Denny’s says it’s closing 150 of its lowest-performing eating places in an effort to show across the model’s flagging gross sales.
About half of the closures will occur this yr and the remainder in 2025, the corporate stated throughout a gathering with traders Tuesday. The places weren’t revealed, however the eating places symbolize round 10% of Denny’s complete.
Stephen Dunn, Denny’s govt vice chairman and chief international growth officer, stated in some circumstances, the eating places are now not in good places.
“A few of these eating places could be very outdated,” Dunn stated through the investor assembly. “You consider a 70-year-old plus model. Now we have a whole lot of eating places which were on the market for a really very long time.”
Others noticed visitors shifts through the pandemic which have but to reverse, he stated.
On Tuesday, Denny’s reported its fifth straight quarter of year-over-year declines in same-store gross sales, that are gross sales at places open not less than a yr.
Restaurant inflation is outpacing grocery worth inflation, which makes it more durable for some prospects to justify consuming out, Denny’s stated. And after they do eat out, they typically head to fast-casual manufacturers like Chipotle or fast-food chains. Denny’s stated household eating — the class during which it competes — has misplaced essentially the most buyer visitors since 2020.
Nonetheless, Denny’s stated it has vibrant spots, together with a price menu that lifted gross sales in its most up-to-date quarter and rising gross sales of its delivery-only manufacturers like Banda Burrito.
Shares in Denny’s Corp., which relies in Spartanburg, South Carolina, tumbled nearly 18% on Tuesday.
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