Denny’s announces closure of 150 restaurants, including 50 by the end of 2024

Denny’s plans to close 150 of its restaurants as the company aims to strengthen its cash flow.

Fifty underperforming restaurants will close by the end of 2024, while the remaining 100 will close next year, executives announced on an earnings call Tuesday.

Among the restaurants closing are older locations that are too old to be renovated or are located in unprofitable locations, according to Denny’s executive vice president and chief global development officer Stephen Dunn.

“Some of these restaurants can be very old. So when you think about a brand that’s over 70 years old, you have a lot of restaurants that have been around for a long time,” Dunn told investors at the meeting.

How many Denny’s restaurants are there?

There are currently 1,358 Denny’s stores in the U.S., with a strong presence in California, Texas, Florida and Arizona.

More than 167 Denny’s restaurants are located outside the U.S., with more than half in Canada.

Denny’s did not clarify which 150 restaurants are slated to close.

Denny’s shares fell nearly 18%

Dunn said the 150 closures will clean up the company’s restaurant portfolio as it prepares for growth.

The company’s shares fell nearly 18% on Tuesday as its quarterly earnings fell short of analysts’ estimates. Its annual stock fell by 50% in the financial year.

“It’s never easy to close restaurants. It’s a challenge, you work with external, proprietary factors,” said Dunn. “And, of course, you’re dealing with people’s lives, but we realize that closing underperforming restaurants is strategically advantageous for many of our franchisees as it strengthens their bottom line cash flow over the long term.”

This article originally appeared on USA TODAY: Denny’s to close 150 restaurants, including 50 before the end of 2024