Denny’s closing 150 stores by end of year as shares drop 17%

Denny's announced on Tuesday, Oct. 22, it will close 150 restaurants or about 10% of locations over the next year . The breakfast chain will have nearly 1,400 locations remaining after closing "underperforming stores."

Denny's Executive Vice President Steve Dunn said the impacted stores are either too old to be remodeled or not profitable. However, he didn't disclose which exact stores were closing.

Additionally, the restaurant known for its 24/7 hours is also contemplating easing up on franchise owners to stay open all night since around a quarter of restaurants haven't returned to 24 hours of operation since the COVID-19 pandemic.

Dunn said the changes are due to fewer customers coming in and shifting eating habits while also citing higher labor and food costs leading to stores closing earlier than in the past.

The breakfast stop is also cutting down its menu from 97 items to 46 items.

Denny's closures and changes were revealed during an earnings call where it was also announced that the company's shared dropped 17% . Overall, Denny's stock is down 50% this year.

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