This Wall Street Stock Jumps 50% Minutes Into Trading As $620 Million Acquisition Entices Investors

Shares of the US-based diner chain Denny's Corp. skyrocketed more than 50% at the Wall Street open on Tuesday, Nov. 4, following the announcement of a planned acquisition.

The surge in stock price occurred after Denny's confirmed it is set to be acquired by a group of investors who intend to take the breakfast diner chain private.

Under the terms of the transaction, which was unanimously approved by the Denny's board of directors, the company's shareholders are slated to receive $6.25 per share in cash. This offer price represents a significant 52% premium over the stock’s closing price from the preceding trading day, directly leading to the sharp increase in market activity. The transaction provides immediate and substantial cash value to Denny's investors.

The acquisition group is led by a powerful consortium, primarily featuring TriArtisan Capital Advisors, the private equity firm known for owning the TGI Fridays restaurant chain. TriArtisan is partnering with investment firm Treville Capital and one of Denny’s largest and most established franchisees, Yadav Enterprises. The partnership underscores a strategic effort to leverage both private equity expertise and deep operational knowledge of the diner concept to optimize the brand away from the pressures of quarterly public reporting.

This strategic move highlights a growing trend of established restaurant brands seeking stability and long-term growth by transitioning to private ownership. The deal's finalisation is subject to customary closing conditions, including regulatory approvals and shareholder consent, and is expected to close in the first half of the next fiscal year.