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Denny's is planning to close approximately 30 more locations in 2025 than initially reported.
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The company announced in its latest earnings report that it had closed 88 locations in 2024 and intends to close between 70 and 90 restaurants in the US this year, which will bring the total number of closures to nearly 180.
Denny's, with over 1,300 locations across the US, did not disclose which restaurants would be shutting down.
The company stated that some of the closed locations were chosen due to expiring leases or unprofitable areas.
The company mentioned that some of the chosen restaurants have been in operation for over three decades, making them challenging to renovate.
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They have shut down hundreds of stores between them, with the latter filing for bankruptcy in May.
'It's natural for trade areas to shift over time in any established brand,' said Denny's Chief Financial Officer Robert Verostek.
'Closing lower-volume restaurants will increase cash flow for franchisees and enable them to invest in traffic-generating initiatives, such as our successful and proven renovation program.'
Actually, the chain only remodeled 23 locations.
The increasing expenses associated with conducting business.
The 24-hour restaurant has not resumed its usual around-the-clock hours at approximately a quarter of its locations during the pandemic.
Steve Dunn, Denny's executive vice president and chief global development officer, stated earlier that the chain had officially shortened its operating hours as it 'didn't make sense' to continue amid decreasing customer foot traffic and shifting consumer behaviors.
The company's performance ended on a strong note in 2024, but sales plummeted in January and February due to consumer uncertainty, according to Verostek.
US citizens have been facing increasing food prices over the past few years.
Consumer prices increased by 3 percent over the past year, as of January, pushing them further away from the Federal Reserve's 2 percent inflation target.
The demand for it has risen sharply.
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Rising inflation is causing a significant amount of "volatility" in February, Denny's said.
Stock prices for Denny's declined by nearly 25 percent on Wednesday, and have fallen approximately 50 percent over the past year.
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