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Under the agreement, Denny's shareholders will receive $6.25 per
share in cash for each share of Denny's common stock they own,
or a total of $322 million. That represents a 52% premium to
Denny's closing stock price Monday.
Denny's shares jumped 47% in after-hours trading Monday.
Denny's was founded in 1953 in Lakewood, California, as Danny's
Donuts. The name was changed to Denny's Coffee Shops in 1959 to
avoid confusion with another chain. Denny's began trading on the
New York Stock Exchange in 1969.
Like many casual chains, Denny's saw its sales plummet during
the COVID pandemic. Once the pandemic eased, it found itself
dealing with changing customer dining patterns, including a
heavier reliance on delivery. Denny's has also struggled as
newer chains like First Watch promoted healthier breakfast
options.
Last fall, Denny's said it planned to close 150 of its
lowest-performing locations. At the end of the second quarter,
Denny's had 1,558 restaurants worldwide, including 1,422 Denny's
restaurants and 74 Keke's restaurants. Denny's acquired the
Keke's brand in 2022.
Denny's CEO Kelli Valade said the company reached out to more
than 40 potential buyers and received multiple offers. Valade
said Denny's board believed the deal announced Monday was in the
best interest of shareholders and the best path forward for the
company.
TriArtisan Co-Founder and Managing Director Rhohit Manocha
called Denny's “an iconic piece of the American dream” with a
strong franchise base and loyal customers.
“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," Manocha said in
a statement.
If it's accepted by Denny's shareholders, the deal is expected
to close in the first quarter of 2026.
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