Denny’s reassures fans about future of chain after closing hundreds of stores and $620 million sale
Denny’s planned in 2024 to close 150 underperforming restaurants by the end of 2025, most of which preceded the $620 million buyout
Amid a $620 million buyout and more than 100 restaurant closures, Denny’s is assuring fans it’s not ready to call it “last orders” on breakfast.
The beloved diner chain unveiled a plan in 2024 to close 150 underperforming restaurants by the end of 2025. A few recent shutdowns drew attention after the chain’s $620 million sale to private investors just weeks ago.
The company said the shutdowns aren’t related to the acquisition and that new restaurant openings are still planned for next year. Denny’s shut down 88 restaurants in 2024 and plans to close another 70 to 90 by the end of 2025. So while some communities will lose their local diner, while others get a new eatery.
“Denny’s currently has more than 1,300 restaurants in the U.S. and almost 1,500 restaurants worldwide and continues to open new restaurants,” the company said in a statement to PennLive.
“To further clarify, in November 2025 Denny’s entered into an agreement to be acquired by a group consisting of TriArtisan Capital Advisors, Treville Capital Group and Yadav Enterprises,” the statement added. “The transaction is expected to close in the first quarter of 2026. Between now and then, it is business as usual.”
The Independent has contacted a representative for Denny’s for comment.
On November 3, Denny’s announced that it would be taken private.
Denny’s board approved the deal to go private, giving shareholders $6.25 per share, a 52 percent premium, valuing the company at $322 million. The deal is set to wrap up in the first quarter of 2026.The company reported higher quarterly revenue, $117.7 million compared to $115.9 million in 2024, but system-wide same-restaurant sales were down 1.3 percent year over year.
Denny’s CEO Kelli F. Valade said during the August earnings call that the planned restaurant closures, which began in 2023 and will finish by year’s end, aim to strengthen the franchise system and return to flat or slightly positive growth by 2026, PennLive reports.
The strategy has already boosted average unit volume by about 5 percent or nearly $100,000 per location, she said.
"The surgical and methodical approach, which began in 2023 and will be completed by the end of this year, was specifically designed to optimize and enhance the overall health of the franchise system with the goal of returning to net flat to positive growth by 2026," Valade said at the time.
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