Denny’s, a chain restaurant that has been operating in the U.S. for decades, confirmed Thursday that it plans to close between 70 and 90 locations this year.
Last October, Audacy reported that the company planned to close 150 underperforming restaurants by the end of 2025 due to a fall in revenue and changing consumer habits. By the end of last year, Denny’s had already closed 88 restaurants as part of its plan to shut down underperforming locations.
Denny’s CEO Kelli Valade said this week that the company has “made significant progress in our strategy to enhance the overall health of our flagship brand by accelerating the closure of lower-volume restaurants and completing 23 remodels.”
According to fourth quarter 2024 financial results highlights, 30 Denny’s restaurants were shuttered as part of the lower-volume closures during the quarter. While those locations closed, four franchised restaurants opened, bringing the entire year total of new franchise openings to 14.
Denny’s roots go back to 1953 in Lakewood, Calif. That’s where Harold Butler and Richard Jezak opened Danny’s Donuts. These locations transitioned into 24-hour coffee shops in 1956 and were renamed Denny’s in 1959 to avoid confusion with other shops named Danny’s. Two years later, the Denny’s restaurant we know today was established. Its signature dish – the Grand Slam, a nod to Baseball Hall of Fame-r Hank Aaron – was introduced in 1977 at an Atlanta, Ga., location.
As of Dec. 25 of last year, there were 1,499 Denny’s restaurants worldwide.
Most (1,438) were franchise locations and 61 were company-owned. In 2022, Denny’s also acquired Keke’s Breakfast Café from K2 Restaurants, Inc. By Dec. 25 of last year, there were 69 Keke’s restaurants, including 55 franchise locations and 14 company operated locations. Per the fourth quarter earnings press release, Keke’s opened eight new cafes and expanded into California, Colorado, Nevada, and Texas.
Compared to $115.4 million in total operating revenue for the prior year quarter, Denny’s total operating revenue for the fourth quarter of 2024 was $114.7 million. Projections for 2025 “reflect performance through the first six fiscal weeks and the expectation that recent shifts in consumer sentiment due to macro events will moderate over time,” said the company.
Although Denny’s is planning 70 to 90 consolidated closures this year, it is also predicting 25 to 40 consolidated restaurant openings.
“We are proud of our progress through 2024, culminating in strong performances from both Denny’s and Keke’s, which outperformed their respective BBI Family Dining indices in the fourth quarter,” said Valade.