Denny’s closing 150 stores by end of year as shares drop 17%

[KARAH RUCKER]

A GRAND SLAM BREAKFAST MAY NOT BE IN THE CARDS AT 1 A-M ANYMORE.

DENNY’S ANNOUNCED TUESDAY IT’S CLOSING 150 RESTAURANTS OR ABOUT 10 PERCENT OF LOCATIONS OVER THE NEXT YEAR AS WELL AS BIG CHANGES TO HOURS OF OPERATION.

THE BREAKFAST CHAIN WILL HAVE NEARLY 14-HUNDRED LOCATIONS REMAINING AFTER CLOSING “UNDERPERFORMING STORES.”

DENNY’S EXECUTIVE VICE PRESIDENT STEVE DUNN SAYS THE IMPACTED STORES ARE EITHER TOO OLD TO BE REMODELED OR NOT PROFITABLE.

THOUGH HE DIDN’T SAY WHICH EXACT STORES WERE CLOSING.

THE RESTAURANT KNOWN FOR ITS 24-7 HOURS IS ALSO CONTEMPLATING EASING UP ON FRANCHISE OWNERS TO STAY OPEN ALL DAY AND NIGHT.

DENNY’S CLAIMS THE CHANGE IN HOURS REQUIREMENTS IS DUE TO THE FACT AROUND A QUARTER OF RESTAURANTS HAVE NOT RETURNED TO 24 HOURS OF OPERATION SINCE THE PANDEMIC.

DUNN SAYS THE CHANGES ARE DUE TO LESS CUSTOMERS COMING IN AND SHIFTING EATING HABITS.

WHILE ALSO CITING HIGHER LABOR AND FOOD COSTS LEADING TO STORES CLOSING EARLIER THAN IN THE PAST.

THE BREAKFAST STOP IS ALSO CUTTING DOWN ITS MENU FROM 97 TO 46 ITEMS.

DENNY’S CLOSURES AND CHANGES WERE REVEALED DURING AN EARNINGS CALL WHERE IT WAS ALSO ANNOUNCED  THE COMPANY’S SHARES DROPPED 17 PERCENT.

OVERALL, THE STOCK IS DOWN 50 PERCENT THIS YEAR.

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FOR STRAIGHT ARROW NEWS– I’M KARAH RUCKER.