Denny’s Closes More Stores, Weeks After Its $620M Buyout Deal

• Denny’s has shut down some of its restaurants in California and Ontario.
• Earlier this month, the breakfast diner chain announced a buyout deal with a group comprising TGI Fridays-owner TriArtisan Capital Advisors.
• Denny’s has seen its business decline over the past few years, and last year announced plans to close about 150 restaurants by the end of 2025. 

Denny’s Corp. has begun shutting more stores just weeks after announcing its take-private deal backed by a group comprising TGI Fridays-owner TriArtisan Capital Advisors.

Searches for “Denny's” surged on Google early Thursday. Media reports showed that the breakfast diner chain had closed a location in Santa Rosa, California, while the company announced the closure of one of its Barrie, Ontario, restaurants.

Denny’s had announced last year that it would shut down about 150 underperforming stores by the end of 2025. The company has been struggling with declining foot traffic for some time and has made significant efforts over the past few years to revive the business.

On Nov. 3, Denny’s announced that it would be taken private by a group including private equity firm TriArtisan Capital Advisors, alternative asset investment firm Treville Capital Group, and one of Denny's largest franchisees, Yadav Enterprises.

The deal values Denny’s at $620 million. As per the terms, the company’s shareholders are set to receive $6.25 per share in cash.

PE Interest In Restaurants

The deal underscores private equity's rising appetite for the restaurant sector, following recent takeovers of brands like Subway and Dave's Hot Chicken. Pizza chain Papa John's is also said to be in buyout discussions with Apollo Global Management. Treville Capital, one of the firms acquiring Denny's, also owns TGI Fridays and Chinese-food chain P.F. Chang's.

In recent years, Denny's has undergone a significant realignment, including shuttering over 100 outlets, trimming its menu, moderating round-the-clock open hours, and expanding its virtual Banda Burrito brand and the Keke's Breakfast Cafes.

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