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Denny’s Nears Finish of 150-Store Closures as Private-Equity Sale Advances

Executives say the surgical cull of low-volume units is meant to restore franchise health by 2026.

Overview

  • Denny’s says its multi-year portfolio rationalization, targeting roughly 150 underperforming restaurants by year-end 2025, is largely complete after accelerating closures since 2023.
  • The company reported a 2.9% year-over-year decline in third-quarter same-store sales, framing the shutdowns as market-based decisions intended to lift average unit performance.
  • Leadership has outlined plans to resume openings next year with a goal of returning to net flat-to-positive unit growth in 2026.
  • Specific shutdowns tracked by outside outlets include recent closures in California, Idaho, Massachusetts, Ohio, Oregon, Pennsylvania and Texas.
  • Denny’s reiterated that the closures are unrelated to its $620 million sale to TriArtisan, Treville and Yadav Enterprises, which has unanimous board approval and is slated to close in the first quarter of 2026 pending regulatory and shareholder sign-offs.