Denny’s closes several restaurants in 2025

Denny’s closes more locations this year than previously expected.

The national dining chain says it plans to close between 70 and 90 restaurants in 2025, Robert Verostek said the company’s CFO, in a February 12 Call with investors.

This “includes some closures related to the expiry of the lease,” he noted.

Denny announced in October that it was planning to close 150 locations in the following year. The chain closed 88 locations last year, which means that if it closes its top estimate of 90 restaurants this year, it will close almost 30 locations than previously announced.

“In any mature brand, when restaurants have been open for so long, it is natural that trade areas can change over time,” said Denny’s CEO Kelli Valade on investor revenue.

“Accelerating the closure of lower volume restaurants will improve the franchisee’s cash flow and allow them to reinvest in traffic -driving initiatives like our tested and proven a redevelopment program,” she added.

The company also noted that it plans to open between 25 and 40 restaurants in the coming year, about half of which will be Denny’s locations and the other Half Kekes Breakfast Cafe locations. Denny’s acquired Kekes in 2022.

Leaders said rising inflation has played a role in changing consumer behavior. The The annual inflation rate increased to 3% In January, which was higher than expected, according to the Bureau of Labor Statistics.

Verostek also cited the impact of major weather events, such as the recent fire fires in California and serious blizzards across the United States on consumer expenses.

“There is just a lot of uncertainty,” he said.

Concerns about bird flu and tariffs have also caused concern among consumers. Earlier this month, Denny’s rival’s rival breakfast chain Waffle House announced an additional 50 cents additional egg in the middle of rising egg prices.

While Verostek says concern about these external factors is “valid,” he says that Denny’s “is working close to working closely with our suppliers to ensure minimal disturbances.”

Denny’s says it is “unable to provide specific location information” about its closures. The dining chain, which opened in 1953, has more than 1,500 locations around the country, according to its Website.

“Denny’s does not give prior notice of closures,” a spokesman for the chain in Dag.com says. “We work closely with our owners and teams when a restaurant unfortunately has to close.”