Denny’s Corporation announced it will be acquired by a consortium of investors and taken private in a transaction valued at about $620 million, including debt. The deal, unanimously approved by the board, provides $6.25 in cash per share, totaling roughly $322 million in equity value. The buyer group includes TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises, one of Denny’s largest franchisees.
The transaction is expected to close in the first quarter of 2026, pending shareholder and regulatory approval. After completion, Denny’s shares will be delisted from Nasdaq, ending its long tenure as a public company. The chain will continue as a privately held business under its current leadership and brand.
CEO Kelli Valade said the offer “recognizes the strength of the Denny’s brand and delivers immediate value to shareholders.” The investors described the transaction as a partnership to strengthen operations, expand innovation, and provide flexibility for long-term growth.
Market Reaction And Strategic Rationale
The $6.25-per-share offer represents a 52% premium to Denny’s prior close and a 36.8% premium to its 90-day volume-weighted average price. Shares surged about 47% in after-hours trading, reflecting investor optimism about the premium and certainty of cash payment.
TriArtisan Capital Advisors, known for its ownership of TGI Fridays and P.F. Chang’s, said Denny’s remains “one of America’s most iconic family restaurants.” The firm indicated that private ownership will allow more investment in menu updates, digital ordering, and guest experience.
Yadav Enterprises, a major multi-brand operator with more than 400 restaurants, adds operational expertise and familiarity with Denny’s franchise system. The consortium intends to maintain Denny’s headquarters in Spartanburg, South Carolina, and retain its management team.
Denny’s said it had approached over 40 potential buyers before agreeing to this transaction, describing the process as competitive and designed to ensure the best outcome for shareholders.
Industry Backdrop And Performance Trends
Like many full-service restaurants, Denny’s continues to recover from pandemic-era disruptions that shifted dining patterns toward delivery and off-premise consumption. The company has worked to modernize operations, expand digital channels, and improve franchise profitability through simplified menus and technology adoption.
In late 2024, Denny’s announced plans to close about 150 underperforming locations to strengthen margins and focus on higher-volume stores. As of mid-2025, it operated 1,558 restaurants worldwide, including its main brand and Keke’s Breakfast Café, acquired in 2022 to capture the growing daytime dining segment.
The broader U.S. casual-dining sector faces cost inflation, labor pressures, and changing consumer preferences. Competitors such as IHOP, First Watch, and Cracker Barrel have invested heavily in marketing and menu expansion. Despite the crowded field, Denny’s remains one of the most recognizable brands, serving about 400 million guests annually through its largely franchised system.
Industry analysts view this transaction as part of a broader private equity wave targeting restaurant chains with strong brand equity but limited access to capital. Sponsors are betting that focused investment and streamlined operations can unlock value in established yet under-optimized networks.
Future Direction for Denny’s
Since taking the helm in 2022, CEO Kelli Valade has emphasized revitalizing the brand through menu innovation, restaurant redesigns, and digital transformation. She said the deal will help Denny’s “accelerate its strategic plan without the short-term focus of public markets.”
TriArtisan and its partners have a record of repositioning established restaurant brands by improving franchise support, investing in technology, and optimizing unit economics. The shift to private ownership could allow faster decisions on remodels, delivery integration, and partnerships with third-party platforms.
The transaction is expected to close by March 2026, following shareholder approval and regulatory clearance. Once complete, DENN will cease trading publicly, marking the end of more than half a century on Wall Street while beginning a new chapter under private ownership.