Denny's Is Closing About 150 Restaurants Nationwide — Here's Why

A major shake-up is quietly unfolding at one of America's most iconic diner chains, prompting questions about what’s driving the sudden strategic shift.

Denny’s is closing around 150 restaurants across the U.S. by the end of 2025, citing underperformance, not its recent multi-million dollar acquisition, as the reason.

The decision is part of a broader plan to eliminate low-volume units and focus on long-term profitability.

In a 2024 investor presentation, Denny's Corporation confirmed that about 50 locations will close by the end of this year. The closures follow an internal review that evaluated restaurant demand and cash flow.

The company used a Quintile 5 Assessment to identify its weakest-performing restaurants. Of those, 60% will close, while the remaining 40% may be improved through operational upgrades.

A chart from the presentation outlines the company's strategy: close low-performing stores, open stronger ones, and invest in staff training, marketing, and lease evaluation. These initiatives are designed to improve average unit volumes (AUVs) and support future growth.

"By closing lower volume restaurants and opening higher volume restaurants, the overall health of the brand is improving," Denny's stated in its investor presentation.

The closures coincided with a separate announcement: a $620 million all-cash acquisition by TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises, one of the brand’s largest franchisees.

The timing led to speculation that the closures were linked to the acquisition. Denny's rejected that claim.

"Recent media reports about Denny’s restaurant closures as a result of recent acquisition news are completely false," the company said. "Denny's currently has more than 1,300 restaurants in the U.S. and almost 1,500 worldwide and continues to open new restaurants."