Denny’s Corp. Enters Acquisition Agreement

Denny’s Corp.—owner and operator of Denny’s and Keke’s—is set to be acquired by a group that includes Yadav Enterprises, one of Denny’s largest franchisees. Yadav, which owns and operates approximately 550 restaurants nationwide, also recently announced plans to buy Del Taco.

In addition to Yadav, other parties in the agreement are TriArtisan Capital Advisors (a New York-based private equity investment firm) and Treville Capital Group (an investment firm focused on alternative assets). The all-cash transaction has an enterprise value of approximately $620 million.

Denny’s Corp. canceled its planned third-quarter earnings call, previously scheduled for Nov. 3, in light of the announcement, but shared quarterly financial results.

“We are pleased to enter this transaction, which delivers significant, near-term and certain cash value to our stockholders,” says Kelli Valade, CEO of Denny’s Corp., in a release. “After receiving indications of interest from TriArtisan, the board conducted a thorough review of strategic alternatives to maximize value with the assistance of external advisors. As part of the review, the company reached out to more than 40 potential buyers and ultimately received multiple offers. The board evaluated any potential transaction against Denny’s standalone plan and all external strategic alternatives. After careful consideration of all options and in consultation with external financial and legal advisors, the board 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.”

The buyers plan to provide resources to support the brand’s long-term strategic growth plans. Upon completion of the transaction, Denny’s will become a privately held company.

As of June 25, Denny’s Corp. consisted of 1,558 restaurants, 1,474 of which were franchised and licensed restaurants and 84 of which were company operated. The Denny’s brand spans 1,484 global restaurants, and Keke’s has 74 units.