By DEE-ANN DURBIN
Denny’s announced 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 will be led by 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 per share in cash for each share of common stock they own, totaling approximately $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, as Danny’s Donuts, the company changed its name to Denny’s Coffee Shops in 1959 to avoid confusion with another chain. Denny’s began trading on the New York Stock Exchange in 1969.
Like many casual dining chains, Denny’s experienced a significant decline in sales during the COVID-19 pandemic. As conditions improved, the company faced challenges related to shifting customer dining habits, with a growing emphasis on delivery services. Additionally, Denny’s has seen increased competition from newer chains such as First Watch, which promote 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—a brand Denny’s acquired in 2022.
Denny’s CEO Kelli Valade stated that the company reached out to more than 40 potential buyers and received multiple offers. She emphasized that the board believes the deal is in the best interests of shareholders and represents the most promising path forward for the company.
TriArtisan Co-Founder and Managing Director Rhohit Manocha 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,” he said in a statement.
If approved by shareholders, the deal is expected to close in the first quarter of 2026.
https://www.mcall.com/2025/11/03/dennys-acquired-taken-private/
