Denny’s Corp. Announces Additional Restaurant Closures

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News Summary

Denny’s Corp., headquartered in Spartanburg, is set to close more under-performing restaurants across the United States as part of a strategic restructuring initiative. The chain has already implemented significant closures and renovations to boost its financial health, aiming to open between 25 to 40 new restaurants while closing 70 to 90 locations in 2025. This move comes amid a backdrop of shifts in the restaurant industry, reflecting the company’s commitment to profitability and adapting to the market’s changing landscape.

Spartanburg’s Denny’s Corp. Plans More Restaurant Closures

In an effort to streamline its operations and boost overall performance, Denny’s Corp., based in Spartanburg, is announcing plans to close even more of its under-performing restaurants across the United States. This move comes as part of a strategic restructuring initiative designed to strengthen the brand’s financial health.

Closing Doors to Boost Business

Recently, Denny’s CEO, Kelli Valade, shared that the company’s strategy to close lower-volume locations is proving effective. Just last year, the beloved diner chain made a significant announcement about planning to close 150 restaurants by the end of 2025. It appears that the company has decided to revise its closure plans as they include even more locations, along with renovations aimed at revitalizing its core brand.

Current Financial Snapshot

As of February 12, 2025, Denny’s reported a dip in income, despite seeing gains in sales and cash flow. The adjusted net income for the year reached 28.6 million dollars, alongside earnings before interest, taxes, depreciation, and amortization hitting a solid 81.4 million dollars. It’s noteworthy that this dynamic comes amid a backdrop of an ongoing shift within the restaurant industry.

Actions Taken So Far

On the path to improve its overall brand strength, Denny’s has already closed more than 80 restaurants to date. As part of a broader strategy, the company expanded its flagship brand health approach by not only shutting down 88 less profitable locations but also completing 23 remodels in the year 2024. It’s evident that the company is making some serious changes to adapt to the marketplace.

New Ventures on the Horizon

What Lies Ahead for 2025

25 to 40 new restaurants while concurrently shutting down an additional 70 to 90 under-performing locations. Although the exact places of closure have not been disclosed, this strategic maneuvering exemplifies the company’s commitment to focusing on profitability.

A Legacy in Transition

72 years. Despite its long-standing history, like many other businesses, it has encountered various challenges due to changing local economic conditions. The company currently operates a total of 1,499 global restaurants, including 1,438 franchised and 61 company-operated venues.

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