SUPPORTING STATEMENT: In its 2023 10-K, Denny’s warned that “consumer trust in our brand may suffer” if it doesn’t adequately address the “increasing public focus by investors” and others regarding animal welfare (and other such issues) in its supply chain. Thus, it makes sense that Denny’s has long been touting various animal welfare goals.

As one example, during the decade between 2012 and 2022, Denny’s touted its goal “to source our pork from suppliers that do not use gestation crates for the housing of sows.”

These solitary cages confine pigs so restrictively, they can’t even turn around. They’re so controversial, many states have outlawed their use and/or the sale of pork coming from operations which use them.

But during that decade, Denny’s didn’t report any measurable compliance whatsoever with its stated goal.

Then, in April 2022 (following a shareholder proposal submission) Denny’s finally published an update.

It was clear from the update that none of Denny’s pork was confirmed as gestation crate-free, despite the company’s decade long goal.

Nonetheless, the update said Denny’s would “aim to progress to 100% gestation crate-free pork supply over time,” promising to “create an action plan for reaching that goal, which we aim to publish by the end of 2022.”

In other words, despite its decade-long goal, meaningful progress hadn’t been made—but it would finally have a plan for moving forward by year’s end.

Yet, 2022 came and went without Denny’s publishing any such plan.

So, in January 2023, an international organization launched a public campaign spotlighting the company’s inaction: there have been protests in front of Denny’s restaurants, websites and advertisements targeting its board members and franchisees, videos linking Denny’s to animal cruelty, and more.1

Then, in March, Denny’s issued a new ESG report. While it reiterated Denny’s goal of sourcing gestation crate-free pork, soon after, in June, Denny’s changed the commitment on its website yet again. The new language has no commitment to ever eliminate (or even reduce) gestation crates.2

Meanwhile, eleven states ban or restrict the use of gestation crates.3 A National Pork Producers Council spokesperson said in 2023, that over 40% of domestic pork production now at least limits gestation crates. And other pork buyers exclusively use such pork (or are on track to), including McDonald’s, Wendy’s, Burger King, Panera Bread, Cheesecake Factory, Chipotle, Jack in the Box, Shake Shack, Aramark, Campbell’s, and others.

But not Denny’s.

Despite over ten years of assurances, Denny’s never made meaningful progress and now lacks any targets for ever eliminating (or even reducing) gestation crates in its supply chain. We think it’s time shareholders step in.