"We believe this is absolutely the right thing to do to make our system stronger," Denny's CEO Kelli Valade said.

The more than a hundred branches that will be shut make for roughly 10 percent of Denny's stores. It has not yet been announced which locations will close down but Valade said that it is the "underperforming" restaurants that would stop operations. Among the restaurants closing are older locations that are too old to remodel or are based in unprofitable locations, said its Executive Vice President and Chief Global Development Officer Stephen Dunn.