Why Denny's Stock Gained 57.8% Last Month

Company Overview - Denny's shares rose 57.8% in November 2025 following a buyout offer from private investors, with a significant gain of 50.4% the day after the announcement [1] - The company is set to go private in early 2026, pending regulatory approvals, with a buyout price of $6.25 per share, representing a 52% premium over the stock's closing price at the time of the announcement [2] Financial Performance - Denny's Q3 2025 earnings report showed the company fell short of Wall Street's consensus estimates, with same-store sales for Denny's declining by 2.9% year-over-year, while Keke's brand experienced a 1.1% growth [3] - Revenue growth for Denny's has been flat over the past three years, with earnings and free cash flows dwindling to near breakeven levels [4] Ownership and Strategic Moves - The new ownership group includes Yadav Enterprises, a major franchise operator that has expanded its portfolio by acquiring multiple restaurant brands, including Del Taco and Taco Cabana [4][5] - Yadav Enterprises is building a diverse conglomerate of restaurant brands, similar to JAB Holdings and Inspire Brands, but it is expected that the brands will remain distinct without significant menu integration [5][6] Investment Perspective - Currently, Denny's stock trades less than 2% below the agreed buyout price, with no indications of competing bids or regulatory issues, suggesting limited upside for investors [7]