America’s Diner Closes 150 Locations Nationwide Amid Sales Drop

The diner chain is approaching the end of a previously announced plan to close more than 150 underperforming locations nationwide by the end of 2025. Executives said in February that Denny’s had shuttered 88 restaurants in 2024 and aimed to close an additional 70 to 90 by the end of this year. The closures have drawn renewed attention following the company’s announcement of a $620 million acquisition in early November.

The Closures Target Low-Volume Locations to Strengthen Financial Health

Denny’s has been closing stores since 2023 as part of what CEO Kelli Valade described during an August earnings call as a “surgical and methodical approach” designed to optimize the franchise system. Valade said the strategy aimed to “optimize and enhance the overall health of the franchise system to return to net flat to positive growth by 2026.” Executives emphasized the need to be proactive in closing lower-volume restaurants following the company’s second-quarter results.

Same-Store Sales Declined 2.9 Percent in the Third Quarter

Denny’s reported a 2.9 percent year-over-year decline in same-store restaurant sales in the third quarter last month, reflecting ongoing challenges for the chain. Despite the struggles, the company said in its most recent earnings call that its closure strategy had boosted revenues and helped to “improve the overall health of the brand.” The reduction plan was necessary to improve financial efficiencies and strengthen the brand as it works toward recovery, according to the company.

California Locations in Santa Rosa, Oakland, and San Francisco Have Closed

The company has not provided a public list identifying which locations are part of the closure plan, though AOL has independently verified several shuttered restaurants in recent weeks. Three California sites have closed: 1000 W. Steele Lane in Santa Rosa, 601 Hegenberger Road in Oakland, and 816 Mission Street in San Francisco. These California closures represent part of the broader strategy to eliminate underperforming locations across the country.

Idaho Lost Two Locations While Massachusetts Closed One

Idaho saw closures at 2580 Airport Way in Boise and 607 Northside Blvd in Nampa. Massachusetts had one confirmed closure at 494 Lincoln St. in Worcester. The Idaho closures affected both a major metropolitan area and a smaller community, reflecting the company’s broad approach to identifying underperforming locations. These shuttered restaurants fell into the lower-volume category that executives identified as targets for closure during second-quarter discussions with investors.

Ohio, Oregon, Pennsylvania, and Texas Round Out the Confirmed Closures

Ohio lost two locations: one on U.S. State Route 250 in Ashland and another at 720 N. Lexington Springmill Road in Ontario. Oregon had one closure at 76 E. Goodfellow St. in Ontario. Pennsylvania’s closure was at 640 E Lincoln Hwy in Bucks County. Texas saw two shuttered locations at 607 Ave. Q in Lubbock and 1348 I-35 N. Frontage Road in New Braunfels, bringing the confirmed closures to 12 locations across seven states.

The $620 Million Acquisition Remains Unconnected to Store Closures

In early November, Denny’s announced it had agreed to be sold for $620 million to TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises, an owner-operator of approximately 550 restaurants nationwide. TriArtisan Capital Advisors also owns TGI Fridays. The company has explicitly stated that the closures are unconnected to the acquisition announcement. The board of directors unanimously approved the deal, which targets completion in the first quarter of 2026.

Denny’s Plans to Open New Restaurants as Reduction Effort Concludes

The company has announced plans to open new restaurants as it comes to the end of its reduction plan. This signals a shift from contraction to measured growth after completing the closure strategy. The opening of new locations will mark a transition period for Denny’s as it attempts to return to financial stability while maintaining a healthier, more profitable restaurant footprint than it had before beginning closures in 2023.

The Acquisition Requires Regulatory and Shareholder Approval to Close

The $620 million acquisition announced last month remains subject to regulatory and shareholder approval before it can be finalized. Denny’s said the deal is expected to close in the first quarter of 2026, pending these approvals. The acquisition brings together multiple restaurant industry investors, including the owner-operator Yadav Enterprises, which already manages approximately 550 restaurants across the United States and brings significant operational experience to the pending transaction.

Executives Aim for Net Flat to Positive Growth by 2026

CEO Kelli Valade emphasized during the August earnings call that rationalizing the portfolio “was the right thing to do, and we’re seeing the results that we wanted and expected from this process.” The closure strategy, which began in 2023 and will be completed by the end of 2025, positions Denny’s to pursue growth after two years of contraction, according to executives. With the acquisition pending and new restaurants planned, the company aims to stabilize and expand.