Denny's has announced a significant reduction in its U.S. locations, planning to close 180 stores by 2025 due to underperformance amidst ongoing financial difficulties. Recent sales data shows a decline in same-store sales, contributing to a 50% drop in the stock price over the past year. Despite this, the company plans to remodel successful locations, which previously experienced a 6.5% traffic boost. Denny's also aims to offset losses with plans to open 25 to 40 new locations, reflecting a reshaped strategy for future growth in an uncertain market.
Denny's plans to close a total of 180 underperforming stores by the end of 2025, marking a significant reduction in its U.S. presence amid ongoing financial strain.
Despite the closures, Denny's CFO mentioned that the company will reinvest the savings from these closures into remodeling higher-volume stores which have seen a 6.5% traffic increase.
Denny's is also anticipating the opening of 25 to 40 new locations by the end of 2025, presenting a cautious optimism towards future growth.
Following the announcement of store closures, Denny's shares fell dramatically, reflecting investor concerns about the chain's capacity to navigate a challenging market environment.
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