Denny's $620 Million Deal: Oppenheimer Says Not Expecting ‘Competitive Bidding Process’

• Oppenheimer downgraded Denny's to ‘Perform’ from ‘Outperform’ after the company agreed to be acquired for $6.25 per share.
• Oppenheimer does not anticipate a competitive bidding process for Denny’s and expects the deal to close as planned in the first quarter of 2026.
• Truist Securities also downgraded Denny's to ‘Hold’ from ‘Buy’ with an unchanged price target of $6. 

Denny’s Corp (DENN) stock surged over 50% in premarket trading on Tuesday, even as it saw a couple of Wall Street downgrades following the decision to go private in a $620 million deal by a group of investors, including Yadav Enterprises, its largest franchisee.

Oppenheimer downgraded Denny's to ‘Perform’ from ‘Outperform’ after the company agreed to be acquired for $6.25 per share, according to TheFly. The firm does not anticipate a competitive bidding process and expects the deal to close as planned in the first quarter of 2026.

Truist Securities also downgraded Denny's to ‘Hold’ from ‘Buy’ with an unchanged price target of $6. The firm also noted that the downgrade followed the going-private decision.

The Group Of Investors

Denny’s is being taken private by TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises. Yadav Enterprises is the owner-operator of approximately 550 restaurants nationwide.

TriArtisan is known for investing in global restaurant and hospitality assets, including P.F. Chang’s.

Last week, Mizuho initiated coverage of Denny's with a ‘Neutral’ rating and $5 price target, according to TheFly. The firm views the shares as fairly valued, given the lack of visibility into the company's long-term growth.

How Did Stocktwits Users React?

Retail sentiment on Denny’s improved to ‘extremely bullish’ from ‘bullish’ territory compared to a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Shares of Denny’s have gained over 2% this year and declined nearly 12.5% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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