Denny's is set to go private in a $620 million acquisition by TriArtisan Capital Advisors, Treville Capital, and Yadav Enterprises, offering shareholders a 52% premium per share.

Target Information

Denny's, a renowned breakfast chain established in 1953, is known for its classic diner fare and signature Grand Slam Breakfast. Originally launched as Danny's Donuts, the company rebranded to Denny's in 1959 to distinguish itself from a similarly named competitor. Denny's made its debut on the New York Stock Exchange ten years later. Recently, the chain has faced challenges in maintaining sales due to a growing consumer preference for delivery services via platforms like Uber Eats, in addition to facing increasing competition from newer establishments focused on healthier breakfast options, such as First Watch.

The company announced a significant shift in ownership, as it plans to go private in a $620 million deal, including debt. Shareholders will receive $6.25 per share for each share of Denny's common stock they own, totaling approximately $322 million, which equates to a 52% premium over its closing stock price on the day the deal was announced.

Industry Overview

In the United States, the restaurant industry, particularly the breakfast segment, has seen notable shifts in consumer behavior in recent years. The rise of food delivery services has fundamentally altered how breakfast is consumed, with m