Denny’s has announced that it will shut down 150 of its eateries as part of efforts to boost its cash flow.

By the end of 2024, 50 of the less profitable locations will be closed, while the remaining 100 will be terminated in the following year, company officials stated during an earnings call on Tuesday.

The closures will primarily involve older restaurants that are unsuitable for remodeling or are situated in locations that do not generate profit, explained Stephen Dunn, Denny’s Executive Vice President and Chief Global Development Officer.

“Some of these outlets can be really old. Considering a brand that’s over 70 years old, there are numerous restaurants that have been serving customers for a very long time,” Dunn told stakeholders during the meeting.

What’s the current number of Denny’s locations?

Right now, there are 1,358 Denny’s restaurants across the U.S., predominantly in California, Texas, Florida, and Arizona.

Outside the U.S., over 167 Denny’s locations exist, with more than half in Canada.

As of now, Denny’s has not specified which 150 restaurants will be closing.

Denny’s stock prices dip nearly 18%

Dunn mentioned that these closures are intended to refine the company’s restaurant portfolio in preparation for future growth.

On Tuesday, Denny’s stock fell by nearly 18% after the quarterly earnings report did not meet expectations from analysts. The stock has decreased by 50% over the fiscal year.

“Closing restaurants is always a difficult decision. You have to navigate various external factors and relationships with landlords,” Dunn said. “Moreover, it’s about the impact on people’s jobs, but we’ve determined that shuttering underperforming locations is beneficial for many of our franchisees as it enhances long-term financial stability.”