Denny’s to Be Acquired and Taken Private in $620 Million Deal

Denny’s said that it is being acquired by a group of investors in a deal that will take the breakfast chain private, Dee-Ann Durbin reported for the Associated Press (AP).

Denny’s will be purchased by private equity investment firm TriArtisan Capital Advisors, investment firm Treville Capital, and Yadav Enterprises, one of Denny’s largest franchisees. (Photo: Mike Mozart Flickr)

Denny’s board unanimously approved the deal, which values the company at $620 million, including debt.

Denny’s will be purchased by private equity investment firm TriArtisan Capital Advisors, investment firm Treville Capital, and Yadav Enterprises, one of Denny’s largest franchisees.

Under the agreement, Denny’s shareholders will receive $6.25 per share in cash for each share of common stock they own, totaling $322 million. That represents a 52% premium to Denny’s closing stock price Monday.

Denny’s shares jumped 47% in after-hours trading early in the week.

Denny’s was founded in 1953 in Lakewood, California, as Danny’s Donuts. The name was changed 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.

The company saw its sales plummet during the COVID-19 pandemic. As the pandemic eased, Denny’s faced shifting customer dining patterns, including a heavier reliance on delivery.

It also struggled as newer chains like First Watch promoted healthier breakfast options. Last fall, Denny’s said it planned to close 150 of its lowest-performing locations.

At the end of the second quarter, Denny’s had 1,558 restaurants worldwide, including 1,422 Denny’s locations and 74 Keke’s restaurants. Denny’s acquired the Keke’s brand in 2022.