Denny’s has announced plans to shutter 150 of its least productive restaurants as part of a strategy to revitalize its sluggish sales performance.
Approximately half of these closures are slated for this year, with the remaining locations scheduled to close in 2025. While the specific restaurants affected were not disclosed, the closures will account for around 10% of Denny’s overall establishments.

During a meeting with investors on Tuesday, Stephen Dunn, who holds the position of executive vice president and chief global development officer at Denny’s, explained that some of these restaurants are situated in less favorable locations.
“Some of these establishments may be outdated,” Dunn remarked during the investor gathering. “Considering that we are a brand that is over 70 years old, we have numerous locations that have been operational for a considerable time.”

He also noted that certain restaurants experienced a decline in traffic during the COVID-19 pandemic, which has yet to bounce back to pre-pandemic levels.
On Tuesday, Denny’s shared that it has faced its fifth consecutive quarter of declines in same-store sales, which gauges performance at outlets open for over a year.
The company pointed out that inflation in the restaurant sector is surpassing that of grocery prices, complicating the decision for many consumers to eat out. When they do opt for dining out, customers are increasingly leaning towards fast-casual establishments like Chipotle or traditional fast-food outlets. Denny’s has reported that family dining, a category in which it operates, has seen the steepest decline in customer foot traffic since 2020.

Nonetheless, there are positive developments for Denny’s, such as a value menu that has helped to boost sales in their latest quarter, alongside rising sales from their delivery-exclusive brands like Banda Burrito.
Following these announcements, shares of Denny’s Corp., headquartered in Spartanburg, South Carolina, plummeted by nearly 18% on Tuesday.