Denny’s Breakfast Chain Acquired in $620 Million Transaction
National breakfast chain Denny’s has entered into a significant transaction, resulting in its acquisition for $620 million, including associated debt. Approval for the deal came from Denny’s board, signaling a strategic shift in the company’s future.
Denny’s New Ownership Group
The acquisition will see Denny’s owned by an investor group that includes:
- TriArtisan Capital Advisors, a private equity investment firm
- Treville Capital, an investment firm
- Yadav Enterprises, one of Denny’s largest franchise operators
Challenges Facing Denny’s
Despite its well-known affordable breakfast menu, Denny’s has faced challenges in recent years. The company has struggled to adapt to a changing dining landscape. A shift toward delivery services has impacted traditional sit-down restaurant chains like Denny’s.
After experiencing a decline in sales during the COVID-19 pandemic, Denny’s announced the closure of 150 underperforming locations last year. However, as of the second quarter of this year, Denny’s operates 1,558 restaurants globally, which includes 74 Keke’s locations.
Details of the Acquisition
CEO Kelli Valade noted that Denny’s received interest from 40 potential buyers. The chosen offer was deemed the best for shareholders and the company’s future.
As part of the acquisition, Denny’s stockholders will receive $6.25 per share in cash. This amount represents a substantial 52% premium over the company’s closing stock price prior to the announcement.
Looking Ahead
The deal is projected to close in early 2026. TriArtisan Co-Founder and Managing Director Rhohit Manocha expressed optimism about collaborating with Kelli and the Denny’s team. He emphasized a commitment to supporting the company’s long-term growth strategies.
As Denny’s transitions under new ownership, the focus will remain on revitalizing its presence in the breakfast market and adapting to the evolving preferences of its customers.
