Why Denny's Stock Gained 57.8% Last Month

Shares of Denny's (NASDAQ: DENN) rose 57.8% in November 2025, according to data from S&P Global Market Intelligence. The soaring gain was a cut-and-dried affair, as the company accepted a buyout offer from a group of private investors on Nov. 3. The stock gained 50.4% the next day and never looked back.

Going private with a Grand Slam premium

The full-service restaurant is going private in early 2026, assuming that the transaction clears the usual range of regulatory hurdles. Two private equity firms teamed up with a leading restaurant franchisee to finance an all-cash bid of $6.25 per share. That's a 52% premium to the stock's closing price on the day of the deal announcement, which also happened to be the scheduled date for Denny's Q3 2025 earnings report.

Under these circumstances, the Q3 report felt a bit redundant. True to form, the company behind the Denny's and Keke's chains fell short of Wall Street's consensus estimates across the board. The Denny's brand saw same-store sales shrink to the tune of 2.9% year-over-year while Keke's enjoyed 1.1% of same-store growth. But the relatively successful Keke's results are a drop in the ocean, with just 78 stores in operation. The Denny's brand had 1,459 locations by the end of the quarter.

Image source: Getty Images.

The emerging Yadav empire adds another dining brand

Denny's revenue growth has been flat over the last three years while trailing earnings and free cash flows dwindled to roughly breakeven levels. The new owners include one of the chain's largest franchise operators, Yadav Enterprises -- which also acquired the Del Taco chain from current owner Jack In the Box (NASDAQ: JACK) in October 2025. Moreover, it acquired Taco Cabana and Nick the Greek a few years ago, and also runs franchises under at least 6 national restaurant brands.

The Yadav group is building an eclectic conglomerate of restaurant brands, similar to the larger JAB Holdings (controlling owner of Krispy Kreme (NASDAQ: DNUT), Panera Bread, and Keurig Dr Pepper (NASDAQ: KDP)) or Inspire Brands (Arby's, Buffalo Wild Wings, Jimmy John's) investor groups.

These impromptu food empires tend to keep their brands separated, so the recent Yadav transactions shouldn't add up to a full-blown taco menu at Denny's in 2026. Anything is possible, but I wouldn't hold my breath waiting for that menu merger.

At this point, Denny's is more interesting from a consumer's point of view than an investor's. The stock currently trades less than 2% below the agreed buyout price, and I haven't heard any rumors of competing bids or regulatory setbacks. So if you own Denny's stock, it seems prudent to sell it and move on. Your holdings are quite unlikely to gain value from here.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.