Due to declining profits and changing customer habits, the omnivorous and well-known diner chain Denny’s announced on Tuesday that it will close 150 locations by the end of the year.
The organization behind the 71-year-old restaurant, known for 24/7 support and a wide selection of restaurant products, reported lower-than-expected income for the next quarter and has seen stock fall almost 50 % this time.
According to information the company provided with its income statement, about 50 sites are scheduled to close in 2024, with about 100 more closing in 2025. The number of sites the company runs is reduced by 10 % with the shutdown.
Although Executive Vice President Steve Dunn said the firm was looking to replace some of its almost 1,500 restaurants, Denny’s did not specify which of its almost 1,500 may be closed. Many of the places to get closed down are very old to be renovated or in costly areas, according to Dunn.
Full operating profit for the business was$ 111 million in the third, over from$ 114 million in the previous year quarter. Operating income decreased from$ 14 million to$ 11 million in the same time frame.
Although the business underperformed scientist expectations, our next quarter sales results directly reflect ongoing company investments and devoted emphasis on value that led to outpacing the category, according to Chief Executive Kelli Valade  in a release.
Denny’s stock tumbled 17 % on Tuesday to$ 5.47 following the announcement of the closures. The company also owns a smaller restaurant network, Keke’s, which has about 60 areas mainly in Florida.
The ring is one of several that, in the wake of years of high inflation, higher labor costs, and declining customer demand, has found itself in dire financial straits this year.
The common shrimp ring Red Lobster filed for bankruptcy shelter in May, and Rubio’s Coastal Grill did the same in June after closing , roughly 50 areas. When fast-casual network Mod Pizza was bought by Los Angeles-based Elite Restaurant Group in July, it hardly managed to avoid debt. Buca di Beppo, an Italian British network, filed for bankruptcy protection the following month.
According to CNN, Denny’s is even eliminating the requirement for its locations to become receptive 24/7 and reducing the number of list products from 97 to 46.
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