The iconic breakfast chain known for its 24/7 service and Grand Slam Breakfast, Denny's has been acquired in part of a $620 million deal amid financial trouble, the company announced earlier this week .
Denny's board of directors unanimously agreed to the buyout.
A group of investors including TriArtisan Capital Advisors, Treville Capital Group and Yadav Enterprises, Inc. have acquired the Denny's brand and will transition from a publicly-owned company to a privately-owed company after a deal is finalized in early 2026.
"We are pleased to enter this transaction, which delivers significant, near-term and certain cash value to our stockholders," Kelli Valade, chief executive officer of Denny's Corporation said in a release.
"After receiving indications of interest from TriArtisan, the Board conducted a thorough review of strategic alternatives to maximize value with the assistance of external advisors."
Shareholders will receive $6.25 in cash for each share of common stock, totaling $322 million, representing a 52% premium over the company's closing stock price on Monday.
Following the announcement, Denny's shares surged 47% in after-hours trading, the Associated Press reported .
The acquisition comes during a challenging period for the classic diner chain. Denny's has faced plummeting sales during the COVID-19 pandemic and shifting customer habits, including increased reliance on delivery.
Last fall, the company announced plans to close 150 of its lowest-performing locations.
"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," said Rhohit Manocha, co-founder and managing director of TriArtisan, in a statement.
Manocha described Denny's as "an iconic piece of the American dream" with a strong franchise base and loyal customers.
Valade said the company approached more than 40 potential buyers and received multiple offers before concluding this deal was in the best interest of shareholders and the best path forward for the company.
Founded as Danny's Donuts in 1953, Denny's now operates 1,558 restaurants worldwide, including 74 Keke's restaurants, which it acquired in 2022.
The deal is expected to close in the first quarter of 2026, pending approval from Denny's shareholders.
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