Denny's Corporation

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International Guild of Hospitality & Restaurant Managers

Denny's Corporation, formerly Advantica Restaurant Group, Inc., is a restaurant company in the United States operating moderately priced restaurants in the mid-scale dining segment. Its core brand is Denny's. Advantica operates 1,749 Company-owned, franchised and licensed restaurants. Advantica historically owned and operated the Coco's and Carrows restaurant chains through its subsidiary, FRD Acquisition Co. (FRD).

On January 7, 1998, Advantica's predecessor, Flagstar Companies, Inc. (FCI) and its wholly owned subsidiary, Flagstar Corporation (Flagstar) emerged from proceedings under Chapter 11 of the United States Bankruptcy Code pursuant to FCI's and Flagstar's Amended Joint Plan of Reorganization dated as of November 7, 1997. FCI and Flagstar had filed voluntary petitions for relief under the Bankruptcy Code on June 27, 1997. Also on January 7, 1998, Flagstar merged with and into FCI, the surviving corporation, and FCI changed its name to Advantica Restaurant Group, Inc. FCI's operating subsidiaries did not file bankruptcy petitions and were not parties to the Chapter 11 proceedings.

In the second quarter of 2000, as a result of its decision to sell or otherwise dispose of Coco's and Carrows, the Company began accounting for FRD as a discontinued operation. On February 14, 2001, FRD filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code to facilitate the divestiture of Coco's and Carrows and to preserve their going concern value. On February 19, 2002, Advantica and Denny's, along with FRD, Coco's and Carrows, entered into a stipulation and agreement of settlement with the official committee of unsecured creditors of FRD seeking to resolve various disputes relating to the administration of FRD's pending bankruptcy case. In July 2002, the Company sold FRD, rendering it a one-brand company. The Company subsequently changed its name to Denny's Corporation.

Denny's is a family-style restaurant chain. As of December 26, 2001, Denny's restaurants operated in 49 states, the District of Columbia, two United States territories and five foreign countries, with concentrations in California (23% of total restaurants), Florida (12%) and Texas (9%). Denny's restaurants are designed to provide a dining value with moderately priced food, efficient service and a pleasant atmosphere. The largest percentage of customers are 35 years of age or older. Of the 1,749 Denny's restaurants operating as of December 26, 2001, 1,114 (64%) were franchised units. During 2001, the Company opened 46 franchised units.

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