Why is Denny's closing so many restaurants?

Denny's is closing over 150 underperforming locations to streamline operations and improve financial stability.

Is Denny's being sold because of the store closures?

No, Denny's states that the planned restaurant closures are unrelated to its announced $620 million sale to new owners.

When will Denny's finish its restaurant reduction plan?

The chain expects to complete its plan to close over 150 restaurants by the end of 2025.

Home / Business and Economy / Denny's Restaurant Closures: Strategy Ahead of $620M Sale

Denny's Restaurant Closures: Strategy Ahead of $620M Sale

8 Dec, 2025

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Summary

Denny's is closing over 150 underperforming restaurants nationwide.
The closures are part of a strategy to stabilize finances and prepare for growth.
A $620 million sale to new owners is expected to finalize in early 2026.

Denny's Restaurant Closures: Strategy Ahead of $620M Sale

Denny's is nearing the completion of a significant restaurant reduction plan, set to close more than 150 underperforming locations across the country. This initiative is a key part of the company's strategy to strengthen its market presence and achieve financial stability, with a goal of returning to net flat to positive growth by 2026.

The closures, which began in 2023, have involved a methodical assessment of low-volume sites. While 88 restaurants were shut down in 2024, an additional 70 to 90 are expected to close by year's end. This strategic downsizing is intended to improve overall brand health and pave the way for future expansion, with plans to open new units as the reduction phase concludes.

Amidst this operational overhaul, Denny's is also undergoing a major ownership transition, with a $620 million sale to TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises announced in early November. This acquisition is projected to close in the first quarter of 2026, pending necessary approvals, and is stated to be unrelated to the ongoing restaurant closures.