---
title: "A 30-unit Denny’s operator files for bankruptcy"
url: https://burnaze.com/article/c70541ce-624d-427c-a55e-6512871aad3e
source: "Nation's Restaurant News"
original_url: https://www.nrn.com/family-dining/a-30-unit-denny-s-operator-files-for-bankruptcy
author: "Joe Guszkowski"
category: "QSR"
industry: "Restaurants"
segment: "QSR"
topics: ["Finance & M&A","Regulation & legal"]
published: 2026-11-05T16:34:06.000Z
modified: 2026-11-05T18:03:02.544Z
image: https://eu-images.contentstack.com/v3/assets/bltea7aee2fca050a19/blted254198a286dd42/6aecb1063e5ff513d16bac43/Denny_s.jpg?disable=upscale&width=1200&height=630&fit=crop
---

# A 30-unit Denny’s operator files for bankruptcy

**TL;DR:** EYM Diner, a 30-unit Denny’s operator, filed for Chapter 11 bankruptcy in Northern Texas bankruptcy court, citing $10 million to $50 million in liabilities.

*By Joe Guszkowski, originally published in Nation's Restaurant News on 2026-11-05. [Read the original](https://www.nrn.com/family-dining/a-30-unit-denny-s-operator-files-for-bankruptcy).*

## Story

Denny's is working with EYM to sell the restaurants to other franchisees. Photo: Shutterstock

A Texas-based Denny’s operator has filed for Chapter 11 bankruptcy, marking the latest blow to onetime mega-franchisee EYM Group.

In a filing in Northern Texas bankruptcy court on Wednesday, EYM Diner reported less than $50,000 in assets and between $10 million and $50 million in liabilities. Its largest unsecured creditor is listed as the IRS, with a nearly $3.5 million claim for unpaid payroll taxes.

EYM, which was founded by former McDonald’s executive Eduardo Diaz, has suffered multiple bankruptcies and closures since 2023 across its Pizza Hut, Panera Bread, KFC, and Burger King businesses.

EYM Diner currently operates 30 Denny’s restaurants in Texas and Florida.

The franchisor is working with Diaz to sell the restaurants to other Denny’s franchisees, said Denny’s Chief Development Officer Mark Burgess in a statement.

“There are viable restaurants in this group, and franchise partners within our system are willing to step in to help secure their future,” Burgess said.

EYM Diner could not be reached for comment. An attorney for EYM had not responded to a request for comment as of publication time.

Diaz was president of McDonald’s Mexico when he founded EYM Foods in 2007 to operate some McDonald’s restaurants of his own. Over the years, it expanded into other brands, including Denny’s, Panera, KFC, Burger King, and Pizza Hut.

Diaz grew the Pizza Hut business, EYM Pizza, to more than 140 locations, and in 2021, reached a deal to sell the business for $97 million. But the deal fell through as the economy began to deteriorate and the buyer pulled out. The business then struggled with rising costs, and three years later, Pizza Hut sued EYM over underperformance and failure to pay royalties on time. EYM Pizza filed for bankruptcy, and in early 2025, it sold 77 Pizza Huts for less than $12 million and shuttered the other 65.

Diaz faced similar problems with other brands. In February 2023, Burger King sued EYM King over late royalty payments. EYM closed all of its 26 Burger Kings a month later. That same year, EYM closed 25 KFC locations in Illinois, Indiana, and Wisconsin.

In 2025, EYM’s Panera branch, EYM Cafe, was sued by Panera over late royalty payments. That August, it filed for bankruptcy after a federal judge ordered it to stop using Panera’s name and trademarks.

The EYM Diner filing comes as Denny’s works to turn itself around after being taken private in January. The 1,400-unit chain had been struggling with sales and traffic declines and planned to close about 90 underperforming locations. About 96% of Denny’s locations are operated by franchisees.

“The 157 million guests who walk through our doors each year reflect the enduring value of America's Diner, and we see significant opportunity to build on that strength through our enterprise roadmap, Project Grand Slam, that is giving guests more reason to choose Denny's, strengthening restaurant performance, and building a more profitable business for our franchise partners,” Burgess said.

## Entities

- Restaurants (sector)
- Denny's (company)
- bankruptcy (topic)
- Northern Texas (location)
- bankruptcy court (regulator)
- denny's (topic)
- 30-unit (topic)

---
Originally reported by Joe Guszkowski, Nation's Restaurant News (https://www.nrn.com/family-dining/a-30-unit-denny-s-operator-files-for-bankruptcy). Summarized by Burnaze (https://burnaze.com/article/c70541ce-624d-427c-a55e-6512871aad3e).