Denny’s to Close 150 Underperforming Restaurants Amid Declining Sales

SPARTANBURG, S.C. — Denny’s Corp. announced plans to close 150 of its lowest-performing locations as part of an effort to improve the company’s struggling sales.

The closures, representing about 10% of Denny’s total restaurants, will occur in phases, with half expected by the end of this year and the remainder in 2025. An exact list was not released. 

Denny’s cited the impact of the COVID-19 pandemic and outdated locations as factors behind the decision. Stephen Dunn, Denny’s executive vice president and chief global development officer, said some restaurants are no longer in good locations and added, “Some of these restaurants can be very old. You think of a 70-year-old plus brand. We have a lot of restaurants that have been out there for a very long time.”

The family dining chain has also reported five consecutive quarters of year-over-year declines in same-store sales. Denny’s noted that inflation, particularly in restaurants, has outpaced grocery prices, making it harder for some customers to justify dining out.

Despite the closures, Denny’s highlighted positive growth areas, including a value menu and delivery-only brands such as Banda Burrito, which have boosted sales in recent quarters. However, shares in Denny’s Corp. dropped nearly 18% following the announcement.