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Denny's Management Discusses Q2 2012 Results - Earnings Call Transcript

Contributing to our second quarter results was our Build Your Own Pancakes Limited Time Only module, which played off the strength of our Build Your Own Grand Slam platform. It delivered upon our guests' desire for customization, while also offering add-on and upsell opportunities. The module performed well, as we saw higher-than-expected number of customers ordering our signature pancake creation rather than build-their-own creation. We were also pleased to see that our breakfast daypart traffic increased sequentially and was the strongest performing daypart in the quarter.

As we entered the summer season, we brought back our successful Tour of America module, which will run until mid-August. Back by popular demand our the classic diner items like the Philly Cheesesteak Omelette and the Midwestern Meat & Potatoes Sandwich with new additions to the lineup like the Red, White and Blue Pancake Breakfast, Malibu Fish Tacos, Brooklyn Spaghetti & Meatballs, our Southern Slam and the Florida Sunshine Salad. Per check driving add-on sales, we brought back the popular Strawberry Pancake Puppies and introduced the new Red Raspberry Smoothie along with the new and innovative dessert, the Apple Crisp Milk Shake Parfait. Most importantly, we are pleased to report this sequel mixes at a higher level than last year's module.

In conjunction with the launch of our Tour of America Limited Time Only menu, we launched a new core menu during the quarter, which leverages our successful America's Diner positioning. The menu introduces clever references to our heritage as your local diner with what we call diner-ism, along with appropriate iconography bridging days-gone-by to today. One of these is the use of the classic diner bell you hear when your order is up. This iconic symbol is used to identify Denny's guest favorites: items such as Moons Over My Hammy, the Super Bird and the All-American Slam on the menu.

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