Denny's Corporation has been implementing significant strategic changes to revitalize its brand and improve financial performance.
In October 2024, Denny's announced plans to close 150 underperforming restaurants by the end of 2025. By early 2025, the company had already closed 88 locations and indicated that the total number of closures could reach up to 180, exceeding initial projections. These closures primarily target older establishments with declining sales, aiming to enhance overall system health and allow franchisees to reinvest in initiatives like the Diner 2.0 remodel program.
In the fourth quarter of 2024, Denny's reported a 1.1% increase in domestic system-wide same-restaurant sales. The company also completed six Diner 2.0 remodels during this period, contributing to a 6.4% sales lift and a 6.5% increase in traffic at updated locations. Despite these positive developments, Denny's faced challenges in early 2025, with same-store sales declining by 0.7% in January and an additional 5% in the first two weeks of February. The company attributed this downturn to factors such as adverse weather conditions and ongoing inflationary pressures.
To counteract these challenges, Denny's has intensified its focus on value-driven promotions. In early 2025, the company launched an aggressive buy-one-get-one (BOGO) deal to attract cost-conscious consumers. Additionally, Denny's is expanding its off-premises offerings through virtual brands like Banda Burrito, which has been introduced in over 1,000 locations, contributing to incremental sales and margins.
As of November 1, 2025, Denny's Corporation's stock (NASDAQ: DENN) is trading at $3.91 per share, reflecting a slight increase from the previous close.
These strategic efforts underscore Denny's commitment to adapting to current market conditions and positioning itself for sustained growth in the competitive dining industry.
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