Denny’s Franchisee Closes 5 Locations in Minnesota, Wisconsin on September 9

Franchisee M15 Inc. shut down four Denny’s restaurants in Minnesota and one in Wisconsin on September 9, citing unsustainable debt and plans to file Chapter 7 bankruptcy. The closures mark the latest chapter in Denny’s ongoing restructuring. Since 2024, the chain has closed 155 underperforming locations as new ownership pursues a modernization plan called Project Grand Slam to boost average unit volumes from $1.9 million to $2.2 million per store.

Why the franchisee failed

M15 Inc. accumulated debt it could no longer sustain, forcing the abrupt closure of its five Denny’s locations. The company plans to file for Chapter 7 bankruptcy protection, which liquidates assets rather than reorganizing debts. Denny’s corporate said it is working with urgency to explore reopening as many of these restaurants as possible under new operators.

The broader turnaround under new ownership

In January 2026, private equity firms TriArtisan Capital Advisors and Treville Capital Group, along with franchisee Yadav Enterprises, acquired Denny’s for $620 million. CEO Christopher Bode took over in April, replacing Kelli Vallade. Bode is executing Project Grand Slam, which includes modernizing the 73-year-old brand and launching its first national catering program this summer to boost weekday sales.

Scale of closures and sales decline

Denny’s shuttered 155 locations across 2024 and 2025, representing 4.5% of its portfolio. In 2025 alone, sales fell 2% according to Technomic data. The chain said it was cleaning up the lower-performing fifth of its portfolio to improve unit economics. Despite these cuts, the company continues to face headwinds in a competitive casual dining market.

What reopening means for the locations

When a franchisee fails, the location and the operator are separate problems. The trade area that supported a Denny’s on Tuesday still supports one on Thursday. With one of the new owners being franchisee Yadav Enterprises, which has actual operating experience, the company has expertise to decide which restaurants can reopen under new management and when.

Final Thoughts

Denny’s faces a critical test: whether new ownership can stabilize the brand through aggressive closures and modernization. With Meyka grading the stock a B and a forward earnings forecast of $3.48 per share, investors should monitor whether Project Grand Slam delivers unit growth and sales recovery.

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