The chain restaurant company earned $3.2 million, or 3 cents a share, for the quarter, down from $10.6 million, or 11 cents a share, in the same quarter last year.
Denny's operated 141 fewer company-owned restaurants during the second quarter of this year than in the year before, as part of plan to expand its franchises.
Consumers cutting back on expenses such as dining out also hurt the chain restaurant business.
The company took in $190.3 million in revenue for the quarter, down from $240.9 million in the same quarter last year.
The chain restaurant said same-store sales decreased 0.7 percent at company stores and decreased 3.7 percent at franchise stores.
Nelson Marchioli, president and CEO of Denny's, said the company is pleased with the results for the quarter despite the "difficult consumer and cost environment."
The company on Tuesday also announced a new organization structure expected to save $6 million to $8 million in general and administrative expenses in 2009.