Denny’s, the once-popular breakfast chain known for its 24-hour service and classic dishes like the Grand Slam, All-American Slam, and Moons Over My Hammy, has been sold to a group of investors set to take the company private.
Who are the investment firms taking over Denny’s?
On Monday, the company announced that its board had unanimously approved a sale to private equity investment firm TriArtisan Capital Advisors, investment firm Treville Capital Group, and Yadav Enterprises, one of Denny’s largest franchisees, in a $620 million deal that includes its debt, according to a news release.
Under the agreement, Denny’s stockholders will receive $6.25 per share in cash for each share of the company’s common stock they own, or $322 million, per the news release and The Associated Press. That figure represents a 52.1% premium to Denny’s’ closing stock price on Monday.
All three investors have decades of experience: TriArtisan manages popular fast-food chains like P.F. Chang’s; Treville helps companies stay successful, and Yadav Enterprises, a longtime major Denny’s franchisee, has built a track record of success with other major eateries.
Denny’s CEO speaks out following million-dollar deal
The company reached out to more than 40 potential buyers and ultimately received multiple offers, which it believes “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,” Denny’s Corporation CEO Kelli Valade said in a news release statement.
Valade continued, “Denny’s has a strong foundation as America’s Diner, and I am proud of the important progress we have made across our Denny’s and Keke’s platforms while navigating a dynamic consumer environment.”
Denny’s was founded in 1953 in Lakewood, California, as Danny’s Donuts. It was renamed Denny’s Coffee Shops in 1959 and began trading on the New York Stock Exchange in 1969. The company became successful for its affordable breakfast options and 24-hour service.
What caused Denny’s recent struggles?
Today, the company has 1,558 restaurants, including 1,474 franchised and licensed locations and 84 company-operated locations.
According to CNN, Denny’s struggles began during the pandemic, when all locations temporarily ended 24-hour service. Since 2021, about a quarter of its roughly 1,600 restaurants have not resumed around-the-clock hours, leading the company to relax its franchise requirement.
In addition to other fast-food competitors, more than 180 Denny’s have closed nationwide in the last two years. Earlier this year, Denny’s announced it would close 90 stores in 2025, Blavity reported.
Another ’90s favorite, Pizza Hut, could be changing ownership as Yum! Brands explores strategic options to boost the chain, which has lagged behind competitors like Domino’s and Papa John’s in recent years, per CNN.