Denny's will close 150 restaurants, including 50, by the end of 2024

Denny's plans to close 150 of its restaurants as the company looks 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 in a conference call Tuesday.

Stephen Dunn, Denny's executive vice president and chief global development officer, said restaurants closing include older locations that are too old to remodel or are in unprofitable locations.

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

How many Denny's restaurants are there?

There are currently 1,358 Denny's locations in the United States, with a strong presence in California, Texas, Florida and Arizona.

More than 167 Denny's restaurants are located outside the United States, more than half of them in Canada.

Denny's has not made clear which 150 restaurants it plans to close.

Denny's shares fall nearly 18%

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

Shares of the company fell nearly 18% on Tuesday as quarterly profits fell short of analyst estimates. The annual inventory fell by 50% in the financial year.

“It’s never easy to close restaurants. It’s a challenge, you’re working with external factors, landlords,” Dunn said. “And of course people’s lives are at stake, but we recognized that closing underperforming restaurants is strategically beneficial for a number of our franchisees as it strengthens the bottom line cash flow in the long term.”

How many Denny's restaurants are there?

Denny's shares fall nearly 18%

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