Denny’s(DENN) The Motley Fool·2025-02-12 22:05Financial Performance - Denny's shares dropped significantly by 22% following the release of its fourth-quarter financial results for 2024, nearing a decade-low price [1] - Same-store sales for Denny's flagship brand decreased by less than 1%, but this figure does not account for the closures of underperforming locations [3] - In early 2025, same-store sales trends worsened, with a reported drop of 5% in the first two weeks of February, leading management to anticipate a total decline of up to 2% for the year [4] Business Operations - The company closed 88 underperforming restaurants in 2024, which had an average annual sales volume of under $1.1 million, prompting plans to close an additional 70 to 90 locations in 2025 [2] - Denny's management acknowledged that many of the closed restaurants had been operational for about 30 years, indicating a need to reposition in more favorable areas [5] - In 2024, Denny's opened 14 new locations and plans to open between 25 to 40 new locations in the current year, including those for its smaller Keke's brand [5] Market Position - Denny's is facing challenges in stimulating sales growth and improving profit margins, indicating a need for strategic changes to enhance its market position [6]