This popular breakfast spot will close 150 locations by the end of 2025

Denny's plans to close 150 of its worst-performing restaurants to shore up its cash flow.

Fifty underperforming restaurants will close by the end of 2024, while the remaining 100 will close next year, the company said in a meeting with investors Tuesday, according to The Associated Press and USA Today.

Locations were not disclosed, but the restaurants make up about 10% of Denny's total.

According to Stephen Dunn, Denny's executive vice president and chief global development officer, the restaurants closing include older locations that are too run-down to remodel or are in unprofitable locations.

“Some of these restaurants can be very old. So when you think about a brand that's over 70 years old, you're looking at a lot of restaurants that have been around for a long time,” Dunn told investors at the meeting.

Dunn also added that other restaurants experienced traffic shifts during the COVID-19 pandemic that have not yet reversed.

On Tuesday, the company reported its fifth consecutive quarter of year-over-year declines in same-store sales, which are sales at locations that have been open for at least a year.

Additionally, restaurant inflation is currently outpacing food price inflation, making it more difficult for customers to eat out, according to the restaurant chain.

For example, in August, a Reddit user made a viral post about the cost of Denny's Lumberjack Slam due to the price increase. The post sparked shocked reactions.

User “Front_Usual_2884” posted an image of a menu on the Inflation subreddit on July 3 that featured the Lumberjack Slam at a Denny's restaurant, which cost $17.99. The Reddit user did not specify where the menu image was taken.

The Lumberjack Slam consists of buttermilk pancakes, grilled ham, bacon strips, all-pork sausage links, two freshly cooked eggs, hash browns and white toast. The menu stated that for an additional $3.09, a guest could upgrade to a selection of different premium pancake varieties.

Although prices vary by region and location, the Lumberjack Slam is listed on the restaurant's website with a starting price of $16.29.

There are currently 1,358 Denny's locations in the United States, with a strong presence in California, Texas, Florida and Arizona.

According to USA Today, more than 167 Denny's restaurants are located outside the United States, with more than half of them in Canada.