US 24-hour diner chain Denny’s is embarking on an ‘exciting expansion opportunity’ having completed the acquisition of Keke’s Breakfast Café for $82.5m
Keke's Breakfast Café currently operates 52 locations in Florida | Photo credit: Keke’s Breakfast Café
US diner operator Denny’s Corporation has completed its $82.5m acquisition of Keke’s Breakfast Café from K2 Restaurants, Inc.
Denny’s has said that Keke's Breakfast Café, which currently comprises 52 outlets in Florida, will continue to operate independently from Denny's and will maintain with its own leadership, strategies, products and development initiatives.
Upon announcing the planned acquisition in May 2022, Denny’s said it would expand Keke’s Breakfast Café across multiple US states with the aim of becoming the leading breakfast and brunch dining chain in the country.
“We are excited to officially welcome the Keke’s Breakfast Café team and franchisees to the Denny’s family. The A.M. eatery segment is fast-growing and Keke’s is a brand with attractive unit economics and strong potential. This acquisition provides an exciting expansion opportunity through a complementary concept that serves a different guest and can enhance value for our shareholder,” said Kelli Valade, CEO, Denny’s.
Denny’s, which previously operated under the name Denny’s Coffee Shops until 1960, has 1,634 fast-food restaurants around the world, 1,481 of which are in the US.
In May 2022, the chain reported first quarter operating revenues of $103.1m. It ended the period to 30 March 2022 with $183.8m of total debt outstanding.