Krispy Kreme, the doughnut giant owned by European investment firm JAB Holding, is planning to sell stock to the public.
The company revealed its financials for the first time Tuesday as it prepares for a public listing in the United States. The company’s sales grew 17% to $1.1 billion its last fiscal year, up from $959 million (not $959,000, as previously written here) the year before. Losses, though, nearly doubled, to $60 million from $34 million as the company doubled down on efforts to transform itself. That includes the $20 million it spent on consulting and advisory fees, personnel transition costs, buying out its franchisees and other initiatives.
JAB acquired Krispy Kreme for roughly $1.35 billion in 2016, adding the doughnut seller to a portfolio of consumer brands that now includes sandwich shop Panera and coffee chain JDE Peets.
The firm has since taken JDE Peets public and is laying the groundwork to do the same with Panera. The initial public offering market has been wide open for consumer brands like Oatly, the dairy-free milk producer, and Honest Co., the online consumer products retailer. Digital brands like Warby Parker, the eyeglass store, and AllBirds, the Silicon Valley shoe favorite, are also considering offerings.
But unlike many of those brands, Krispy Kreme is no startup. The 83-year-old company first went public in 2000 before its sale to JAB. It must contend with new health trends, as well as a dining backdrop that has transformed considerably over the past year, as restaurant giants poured money into technology to adapt to the remote needs of customers. Among the leaders was Dunkin’ Brands, which was acquired by Inspire Brands, parent of Arby’s, for $11 billion last year.
Krispy Kreme says it is not a restaurant but “an affordable indulgence.” The brand said in its IPO prospectus its doughnuts are “world-renowned for their freshness, taste and quality,” and it highlighted its ability to create “major media-driven events,” like its doughnut giveaway to promote coronavirus vaccinations.
Shares will trade on the Nasdaq stock exchange under the symbol DNUT.