Denny's Closes Over 150 Underperforming US Locations Amid Restructuring Efforts

Denny's, a well-known American diner chain, has initiated a multi-year plan to shutter over 150 underperforming locations across the United States. This strategic move aims to stabilize the company's finances, optimize its franchise system, and strengthen its overall footprint. The closures, which are expected to be completed by the end of 2025, are part of Denny's efforts to achieve flat or slightly positive growth by 2026. The chain, which operates over 1,300 US restaurants and nearly 1,500 worldwide, has been evaluating underperforming locations for the past two years. According to the list of closures, California has been the hardest hit, with locations in Santa Rosa, Oakland, and San Francisco shutting down. Other affected states include Idaho, Massachusetts, Ohio, Pennsylvania, Texas, and more. The company has been shutting down locations with consistently low sales, with 88 restaurants already closed in 2024 and another 70 to 90 expected to close by the end of 2025. It's worth noting that Denny's is also facing a significant change with the announced $620 million buyout by private investors. The deal values the company at $322 million for shareholders and is expected to be finalized in the first quarter of 2026. Despite this, the company assures that it's 'business as usual' at its remaining locations, with new locations still planned for next year.