TLDR
- Denny’s agreed to be acquired by a group including TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises for $620 million
- Shareholders will receive $6.25 per share in cash, a 52.1% premium to Monday’s closing price
- The deal is expected to close in the first quarter of 2026 after shareholder and regulatory approval
- DENN stock jumped 50% on Tuesday following the announcement
- Oppenheimer downgraded the stock from Outperform to Perform, expecting no competitive bidding process
Denny’s stock jumped 50% on Tuesday after the restaurant chain announced it will be taken private. The company reached an agreement with a group of investors who will pay $620 million for the business.
The buyer group includes three parties. TriArtisan Capital Advisors is a private equity firm leading the deal. Treville Capital Group is an investment firm also participating. Yadav Enterprises rounds out the trio as one of Denny’s largest franchisees.
Shareholders will receive $6.25 per share in cash. This represents a 52.1% premium over the stock’s Monday closing price. The offer also sits 36.8% above the 90-day volume-weighted average share price.
The transaction values Denny’s at approximately 7.8x its 2025 estimated EBITDA. For 2026, the multiple comes in at 7.6x based on analyst projections. These multiples reflect how the buyers are valuing the company’s earnings power.
CEO Kelli Valade spoke about the decision. She said the board carefully reviewed all options with financial and legal advisors. The board believes the deal maximizes value for shareholders and represents the best path forward.
Trading Activity and Recent Performance
Trading volume exploded on Tuesday. More than 10 million shares changed hands compared to the typical three-month average of 813,000 shares daily. This spike shows how investors reacted to the news.
The stock’s recent history hasn’t been pretty. DENN fell 32.07% year-to-date before Tuesday’s surge. Over the past 12 months, shares dropped 41.78%. Monday did see a 5.12% gain before the acquisition announcement.
Wall Street analysts maintain a Moderate Buy consensus rating. This is based on two Buy ratings and five Hold ratings from the past three months. Their average price target sits at $5.35.
Analyst Response to the Deal
Oppenheimer changed its stance immediately. The firm downgraded Denny’s from Outperform to Perform following the acquisition news. The analysts don’t expect a competitive bidding process to emerge.
The firm believes the deal will close as planned in Q1 2026. They noted that shares likely won’t trade on fundamentals while the acquisition process plays out. This influenced their decision to move to a neutral rating.
The deal still needs approval. Shareholders must vote on the transaction. Regulators also need to sign off before the sale can finalize.
Yadav Enterprises brings an interesting angle to the deal. The company operates as a major franchisee for both Denny’s and Jack in the Box restaurants. This gives them insider knowledge of the business model.
Denny’s reported disappointing results earlier this year. Same-store sales declined 1.3% in the second quarter of 2025. EBITDA and earnings per share came in below analyst expectations.
The company had been pushing value offerings to attract customers. Economic conditions made dining out more challenging for consumers. Previous analyst downgrades from Piper Sandler and neutral ratings from KeyBanc reflected concerns about the business.
Denny’s also amended its credit agreement recently. The company reduced borrowing capacity from $400 million to $325 million. The maturity date was extended to January 29, 2027.
The take-private deal gives shareholders a clear exit at a premium price. The $6.25 per share offer stands well above where the stock was trading. For a company struggling with sales and profitability, the buyout provides certainty.
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