Denny’s says it expects to close 150 locations by the end of 2025: NPR

Denny’s says it is closing 150 of its lowest-performing restaurants in an effort to turn around the brand’s flagging sales.

About half of the closures will happen this year and the rest in 2025, the company said during a meeting with investors Tuesday. The locations were not disclosed, but the restaurants represent about 10% of Denny’s total.

In some cases, restaurants are no longer in good locations, said Stephen Dunn, Denny’s executive vice president and global chief development officer.

“Some of these restaurants may be very old,” Dunn said during the investor meeting. “You’re thinking about a brand that’s over 70 years old. We have a lot of restaurants that have been there for a very long time.

Others have seen traffic shifts during the pandemic that have not yet reversed, he said.

On Tuesday, Denny’s reported its fifth straight quarter of year-over-year decline in same-store sales, which are sales at locations open at least a year.

Restaurant inflation is outpacing grocery inflation, making it difficult for some customers to justify eating out, Denny said. When they eat out, they often turn to casual brands like Chipotle or fast food chains. Denny’s said family dining — the category in which it competes — lost the most customer traffic since 2020.

However, Denny’s said it had bright spots, including a value menu that lifted sales last quarter and growth in sales of its products. Brands for delivery only Like the Panda Burrito.

Shares of Denny’s Corp., based in Spartanburg, South Carolina, fell nearly 18% on Tuesday.