Denny’s faces shareholder lawsuits over proposed TriArtisan buyout

Denny’s ( (DENN) ) just unveiled an announcement.

On November 3, 2025, Denny’s Corporation agreed to be acquired by Sparkle Topco Corp., an entity controlled by funds managed by affiliates of TriArtisan Capital Advisors, in a merger that will make Denny’s a wholly owned subsidiary and result in the company ceasing to be publicly traded. Ahead of a January 13, 2026 special shareholder meeting to vote on the deal, Denny’s has become the target of two lawsuits filed on December 16 and 17, 2025 in New York state court, as well as multiple stockholder demand letters, alleging that its proxy materials for the merger omitted or misrepresented material information on financial projections, valuation analyses, potential insider conflicts, and the background of the transaction, and seeking to block the deal. While denying any wrongdoing and calling the claims meritless, the company has issued supplemental disclosures expanding detail on the chronology of takeover approaches, outreach to private equity bidders, Truist Securities’ valuation work and prior relationships, and Denny’s own financial projections and cash-flow estimates, in an effort to moot the disclosure-based claims, reduce litigation risk and costs, and provide additional information to shareholders as they consider the proposed $6.25-per-share cash transaction.

The most recent analyst rating on (DENN) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Denny’s stock, see the DENN Stock Forecast page.

Spark’s Take on DENN Stock

According to Spark, TipRanks’ AI Analyst, DENN is a Neutral.

Denny’s overall stock score reflects a mixed outlook. The acquisition news provides a significant boost, suggesting potential value realization for shareholders. However, financial performance challenges and a high P/E ratio weigh on the score. Technical indicators are positive, indicating market confidence, but the lack of earnings call insights leaves some strategic questions unanswered.

To see Spark’s full report on DENN stock, click here.

More about Denny’s

Denny’s Corporation is a U.S.-based full-service restaurant operator best known for its Denny’s diner chain, serving breakfast and casual dining fare through a network of company-owned and franchised locations, with a market focus on value-oriented, mass-market family dining.

Average Trading Volume: 2,300,414

Technical Sentiment Signal: Hold

Current Market Cap: $319.8M

For an in-depth examination of DENN stock, go to TipRanks’ Overview page.