Denny’s to go private in $620 million deal for the 72-year-old breakfast chain
Denny’s, the breakfast chain known for its classic dishes and Grand Slam Breakfast, is going private in a $620 million deal orchestrated by a group of investors.
The deal, announced Monday, values the chain at $620 million, including debt. The investors buying the company are private equity investment firm TriArtisan Capital Advisors, investment firm Treville Capital and franchisee Denny’s Yadav Enterprises.
Under the terms of the agreement, Denny’s shareholders will receive $6.25 in cash per share for each share of Denny’s common stock they own, or a total of $322 million. That represents a 52% premium to Denny’s stock’s closing price on Monday.
Denny’s shares jumped $2.05, or 50 percent, to $6.17 in early trading Tuesday.
Founded in 1953 as Danny’s Donuts, the company changed its name to Denny’s in 1959 to avoid confusion with another chain, and began trading on the New York Stock Exchange a decade later. Over the past two years, Denny’s has struggled to increase sales as consumers turned to delivery through apps like Uber Eats, while new competitors such as First Watch offered healthier breakfast menus.
Private equity firm TriArtisan owns the PF Chang’s and TGI Friday’s restaurant chains, while Yadav Enterprises owns more than 310 franchised restaurants, including Denny’s, TGI Friday’s and Jack in the Box.
Treville Capital is an investment firm headed by Michael Ovitz, co-founder of Creative Artists Agency and former chairman of Walt Disney Co.
Denny’s contacted more than 40 potential buyers and received several offers, Denny’s CEO Kelli Valade said in a statement. Valade said Denny’s board believes the deal announced Monday is in the best interests of shareholders and is the best path forward for the company.
“Denny’s is an iconic piece of the American dream, with a renowned brand, a strong franchise base and loyal customers,” Rohit Manocha, co-founder of TriArtisan, said in the release.
Last fall, Denny’s announced plans 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 restaurants and 74 Keke’s restaurants. Denny’s acquired the Keke’s brand in 2022.
If approved by Denny’s shareholders, the transaction is expected to close in the first quarter of 2026.
