Denny’s to go private in $620 million deal for the 72-year-old breakfast chain
Denny’s, a popular breakfast chain known for its classic diner food and signature Grand Slam Breakfast, is making a significant move by going private in a $620 million deal led by a group of investors.
The announcement of this deal, which was made on Monday, values Denny’s at $620 million, inclusive of debt. The investors involved in the acquisition include TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises, a Denny’s franchisee.
As per the terms of the agreement, Denny’s shareholders will receive $6.25 per share in cash for each share of Denny’s common stock they own, totaling $322 million. This offer represents a 52% premium to Denny’s closing stock price on the day of the announcement. Following this news, Denny’s shares surged by 50% to $6.17 in early Tuesday trading.
Originally founded in 1953 as Danny’s Donuts, the company rebranded to Denny’s in 1959 to avoid confusion with another chain and went public on the New York Stock Exchange ten years later. Over the past couple of years, Denny’s has faced challenges in boosting sales as consumer preferences shifted towards delivery services like Uber Eats, and newer competitors such as First Watch introduced healthier breakfast options.
TriArtisan Capital, the private equity firm leading this acquisition, also owns restaurant chains like P.F. Chang’s and TGI Friday’s. Yadav Enterprises, another investor, owns over 310 franchise restaurants, including Denny’s, TGI Friday’s, and Jack in the Box. Treville Capital, with Michael Ovitz as its chairman, is an investment firm involved in this deal.
Denny’s CEO, Kelli Valade, mentioned that the company reached out to more than 40 potential buyers and received multiple offers before finalizing the deal with the investors. Valade expressed that Denny’s board believed this agreement was in the best interest of shareholders and the optimal path forward for the company.
In a statement, Rohit Manocha, co-founder at TriArtisan, described Denny’s as an iconic piece of the American dream with a strong brand, franchise base, and loyal customer following.
In response to its performance, last fall, Denny’s announced plans to shut down 150 of its underperforming locations. As of the second quarter, Denny’s operated 1,558 restaurants globally, including 1,422 Denny’s restaurants and 74 Keke’s restaurants. Denny’s recently acquired the Keke’s brand in 2022.
Pending approval by Denny’s shareholders, the deal is anticipated to close in the first quarter of 2026. This transition to private ownership marks a new chapter for Denny’s, and the company is poised for potential growth and strategic development under the stewardship of its new investors.
