DENNY’S officially closed its $620 million deal to be acquired by private equity and investment groups.
The deal comes after several shakeups at the beloved breakfast chain, including a wave of closures.
Denny’s, a popular breakfast fast casual dining chain with over 1,650 locations, completed a deal in January to be sold to private equity groups TriArtisan Capital Advisors LLC, Treville Capital Group and Yadav Enterprises.
The company, which went private after the acquisition, said the deal closed after approval from Denny’s stockholders.
Denny’s said it will have “enhanced flexibility and resources to invest in its brands, support franchisees and accelerate its growth initiatives” with the support of the private equity firms.
“Today represents an important milestone for Denny’s and Keke’s as we embark on our next chapter under new ownership,” Kelli Valade, the CEO of Denny’s Corporation said.
“Our dedication to supporting franchisees and commitment to serving our guests remain the same. We are grateful for the hard work of our employees and franchisees who represent our restaurants with pride every day.”
“With the support of our new owners, we look forward to continuing to serve and delight guests across the nation.”
Dozens of restaurants shut
The news of the closed deal came weeks after Denny’s completed its plans to shutter 150 locations in the U.S.
Additional closures have taken place in recent years, with 88 in 2024. Denny’s also planned to shutter between 70 and 90 more locations in 2025.
“In 2024, Denny’s announced its strategy to close approximately 150 underperforming restaurants by the end of 2025, which the brand has been doing over the course of the past year,” the company said in a statement to PennLive.
“The majority of the locations impacted by this strategy have already closed.”
Valade, Denny’s CEO, said the closures were “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.”
Fast Food Closures
Wendy’s
- Wendy’s confirmed in February that it would shutter dozens of underperforming restaurants in 2026.
- The plans come as the chain looks to enable its franchisees to focus on stores with the “greatest potential for profitable growth.”
- “Under this program, we expect approximately 5% to 6% of US restaurants to close,” CEO Ken Cook said.
- Cook noted the 28 closures that took place in 2025 were factored into the count and that the remaining closures are expected to continue in 2026.
Pizza Hut
- Pizza Hut also confirmed in February that it would close 250 locations in the first half of 2026.
- The news of closures came as its parent company, Yum! Brands, continues to conduct a strategic review of the chain.
- Despite the closures, Yum! Brands, which also operates Taco Bell and KFC, expects “strong gross openings globally which are seasonally in the back half of the year.”
Hardee’s
- Hardee’s abruptly shuttered 77 locations across eight states following a legal battle with a major franchisee.
- Hardee’s had filed a lawsuit against the franchisee, claiming it failed to make payments on time and meet other contractual agreements.
- “These closures are a result of ARC Burger’s failure to cure its defaults under its franchise agreements, despite solid sales and our continued attempts over the course of many months to reach a resolution that would keep these restaurants open,” Hardee’s said.
Leadership switch-up
Days after the fast casual dining chain announced the $620 million deal had closed, Valade announced she would be leaving the company.
The CEO said she would leave her position to become the president and CEO of Women’s Foodservice Forum (WFF), a non-profit dedicated to advancing leaders in the foodservice industry.
She was expected to take on the new role in February.
Valade was the CEO of Denny’s since 2022, and previously held leadership positions as President of Chili’s Bar & Grill and CEO of Red Lobster.
Denny’s told Restaurant Dive in January that Rohit Manocha, who currently serves as executive chairman, and Anil Yadav, a chairman, will oversee executive management after Valade’s departure.
