Denny's, the breakfast chain known for classic diner food and its Grand Slam Breakfast, is going private in a $620 million deal orchestrated by a group of investors.

The deal, announced Monday, values the chain at $620 million, including debt. The investors purchasing the company are private equity investment company TriArtisan Capital Advisors, investment firm Treville Capital and Denny's franchisee Yadav Enterprises.

Under the agreement, Denny's shareholders will receive $6.25 per share in cash for each share of Denny's common stock they own, or a total of $322 million. That represents a 52% premium to Denny's closing stock price on Monday.

Denny's shares jumped $2.05, or 50%, to $6.17 in early Tuesday trading.

Founded in 1953 as Danny's Donuts, the company changed its name to Denny's in 1959 to avoid confusion with another chain, and began trading on the New York Stock Exchange a decade later. During the past two years, Denny's has struggled to boost sales as consumers shifted toward a reliance on delivery through apps like Uber Eats, while newer rivals such as First Watch offered healthier breakfast menus.

Private equity firm TriArtisan owns restaurant chains P.F. Chang's and TGI Friday's, while Yadav Enterprises owns more than 310 franchise restaurants, including Denny's, TGI Friday's and Jack in the Box.

Treville Capital is an investment firm whose chairman is Michael Ovitz, the co-founder of Creative Artists Agency and former president of the Walt Disney Co.

Denny's reached out to more than 40 potential buyers and received multiple offers, Denny's CEO Kelli Valade said in a statement. Valade said Denny's board believed the deal announced Monday was in the best interest of shareholders and the best path forward for the company.

"Denny's is an iconic piece of the American dream, with a renowned brand, a strong franchise base and loyal customers," said Rohit Manocha, co-founder at TriArtisan, in the statement.

Last fall, Denny's said it planned to close 150 of its lowest-performing locations. At the end of the second quarter, Denny's had 1,558 restaurants worldwide, including 1,422 Denny's restaurants and 74 Keke's restaurants. Denny's acquired the Keke's brand in 2022.

If approved by Denny's shareholders, the deal is expected to close in the first quarter of 2026.

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