Shareholders' Equity

12 Months Ended

Dec. 25, 2024

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.

The following table summarizes share repurchase activity:

	Fiscal Year Ended
	December 25, 2024		December 27, 2023		December 28, 2022
	(In thousands)
Amount repurchased (1)	$	11,231	$	52,099	$	64,884
Total number of shares repurchased	1,349		5,202		6,280

(1) Amount repurchased includes excise taxes of $0.1 million and $0.4 million for the years ended December 25, 2024 and December 27, 2023, respectively.

Repurchased shares 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 2024, the Board of Directors approved the retirement of 2.0 million shares of treasury stock at a weighted average share price of $8.78, including excise taxes. As of the year ended December 25, 2024, no shares remained in treasury.

In the fourth quarter of fiscal 2023, the Board of Directors approved the retirement of 12.8 million shares of treasury stock at a weighted average share price of $11.02, including excise taxes. As of the year ended December 27, 2023, 0.7 million shares remained in treasury.

Accumulated Other Comprehensive Loss

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

	Pensions		Derivatives		Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of December 29, 2021	$	(900)	$	(53,570)	$	(54,470)
Benefit obligation actuarial gain	261		—		261
Amortization of net loss (1)	123		—		123
Settlement loss recognized	74		—		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	—		29		29
Income tax expense	(113)		(3,530)		(3,643)
Balance as of December 28, 2022	$	(555)	$	(42,142)	$	(42,697)
Benefit obligation actuarial loss	(98)		—		(98)
Amortization of net loss (1)	56		—		56
Settlement loss recognized	35		—		35
Plan closure loss	74		—		74
Changes in the fair value of cash flow derivatives	—		6,262		6,262
Reclassification of cash flow derivatives to interest expense, net (2)	—		(5,028)		(5,028)
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net	—		353		353
Income tax benefit (expense)	151		(767)		(616)
Balance as of December 27, 2023	$	(337)	$	(41,322)	$	(41,659)
Benefit obligation actuarial gain	83		—		83
Amortization of net loss (1)	63		—		63
Settlement loss recognized	26		—		26
Changes in the fair value of cash flow derivatives	—		17,869		17,869
Reclassification of cash flow derivatives to interest expense, net (2)	—		(5,916)		(5,916)
Amortization of unrealized losses related to dedesignated derivatives to interest expense, net	—		760		760
Income tax expense	(44)		(3,221)		(3,265)
Balance as of December 25, 2024	$	(209)	$	(31,830)	$	(32,039)

(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 Income. See Note 12 for additional details.

(2)    Amounts reclassified from accumulated other comprehensive loss into income represent payments made to (received from) 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 Income. We expect to receive payments from the counterparty and reclassify $4.5 million from accumulated other comprehensive loss related to our interest rate swaps during the next twelve months. See Note 10 for additional details.