Denny’s Seeks to Go Private

Denny’s Corp. (Spartanburg, S.C,), announced it has entered into a definitive agreement to be acquired by a group consisting of TriArtisan Capital Advisors LLC, a private equity firm that also owns P.F. Chang’s, Treville Capital Group and Yadav Enterprises Inc., the owner-operator of approximately 550 restaurants nationwide and one of the largest Denny’s franchisees. The all-cash transaction, which has been unanimously approved by Denny’s board, is valued at about $620 million.

“We are pleased to enter this transaction, which delivers significant, near-term and certain cash value to our stockholders,” said Denny’s CEO Kelli Valade. “After receiving indications of interest from TriArtisan, the board conducted a thorough review of strategic alternatives to maximize value with the assistance of external advisors. As part of the review, the company reached out to more than 40 potential buyers and ultimately received multiple offers. The board evaluated any potential transaction against Denny’s standalone plan and all external strategic alternatives. After careful consideration of all options and in consultation with external financial and legal advisors, the board is confident the transaction maximizes value and has determined it is fair to and in the best interests of stockholders and represents the best path forward for the company.”

Said Rohit Manocha, Co-Founder and Managing Director at TriArtisan, “Denny’s is an iconic piece of the American dream, with a renowned brand, a strong franchise base and loyal customers. Our team has significant investment experience in the restaurant industry and our acquisition of Denny’s builds on our success with other full-service restaurant concepts. 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.”

In its coverage of the planned deal, CNN noted that Denny’s most recent struggles began during the pandemic. One of its main selling points was being open 24/7. However, that requirement temporarily ended during the height of pandemic. Since 2021, about a quarter of its roughly 1,600 restaurants have not returned to those around-the-clock hours, so Denny’s eased up on the requirement for a franchise to do so.

It’s also facing competition for cash-strapped customers from rapidly growing chains like First Watch, fast food competitors or people opting to eat at home in a bid to save money, CNN noted.
Denny’s also announced 180 closures over the last two years, while at the same time pursuing a turnaround plan that involves remodeling its eateries and adding new menu item.
Under the terms of the go-private agreement, Denny’s stockholders will receive $6.25 per share in cash for each share of Denny’s common stock they own. That price represents a 52.1% premium to Denny’s’ closing stock price on Nov. 3, the last full trading day prior to the transaction announcement.

The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions, including approval by the company’s stockholders and satisfaction of regulatory approvals. Upon completion of the transaction, Denny’s common stock will no longer be listed on the Nasdaq.
The company consists of the Denny’s brand and the Keke’s brand. As of June 25, the Denny’s brand consisted of 1484 global restaurants, all but 62 of which are franchises, while Keke’s brand consisted of 74 restaurants, 52 of which are franchised restaurants and 22 of which are company operated.