Shares in Denny’s jumped 50% Tuesday after the 71-year-old diner chain — long known for its “Grand Slam” breakfasts and 24/7 service — agreed to go private in a $322 million deal.
The deal is being led by TriArtisan Capital Advisors, a New York-based private equity firm that also owns Chinese food chain PF Chang’s, the parent company of Hooters and burger place TGI Fridays.
Investment firm Treville Capital Group and Yadav Enterprises, one of Denny’s largest franchisees, are working with TriArtisan to buy out the restaurant chain.
Stockholders will receive $6.25 a share in cash for each share – a 52% premium compared to its closing stock price on Monday.
Denny’s board of directors has unanimously approved the deal, which is expected to close in the first quarter of 2026.
The company conducted a review of strategic alternatives, reaching out to more than 40 potential buyers and receiving multiple offers, Denny’s Chief Executive Kelli Valade said.
For years, one of Denny’s biggest draws was its 24/7 service – including around-the-clock breakfast favorites.
But it paused those hours during the pandemic.
About a quarter of its 1,600 restaurants have not yet returned to those hours. Denny’s has eased up on the requirement, even though it was a fan-favorite among customers.
It’s also struggling to win over customers stunned by sticker shock, as more Americans choose to eat at home to save on cash.
Over the past two years, Denny’s has shuttered 180 locations and launched a turnaround effort including new menu items and restaurant remodels.
Same-store sales slid 2.9% in the third quarter, the company said Monday.
Its revenue and earnings figures also missed Wall Street estimates.
Prior to Tuesday’s jump, the stock had fallen about 34% so far this year. It hit a 12-year low in February after a dismal decline in quarterly sales.
