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Restaurant chain Denny’s has announced that a group of investors is buying the company, taking the struggling diner chain private. The iconic brand is being acquired in a $620 million deal, including debt, by TriArtisan Capital Advisors, Treville Capital, and Yadav Enterprises, one of its largest franchisees. The company’s board gave the deal its full backing, which means Denny’s will be stepping away from the public markets. Under the agreement, shareholders will get $6.25 per share in cash, a 52 percent premium over Monday’s closing price, valuing the stock at $322 million. Denny’s shares jumped 47 percent in after-hours trading following the news. If all goes according to plan and shareholders approve, the deal is set to wrap up in the first quarter of 2026. Founded in 1953 in Lakewood, California, as Danny’s Donuts, the chain became Denny’s Coffee Shops in 1959 and began trading on the New York Stock Exchange in 1969. Denny’s experienced a sharp drop in sales during the COVID‑19 pandemic and has since faced shifting customer habits, including increased delivery and competition from healthier-focused chains like First Watch. Last fall, the company planned to close 150 underperforming locations. As of the end of Q2, Denny’s operated 1,558 restaurants worldwide, including 1,422 Denny’s and 74 Keke’s locations, the latter acquired in 2022. Denny’s CEO Kelli Valade said the company contacted over 40 potential buyers and received multiple offers, with the board deciding the announced deal was best for shareholders and the company’s future. TriArtisan co-founder Rhohit Manocha described Denny’s as “an iconic piece of the American dream” with a strong franchise network and loyal customer base. “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,” Manocha said in a statement. Meanwhile, Pizza Hut could also be up for sale soon, as the chain struggles to compete with Domino’s and Papa John’s. Yum! Brands announced Tuesday that it is reviewing strategic options for Pizza Hut, including a potential sale of the chain, which PepsiCo once owned. “The Pizza Hut team has been working hard to address business and category challenges; however, Pizza Hut’s performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands,” said Chris Turner, CEO of Yum! Brands, in a press release. Pizza Hut has struggled in recent quarters, with new value-focused menu items failing to boost sales. Yum! Brands reported a 6 percent drop Tuesday in Pizza Hut’s US same-store sales, while Taco Bell and KFC saw growth, with US same-store sales rising 7 percent and 2 percent, respectively. Yum! has not set a timeline for its strategic review of Pizza Hut.
