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Denny’s Corporation announced it will close 150 Denny’s restaurants by the end of 2025.
According to an investor presentation, dozens of these closures will occur this year. The company also owns Keke’s Breakfast Cafe.
Denny’s plans to “rehabilitate” some U.S. locations, possibly through acquisition by more vital operators, following an assessment of its domestic restaurants. Chief Global Development Officer Steve Dunn noted that the bottom-performing locations experienced “traffic shifts” and “convenience shifts,” with some being “very old.”
As of September, Denny’s operated 1,525 restaurants globally, including 61 Keke’s restaurants. The company stated in its investor presentation that closing low-performing locations and opening higher-volume ones will boost the brand’s health and increase average unit volumes. For 2024, Denny’s expects to open 30–40 new restaurants, including 12–16 Keke’s locations, with a net decline of 45 to 55 units overall.
On the same day, Denny’s Corporation held its investor day, it released its third-quarter financial results. The company reported $111.76 million in operating revenue, a 2.1% decline from the previous year, and net income dropped to $6.52 million.
The company projected adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $81–$84 million for the full year, down from its previous estimate of $83–$87 million.
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