Denny's shares jump 50% after it agrees to go private in $322M deal

Core Viewpoint - Denny's has agreed to go private in a $322 million deal, resulting in a 50% increase in its share price, with stockholders set to receive $6.25 per share, reflecting a 52% premium over the previous closing price [1][5]. Group 1: Deal Details - The acquisition is led by TriArtisan Capital Advisors, a private equity firm based in New York, in collaboration with Treville Capital Group and Yadav Enterprises, one of Denny's largest franchisees [2][5]. - The deal has been unanimously approved by Denny's board of directors and is expected to close in the first quarter of 2026 [5]. Group 2: Company Performance - Denny's has faced challenges, including the closure of 180 locations over the past two years and a decline in same-store sales by 2.9% in the third quarter [9]. - The company has struggled to attract customers due to rising prices, leading many to prefer dining at home [9]. - Prior to the recent stock surge, Denny's shares had fallen approximately 34% this year, reaching a 12-year low in February due to disappointing quarterly sales [11]. Group 3: Operational Changes - Denny's has paused its 24/7 service, a significant draw for customers, during the pandemic, with about a quarter of its 1,600 restaurants not yet returning to those hours [6][7]. - The company is undergoing a turnaround effort that includes introducing new menu items and remodeling restaurants [9].