Nelson J.Marchioli can't seem to win... for winning. Three years into a grinding turnaround at Denny's Corp., the chief executive has instituted some tough reforms at the restaurant chain, still reeling from a racial-discrimination suit, notoriety from bad service and a delisting from Nasdaq to the o-t-c bulletin board. By February he was showing an 8% same-store sales gain (from the previous year) at the chain, whose outlets took in $2.2 billion last year. So far, so good. From headquarters in Spartanburg, S.C., Marchioli was also making progress with the holders of $380 million of 11.25% bonds ― two-thirds of the company's long-term debt ― on a plan to swap the bonds for equity. The savings: $40 million a year in interest expense, enough to turn a $31.5 million loss in 2003 into a profit and to free up $9 million a year or so in much-needed capital improvements.
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