No matter what state you live in, everyone has that one diner that has become the go-to spot for any time of the day.
Whether you're looking for a quick morning bite to pick up on the way to work, a big brunch to indulge in on a Sunday afternoon, or a greasy after-midnight snack, diners will forever be the most reliable places and are guaranteed to hit the spot every time.
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The thought of buttery pancakes drenched in maple syrup or chunky French toast that's always perfectly crispy on the outside but soft on the inside can make anyone's mouth water.
For savory breakfast food lovers, fluffy omelets with salty home fries or classic eggs benedict are simply irresistible.
Thinking about all the great memories made at diners while eating with family and friends is enough to bring tears of happiness to anyone's eyes, so much so that some couldn't bear the idea of seeing that cherished food spot suddenly disappear.
Restaurant sales are up, but the competition is strong
Although restaurants faced some tumultuous years, the food service industry has started to pick back up.
According to the National Restaurant Association, restaurant sales are up and are forecasted to reach $1 trillion by the end of 2024.
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However, competition in the food industry is stronger than ever, with analysts predicting 45% higher competition than last year. This could explain why ten popular restaurant chains filed for bankruptcy this year alone.
Although Denny's has been serving its customers for over seven decades, the company is among those affected by the heightened restaurant competition.
According to Denny's third-quarter earnings report of 2024, revenue dropped by 2% compared to the same time last year.
Denny's same-restaurant sales declined by 0.1% compared to the year prior, with franchise restaurants down by 0.1% and company restaurants down by 0.4%.
The company also reported earnings per share of 14 cents, missing analyst's expectations of 15 cents by $0.01.
Denny's announces multiple restaurant closures
On Tuesday, during its conference call for its third-quarter earnings of 2024, Denny's (DENN) announced that it would close 150 locations, with 50 set to close by the end of this year and the remaining 100 closings next year.
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The Denny's Corporation is one of America's largest restaurant chains, with 1,586 global restaurants as of September 25, 1,525 of which are Denny's locations and 61 of which are Keke's.
The upcoming closures represent around 10% of all Denny's brand restaurants, leaving the company with 1,375 locations once all the closures have been finalized.
Although the company hasn't revealed what exact restaurant locations will be banished, it did reveal that older restaurants that might require a higher investment to remodel will be among those closing.
"Some of these restaurants can be very old. So when you think of a 70-year-old plus brand, you have a lot of restaurants that have been out there for a very long time," said Chief Global Development Stephen Dunn during the Denny's earnings call.
Year to date, Denny's has closed a total of 42 restaurants, 40 being franchise locations and two company locations.
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Although Denny's will be closing multiple locations, it plans to open 30 to 40 restaurants by the end of the year.
On Tuesday, the day Denny's announced its upcoming restaurant closures, its shares dropped nearly 18%.
However, on Thursday, Denny's shares increased approximately 14%.
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