Casual-dining chain Denny’s is getting taken private in a deal valued at about $620 million by a group that includes the owner of TGI Friday's and P.F. Chang's.
Denny’s as of June 25 operated nearly 1,500 mostly franchised restaurants worldwide, with a portfolio that includes 74 locations of Keke’s Breakfast Cafe, a chain that's also mainly franchised. The buyers are New York-based private equity firms TriArtisan Capital Advisors and Treville Capital Group, as well as Yadav Enterprises, an owner and operator of about 550 restaurants nationwide and one of the largest franchisees of both Denny's and Jack in the Box.
Like many restaurant chains, Denny’s has struggled this year with slowing sales and it announced plans in February to close 70 to 90 locations by year’s end. But it has also been expanding locations of Keke’s, the full-service regional brand it bought in 2022 for $82.5 million.
The all-cash deal has been approved by Denny’s board of directors and calls for Denny’s stockholders to receive $6.25 per share in cash for each share of Denny’s common stock, the Spartanburg, South Carolina-based company said in a statement Monday.
The price is 52.1% more than Denny’s closing stock price on Monday; the stock has lost more than a third of its value in the past 12 months. Denny’s is expected to become a private company at the close of the transaction, slated for the first quarter of 2026.
Denny’s CEO Kelli Valade said in a statement that “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.”
He added that “the board evaluated any potential transaction against Denny’s standalone plan and all external strategic alternative."
TriArtisan is the owner of the global dining and entertainment concepts P.F. Chang’s, TGI Fridays and Hooters, while Yadav Enterprises is a franchisee of Jack in the Box.
“Denny’s is an iconic piece of the American dream, with a renowned brand, a strong franchise base and loyal customers,” said Rohit Manocha, co-founder and managing director at TriArtisan, in the same statement.
Denny’s on Monday first postponed then canceled its scheduled quarterly earnings call, just before announcing the planned acquisition.