Denny's CEO Warns of More Closures

Struggling Fast-Food Chain Shuts 15 Restaurants, More on the Way

Denny's, the iconic American diner chain, is facing an uncertain future as its CEO, Kelli Valade, warns of potential further closures amidst ongoing financial struggles. Speaking to investors, Valade acknowledged that the company has already shuttered 15 restaurants and that more may be in the pipeline.

Plummeting Sales and Layoffs

Compounding Denny's woes is a continued slump in sales, which CFO Robert Verostek attributed to ongoing challenges during an earnings call in February. Labor shortages and rising ingredient costs have also taken a toll on the company's profitability, leading to layoffs and the closure of underperforming locations.

In a recent filing with the Securities and Exchange Commission, Denny's franchisee Feast American Diners LLC announced plans to lay off 122 employees due to the closure of 10 of its restaurants. The company cited declining sales and rising expenses as the primary reasons for the layoffs.

Bright Spots Amidst the Storm

Despite the bleak outlook, Denny's is finding some solace in the popularity of its new plant-based dish, the Beyond Sausage Biscuit & Gravy. Valade revealed that restaurants are selling an average of 150 orders of the dish per week, providing a glimmer of hope amidst the challenges.

It remains to be seen whether Denny's can weather the storm and emerge stronger. With Valade at the helm, the company is expected to implement new strategies to revive its fortunes and save its iconic brand. However, with more closures looming on the horizon, the path ahead for Denny's remains uncertain.