The closures are coming sales have declined and the chain faces increased competition and shifting consumer habits. The restructuring is intended to streamline operations and position Denny’s for future growth.
Denny’s entered into an agreement to be acquired by a group consisting of TriArtisan Capital Advisors, Treville Capital Group and Yadav Enterprises in November. The transaction is expected to close in the first quarter of 2026, Denny's said.
This move is part of a strategy launched in 2024 to optimize Denny’s franchise system and return the brand to pre-pandemic growth levels and are not related to the November acquisition, the company said.
"Recent media reports about Denny’s restaurant closures as a result of recent acquisition news are completely false," Denny's said in a statement to Daily Voice. "In 2024, Denny’s announced its strategy to close approximately 150 underperforming restaurants by the end of 2025, which the brand has been doing over the course of the past year."
Denny’s has already closed 88 locations in 2024 and plans to target mostly low-volume sites for these new closures, People reports.
"The majority of the locations impacted by this strategy have already closed," Denny's said in the statement. "Denny’s currently has more than 1,300 restaurants in the US and almost 1,500 restaurants worldwide and continues to open new restaurants."
Months before the buyout, CEO Kelli F. Valade addressed the ongoing closures, telling investors in August that Denny’s was following a "previously communicated strategy to close underperforming restaurants," according to People.
Founded in 1953 in Lakewood, California, Denny’s is one of America’s most recognizable chains.
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