Denny’s Acquired for $620 Million in Privatization Deal
Denny’s has announced its acquisition by a consortium of investors in a significant deal valued at $620 million, including debt. The transaction aims to take the popular breakfast chain private, marking a notable shift for the brand.
Details of the Acquisition
The deal, which received unanimous approval from Denny’s board, will see shareholders receive $6.25 per share in cash. This reflects a total of $322 million, representing a 52% premium over Denny’s stock price as of Monday. Following the announcement, Denny’s shares surged by 47% in after-hours trading.
Investors Behind the Deal
- TriArtisan Capital Advisors
- Treville Capital
- Yadav Enterprises (a major Denny’s franchisee)
Background and Challenges
Founded in 1953 in Lakewood, California, Denny’s initially started as Danny’s Donuts. By 1959, it rebranded to Denny’s Coffee Shops to avoid confusion with another chain. The company began trading on the New York Stock Exchange in 1969.
Like many others in the restaurant sector, Denny’s faced severe declines in sales during the COVID-19 pandemic. As dining patterns shifted post-pandemic, Denny’s experienced challenges adapting, especially with rising competition promoting healthier breakfast alternatives. In light of these changes, Denny’s announced plans to shut down 150 underperforming locations in the previous year.
Operational Overview
As of the second quarter, Denny’s operated 1,558 locations globally, including:
- 1,422 Denny’s restaurants
- 74 Keke’s restaurants (acquired in 2022)
Future Prospects
Kelli Valade, Denny’s CEO, stated that the company explored options with over 40 potential buyers and concluded that this deal was the best path for shareholders. The acquisition is anticipated to finalize in the first quarter of 2026, pending approval from Denny’s shareholders.
Rhohit Manocha, Co-Founder and Managing Director of TriArtisan, emphasized Denny’s status as “an iconic piece of the American dream” and expressed eagerness to collaborate with Denny’s leadership and franchisees. This partnership aims to bolster the company’s long-term growth strategies.
