"Denny's said Monday that it's being acquired by a group on investors in a deal that will take the breakfast chain private. Denny's board unanimously approved the deal, which values Denny's at $620 million including debt. Denny's will be purchased by private equity investment company TriArtisan Capital Advisors, investment firm Treville Capital and Yadav Enterprises, which is one of Denny's largest franchisees."
"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. Like many casual chains, Denny's saw its sales plummet during the COVID pandemic. Once the pandemic eased, it found itself dealing with changing customer dining patterns, including a heavier reliance on delivery. Denny's has also struggled as newer chains like First Watch promoted healthier breakfast options."
Denny's will be acquired by TriArtisan Capital Advisors, Treville Capital and Yadav Enterprises in a transaction valuing the company at $620 million including debt. The board unanimously approved the deal that pays shareholders $6.25 per share in cash, totaling $322 million and representing a 52% premium to the closing price. Shares rose 47% in after-hours trading. Denny's operates 1,558 restaurants worldwide, including 1,422 Denny's and 74 Keke's locations after the 2022 Keke's acquisition. The company faced pandemic-driven sales declines, shifting customer delivery habits, competition from newer chains, and planned closures of underperforming locations.
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