Denny’s will close more locations this year than previously expected.
The national diner chain says it plans to shut between 70 and 90 restaurants in 2025, Robert Verostek, the company’s chief financial officer, said in a Feb. 12 call with investors.
This “includes some closures related to lease expirations,” he noted.
Denny’s announced in October that it planned to close 150 locations over the following year. The chain closed 88 locations last year, meaning that if it closes its upper estimate of 90 restaurants this year, it will shut down nearly 30 more locations than previously announced.
“In any mature brand, when restaurants have been open that long, it is natural that trade areas can shift over time,” Denny’s CEO Kelli Valade said on the investor earnings call.
“Accelerating the closure of lower-volume restaurants will improve franchisee cash flow and allow them to reinvest into traffic-driving initiatives like our tested and proven remodel program,” she added.
The company also noted it plans on opening between 25 and 40 restaurants in the coming year, about half of which will be Denny’s locations, and the other half Keke’s Breakfast Cafe locations. Denny’s acquired Keke’s in 2022.
Executives said rising inflation has played a role in changing consumer behavior. The annual inflation rate rose to 3% in January, which was higher than expected, according to the Bureau of Labor Statistics.
Verostek also cited the impact of major weather events, such as the recent California wildfires and severe snowstorms across the U.S., on consumer spending.
“There is just a lot of uncertainty,” he said.
Concerns around bird flu and tariffs have also sparked concern among consumers. Earlier this month, Denny’s rival breakfast chain Waffle House announced a $1 surcharge on eggs amid soaring egg prices.
While Verostek says concerns about these external factors are “valid,” he says Denny's is “working closely working closely with our suppliers to ensure minimal disruptions.”
Denny’s says it’s “unable to provide specific location information” about its closures. The diner chain, which opened in 1953, has more than 1,500 locations around the country, according to its website.
“Denny’s does not provide advance notice of closures,” a spokesperson for the chain tells TODAY.com. “We work closely with our owners and teams when a restaurant unfortunately has to close.”
This article originally appeared on TODAY.com. Read more from TODAY:
