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The company said half of the underperforming outlets will close by the end of the calendar year and the others will go out of business in 2025.
Specific restaurants slated for closure have not yet been announced.
In announcing the move, Denny's said customers have been ordering from restaurants less often.
In addition to the closures, Denny’s will trim the number of items on its menu from 97 to 46 and no longer require outlets to be open 24/7, according to a CNN report.
Founded in 1954 in California as Danny's Donuts, Denny's has around 1,300 locations nationwide.
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