Denny's, home of ungenerously-portioned American breakfasts, is being acquired and taken private by a consortium of investors led by the private equity firm TriArtisan Capital Advisors. The deal, worth $620 million including debt, will end the diner chain's long run as a publicly traded company. Founded as a donut stand in 1953, Denny's grew to 1,400 locations but has struggled since the Covid pandemic.
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.
Unlike some famous eatery chains, Denny's was successful until it wasn't. Perhaps history will repeat itself:
In 1992, private equity firm, Kohlberg Kravis Roberts acquired a 47% interest in [Denny's owner] TW Corporation, later known as The Flagstar Companies, and encouraged the company to sell non-core businesses…. Eventually, Denny's operations dominated the parent company to such an extent that The Flagstar Companies changed its name again to Denny's Corporation.
I don't imagine 21st century private equity being any more liberal with the scrambled eggs, frankly, but we'll see how it goes.
Previously:
• Denny's 'The Hobbit' Menu Video Review
• Dick Van Dyke breaks out in song to surprised Denny's diners
• Denny's new mascot looks like a turd ?
