Denny's says it's closing 150 of its lowest-performing restaurants in an effort to turn around the brand's flagging sales.
About half of the closures will happen this year and the rest in 2025, the company said during a meeting with investors Tuesday. The locations weren't revealed, but the restaurants represent about 10% of Denny's total.
Stephen Dunn, Denny's executive vice president and chief global development officer, said in some cases the restaurants are no longer in good locations.
FILE - A Denny's restaurant is shown Sept. 14, 2017, in Cranberry, Pa.(AP Photo/Keith Srakocic, File)
"Some of these restaurants can be very old," Dunn said during the investor meeting. "You think of a 70-year-old-plus brand. We have a lot of restaurants that have been out there for a very long time."
Others saw traffic shifts during the COVID-19 pandemic that have yet to reverse, he said.
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On Tuesday, Denny's reported its fifth straight quarter of year-over-year declines in same-store sales, which are sales at locations open at least a year.
Restaurant inflation is outpacing grocery price inflation, which makes it harder for some customers to justify eating out, Denny's said. When they do eat out, they often head to fast-casual brands like Chipotle or fast-food chains. Denny's said family dining — the category in which it competes — lost the most customer traffic since 2020.
Still, Denny's said it has bright spots, including a value menu that lifted sales in its most recent quarter and growing sales of its like Banda Burrito.
Shares in Denny's Corp., which is based in Spartanburg, South Carolina, tumbled almost 18% on Tuesday.
The top breakfast restaurant chains in America
The top breakfast restaurant chains in America
The American breakfast is rooted in both tradition and innovation. Throughout the 1800s, many Americans ate high-protein breakfasts like bacon and eggs. Later, as the industrial revolution led to less physically demanding work, lower-calorie breakfasts became all the rage. But as these meals mostly took place at home, decades would pass before breakfast became a staple on restaurant menus.
In the mid-20th century, spots like The Original Pancake House began catering specifically to the morning crowd, elevating breakfast to a celebrated dining experience. Quick-serve eateries like McDonald's, Ray's Kingsburger, and Burger King got in on the game in the 1970s, and the fast food breakfast was born.
These days, the breakfast restaurant biz is thriving. According to IBISWorld, in the U.S. in 2024 alone. These restaurants play a pivotal role in American food culture, not just as places to eat but also as social hubs. Breakfast joints have evolved to include everything from small diners to large-scale chains, each with their own spin on the most important meal of the day.
To find the nation's favorite breakfast spots, gathered (current as of the second quarter of 2024) to rank the top 20 breakfast restaurant chains in America. The list was ranked by the percentage of respondents who liked the chain and ties were broken by a higher "have heard of" figure.
In terms of customer expectations, traditional breakfast staples—pancakes, waffles, and omelets—remain top picks. Some of the most famous chains include The Original Pancake House, with its classic American breakfast fare. The coffee shop Starbucks has also earned a place on this list thanks to an expanded menu featuring items like egg bites, oatmeal, and sandwiches.
Keep reading to see if your breakfast go-to spot made the list.
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#20. Bruegger's Bagels
- Have positive opinion of: 31%
- Have heard of: 50%
Founded in 1983 in Troy, New York, Bruegger's is best known for its New York-style bagels made fresh daily at more than 180 locations across the country. Customers love the variety of bagels, spreads, and breakfast sandwiches, particularly the classic bagel with Vermont cream cheese. Bruegger's Bagels remains a popular pick for breakfast and coffee breaks due to the restaurants' welcoming, cafelike atmosphere.
#19. Winchell's Donut House
- Have positive opinion of: 33%
- Have heard of: 52%
"Home of the Warm 'n Fresh Donut," Winchell's Donut House serves up a wide variety of donuts and freshly brewed coffee. Founded in 1948 in Temple City, California, this West Coast classic features traditional donut flavors as well as seasonal and specialty varieties, all at affordable prices. The nostalgic, no-frills ambiance adds to the donut chain's charm as a neighborhood breakfast stop.
#18. Jack's
- Have positive opinion of: 35%
- Have heard of: 58%
Best known for its hearty breakfast biscuits, this Southern fast-food chain was established in 1960 in Homewood, Alabama. Jack's customers rave about the made-from-scratch biscuits, which come with a variety of proteins like sausage, eggs, and bacon. The restaurant's combination of affordable prices and a Southern comfort food menu keeps breakfast patrons coming back for more.
#16. Caribou Coffee
- Have positive opinion of: 37%
- Have heard of: 71%
Caribou Coffee first began brewing in 1992 in Edina, Minnesota, and has since become a favorite breakfast spot in 19 different states. Caribou emphasizes sustainability, and all handcrafted coffee drinks are brewed with 100% Rainforest Alliance certified coffee beans. The chain's breakfast menu features sandwiches, pastries, and bagels, while unique drinks include the Mint Condition Mocha and the White Chocolate Espresso Shaker.
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#15. The Coffee Bean & Tea Leaf
- Have positive opinion of: 38%
- Have heard of: 55%
Dating back to 1963, The Coffee Bean & Tea Leaf is one of the oldest specialty coffee and tea chains in the U.S. Premium coffee drinks like the Ice Blended beverages and a variety of breakfast pastries have put The Coffee Bean on the map. The coffeehouse also supplies extensive tea options, friendly customer service, and a comfortable setting for a morning cup of joe.
#14. Shoney's
- Have positive opinion of: 38%
- Have heard of: 67%
Since opening in 1947 in Charleston, West Virginia, the family-style restaurant Shoney's has garnered a reputation for its classic American breakfast buffet. From pancakes and eggs to biscuits and gravy, Shoney's dishes up familiar comfort food at low prices. The restaurant's family-friendly vibe encourages patrons to take their time tucking into the most important meal of the day.
#13. Tim Hortons
- Have positive opinion of: 41%
- Have heard of: 80%
Canada's largest quick-service restaurant chain, Tim Hortons, opened in 1964 in Hamilton, Ontario. Though "Timmies" has become a Canadian icon, the chain has also won the hearts of breakfast lovers in the U.S. Tim Hortons stands apart for its high-quality coffee and donuts, including the signature Timbits (donut holes). The restaurant chain's convenient, always available breakfast menu is ideal for a quick meal on the go.
#12. Perkins American Food Co.
- Have positive opinion of: 43%
- Have heard of: 69%
Formerly known as Perkins Restaurant & Bakery, Perkins American Food Co. rebranded in 2024, more than 60 years after the first location opened in Cincinnati. Beloved for its all-day breakfast featuring pancakes, omelets, and freshly baked pies, Perkins remains a family-friendly favorite. As for the chain's bestselling dishes, the "Great American Trio" can't be beat. Perkins' value meal includes buttermilk pancakes, applewood-smoked bacon, and eggs.
#11. Peet's Coffee
- Have positive opinion of: 43%
- Have heard of: 73%
Since launching in Berkeley, California, in 1966, Peet's Coffee has attracted customers with richly flavored coffee made using high-quality beans and artisanal brewing techniques. A cup of joe at Peet's pairs well with breakfast offerings like pastries and sandwiches. Nearly 300 Peet's locations spread across the U.S. serve perfectly roasted blends and tasty eats all day long.
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#10. The Original Pancake House
- Have positive opinion of: 45%
- Have heard of: 67%
The menu at the Original Pancake House features a plethora of hearty breakfast dishes, notably, the restaurant's signature pancakes and Dutch Baby. OPH has been a breakfast institution since opening in Portland, Oregon, in 1953. The large portions, homemade taste, and high-quality ingredients used in the pancakes and waffles have earned the chain a loyal following throughout the U.S.
#9. Einstein Bros. Bagels
- Have positive opinion of: 45%
- Have heard of: 74%
Many morning commuters appreciate the friendly, fast service at Einstein Bros. Bagels. The company, which was founded in 1995, has built a reputation on its fresh, handcrafted bagels and wide range of cream cheese spreads. Einstein Bros. also brews a variety of coffee drinks and sells convenient grab-and-go breakfast sandwiches.
#6. Cracker Barrel
- Have positive opinion of: 60%
- Have heard of: 95%
The first Cracker Barrel opened in 1969 in Lebanon, Tennessee, and the franchise now has footholds across much of the U.S. Cracker Barrel is perhaps most famous for its all-day breakfast menu, which includes biscuits, grits, and pancakes. The chain's rustic, homey feel and down-to-earth eats evoke a traditional Southern dining experience. Cracker Barrels' attached country stores also add to the restaurants' unique charm.
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#5. Denny's
- Have positive opinion of: 60%
- Have heard of: 98%
The home of the Original Grand Slam, Denny's got its start in 1953 in Lakewood, California. The chain provides 24/7 service and classic, diner-style breakfast items like pancakes and omelets at any time of the day. Denny's has a nationwide presence in the U.S., making their locations an ideal choice for travelers and night owls alike.
#4. Krispy Kreme
- Have positive opinion of: 61%
- Have heard of: 96%
Originating in Winston-Salem, North Carolina, in 1937, Krispy Kreme lures customers with neon red "Hot Light" signs advertising the signature, melt-in-your-mouth glazed donuts. Krispy Kreme's combination of quality and nostalgia keeps its pastries and coffee popular with guests of all ages. The chain's reach extends across the U.S. and around the world—as of 2024, Krispy Kreme donuts can be eaten in more than 30 countries.
#3. Dunkin'
- Have positive opinion of: 65%
- Have heard of: 97%
Another donut legend, Dunkin', opened in 1950 in Quincy, Massachusetts. The chain's famed coffee and donuts have inspired a devoted fan base, and Dunkin' also offers a growing number of breakfast sandwiches. Fast service, consistent coffee quality, and a variety of on-the-go breakfast items make Dunkin' a staple for the morning meal.
#2. IHOP
- Have positive opinion of: 67%
- Have heard of: 95%
Family-friendly breakfast chain IHOP—short for International House of Pancakes—was established in 1958 in Los Angeles. Though famous for its namesake pancakes, the vast menu includes options like omelets, waffles, and crepes. IHOP's affordability and all-day breakfast appeal to both single diners and large groups alike.
#1. Cinnabon
- Have positive opinion of: 68%
- Have heard of: 93%
First served in 1985 in Seattle, Cinnabon's sticky buns still reign supreme today. The chain's signature cinnamon rolls are freshly baked and doused in sweet, gooey topping. Cinnabon has gained prominence in shopping malls and airports across the U.S. and internationally, allowing customers easy access to these beloved pastries.
Data reporting by Rob Powell. Story editing by Cu Fleshman. Copy editing by Lois Hince. Photo selection by Lacy Kerrick.
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#17. Tropical Smoothie Cafe
- Have positive opinion of: 36%
- Have heard of: 58%
Founded in 1997 in Destin, Florida, Tropical Smoothie Cafe has earned a reputation for its healthier breakfast options, like flatbreads and smoothie bowls. Fans of the Tropical Smoothie Cafe appreciate the chain's commitment to using fresh ingredients and the ability to customize smoothies and meals. Those with dietary restrictions, take note—vegetarian and gluten-free breakfast choices are also available.
#8. Starbucks
- Have positive opinion of: 51%
- Have heard of: 98%
Starbucks has become synonymous with high-quality coffee. Founded in 1971 in Seattle, this quintessential coffee shop serves a wide range of beverages and added breakfast sandwiches to the menu in 2003. Starbucks has since expanded its offerings to include egg bites, oatmeal, and wraps. The morning crowd enjoys the consistency of Starbucks' products, the restaurants' quick service, and the ability to customize drinks and breakfast items.
#7. Waffle House
- Have positive opinion of: 59%
- Have heard of: 94%
Waffle House has more than earned its cult following. Since 1955, this Georgia-founded landmark has been a go-to for its famous waffles and other sizable breakfast dishes, like eggs, hash browns, and bacon. Waffle House's Southern diner vibe, 24-hour service, and affordability keep the booths at the restaurant chain's more than 1,900 locations across the country full and fans craving more.
