Denny's Announces $620M Take-Private Deal with Private Equity Consortium

Denny's Corporation reported a 2.9% decline in domestic same-restaurant sales, whereas its Keke's Breakfast Cafe brand saw a 1.1% increase, reflecting mixed performance across its brands. Despite missing third-quarter revenue expectations, Denny's leadership remains optimistic, citing strategic initiatives such as enhanced digital engagement, a film partnership, and a new loyalty program aimed at strengthening the brand and customer relationships. Financial challenges persist, including profitability and debt management concerns, highlighted by a low Altman Z-Score. In a significant development, Denny's agreed to be acquired in an all-cash transaction valued at approximately $620 million, offering stockholders $6.25 per share—a 52.1% premium over its last closing price—which will transition the company to private ownership and result in delisting from Nasdaq. The acquisition is expected to close in the first quarter of 2026 following regulatory and shareholder approvals. This deal aligns with recent trends of private equity buyouts in the restaurant sector, involving TriArtisan Capital Advisors, Treville Capital, and Yadav Enterprises, a major Denny's franchisee.