Denny's stock is up 50% after company agrees to be taken private in a $620 million deal

By James Rogers

The restaurant chain reached out to more than 40 potential buyers and received multiple offers, according to CEO Kelli Valade

Restaurant chain Denny's is being acquired in a $620 million all-cash transaction by TriArtisan Capital Advisors, Treville Capital Group and Yadav Enterprises Inc.

Shares of Denny's Corp. were skyrocketing Tuesday after the restaurant chain said it agreed to be taken private in a deal valued at $620 million.

Under terms of the deal announced late Monday, a group of investors will pay $6.25 for each Denny's share outstanding, representing a 52.1% premium to Monday's closing price - beating a slew of other buyout bids. The investors are private-equity firm TriArtisan Capital Advisors, investment firm Treville Capital Group and Yadav Enterprises Inc., one of Denny's biggest franchisees.

The stock (DENN) was up 50.2% at 2:30 p.m. Eastern time, putting it on pace for its biggest daily percentage gain since March 19, 2003, when it climbed 52.8%, according to Dow Jones Market Data.

After receiving indications of interest from TriArtisan, Denny's board conducted a review of strategic alternatives. Denny's Chief Executive Kelli Valade reached out to more than 40 potential buyers, she said, and received multiple offers. Valade said that Denny's board considers the deal with TriArtisan, Treville and Yadav to be in the best interests of shareholders and to represent the best path forward for the company.

"We are pleased to enter this transaction, which delivers significant, near-term and certain cash value to our stockholders," Valade said in a statement.

Denny's, which also owns breakfast chain Keke's, has been wrestling with competition and a volatile consumer-spending environment. Set against this backdrop, the company's stock had fallen 32.1% year to date through Monday.

The deal is expected to close in the first quarter of 2026, at which time Denny's will no longer be listed on the Nasdaq.

The acquisition is the latest in a series of recent deals across several industries. Also on Monday, Starbucks Corp. (SBUX) said it is selling a majority stake in its China business to private-equity firm Boyu Capital, in a deal valued at $4 billion.

In September, videogame giant Electronic Arts Inc. (EA) announced that it is being taken private by Saudi Arabia's PIF sovereign wealth fund, Silver Lake and Affinity Partners - the latter a private-equity firm founded by President Donald Trump's son-in-law, Jared Kushner - in a $55 billion deal, which would be the largest-ever leveraged buyout.

That same month, video-platform company Vimeo Inc. (VMEO) said it is being taken private by Italian technology company Bending Spoons in a deal valued at $1.38 billion.

Bill Peters and Claudia Assis contributed.

-James Rogers

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11-04-25 1438ET