Denny’s is set to close nearly 30 additional restaurants beyond its initial plan as part of its efforts to revitalize the struggling chain.
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The diner chain is continuing its wave of closures following last year’s decision to shut down 150 locations, per CNN. The company’s earnings report on Wednesday revealed that 88 locations shuttered over the past year, with plans to close another 70 to 90 locations in 2025. This will bring the total number of closures to around 180.
Denny’s didn’t reveal a full list of locations. However, they said some closures are due to expiring leases, over 30 years of operation making remodeling costly, or unprofitable areas.
Earlier this week, during an investor call, Robert Verostek, the company’s chief financial officer, announced that Denny’s plans to close up to 90 locations this year.
“In any mature brand, when restaurants have been open that long, it is natural that trade areas can shift over time,” Denny’s CEO Kelli Valade explained during the earnings call.
“Accelerating the closure of lower-volume restaurants will improve franchisee cash flow and allow them to reinvest into traffic-driving initiatives like our tested and proven remodel program,” he added.
Inflation and Egg Prices Blamed for Additional Denny’s Closings
Executives attributed the decline in sales to persistent inflation. According to the Bureau of Labor Statistics per The New York Post, inflation surged again in January, with the Consumer Price Index rising to 3%, as reported on Wednesday.
Severe weather events, such as the devastating California wildfires and widespread snowstorms across the U.S., also impacted sales, Verostek explained.
“There is just a lot of uncertainty,” Verostek said, as companies work to assess the impact of President Trump’s policies, such as tariffs and mass deportations.
Of course, a widespread national bird flu outbreak has driven up egg prices, prompting many restaurants, particularly breakfast chains, to raise menu prices. According to the Labor Department, egg costs surged by 15.2% last month, marking the largest increase since June 2015.
Earlier this month, even Waffle House decided to crack down on rising costs by adding a 50-cent surcharge per egg.
The global restaurant chain traces its origins to a humble coffee and doughnut shop that opened in Lakewood, California, in 1953. On Wednesday, shares of Denny’s (DENN) plummeted nearly 25% and have declined by approximately 50% over the past year.