Denny’s Goes Private in $620 Million Deal After Pandemic Struggles

According to Fortune, Denny’s is being taken private in a $620 million deal that includes debt, with shareholders receiving $6.25 per share in cash totaling $322 million. The acquiring group includes private equity firm TriArtisan Capital Advisors, investment firm Treville Capital, and Yadav Enterprises, which happens to be one of Denny’s largest franchisees. This represents a massive 52% premium over Monday’s closing stock price, causing shares to jump 47% in after-hours trading. Denny’s CEO Kelli Valade revealed the company reached out to more than 40 potential buyers and received multiple offers before the board unanimously approved this deal. The transaction is expected to close in the first quarter of 2026 if shareholders approve.

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The Breakfast Chain’s Rocky Road

Here’s the thing – Denny’s has been fighting an uphill battle since the pandemic fundamentally changed how people eat out. During COVID, their sales absolutely plummeted, and when things started reopening, they discovered customer habits had permanently shifted. People became way more reliant on delivery, and let’s be honest – Denny’s Grand Slam breakfast doesn’t travel particularly well. Plus, they’ve been getting squeezed by newer chains like First Watch that are pushing healthier, more modern breakfast options.

Basically, Denny’s found itself stuck between the old-school diner model and the new reality of casual dining. Last fall, they announced plans to close 150 underperforming locations, which tells you everything you need to know about how rough things have gotten. The chain that started as Danny’s Donuts back in 1953 has been publicly traded since 1969, so this move to go private represents a major turning point.

What Private Ownership Means

Now, going private could actually be the best thing that’s happened to Denny’s in years. Without the quarterly pressure from public markets, the new owners can focus on long-term fixes rather than short-term stock performance. And having Yadav Enterprises, one of their biggest franchisees, in the buying group is pretty smart – they actually understand the restaurant business from the ground up.

But here’s the question: can private equity ownership really turn around a struggling chain that’s been dealing with post-pandemic dining pattern shifts? TriArtisan’s co-founder called Denny’s “an iconic piece of the American dream,” which sounds nice but doesn’t pay the bills. They’ll need to figure out how to modernize the menu, improve the delivery experience, and maybe even reconsider those planned restaurant closures.

The deal gives them breathing room, but the fundamental challenges remain. Can a 70-year-old breakfast chain find its footing in a world that’s moved beyond the classic diner? We’re about to find out.