Buyers Include MUMBO Restaurant Franchisee Yadav Enterprises; Brand Will Go Private
- TriArtisan Capital Advisors, Traville Capital Group and multi-unit, multi-brand (MUMBO) franchisee Yadav Enterprises will buy the struggling Denny’s diner brand.
- In response to the deal, Denny’s stock prices rose sharply Tuesday.
- Denny’s had approached 40 possible buyers and had received multiple offers, its CEO said.
TriArtisan Capital Advisors LLC, Traville Capital Group and Yadav Enterprises Inc. will pay $620 million cash to buy Denny’s Inc. About $298 million of that amount will be offset by Denny’s debt, CNN and The Wall Street Journal reported, so the net on the deal will be approximately $322 million.
The sale, unanimously approved by Denny’s board of directors, specifies that Denny’s stockholders will receive $6.25 per share in cash for each share of Denny’s common stock they own. That share price represents a 52.1% premium to the stock’s price when the market closed Monday, according to a Denny’s news release. Denny’s Inc., a subsidiary of Denny’s Corp., also owns and operates Keke’s Restaurant Cafés, which was included in the sale.
Denny’s Struggles and Tuesday’s Uptick
The CNN report noted that Denny’s, a 72-year-old brand with the famous tagline “America’s Diner,” has been struggling financially. It was hit particularly hard during the COVID pandemic; the restaurant industry lost $280 billion in sales during the first 13 months of the pandemic alone, per the National Restaurant Association. Denny’s did not rebound as well as some other restaurant brands.
In fact, Denny’s had disclosed that 180 of its locations had been shuttered during the past two years, CNN reported. The chain has been pursuing a turnaround via remodels and new menu items, including value meal deals, to tantalize consumers. Nevertheless, The Wall Street Journal said, sales at Denny’s restaurants that had been operating for at least 12 months fell 2.9% in the most recent quarter. And CNN’s article said only 10 remodels had been completed.
The deal was welcomed by the stock market, however. CNN said shares leaped 50% in premarket trading on Tuesday. Until that price rally, Denny’s stock had lost about a third of its value this year, The Journal and CNN said.
The Word from Denny’s CEO
This transaction “delivers significant, near-term and certain cash value to our stockholders,” Denny’s Corp. CEO Kelli Valade stated in the news release. Denny’s had pursued the sale itself, and she said the company’s leaders had approached about 40 buyers and received multiple offers.
Valade said the accepted offer maximizes value, was determined to be fair and in the best interests of stockholders, and represents the best path forward for the company. “This transaction delivers meaningful value to our stockholders and is a testament to the incredible work of our teams and franchisees,” she said. Valade also praised TriArtisan and Yadav Enterprises as “experienced stewards of leading restaurant brands, and we are excited to work with them as we continue delighting our guests.”
Reaction from TriArtisan
Rohit Manocha, co-founder and managing director at TriArtisan, seconded Valade’s assessment, saying, “We look forward to working with Kelli and the rest of the Denny’s team and franchisees to provide resources and support the company’s long-term strategic growth plans.” As of June 25, 2025: Denny’s had 1,558 restaurants, 1,474 of which were franchised and licensed restaurants and 84 were company operated; Keke’s Inc. had 74 sites, including 52 franchises and 22 company-owned.
If stockholders approve the sale as expected, the new owners plan to take the company private after the deal is finalized during the first quarter of next year. Denny’s has been listed on the NASDAQ stock exchange for about 60 years.
About the Buyers
TriArtisan Capital Advisors is a 23-year-old New York-based private equity firm that invests in companies with a broad range of capital needs. Its portfolio includes P.F. Chang’s and TGI Friday’s restaurant brands, and it is the parent company of Hooters, CNN said.
Founded in 2014, Treville Capital Group LLC is an alternative asset manager that provides financing to high-growth, credit-worthy companies with a focus on asset-based credit, capital solutions and venture capital. The news release also said Treville “offers flexible and creative capital solutions for growing companies seeking alternatives to traditional forms of debt or equity.” It has multiple offices, but its primary headquarters is in New York City.
Yadav Enterprises, which recently acquired Del Taco, is a major franchise owner that operates some 550 restaurants nationwide, including Denny’s, Jack in the Box and TGI Friday’s. Yadav Enterprises also owns the 150-site Taco Cabana, a fast-casual Tex-Mex brand, and Nick the Greek, a fast-casual Greek restaurant with 90 locations. Yadav Enterprises is based in Fremont, Calif.
