Krispy Kreme

Krispy Kreme is an international chain of coffee and pastry shops founded in 1937. In 2013, the first Krispy Kreme institution opened in Russia, and by mid-2021 there are more than 25 coffee houses in the Russian Federation. The company's products are sold in 12 thousand grocery stores and convenience stores in the United States. In addition, the chain operates nearly 1,400 of its own stores.

Performance indicators

2020: Revenue - $1.12 billion, losses - $60.9 million

Krispy Kreme's revenue at the end of 2020 reached a record $1.12 billion, compared to $961 million a year earlier. At the same time, the company ended last year with a net loss of $60.9 million, which is almost double the losses for the previous year ($34 million).

History

2022: Arkady Novikov launched a new chain of doughnuts instead of the departed Krispy Kreme pastry shops

In November 2022, it became known that restaurateur Arkady Novikov launched the Krunchy Dream chain, which specializes in donuts. The new confectionery shops will replace the American chain Krispy Kreme, which left the Russian market in April 2022 amid a special military operation in Ukraine. Read more here.

2021: Nasdaq going public, $2.8 billion valuation

On July 1, 2021, trading in Krispy Kreme shares (ticker - DNUT) began on the Nasdaq exchange. As part of the IPO, the company sold 29.412 million shares at a price of $17/pc, which made it possible to raise about $500 million. The market capitalization of the coffee chain amounted to $2.78 billion.

19 underwriters participate in the IPO, including leading bookrunners JP Morgan, Morgan Stanley, BofA Securities and Citigroup.

The listing was not as successful as Krispy Kreme expected. Initially, the company planned a placement range of $21-24 per paper and hoped to attract $640 million.

Krispy Kreme, a coffee chain operating in Russia, entered the Nasdaq exchange

The company intends to spend the funds earned on the IPO to pay off the debt, buy back shares from some top managers and general corporate needs.

The IPO will mark Krispy Kreme's return to the US stock market five years after the company was taken over by JAB Holding Co in a $1.35 billion deal in 2016. JAB, following its July 2021 IPO, Krispy Kreme will retain a nearly 78% stake in the company.

Krispy Kreme returned to the stock market in a difficult period when the COVID-19 coronavirus pandemic has a strong negative impact on the restaurant market. Breakfast chains including Krispy Kreme are particularly affected in the US in 2020.^[1]

Notes