Denny's to be acquired by TriArtisan-led group for $6.25 per share

SPARTANBURG, S.C. - Denny's Corporation (NASDAQ:DENN) announced Monday it has entered into a definitive agreement to be acquired by a group led by TriArtisan Capital Advisors in an all-cash transaction valued at approximately $620 million, nearly triple the company's current market capitalization of $210 million.

Under the terms of the agreement, Denny's stockholders will receive $6.25 per share, representing a 52.1% premium to the company's closing stock price on Monday and a 36.8% premium to its 90-day volume-weighted average share price. The offer also exceeds InvestingPro's Fair Value estimate for Denny's, suggesting the deal provides favorable terms for shareholders who have weathered a challenging year with the stock down nearly 33% year-to-date.

The acquiring group includes TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises, which is one of the largest Denny's franchisees. Upon completion of the transaction, expected in the first quarter of 2026, Denny's will become a privately held company and its stock will no longer be listed on Nasdaq.

"This transaction delivers significant, near-term and certain cash value to our stockholders," said Kelli Valade, Chief Executive Officer of Denny's Corporation, in a press release statement. The company's board unanimously approved the agreement after conducting a review of strategic alternatives that included reaching out to more than 40 potential buyers.

As of June 25, 2025, Denny's operated 1,558 restaurants across its Denny's and Keke's brands, with 1,474 franchised and licensed locations and 84 company-operated restaurants. Despite generating $456 million in revenue over the last twelve months and maintaining profitability with a 38.8% gross profit margin, InvestingPro data shows the company has been operating with a significant debt burden, with total debt of $417 million and a concerning current ratio of 0.37.

Rohit Manocha, Co-Founder and Managing Director at TriArtisan, described Denny's as "an iconic piece of the American dream, with a renowned brand, a strong franchise base and loyal customers."

The transaction remains subject to customary closing conditions, including approval by Denny's stockholders and regulatory approvals.

Truist Securities is serving as financial advisor to Denny's, while Global Leisure Partners LLP is advising TriArtisan on the transaction.

In other recent news, Denny's Corporation reported its second-quarter 2025 financial results, which showed a slight miss on both earnings per share and revenue compared to analyst forecasts. The company posted an EPS of $0.09, falling short of the anticipated $0.11, and revenue of $117.7 million, just below the expected $118.18 million. Despite these results, Denny's made strategic financial adjustments by amending its credit agreement with Wells Fargo Bank, extending the maturity date to January 29, 2027, while reducing its borrowing capacity from $400 million to $325 million.

Analysts have responded to the financial results with varying adjustments to Denny's stock price targets. Piper Sandler lowered its price target from $6.00 to $4.00, maintaining a Neutral rating. Meanwhile, Truist Securities reduced its price target to $6.00 from $7.00 but kept a Buy rating, noting potential upside. KeyBanc maintained its Sector Weight rating, reflecting a cautious outlook. These developments highlight the challenges Denny's faces, including a 1.3% decline in same-store sales, as the company navigates a competitive market environment.

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