The Breakfast Chain That Is Closing More Locations Across The US

Don't call it a comeback (seriously, don't). The breakfast chain nicknamed "America's Diner" is lowering its U.S. presence ... by a lot. Last October, Denny's announced plans to close 150 underperforming stores by the end of 2025 to help ease the chain's financial strain. Now, the diner has tacked on 30 more restaurants than expected to the mass-closure wave for a near total of 180 shuttered stores to come this year.

During January 2025 and the first week of February, same-store sales declined year-over-year by 0.7% and 5%, respectively. It's unclear what the recovering chain can expect as the future of inflation remains precarious, both for businesses and consumers, yielding unpredictable traffic and spending patterns. At the time of the initial closure announcement back in October, Denny's shares fell by a whopping 17.6% to $5.47. Today, shares have plummeted another 2.93% to a valuation of $4.98 on the NASDAQ – roughly 50% lower compared to one year ago.

In an earnings call on Wednesday, Denny's Chief Financial Officer Robert Verostek says the diner chain plans to invest the money it saves by making these closures toward remodeling higher-volume stores (via Restaurant Business). In 2024, 23 locations were remodeled and enjoyed a 6.5% traffic increase as a result. Similarly optimistically, Denny's Corporation (which includes both Denny's and Keke's Breakfast Cafe) also plans to open 25 to 40 new locations by the end of 2025.

According to the Denny's website, there are currently 1,323 total U.S. locations. This is a recent update, as the Denny's investor site reported 1,568 stores as of December 25, 2024. Whether Denny's still maintains a presence in all 50 U.S. states remains to be seen. As of January 2025, the U.S. state with the most Denny's locations is California with 363 (roughly 27% of the chain's domestic presence) followed by Texas (196) and Florida (118), per data analytics firm ScrapeHero.

While a list of which locations are next on the chopping block has yet to be released, Denny's has shared that shuttered locations will be ones in progressively low-traffic cities, ones in 30 year-old buildings (side-stepping pricey remodeling costs), and ones in buildings with leases about to expire. Back in October, Denny's also reduced its sprawling menu from 97 items to 46 items, and reduced its 24/7 operating hours, which now vary by location.

Denny's is arguably the friendly neighborhood dive bar of the diner world, known for budget-friendly prices, big portions sizes, and round-the-clock hours. At a Denny's in Queens, NY, a Grand Slam costs $15.99 – comparable price to breakfast platters at other standalone diners in the borough, but at Denny's, breakfast-lovers can get it at 11:00 p.m. (We also love their biscuits, for the record.) As it moves into its next chapter, Denny's says it plans to continue focusing on its value meals and late-night service hours.