Denny’s, an ‘iconic piece of the American dream’, is going private

Denny’s said Monday that it’s being acquired by a group of 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.

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. That represents a 52% premium to Denny’s closing stock price Monday.
Denny’s shares jumped 47% in after-hours trading Monday.

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.

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.

TriArtisan Co-Founder and Managing Director Rhohit Manocha called Denny’s “an iconic piece of the American dream” with a strong franchise base and loyal customers.

“We look forward to working with Kelli and the rest of the Denny’s team and franchisees to provide resources and support the Company’s long-term strategic growth plans,” Manocha said in a statement.

If it’s accepted by Denny’s shareholders, the deal is expected to close in the first quarter of 2026.

—Dee-Ann Durbin, AP Business Writer

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