Denny's
Food & Beverage · Full-Service Restaurants
- Royalty
- 4.5%
of weekly Net Sales
About Denny's
Denny's is a popular American restaurant chain specializing in casual dining. The company was founded in 1953 in Lakewood, California by Harold Butler and Richard Jezak. Originally named Danny's Donuts, it started as a coffee and donut shop. Over the years, Denny's expanded its menu to include full breakfast, lunch, and dinner options. In 1961, the company adopted its current name, Denny's. The headquarters of Denny's is located in Spartanburg, South Carolina. It operates over 1,700 restaurants across the United States and various international locations, making it one of the largest family dining chains globally. Denny's is known for its 24/7 operating hours, offering breakfast, lunch, and dinner options throughout the day. The menu features a wide variety of dishes including classics like pancakes, burgers, sandwiches, salads, and steak dinners. Additionally, it offers a Fit Fare menu catering to health-conscious customers. On a global scale, Denny's has expanded its presence through partnerships and franchises. Notable partnerships include collaborations with TravelCenters of America and popular franchises in Japan, Canada, Mexico, and New Zealand. These partnerships have contributed to the company's growth and increased its global footprint. In terms of market position, Denny's has established itself as a leader in the family dining category. While facing competition from similar chains like IHOP and Waffle House, Denny's remains a popular choice among consumers due to its extensive menu options and accessibility. Throughout its history, Denny's has achieved several milestones. In 1977, it became the first restaurant chain to be listed on the New York Stock Exchange. The company has also made advancements in its menu offerings, including the introduction of its Value Menu and the launch of its Denny's On Demand online ordering platform. As of the latest update, Denny's continues to operate successfully, serving millions of customers globally. The company constantly adapts its menu and strategy to meet changing consumer preferences and industry trends. Overall, Denny's is a well-established brand with a strong market position in the United States and abroad.
Key terms
- Scrape and Rebuild / Offset Program
Execute new Franchise Agreement with no initial franchise fee when relocating and meeting program requirements.
- Virtual Brand Offerings
No additional initial franchise fee for Virtual Brand Offerings.
- Brand fund
3.0% of Net Sales
- Footprint
3,400 – 5,200 sq ft
- Incentivized Growth Program (IGP) Development Agreement
$5k
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing).
Growth
- Total locations—
Franchised units open at year-end
- New openings—
Gross new units opened during the calendar year
- 1-year unit growth rate—
Net unit growth versus prior year
- 3-year unit CAGR—
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio—
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$2.3M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open12 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate4.5%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.