Denny’s to be acquired and taken private in a deal valued at $620 million
By DEE-ANN DURBIN
Denny’s announced on Monday that it is being acquired by a group of investors in a deal that will take the breakfast chain private. The company’s board unanimously approved the agreement, which values Denny’s at $620 million, including debt.
The acquisition group includes private equity investment company TriArtisan Capital Advisors, investment firm Treville Capital, and Yadav Enterprises, one of Denny’s largest franchisees. Under the terms of the deal, Denny’s shareholders will receive $6.25 in cash for each share of common stock they own, totaling $322 million. This offer represents a 52% premium over Denny’s closing stock price on Monday.
Following the announcement, Denny’s shares surged 47% in after-hours trading.
Founded in 1953 in Lakewood, California, Denny’s originally operated as Danny’s Donuts. The name was changed to Denny’s Coffee Shops in 1959 to avoid confusion with a similarly named chain. The company began trading on the New York Stock Exchange in 1969.
Like many casual dining chains, Denny’s experienced a sharp decline in sales during the COVID-19 pandemic. After restrictions eased, the company faced evolving customer dining patterns, including an increased reliance on delivery services. Additionally, Denny’s has struggled to keep pace with newer competitors like First Watch, which emphasize healthier breakfast options.
In response to these challenges, Denny’s announced plans last fall to close 150 of its lowest-performing locations. As of the end of the second quarter, the company operated 1,558 restaurants worldwide, including 1,422 Denny’s locations and 74 Keke’s restaurants—the latter brand having been acquired by Denny’s in 2022.
Denny’s CEO, Kelli Valade, shared that the company reached out to more than 40 potential buyers and received multiple offers. She said the board believes the transaction announced Monday represents the best path forward for the company and is in the best interests of shareholders.
Rhohit Manocha, Co-Founder and Managing Director of TriArtisan, described Denny’s as “an iconic piece of the American dream” with a strong franchise base and loyal customers. “We look forward to working with Kelli and the rest of the Denny’s team and franchisees to provide resources and support the company’s long-term strategic growth plans,” Manocha said in a statement.
If approved by shareholders, the deal is expected to close in the first quarter of 2026.
https://www.bostonherald.com/2025/11/03/dennys-acquired-taken-private/
You may also like
Leave a Reply