Dive Brief:
- Denny’s has entered into a definitive agreement to be acquired for $620 million by Yadav Enterprises, TriArtisan Capital Advisors and Treville Capital Group. Yadav Enterprises, an owner-operator of 550 restaurants across several brands, is one of Denny’s largest franchises, according to a Monday press release.
- The all-cash transaction is expected to close during the first quarter of 2026, subject to customary closing conditions, including regulatory and shareholder approval.
- Denny’s has been struggling to grow same-store sales in 2025, reporting a decline of 2.9% during the third quarter, according to an earnings release. It has also closed dozens of underperforming stores.
Dive Insight:
Denny’s has been working on several initiatives, including remodeling restaurants and improving its value proposition in hopes of reversing its sales trouble. So far this year, the chain has remodeled 30 restaurants.
The company plans to launch a broader remodel program in 2026 for its franchised restaurants, CEO Kelli Valade said during the brand’s second-quarter 2025 earnings call in August. Denny’s said at the time that only 20% of franchised restaurants had been remodeled. Renovated restaurants have resulted in strong cash-on-cash returns and have higher guest satisfaction scores, CFO Robert Verostek said during that call.
During the second quarter, the chain launched 4 Slams under $10, which include the Super Slam and Everyday Value Slam. The Super Slam resulted in record-high transactions, and the promotion overall brought in new and lapsed guests, Valade said. Denny’s also saw an increase in traffic with its Buy-One-Get-One Slam for $1.
Even with these strategies in play, the chain's same-store sales have continued to decline. Activist investor JCP Investment Management increased its stake in the company during September. JCP said it intended to meet with the board to discuss opportunities to increase the company’s value.
After TriArtisan reached out to express interest in buying the chain, the board conducted a review of strategic alternatives, Valade said in a statement. During the review, Denny’s reached out to more than 40 potential buyers and received multiple offers, she said.
“The Board evaluated any potential transaction against Denny’s standalone plan and all external strategic alternatives,” Valade said. It “is confident the transaction maximizes value and has determined it is fair to and in the best interests of stockholders and represents the best path forward for the Company,” Valade said
TriArtisan has experience in casual dining, acquiring P.F. Chang’s in 2019. It also once owned TGI Fridays and Hooters of America. Yadav Enterprises has also become an active buyer and is in the process of buying Del Taco for $115 million. It also owns Taco Cabana and Nick the Greek.
