Denny’s Just Got Bought For $620 Million—Will It Help Save The Iconic Diner?

Denny’s plans to go private, according to a Monday announcement. If approved by shareholders, the investment firms TriArtisan Capital Advisors, and Treville Capital and Yadav Enterprises, will acquire the company in a deal valued at $620 million, including debt. The latter investment firm is one of Denny’s largest franchisees. 

In the landmark agreement, Denny’s shareholders will receive $6.25 per share in cash at a total of $322 million. The company’s shares rose 47% in after-hours trading following the announcement. So what does this mean? There are several benefits to going private. 

For one, Denny’s will no longer have to comply with regulatory requirements, which can be costly and time-consuming. It will also no longer be required to meet Wall Street’s quarterly earnings expectations. Going private allows companies to invest money into research and development, capital expenditures, and other expenses, which in this case, may help Denny’s get back on track.

“We are pleased to enter this transaction, which delivers significant, near-term and certain cash value to our stockholders,” said Kelli Valade, Chief Executive Officer of Denny’s Corporation, in a press release. “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.

The Denny’s in-restaurant dining model took a big hit during COVID when delivery skyrocketed, and has struggled since. The company announced that it planned to shutter 150 locations last fall, and reports hint that a failure to respond to changing dietary trends has also played a part.   

“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. “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.”