Marriott Seeking to Buy Denny's Restaurant Chain
May. 29, 1987
LA MIRADA, Calif. (AP) _ Marriott Corp.'s stock fell Friday following the company's announcement that it was negotiating to buy Denny's Inc., a privately held restaurant and doughnut-shop chain.
Marriott's common stock lost $1.12 1/2 a share, to $40.25, in New York Stock Exchange composite trading.
Marriott disclosed the negotiations in a brief announcement from its Washington, D.C., headquarters on Thursday. Denny's, based in La Mirada, declined to comment.
Denny's was taken private in a $753.4 million deal in January 1985 by members of management and Merrill Lynch Capital Markets.
In an effort to raise about $90 million in capital, the company late last year sold off 58 percent of its Winchell's Donut Houses subsidiary in a limited partnership.
Denny's operates about 1,200 family restaurants nationwide, as well as 750 Winchell's doughnut shops and 19 El Pollo Loco outlets that sell Mexican-style charbroiled chicken.
The El Pollo Loco outlets wouldn't be included in the deal, Marriott said.
Marriott is a diversified hospitality company, whose holdings include more than 140 hotels with over 60,000 rooms, catering operations for more than 150 airlines around the world and ownership or franchising of more than 1,400 restaurants in 39 states, Canada and Japan.
Marriott's restaurants include Big Boy family restaurants, Roy Rogers fast food outlets and Hot Shoppes cafeterias.