Markets: Doughnut Chain Krispy Kreme Files For IPO

Krispy Kreme logo

Krispy Kreme, the popular global doughnut chain, has filed for a US IPO. The company has unveiled its S-1 filing with the US SEC, showing its plans to list on the Nasdaq stock exchange. 

  • This isn’t the first time that Krispy Kreme is heading for the public markets. It was a public company from 2000 to 2016 before getting bought out by its current owner JAB Holding Company. JAB is a German family-controlled conglomerate.
  • After five years under private ownership, Krispy Kreme is now set to start trading on the Nasdaq stock market again. Before its takeover, the company had some operational and financial issues, with sales falling low after a few years of outsized demand. 

  • Here, we’re breaking down some of the most important bits gotten from Krispy Kreme’s S-1 filing, mostly on its revenues.

Details

  • Krispy Kreme had $1.1bn in sales in its most recent fiscal year ended January 3, 2021. That was up compared to $959mn in 2019 and $796mn in 2018. It’s such that Krispy Kreme’s revenue grew very substantially from 2018 to 2019 but not as much from 2019 to 2020 due to a pandemic that broadly affected physical retail sales.
  • Krispy Kreme isn’t profitable on a net basis, reporting small annual net losses from 2018 to 2020. In its most recent fiscal year, it reported a net loss of $61mn, compared to $34mn in the year before that.
  • As of this year’s beginning, Krispy Kreme had 1,687 branded shops around the world, of which 879 are company-owned and 808 were franchised. For comparison, it had roughly 1,100 branded shops in 2016, the year it was taken private.
  • In its S-1 filing, Krispy Kreme listed the size of its share offering at $100mn. However, that’s often a placeholder amount used to calculate listing fees and is subject to change.
  • Krispy Kreme is listing on the Nasdaq under the “DNUT” trading symbol. It’s tapped banks including J.P. Morgan and Morgan Stanley to underwrite its IPO.

More on IPOs;

Leave a Reply

Your email address will not be published.