Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

Denny's International N.V. - Lehman Brothers Collection

Denny's International N.V.

List of Deals

Denny's International N.V. was established in Curacao, Netherlands Antilles, in January 1969. Denny's International was a wholly owned subsidiary of Denny's Corporation. After creating this subsidiary, Denny's International sold $15 million in debentures, a significant portion of which was lent to Denny's to be used for general corporate purposes.

The history of Denny's begins in 1953, when Harold Butler founded Danny's Donuts in Lakewood, California. The company earned $120,000 in the first year, leading to additional Danny's Donut shops and a menu expanded to include sandwiches and other entrees. Danny's Donuts was then renamed Danny's Coffee Shops.

In 1959 the company was incorporated in California as Harold Butler Investment Corporation. The chain was renamed Denny's Restaurants, with twenty restaurants by the end of the year.

The company embarked on an ambitious franchising program in 1963 that led to seventy-eight coffee shops operating in seven western states by the end of the year.

In 1966 Denny's made its initial public offering on the American and Pacific Coast Stock Exchanges and in 1967 Denny's became an international company by opening a restaurant in Acapulco, Mexico.

By 1967 Denny's had 128 restaurants in operation, primarily in the western United States. A year later it had 192 restaurants and employed 9,300. During 1968 Denny's merged with Sandy's Restaurant chain and acquired Pioneer Restaurants. In 1968 Denny's had sales of $40.9 million with earnings of $4.2 million. These figures were up from $30.7 million in sales and $3.0 million in net income in the previous year.

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