"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. Under the agreement, Denny's shareholders will receive $6.25 per share in cash for each share of Denny's common stock they own, or a total of $322 million."
"Denny's was founded in 1953 in Lakewood, Calif., 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."
"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 restaurants and 74 Keke's restaurants. Denny's acquired the Keke's brand in 2022. Denny's CEO Kelli Valade said the company reached out to more than 40 potential buyers and received multiple offers. Valade said Denny's board believed the deal announced Monday was in the best interest of shareholders and the best path forward for the company."
Denny's will be taken private in a $620 million transaction led by TriArtisan Capital Advisors, Treville Capital and Yadav Enterprises. Shareholders will receive $6.25 per share in cash, totaling about $322 million and representing a 52% premium to the closing stock price. Denny's shares rose sharply in after-hours trading. The chain, founded in 1953 and traded on the NYSE since 1969, faced pandemic-driven sales declines and shifting customer habits including increased delivery. The company planned to close 150 low-performing locations and operated 1,558 restaurants worldwide, including the Keke's brand acquired in 2022.
Read at Los Angeles Times
Unable to calculate read time
Collection
[
|
...
]