ENTREPRENEURSHIP

Krispy Kreme Files $100 Million IPO

Share The Knowledge

The company will trade under the ticker DNUT on the Nasdaq.

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!

2 min read

Opinions expressed by Entrepreneur contributors are their own.

The Winston-Salem, North Carolina-based filed documents on Tuesday to go public, according to RestaurantBusinessOnline.com.

Krispy Kreme plans to use the funds to pay off a 2019 credit facility. The donut retailer’s $1.2 billion in debt and interest on debt has kept it from making a profit despite rising profits.

Related: June 4 Is National Doughnut Day. Here’s Where You Can Get Them for Free.

Since 2016, revenues have risen an average 19% each year after European investment firm, JAB Holdings, took the company private. In 2018, the company acquired Insomnia Cookies, a cookie delivery company known for its vegan and three-layer cookies, which has about 191 locations.

Related: Krispy Kreme Is Giving Free Food to Graduates

Krispy Kreme has also found success by adopting a “delivered fresh daily” strategy at grocers and convenience stores while developing a “branded sweet treats” line for retailers. According to a federal securities filing, the donut-maker’s locations numbered 1,515 globally last year, up from around 1,400 in 2018. Its “delivered fresh daily” locations now top 7,300 around the world. 

According to the S-1 prospectus filing, Krispy Kreme saw total net revenues of $321.8 million in the first fiscal quarter of 2021, a 23% increase from the same period a year ago. The company also thrived during the COVID-19 pandemic, posting its highest-ever net revenue of $1.12 billion in fiscal 2020, Fox Business Network reported.

Related: Krispy Kreme Is Ready to Give You a Free Daily Doughnut for the Rest of the Year — But Only If You’ve Been Vaccinated

Source

Tagged with:

Similar Posts