Goodwill and Intangible Assets

12 Months Ended

Dec. 25, 2024

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 25, 2024		December 27, 2023
		(In thousands)
Balance, beginning of year		$	65,908	$	72,740
Reclassifications from (to) assets held for sale		469		(469)
Impairment charges		$	(20)	$	(6,363)
Balance, end of year (1)		$	66,357	$	65,908
Goodwill by segment
Denny’s		$	37,507	$	37,527
Other		28,850		28,381
Total goodwill		$	66,357	$	65,908
(1)	Net of accumulated impairment losses of $6.4 million.

Intangible assets consist of the following:

	December 25, 2024				December 27, 2023
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(In thousands)
Intangible assets with indefinite lives:
Trade names	$	79,687	$	—	$	79,687	$	—
Liquor licenses	120		—		120		—
Intangible assets with definite lives:
Reacquired franchise rights	9,135		6,188		9,470		5,614
Franchise agreements	10,603		1,618		10,700		935
Intangible assets, net	$	99,545	$	7,806	$	99,977	$	6,549

The weighted-average life of reacquired franchise rights is five years. The weighted-average life of franchise agreements is 13 years. The amortization expense for definite-lived intangibles and other assets for 2024, 2023 and 2022 was $2.2 million, $2.2 million and $2.0 million, respectively. Estimated amortization expense for intangible assets with definite lives in the next five years is as follows: 

	(In thousands)
2025	$	1,442
2026	1,274
2027	1,235
2028	1,085
2029	1,017

We performed an annual impairment test as of December 25, 2024 and determined that the fair value of the reporting units substantially exceeded their respective carrying values. No impairment charges related to goodwill or other intangible assets with indefinite lives were recorded. However, we recorded $0.1 million of impairment related to reacquired franchise rights and $0.1 million of impairment related to franchise agreements during the year ended December 25, 2024. See Note 14.

We performed an annual impairment test of goodwill and other intangible assets with indefinite lives as of December 27, 2023 and determined that a portion of the goodwill related to Keke’s was impaired as a result of lower than forecasted sales and cash flows. Near-term sales and cash flows in 2023 were impacted by reduced tourism in Florida as well as a slower pace of restaurant development than originally anticipated. In addition, investments in general and administrative expenses to support the growth of the brand and an extended development cycle have also impacted near-term cash flow projections. Accordingly, we recognized $6.4 million of impairment charges related to the Keke’s goodwill. See Note 8. The balance of this goodwill is included in the Other segment. As it relates to the remainder of goodwill and other intangible assets with indefinite lives, we concluded that the fair value of these assets substantially exceeded their carrying values. However, we recorded less than $0.1 million of impairment related to reacquired franchise rights during the year ended December 27, 2023. See Note 14.