A group of investors is taking Denny’s private in a $620 million acquisition, marking a major shift for the 72-year-old breakfast chain.
Denny’s announced Monday that it will be acquired by a consortium of investors including private equity firm TriArtisan Capital Advisors, investment firm Treville Capital, and Yadav Enterprises, one of Denny’s largest franchisees. The deal values the company at $620 million including debt, with shareholders receiving $6.25 per share in cash, representing a 52 percent premium to the stock’s closing price. The board unanimously approved the transaction, which is expected to close in the first quarter of 2026.
The acquisition comes as Denny’s faces mounting pressures that have reshaped the casual dining landscape. The chain, which has operated since 1953 and went public in 1969, saw sales plummet during the COVID-19 pandemic and has struggled to adapt to changing consumer preferences, including the rise of delivery services and competition from newer chains emphasizing healthier breakfast options.
Last fall, WGN covered the restaurant’s plans to close 150 underperforming locations. That’s about 10% of the total locations now operating. Denny’s Corporation notes that he company operates 1,558 restaurants worldwide.
According to the original press release, CEO Kelli Valade said the company had reached out to more than 40 potential buyers and received multiple offers before settling on this group. TriArtisan’s leadership described Denny’s as an iconic piece of the American dream with a strong franchise base and loyal customers, pledging to support the company’s long-term strategic growth plans.
What is the community saying? The move to private ownership has sparked considerable discussion among observers and the broader community. Many commenters expressed skepticism about private equity involvement, citing concerns about typical restructuring patterns where firms load companies with debt, extract profits through management fees, and cut operational costs aggressively.
Others voiced nostalgia for Denny’s role as a late-night gathering place and expressed worry that the chain’s character and quality might deteriorate under new ownership focused on financial optimization rather than customer experience. Others see an investment from interested investors in Denny’s as a way to invest in revitalization efforts and potentially marketing to a new generation of consumers.
The deal reflects a broader trend of private equity firms acquiring struggling public companies in the restaurant sector, betting they can unlock value through operational changes and strategic repositioning. Whether this particular acquisition revitalizes Denny’s or follows a more extractive playbook remains to be seen once the new owners take control.
If you’re one of those investors using investment tracking spreadsheets to track your portfolio, and you have shares of Denny’s, you’ll have a few updates to make soon.