Denny’s to close more restaurants in 2025

Denny’s is set to close more locations in the U.S. this year than previously expected, one of many companies to announce such closures amid rising inflation and shifting consumer behavior. 

The breakfast chain revealed the additional planned closures in an earnings call this week. 

Here’s what to know:

Denny’s restaurant closures in 2025

The backstory:

Denny’s previously announced in October that it expected to close 150 of its lowest-performing locations last year and into 2025. It closed 88 locations last year, according to the company.

What we know:

In an earnings call on Feb. 12, Denny’s Chief Financial Officer Robert Verostek said the company in 2025 expects to close "between 70 and 90 restaurants, which includes some closures related to lease expirations."

What we don't know:

Denny's declined to provide a list of the expected restaurant closures when reached by FOX Television Stations on Friday. 

By the numbers:

If the chain closes the upper estimate of 90 locations this year, on top of its already 88 restaurant closures, that would be nearly 30 more locations than previously anticipated. There are more than 1,500 Denny's locations across the country, according to its website. 

What they're saying:

"These closures had an average unit volume of slightly under $1.1 million and were open on average for nearly 30 years," Verostek told investors. "In any mature brand, when restaurants have been open that long, it is natural that trade areas can shift over time." 

Verostek later added: "As trends stabilize and our second half sales initiatives are implemented, including remodels and a new loyalty program, we anticipate comps will rise throughout the year and place us more firmly within the range."

What's next:

In fact, the company also anticipates opening between 25 and 40 restaurants – half of which are expected to be Denny’s and the other half Keke's Breakfast Café – which Denny’s acquired in 2022.