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Denny’s is shutting down even more locations than initially planned, citing shifting market conditions after reporting $1.3 billion in total revenue for 2024.
In an earnings report released Wednesday, Denny’s announced it will close 70 to 90 additional restaurants this year, bringing total closures to nearly 180, reported CNN.
The diner chain previously announced it was closing only 150 locations last year. Some locations were selected for closure due to expiring leases, high renovation costs, or declining profitability.
Denny’s had a 62% increase year-over-year in revenue, and $427.7 million in fourth quarter revenue. Thtat’s up 71% from last year, showed the earnings report.
Chief Financial Officer Robert Verostek said accelerating closures will help franchisees reinvest in more successful locations.
Despite remodeling efforts boosting traffic by 6.5%, only 23 (out of 1,300) restaurants were renovated in 2024.
Denny’s is also facing challenges from inflation and rising food costs, with recent sales dipping due to consumer uncertainty.
The company’s stock has dropped 50% year-over-year.
In October of last year, Denny’s executive vice president Steven Dunn said financially struggling customers were ordering from the kids menu to save money.
Denny’s isn’t the only restaurant that’s closing locations. McDonald’s closed some CosMc’s spinoff locations in Texas. TGIF announced dozens of restaurant closures in October of last year.
