Denny’s expects to close 150 stores by the end of 2025

Denny’s said it expects to close 150 of its worst-performing restaurants in an effort to reverse the brand’s declining sales.

According to the Associated Press, about half of the closures will happen this year and the rest in 2025, the company said during an investor meeting on Tuesday.

The locations were not revealed, but the restaurants represent about 10% of Denny’s total.

“Some of these restaurants may be very old,” said Stephen Dunn, Denny’s executive vice president and chief global development officer, during the investor meeting. “You think of a brand that is over 70 years old. We have a lot of restaurants that have been around for a long time.”

A sign was placed in front of a Denny’s restaurant on February 13, 2023 in Emeryville, California. (Credit: Justin Sullivan/Getty Images)

Other restaurants have experienced changes in traffic during the COVID-19 pandemic that have not yet been reversed, he added.

On Tuesday, Denny’s reported its fifth consecutive quarter of year-over-year declines in same-store sales, which are sales at locations open at least a year.

Restaurant inflation is currently outpacing food price inflation, making it harder for some customers to justify eating out, Denny’s said.

Denny’s Meal Cost Gets Shocked Reactions

In August, a Reddit user’s post about the cost of a Lumberjack Slam at Denny’s went viral and received shocked reactions from others at how quickly prices at the breakfast chain rose.

User “Front_Usual_2884” posted a photo of a menu to the “r/Inflation” subreddit on July 3, showing the Lumberjack Coup at a Denny’s it costs $17.99.

RELATED: Customers shocked by higher price of popular Denny’s dish

The Lumberjack Slam comes with buttermilk pancakes, grilled ham, bacon strips, pork sausage, two fresh eggs made to order, hash browns and white toast. The menu noted that for an additional $3.09, the customer can upgrade the Lumberjack Slam pancakes to a choice of different premium pancake varieties.

Denny’s prices vary by region and restaurant. Node Denny’s websitethe Lumberjack Slam is listed as having a starting price of $16.29. The Reddit user did not note the location of the Denny’s where he took the photo of the menu.

Shares of Spartanburg, South Carolina-based Denny’s Corp. fell nearly 18% on Tuesday.