Denny’s Closing 150 U.S. Restaurants by Year’s End: What It Means for the Chain’s Future
Denny's is one of the largest full-service restaurant chains in the U.S., with 1,558 restaurants as of June 2025. However, that number has shrank considerably.
Many Americans have stopped by a Denny's for a late-night burger or an early morning breakfast. However, the brand has been shrinking its footprint in 2024 and 2025, and it's expected to close approximately 150 restaurants by the end of the year. As of October 2025, there were only 1,310 Denny's restaurants left in the U.S., Scrape Hero reported. The restaurants operate in 50 U.S. states and territories. More than 920 cities still have a Denny's restaurant. Thus, the brand is still prolific, but it has been closing restaurants at a fairly steady clip.
Which Denny's Restaurants Are Closing?
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AOL.com published a list of the Denny's restaurants that are closing or have closed along with their locations. They range from a restaurant near the airport in Boise, Idaho, to restaurants in San Francisco and Lubbock, TX, among others. Denny's restaurants closed in multiple states, including Ohio, Pennsylvania, and Oregon.
Denny's announced previously that the company planned to close the 150 restaurants. They were said to be "underperforming," according to the Austin-American Statesman, and the company planned to close the restaurants by the end of 2025. Thus, the move is an effort to get the company in fiscal shape. Eighty-eight of those restaurants closed in 2024, when the announcement was still made, with the rest being "phased out" in 2025 through December, the newspaper reported.
A Private Equity Firm Acquired Denny's
Denny's was acquired by a private investment firm. The closures come at a time of fiscal transition for Denny's.
"Denny’s Corporation, owner and operator of Denny’s Inc. and Keke’s Inc., today announced that it has entered into a definitive agreement to be acquired by a group consisting of TriArtisan Capital Advisors LLC , an established New York-based private equity investment firm and experienced investor in global restaurant and hospitality assets, Treville Capital Group, a leading investment firm focused on alternative assets, and Yadav Enterprises, Inc., owner-operator of approximately 550 restaurants nationwide and one of the largest Denny’s franchisees, in an all-cash transaction with an enterprise value of approximately $620 million," Denny's wrote in November on its website.
Denny’s CEO Kelli F. Valade explained the closures in an earnings call, according to Pennlive. She addressed what the change means for the company's future.
"I also want to take a moment and provide an update on our previously communicated strategy to close underperforming restaurants and return to pre-pandemic growth of flat to slightly positive in future years,” she said. “The surgical and methodical approach, which began in 2023 and will be completed by the end of this year, was specifically designed to optimize and enhance the overall health of the franchise system with the goal of returning to net flat to positive growth by 2026."
“Denny’s is an iconic piece of the American dream, with a renowned brand, a strong franchise base and loyal customers,” said Rohit Manocha, Co-Founder and Managing Director at TriArtisan, on the Denny's website. “Our team has significant investment experience in the restaurant industry and our acquisition of Denny’s builds on our success with other full-service restaurant concepts. We look forward to working with Kelli and the rest of the Denny’s team and franchisees to provide resources and support the Company’s long-term strategic growth plans.”
"Denny's Corporation consists of the Denny’s brand and the Keke’s brand. As of June 25, 2025, the Denny's brand consisted of 1,484 global restaurants, 1,422 of which were franchised and licensed restaurants and 62 of which were company operated. As of June 25, 2025, the Keke's brand consisted of 74 restaurants, 52 of which were franchised restaurants and 22 of which were company operated," the company says on its website.