Denny’s to close 150 restaurant locations

Denny's Corporation will close 150 Denny's restaurants under its umbrella.

The company, which owns the Denny's and Keke's Breakfast Cafe chains, announced that those Denny's stores will close by the end of 2025.

Dozens of those 150 restaurants are scheduled to close this year, according to an investor presentation the company released Tuesday.

Other Denny's stores in the country will be “rebuilt” through a variety of strategies, including the possibility of acquisition by a “stronger operator,” according to an Investor's Day presentation.

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The company said it decided to take such action after conducting an assessment of restaurants in the country.

Steve Dunn, chief global development officer, said Denny's Corp. has seen things like “changes in traffic” and “changes in convenience” in the bottom quintile. Some restaurants “can be very old,” he noted.

Denny's sign in Kissimmee, Florida, January 25, 2019. (Jon Graeme/LightRocket via Getty Images/Getty Images)

Denny's operated 1,525 stores worldwide as of the end of September.

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“By closing low-selling restaurants and opening high-selling restaurants, we are improving the overall health of our brand, resulting in an increase in AUVs,” Denny's Corporation said in an investor presentation. It will increase.” [average unit volumes] We can also expect net unit growth in the future. ”

The company's 2024 forecast includes opening 30 to 40 restaurants for both brands, resulting in a “consolidated net decrease of 45 to 55 restaurants.” Of those, 12 to 16 stores will be Keke stores.

Denny's sign in Kennewick, Washington. (Don and Melinda Crawford/UCG/Universal Images Group via Getty Images/Getty Images)

At the end of September, 61 Keke's restaurants were open.

Denny's Corporation held an investor day on the same day as its third quarter earnings release.

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During the quarter, the company's operating revenue was $111.76 million, a decrease of 2.1% year-over-year. Meanwhile, it reported that its net profit decreased to $6.52 million.

For the full year, the company expected adjusted earnings before interest, taxes, depreciation and amortization to be between $81 million and $84 million. Previously, it was expected to be between $83 million and $87 million.