A selection of Krispy Kreme doughnuts.
Nicholas Kamm/AFP via Getty ImagesKrispy Kreme, the doughnut company, is planning a return to the stock market.
In a prospectus made public on Tuesday, shares of Krispy Kreme will trade on the Nasdaq under the ticker DNUT. Companies must wait 15 days after making public the prospectus for an initial public offering before launching a roadshow. This means Krispy Kreme will likely list later this month.
The offering would be the latest consumer brands IPO to come to market this year. Oatly Group (ticker: OTLY), the plant-based food company, went public last month, raising $1.4 billion. Honest Co (HNST), the consumer goods company that sells products like diapers, prenatal vitamins, and hand sanitizer, also listed its shares in May, collecting nearly $413 million.
Known for its glazed doughnuts, Krispy Kreme sold 1.3 billion doughnuts across 30 countries in fiscal 2020. The company sells its product, which it calls “affordable indulgences,” through a network of doughnut shops, partnerships with retailers, as well as an e-commerce and delivery business.
Krispy Kreme, however, is not profitable. Losses nearly doubled, to $60.9 million for the year ended Jan. 3 from $34 million in losses in 2019. Revenue rose nearly 17%, to $1.1 billion this year.
Krispy Kreme plans to use proceeds from the offering to pay off some of its $1.2 billion in debt.
The IPO represents Krispy Kreme’s second trip to public equity markets. Vernon Rudolph founded the company in 1937, when he began selling doughnuts to local grocery stores in Winston-Salem, N.C. Beatrice Foods acquired the company in 1976, about three years after Rudolph died. A group of franchisees bought the company in 1982, and the company went public in April 2000. The company was roiled by accounting issues in 2005 and for years struggled with greater competition, healthier eating trends, and bankruptcy filings by several franchisees. (Krispy Kreme itself did not file for bankruptcy.)
In 2016, the European investment firm JAB Holding took Krispy Kreme private in a $1.35 billion transaction. Tuesday’s prospectus did not disclose how much of the company JAB will own after the IPO. JAB’s portfolio includes Pret a Manager and Panera Bread. A year ago, it took JDE Peet’s (JDEP.Netherlands), owner of the Peet’s Coffee chain, public in an European IPO.
Krispy Kreme, based in Charlotte, N.C., filed to raise $100 million with the IPO. It did not disclose the number of shares it would sell or their price range. That will come with future filings. The $100 million is also considered a placeholder that will likely change with more information.
The prospectus lists 19 investment banks that are working on the IPO. J.P. Morgan and Morgan Stanley are the lead underwriters.
Corrections & Amplification
An earlier version of this article referred incorrectly to Krispy Kreme’s corporate history. Several franchisees filed for bankrupty nearly two decades ago; Krispy Kreme itself did not.
Write to luisa.beltran@barrons.com
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