue $ 456,429 $ 398,174 $ 288,605
Company restaurant sales      
Disaggregation of Revenue [Line Items]      
Total operating revenue 199,753 175,017 118,160
Royalties      
Disaggregation of Revenue [Line Items]      
Total operating revenue 113,891 103,425 67,501
Advertising revenue      
Disaggregation of Revenue [Line Items]      
Total operating revenue 75,926 69,957 53,745
Initial and other fees      
Disaggregation of Revenue [Line Items]      
Total operating revenue 28,262 8,009 7,332
Occupancy revenue       
Disaggregation of Revenue [Line Items]      
Total operating revenue 38,597 41,766 41,867
Franchise and license revenue      
Disaggregation of Revenue [Line Items]      
Total operating revenue $ 256,676 $ 223,157 $ 170,445
v3.22.4
Revenues - (Contract Balance) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Contract With Customer Liability [Roll Forward]    
Balance, December 29, 2021 $ 19,896  
Fees received from franchisees 3,435  
Acquired deferred franchise revenue 992  
Revenue recognized, net (3,572)  
Balance, December 28, 2022 20,751 $ 19,896
Less current portion included in other current liabilities 2,258  
Deferred franchise revenue included in other noncurrent liabilities $ 18,493  
Amount of revenue recognized that was previously included in balance of obligation   $ 2,500
v3.22.4
Revenues - (Change In Contract Assets) (Details)
$ in Thousands
12 Months Ended
Dec. 28, 2022
USD ($)
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward]  
Balance, December 29, 2021 $ 0
Franchisee deferred costs 5,953
Contract asset amortization (592)
Balance, December 28, 2022 5,361
Less current portion included in other current assets 580
Contract assets included in other noncurrent assets $ 4,781
v3.22.4
Revenues - (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Disaggregation of Revenue [Line Items]      
Contract asset $ 5,361 $ 0  
Revenue recognized 456,429 398,174 $ 288,605
Receivables, net 25,576 19,621  
Contract with customer 2,258    
Amount of revenue recognized that was previously included in balance of obligation   2,500  
Gift Card Redemption      
Disaggregation of Revenue [Line Items]      
Contract with customer 7,700 7,200  
Amount of revenue recognized that was previously included in balance of obligation 500    
Kitchen Modernization Program For Franchise Restaurants      
Disaggregation of Revenue [Line Items]      
Contract asset 5,700    
Revenue recognized 19,100 400  
Inventory related to kitchen equipment rollout 3,600 3,700  
Receivables, net $ 6,600 $ 400  
v3.22.4
Revenues - (Deferred Revenue) (Details)
$ in Thousands
Dec. 28, 2022
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Deferred franchise revenue expected to be recognized $ 15,390
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-29  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Deferred franchise revenue expected to be recognized $ 1,678
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-28  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Deferred franchise revenue expected to be recognized $ 1,655
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-26  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Deferred franchise revenue expected to be recognized $ 1,618
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Deferred franchise revenue expected to be recognized $ 1,540
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-12-31  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Deferred franchise revenue expected to be recognized $ 1,454
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-12-30  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Deferred franchise revenue expected to be recognized $ 7,445
Revenue, remaining performance obligation, expected timing of satisfaction, period
v3.22.4
Employee Benefit Plans - (Defined Contribution Plans) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Defined Contribution Plan Disclosure [Line Items]      
Employer contributions $ 1.7 $ 1.5 $ 1.5
Qualified Plan      
Defined Contribution Plan Disclosure [Line Items]      
Maximum annual contribution per employee 25.00%    
Employer matching contribution 4.00%    
Nonqualified Plan      
Defined Contribution Plan Disclosure [Line Items]      
Maximum annual contribution per employee 50.00%    
Maximum incentive compensation deferral 75.00%    
v3.22.4
Employee Benefit Plans - (Change in Benefit Obligation and Plan Assets) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Change in Benefit Obligation:      
Benefit obligation at beginning of year $ 2,219 $ 2,298  
Interest cost 36 26 $ 41
Actuarial (gain) loss (261) 46  
Benefits paid (151) (151)  
Settlements (237) 0  
Benefit obligation at end of year 1,606 2,219 2,298
Accumulated benefit obligation 1,606 2,219  
Change in Plan Assets:      
Fair value of plan assets at beginning of year 0 0  
Employer contributions 388 151  
Benefits paid (151) (151)  
Settlements (237) 0  
Fair value of plan assets at end of year 0 0 $ 0
Unfunded status at end of year (1,606) (2,219)  
Amounts recognized on the balance sheet:      
Other current liabilities  (972) (944)  
Other noncurrent liabilities (634) (1,275)  
Net amount recognized  (1,606) (2,219)  
Amounts in accumulated other comprehensive loss not yet reflected in net period benefit cost:      
Unamortized actuarial losses, net (516) (974)  
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss, net:      
Benefit obligation actuarial gain (loss) 261 (46)  
Amortization of net loss 123 159  
Settlement loss recognized 74 0  
Other comprehensive income $ 458 $ 113  
v3.22.4
Employee Benefit Plans - (Components of Net Periodic Benefit Cost) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Retirement Benefits [Abstract]      
Net periodic benefit cost (credit) excluding service cost, statement of income or comprehensive income General and administrative expenses    
Components of net periodic benefit cost [Abstract]      
Interest cost $ 36 $ 26 $ 41
Amortization of net loss 123 159 89
Settlement loss recognized 74 0 95
Net periodic benefit cost $ 233 $ 185 $ 225
v3.22.4
Employee Benefit Plans - (Assumptions) (Details)
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Retirement Benefits [Abstract]      
Discount rate used to determine the benefit obligations 5.26% 1.99%  
Discount rate used to determine net period pension costs 1.99% 1.34% 2.56%
v3.22.4
Employee Benefit Plans - (Benefits Expected to be Paid in Future Years) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Retirement Benefits [Abstract]    
Employer contributions $ 388 $ 151
Estimated employer contributions during 2023 1,000  
Benefits expected to be paid:    
2023 972  
2024 144  
2025 121  
2026 119  
2027 91  
2028 through 2032 $ 314  
v3.22.4
Share-Based Compensation - (Narrative) (Details)
$ / shares in Units, shares in Thousands, $ in Millions
12 Months Ended
Dec. 28, 2022
USD ($)
installment
$ / shares
shares
Dec. 29, 2021
USD ($)
$ / shares
shares
Dec. 30, 2020
USD ($)
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares available for grant (in shares) 700    
Income tax benefits recognized related to share-based compensation | $ $ 2.9 $ 3.4 $ 2.0
Unrecognized compensation cost related to unvested awards outstanding | $ $ 9.7    
Unrecognized compensation cost, expected weighted average period 1 year 8 months 12 days    
Employee share awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Grant date fair value per unit (in dollars per share) | $ / shares $ 16.22 $ 21.83 $ 10.47
Cash payments | $ $ 0.4 $ 0.2 $ 0.4
Intrinsic value of units converted | $ $ 13.8 $ 4.3 $ 12.0
Stock units outstanding (in shares) 1,297 2,076  
Certain Employees | Performance Shares Total Shareholder Return      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity awards granted (in shares) 300    
Grant date fair value per unit (in dollars per share) | $ / shares $ 21.05    
Certain Employees | Performance Shares Adjusted EPS      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity awards granted (in shares) 300    
Grant date fair value per unit (in dollars per share) | $ / shares $ 14.12    
Certain Employees | Employee share awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Grant date fair value per unit (in dollars per share) | $ / shares $ 21.05 $ 24.74 $ 8.24
Certain Employees | Employee share awards | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of target achievement 0.00%    
Certain Employees | Employee share awards | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of target achievement 200.00%    
Certain Employees | Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity awards granted (in shares) 400    
Grant date fair value per unit (in dollars per share) | $ / shares $ 14.08    
Vesting period 3 years    
Board Members | Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity awards granted (in shares) 100    
Grant date fair value per unit (in dollars per share) | $ / shares $ 9.93    
Vesting period 1 year    
Unrecognized compensation cost related to unvested awards outstanding | $ $ 0.4    
Unrecognized compensation cost, expected weighted average period 4 months 24 days    
Number of equal annual installments | installment 3    
Stock units converted into common stock (in shares) 100    
Stock units outstanding (in shares) 800 800  
2021 Omnibus Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares available for grant (in shares) 3,000    
v3.22.4
Share-Based Compensation - (Component of Net Income) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation $ 11,400 $ 13,602 $ 7,948
Employee share awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation 10,470 12,708 7,104
Restricted stock units for board members      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation $ 930 $ 894 $ 844
v3.22.4
Share-Based Compensation - (Employee Share Awards) (Details) - Employee share awards - $ / shares
shares in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Units      
Outstanding, beginning of year (in shares) 2,076    
Granted (in shares) 1,065    
Vested (in shares) (1,415)    
Forfeited (in shares) (429)    
Outstanding, end of year (in shares) 1,297 2,076  
Convertible, end of year (in shares) 159    
Weighted Average Grant Date Fair Value      
Outstanding, beginning of year (in dollars per share) $ 15.57    
Granted (in dollars per share) 16.22 $ 21.83 $ 10.47
Vested (in dollars per share) 12.33    
Forfeited (in dollars per share) 19.62    
Outstanding, end of year (in dollars per share) 18.30 $ 15.57  
Convertible, end of year, weighted-average grant date fair value (in dollars per share) $ 15.38    
v3.22.4
Share-Based Compensation - (Schedule of Grant Date Fair Value and Related Assumptions of PSUs) (Details) - Employee share awards - $ / shares
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Grant date fair value per unit (in dollars per share) $ 16.22 $ 21.83 $ 10.47
Certain Employees      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate 1.96% 0.18% 0.16%
Expected term (in years) 2 years 9 months 18 days 3 years 1 year 3 months
Expected volatility 66.00% 64.90% 59.50%
Expected dividend yield 0.00% 0.00% 0.00%
Grant date fair value per unit (in dollars per share) $ 21.05 $ 24.74 $ 8.24
v3.22.4
Share-Based Compensation - (Stock Options) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Options granted 0 0 0
Option outstanding (in shares) 0    
Exercised (in shares) 0    
Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 3 years    
Contractual life 10 years    
Intrinsic value of the options exercised   $ 0.3 $ 0.8
v3.22.4
Operating (Gains), Losses and Other Charges, Net - (Operating (Gains), Losses and Other Charges) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Other Income and Expenses [Abstract]      
Gains on sales of assets and other, net $ (3,378) $ (47,822) $ (4,678)
Restructuring charges and exit costs 1,410 1,275 $ 2,403
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]     Operating (gains), losses and other charges, net
Impairment charges 963 442 $ 4,083
Operating (gains), losses and other charges, net $ (1,005) $ (46,105) $ 1,808
v3.22.4
Operating (Gains), Losses and Other Charges, Net - (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Other Income and Expenses [Abstract]      
Gains on sales of assets and other, net $ 3,378 $ 47,822 $ 4,678
Accrued severance and other restructuring charges 700 100  
Impairment Charges 963 442 4,083
Tangible asset impairment charges 600 300 2,400
Operating lease, impairment loss 300 100 1,600
Impairment related to finance lease ROU assets $ 100 $ 100 100
Impairment of franchisee rights     $ 100
v3.22.4
Operating (Gains), Losses and Other Charges, Net - (Restructuring Charges and Exit Costs) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Restructuring charges and exit costs [Abstract]      
Exit costs $ 86 $ 323 $ 204
Severance and other restructuring charges 1,324 952 2,199
Total restructuring charges and exit costs $ 1,410 $ 1,275 $ 2,403
v3.22.4
Income Taxes - (Provisions for (Benefits from) Income Taxes) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Current:      
Federal $ 6,128 $ 12,997 $ (3,497)
State and local 2,160 3,105 (109)
Foreign 1,152 862 667
Deferred:      
Federal 11,043 6,826 393
State and local 3,689 7,271 3,588
Increase (decrease) of valuation allowance 546 (5,031) (3,041)
Total provision for (benefit from) income taxes $ 24,718 $ 26,030 $ (1,999)
v3.22.4
Income Taxes - (Reconciliation of Income Taxes) (Details)
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Reconciliation of income taxes at the U.S. federal statutory tax rate to effective tax rate:      
Statutory provision rate 21.00% 21.00% 21.00%
State, foreign and local taxes, net of federal income tax benefit 6.00% 5.00% (11.00%)
Change in state valuation allowance 0.00% (1.00%) (1.00%)
General business credits generated (1.00%) (2.00%) 9.00%
Foreign tax credits generated (1.00%) 1.00% 2.00%
Carryback of net operating loss rate differential 0.00% 0.00% 12.00%
Section 162(m) and share-based compensation 0.00% 1.00% (11.00%)
Insurance premiums 0.00% 0.00% 5.00%
Other 0.00% 0.00% 2.00%
Effective tax rate 25.00% 25.00% 28.00%
v3.22.4
Income Taxes - (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Valuation Allowance [Line Items]      
Expense from disallowed compensation deductions   $ 1,300,000 $ 1,000,000
Income tax refunds   1,500,000  
Net operating loss carryback     $ 900,000
Net operating loss carryforwards - state $ 1,157,000 1,429,000  
Valuation allowance 2,738,000 2,192,000  
Interest and penalties recognized on unrecognized tax benefits 0 $ 0  
South Carolina NOL Carryforwards      
Valuation Allowance [Line Items]      
Net operating loss carryforwards - state 900,000    
Valuation allowance 600,000    
State Enterprise Zone Credits      
Valuation Allowance [Line Items]      
Valuation allowance 1,200,000    
Foreign Tax Credit Carryforward      
Valuation Allowance [Line Items]      
Valuation allowance $ 900,000    
v3.22.4
Income Taxes - (Deferred Tax Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 28, 2022
Dec. 29, 2021
Deferred tax assets:    
Self-insurance accruals $ 2,094 $ 2,594
Finance lease liabilities 1,230 1,281
Operating lease liabilities 33,028 35,545
Accrued exit costs 21 19
Interest rate swaps 0 13,221
Pension, other retirement and compensation plans 11,239 11,259
Deferred income 4,396 4,675
Other accruals 918 0
General business and foreign tax credit carryforwards - state and federal 2,387 2,218
Net operating loss carryforwards - state 1,157 1,429
Total deferred tax assets before valuation allowance 56,470 72,241
Less: valuation allowance (2,738) (2,192)
Total deferred tax assets 53,732 70,049
Deferred tax liabilities:    
Intangible assets (15,706) (14,874)
Contract assets (1,360) 0
Deferred finance costs (250) (313)
Operating lease right-of-use assets (29,822) (32,198)
Fixed assets (9,291) (10,134)
Interest rate swaps (4,722) 0
Other accruals 0 (1,028)
Total deferred tax liabilities (61,151) (58,547)
Net deferred tax asset (liability) $ (7,419)  
Net deferred tax asset (liability)   $ 11,502
v3.22.4
Income Taxes - (Unrecognized Tax Benefits) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Balance, beginning of year $ 1,047 $ 1,047
Decreases related to prior year tax positions (178) 0
Balance, end of year $ 869 $ 1,047
v3.22.4
Other CARES Act Provisions (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 29, 2021
Dec. 30, 2020
Unusual or Infrequent Item, or Both [Line Items]    
Employee retention tax credit, $ 0.8 $ 2.6
Social security taxes 3.1  
Costs of company restaurant sales    
Unusual or Infrequent Item, or Both [Line Items]    
Employee retention tax credit, 0.3 0.9
General and administrative expenses    
Unusual or Infrequent Item, or Both [Line Items]    
Employee retention tax credit, $ 0.5 $ 1.7
v3.22.4
Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Earnings Per Share [Abstract]      
Net income (loss) $ 74,712 $ 78,073 $ (5,116)
Weighted average shares outstanding - basic (in shares) 60,771 65,171 60,812
Effect of dilutive share-based compensation awards (in shares) 108 402 0
Weighted average shares outstanding - diluted (in shares) 60,879 65,573 60,812
Net income (loss) per share - basic (in dollars per share) $ 1.23 $ 1.20 $ (0.08)
Net income (loss) per share - diluted (in dollars per share) $ 1.23 $ 1.19 $ (0.08)
Anti-dilutive share-based compensation awards (in shares) 709 420 1,682
v3.22.4
Shareholders' Equity - (Share Repurchases) (Details) - USD ($)
shares in Millions
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Dec. 25, 2019
Dec. 27, 2017
Equity, Class of Treasury Stock [Line Items]          
Purchase of treasury stock (in shares) 6.3 2.0 1.7    
Payments for treasury stock $ 64,884,000 $ 30,592,000 $ 34,193,000    
Share Repurchase Program 2019          
Equity, Class of Treasury Stock [Line Items]          
Share repurchase, authorized amount       $ 250,000,000  
Share Repurchase Program 2017          
Equity, Class of Treasury Stock [Line Items]          
Share repurchase, authorized amount         $ 200,000,000
v3.22.4
Shareholders' Equity - (Retirement of Treasury Stock and Issuance and Sale of Common Stock) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended
Jul. 06, 2020
Jul. 01, 2020
Dec. 30, 2020
Dec. 28, 2022
Dec. 29, 2021
Equity [Abstract]          
Retirement of shares (in shares)     54,000,000    
Weighted average share price (in dollars per share)     $ 10.26    
Treasury stock, at cost (in shares)     0    
Number of shares sold (in shares)   8,000,000      
Common stock, par value (in dollars per share)   $ 0.01   $ 0.01 $ 0.01
Price per share (in dollars per share)   $ 9.15      
Proceeds from sale of stock $ 69.6        
v3.22.4
Shareholders' Equity - (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Jun. 24, 2020
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
AOCI Attributable To Parent, Net Of Tax [Roll Forward]        
Balance as of beginning period   $ (65,265) $ (130,446) $ (138,064)
Settlement loss recognized   (74) 0  
Income tax (expense) benefit   (3,643) (2,642) 9,432
Balance as of end of period   (37,116) (65,265) (130,446)
Effective Interest Rate Swaps        
AOCI Attributable To Parent, Net Of Tax [Roll Forward]        
Expect reclassification within next twelve months   3,300    
Pensions        
AOCI Attributable To Parent, Net Of Tax [Roll Forward]        
Balance as of beginning period   (900) (978) (781)
Benefit obligation actuarial gain (loss)   261 (46) (448)
Settlement loss recognized   74   95
Income tax (expense) benefit   (113) (35) 67
Balance as of end of period   (555) (900) (978)
Amortization of net loss        
AOCI Attributable To Parent, Net Of Tax [Roll Forward]        
Reclassification   123 159 89
Derivatives        
AOCI Attributable To Parent, Net Of Tax [Roll Forward]        
Balance as of beginning period   (53,570) (59,427) (33,179)
Reclassification   1,310 4,023 3,160
Changes in the fair value of cash flow derivatives   13,619 4,275 (46,910)
Income tax (expense) benefit   (3,530) (2,607) 9,365
Balance as of end of period   (42,142) (53,570) (59,427)
Derivatives | Dedesignated Interest Rate Swaps Member        
AOCI Attributable To Parent, Net Of Tax [Roll Forward]        
Balance as of end of period   64,200    
Derivatives        
AOCI Attributable To Parent, Net Of Tax [Roll Forward]        
Reclassification $ 7,400     7,354
Derivatives | Dedesignated Interest Rate Swaps Member        
AOCI Attributable To Parent, Net Of Tax [Roll Forward]        
Reclassification       7,400
Derivatives        
AOCI Attributable To Parent, Net Of Tax [Roll Forward]        
Reclassification   29 166 783
Derivatives | Dedesignated Interest Rate Swaps Member        
AOCI Attributable To Parent, Net Of Tax [Roll Forward]        
Reclassification   100 200  
Expect reclassification within next twelve months   300    
Accumulated Other Comprehensive Loss        
AOCI Attributable To Parent, Net Of Tax [Roll Forward]        
Balance as of beginning period   (54,470) (60,405) (33,960)
Balance as of end of period   $ (42,697) $ (54,470) $ (60,405)
v3.22.4
Commitments and Contingencies - Purchase Obligations (Details)
$ in Thousands
Dec. 28, 2022
USD ($)
Payments due by period:  
Less than 1 year $ 216,740
1-2 years 0
3-4 years 0
5 years and thereafter 0
Total $ 216,740
v3.22.4
Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 28, 2022
Dec. 29, 2021
Dec. 30, 2020
Supplemental Cash Flow Information [Abstract]      
Income taxes paid, net $ 9,296 $ 9,942 $ 6
Interest paid 12,939 14,159 15,889
Noncash investing and financing activities:      
Receipt of real estate receivable 3,000 0 0
Accrued purchase of property 283 231 133
Issuance of common stock, pursuant to share-based compensation plans 9,547 3,087 7,949
Execution of finance leases 537 998 142
Treasury stock payable $ 542 $ 633 $ 0
v3.22.4
Segment Information (Details)
$ in Thousands
12 Months Ended
Dec. 28, 2022
USD ($)
segment
Dec. 29, 2021
USD ($)
Dec. 30, 2020
USD ($)
Segment Reporting [Abstract]      
Number of operating segments | segment 2    
Segment Reporting Information [Line Items]      
Total operating revenue $ 456,429 $ 398,174 $ 288,605
General and administrative expenses 67,173 68,686 55,040
Depreciation and amortization 14,862 15,446 16,161
Operating (gains), losses and other charges, net (1,005) (46,105) 1,808
Total other operating expenses 81,030 38,027 73,009
Operating income 60,614 104,075 6,679
Interest expense, net 13,769 15,148 17,965
Other nonoperating income, net (52,585) (15,176) (4,171)
Net income (loss) before income taxes 99,430 104,103 (7,115)
Provision for (benefit from) income taxes 24,718 26,030 (1,999)
Net income (loss) 74,712 78,073 (5,116)
Total assets 498,335 435,527  
Operating Segments      
Segment Reporting Information [Line Items]      
Total operating revenue 456,429 398,174 288,605
Total restaurant-level operating margin 141,644 142,102 79,688
Total assets 498,335 435,527  
Operating Segments | Denny’s      
Segment Reporting Information [Line Items]      
Total operating revenue 447,687 398,174 288,605
Total restaurant-level operating margin 138,555 142,102 79,688
Total assets 394,051 422,852  
Operating Segments | Other      
Segment Reporting Information [Line Items]      
Total operating revenue 8,742 0 0
Total restaurant-level operating margin 3,089 0 $ 0
Total assets $ 104,284 $ 12,675