The Breakfast Chain That Just Sold For $620 Million

It's not a great time for chain restaurants in the U.S. From pizza chains like Pie Five and Pieology struggling to keep their doors open to once-beloved fast-casual spots like TGI Friday's (which has closed many locations in recent years) and fast food fixtures like Hardee's losing their place in Americans' hearts, there's a reshuffle happening in the country's food landscape. While this will mean the end for many of the chains we loved throughout the '80s, '90s, and '00s, it could also be an opportunity for some. Take Denny's, for example. There have been clear signs that the 24-hour diner has been struggling for a while, with widespread closures and faltering revenue reported over the last few years. But according to a November 3 report from ABC News, Denny's has just been sold, and the company's shares jumped an incredible 47% after the acquisition's announcement.

A group of investors is behind the purchase, including Yadav Enterprises, one of the chain's largest franchisees. Other investment groups included in the $620 million deal (which also covers Denny's debt) are TriArtisan Capital Advisors and Treville Capital. The sale came about after the restaurant chain contacted over 40 potential buyers. According to Denny's CEO Kelli Valade, this resulted in several offers.

Denny's investors have announced that they're taking the chain private, so its shares will no longer be traded on the open market once the deal goes through. This is hardly unusual for a private equity purchase and simply means that the new owners will buy shareholders out of the business (likely at a premium) once the acquisition is finalized.

Beyond this change in company structure, we don't yet know what the investment groups who purchased Denny's have planned for the brand, although they have expressed promising enthusiasm for the restaurant chain. Rohit Manocha, managing director and co-founder of TriArtisan Capital Advisors, referred to Denny's as "an iconic piece of the American dream" in a statement, adding that he's looking forward to working with current CEO Kelli Valade and her team "to provide resources and support the Company's long-term strategic growth plans" (via ABC News). Additionally, as Yadav Enterprises is already very involved in franchising Denny's, it seems that the new owners came into the deal with an understanding of the breakfast chain's significance. It has served its loyal customers for over 70 years, ever since Denny's launched as Danny's Donut's in 1953.