Denny`s (DENN)

Risks

• The COVID-19 pandemic has disrupted and could continue to disrupt our business, which could continue to have a material adverse impact on our business, results of operations, liquidity and financial condition for an extended period of time.
• The restaurant business is highly competitive, and if we are unable to compete effectively, our business will be adversely affected.
• Our returns and profitability may be negatively impacted by a number of factors, including those described below.
• The financial performance of our franchisees can negatively impact our business.
• The locations of company and franchised restaurants may cease to be attractive as demographic patterns change.
• Food safety and quality concerns may negatively impact our business and profitability.
• Unfavorable publicity, or a failure to respond effectively to adverse publicity, could harm our brand’s reputation.
• A decline in general economic conditions could adversely affect our financial results.
• If we fail to recruit, develop and retain talented employees, our business could suffer.
• Our growth strategy depends on our ability and that of our franchisees to open new restaurants. Delays or failures in opening new restaurants could adversely affect our planned growth and operating results.
• Our brand’s expansion into international markets may present increased risks due to lower customer awareness of our brand, our unfamiliarity with those markets and other factors.
• Litigation may adversely affect our business, financial condition and results of operations.
• Existing and changing legal and regulatory requirements, as well as an increasing focus on environmental, social and governance issues, could adversely affect our brand, business, results of operations and financial condition.
• If our internal controls are ineffective, we may not be able to accurately report our financial results or prevent fraud.
• Changes to existing accounting rules or the questioning of current accounting practices may adversely affect our reported financial results.
• Failure of computer systems, information technology, or the ability to provide a continuously secure network, or cyber attacks against our computer systems, could result in material harm to our reputation and business.
• We rely on third parties for certain business processes and services. Failure or inability of such third-party vendors to perform subjects us to risks, including business disruption and increased costs.
• Changes in the method used to determine LIBOR rates and the phasing out of LIBOR after 2021 may affect our financial results.
• Our indebtedness could have an adverse effect on our financial condition and operations.
• Many factors, including those over which we have no control, affect the trading price of our common stock.