Denny’s announced Monday that it will be acquired for $620 million by a trio of new owners.
The buyer group—which will take the breakfast giant private—consists of private equity firm TriArtisan Capital Advisors, investment firm Treville Capital Group, and Denny’s franchisee Yadav Enterprises.
The transaction is expected to close in Q1.
Denny’s CEO Kelli Valade said the idea for a transaction began when TriAristan indicated interest. In response, the board commenced a review of strategic alternatives, along with external assistance. Denny’s reached out to over 40 potential buyers and received multiple offers, ultimately landing on the two investment firms and Yadav Enterprises.
“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,” Valade said in a statement.
READ MORE: In a Tough Landscape, Denny’s is Still Winning with its Core Guests
The move comes as Denny’s U.S. same-store dropped 2.9 percent in Q3. The company finished the quarter with 1,459 restaurants worldwide, 1,397 of which were franchised and licensed stores and 62 of which were company-operated locations. The brand opened one franchised store in Q3 and finished 10 remodels.
The company has looked to keep guests engaged with a variety of value offers, like the $2 $4 $6 $8 menu, a BOGO breakfast deal, and a new lineup of Slam breakfasts under $10. Value items made up 20 percent of orders in Q2. Virtual brands have played a significant role as well. Recently, Denny’s partnered with Franklin Junction to add Nathan’s Famous Hot Dogs into more than 70 percent of company units. In Q2, the virtual brand improved company same-store sales by roughly 50 basis points.
Denny’s also noted plans to launch a new points-based loyalty program in the back half of 2025, which would introduce personalized rewards to its 5.5 million members.
Meanwhile, the brand’s U.S. footprint has continued to shrink. Earlier this year, Denny’s said it could shutter between 70 and 90 restaurants in 2025 after shutting down 88 units in 2024. The stores that closed last year had an AUV under $1.1 million and were open on average for almost three decades.
Keke’s Breakfast Cafe, a brand Denny’s acquired for $82.5 million in 2022, saw comps rise 1.1 percent in the third quarter. The chain had 78 stores at the end of Q3, 55 franchised and 23 company-owned. Keke’s opened four new restaurants in the quarter and completed three remodels. The brand had 52 locations when Denny’s bought it a little more than three years ago.
“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,” Valade said. “This transaction delivers meaningful value to our stockholders and is a testament to the incredible work of our teams and franchisees, who have helped us innovate and meet our guests where they are. TriArtisan and Yadav Enterprises are experienced stewards of leading restaurant brands, and we are excited to work with them as we continue delighting our guests.”
TriArtisan is familiar with the casual-dining restaurant space, having purchased P.F. Chang’s and Hooters of America back in 2019 and TGI Fridays in 2014.
Yadav Enterprises has been busy in the M&A space. The franchisee already agreed to buy Del Taco from Jack in the Box for $115 million. That’s after purchasing fast casuals Taco Cabana and Nick the Greek in 2021 and 2022, respectively. The company operates more than 310 franchise restaurants. In addition to Denny’s, the group also works with Jack in the Box and TGI Fridays.
Treville, founded in 2014, has $2.7 billion in assets under management and backs over 100 companies. In a news release, the company was described as “an alternative asset manager that leverages its platform and deep sector expertise to provide customized solutions for companies.”
“Denny’s is an iconic piece of the American dream, with a renowned brand, a strong franchise base and loyal customers,” Rohit Manocha, TriArtisan cofounder and managing director, said in a statement. “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.”
The agreement was unanimously approved by Denny’s Board of Directors. As part of the transaction, stockholders will receive $6.25 per share for each share of Denny’s stock they own. The $620 million price tag represents a 52.1 percent premium to Denny’s closing stock price on Monday.
