The diner chain’s shares rose nearly 47% in the after-market session.
- A group of investors, including TriArtisan Capital and Treville Capital, will acquire Denny’s for $620 million in cash, including the company’s debt.
- The buyout price of $6.25 per share represents a 52% premium over the stock’s last close.
- Denny’s shares rose nearly 47% in the after-market session.
Denny’s Corp.’s shares jumped 46.7% in after-hours trading on Monday after the diner chain announced a deal to go private at an enterprise valuation of $620 million.
Transaction Details
Private equity firm TriArtisan Capital Advisors, alternative asset investment firm Treville Capital Group, and one of Denny’s largest franchisees, Yadav Enterprises, are acquiring the company. Denny’s shareholders will receive $6.25 per share in cash, a 52% premium to its closing stock price on Monday.
“We are pleased to enter this transaction, which delivers significant, near-term and certain cash value to our stockholders,” Denny’s CEO Kelli Valad said in a statement. “After receiving indications of interest from TriArtisan, the Board conducted a thorough review… the Company reached out to more than 40 potential buyers and ultimately received multiple offers.”
PE Interest In Restaurants
The deal underscores private equity’s rising appetite for the restaurant sector, following recent takeovers of brands like Subway and Dave’s Hot Chicken. Pizza chain Papa John’s is also said to be in buyout discussions with Apollo Global Management. Treville Capital, one of the firms acquiring Denny’s, also owns TGI Fridays and Chinese-food chain P.F. Chang’s.
In recent years, Denny’s has undergone a significant realignment, including shuttering over 100 outlets, trimming its menu, moderating round-the-clock open hours, and expanding its virtual Banda Burrito brand and the Keke’s Breakfast Cafes.
Still, DENN stock has fallen by more than 32% year to date as of its last close.
Soft Results, No Outlook
On Monday, the company posted lower third-quarter profit, as same-store sales in its core restaurant chain fell 2.9%. Revenue and adjusted earnings figures fell short of Wall Street consensus estimates. The company canceled its analyst call and did not provide a 2025 financial outlook.
On Stocktwits, the retail sentiment for the stock climbed multiple points higher in the ‘extremely bullish’ zone, and message volume went up to ‘extremely high’ from ‘high.’ A user speculated that buyouts of Papa John’s and Wendy’s could follow.
The transaction is expected to close in the first quarter of 2026. Truist Securities, Morgan, Lewis & Bockius LLP, Sidley Austin LLP, and Caiola & Rose, LLC advised Denny’s on the deal.
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