Denny’s plans for store closures gains pace in 2025 due to rising fast food demand and declining preference for on-site dining. The company recently expanded its underperforming store closure list from 150 to more than 180 outlets.
CFO Verostek at Denny’s expressed his thoughts on closures
Robert Verostek, Denny’s CFO expressed that Denny’s will primarily shut down its restaurants whose leases are about to expire, or which show poor revenue performance. The restaurant market shows a wider trend where institutions like Applebee’s and Hooters and Outback Steakhouse and TGI Friday’s are failing to keep their customer base.
Stockholder’s point of view
Stockholders of Denny’s saw their shares decline to under $5 during a time when they reached a peak value of $24 in 2019. The decline in restaurant sales is attributed to shifting consumer behavior patterns but Chili’s and Texas Roadhouse show success by enhancing dining quality while providing better prices.
Future goals for Denny’s
Despite restaurant closures, Denny’s continues to advance its growth initiatives. The company aims to construct at least 14 additional facilities along with improvements on select existing establishments. The company operates 1,334 locations throughout the U.S. and focuses on states like Arizona and Florida together with California and Texas where they aim to develop their strategy of restructuring with strategic investments.
Denny’s continues to adapt its business model to compete in an environment where customers prefer quick and affordable food options. The success of Denny’s strategy depends on how well it satisfies the current dining requirements of customers.
