Can Denny's bounce back from decline? As investors spend $620M to take the brand private, a lot is riding on the deal

Core Insights - Denny's is being sold to a consortium of private-equity and franchise investors in a $620 million deal, marking a significant transition to private ownership [2] - The chain has faced challenges such as rising menu prices, declining customer traffic, and numerous restaurant closures, leading to a contraction in its business [3][4] - Denny's executives believe that going private will provide the necessary capital for remodeling and improving customer experience, which is crucial for a turnaround [6] Business Performance - Denny's sales at locations open for at least a year were down nearly 2.9% by the third quarter of 2025, indicating ongoing struggles in recovery post-COVID-19 [3] - The company has closed dozens of underperforming stores and plans to close an additional 150, reflecting a significant reduction in its footprint [4] Pricing and Customer Trends - Menu prices have increased dramatically, with the Denny's Lumberjack Slam rising from $5.99 a decade ago to $17.99, impacting the traditional customer base [5] - The shift in customer demographics has seen younger consumers opting for faster and trendier breakfast options, contributing to the decline in traffic [3]