Proxy firm supports Denny's board nominees

SPARTANBURG, S.C.

Denny's said Thursday that an independent proxy firm supports its eight board nominees as it fights for control of the company with an investor group.

The investor group, the Committee to Enhance Denny's, wants to unseat CEO Nelson Marchioli, board Chairwoman Debra Smithart-Oglesby and Robert Marks, former chairman of the company, and put up its own slate.

The proxy advisory firm, Glass, Lewis & Co., said the election of dissident nominees would be "unwarranted at this time."

Smithart-Oglesby said Thursday, "We respect (the firm's) candid report and appreciate their confidence in stating that the current board is best positioned to continue the progress that has been made in recent quarters, Smithart-Oglesby said in a statement.

The dissident group sent a letter to shareholders last month criticizing the restaurant for what it calls wasteful spending, the loss of customers to competitor IHOP, its pricey Super Bowl promotions and the lack of stock ownership by members of the board.

Denny's told shareholders that group does not have the company's best interest in mind.

Denny's has 1,318 franchised and licensed locations and 233 company-owned restaurants, with operations in the U.S., Canada, Costa Rica, Guam, Mexico, New Zealand and Puerto Rico.