Krispy Kreme Donuts filed documents for an initial public offering of $ 100 million on Tuesday, in hopes that its strong revenue growth and modified retail store sales plans may appeal to investors who have had little bites in new restaurant stocks in recent years.
The Winston Salem, North Carolina-based chain plans to use the funds to pay off a 2019 credit facility. The company has $ 1.2 billion in debt, and interest on that debt has largely held the company down. to make a profit despite a constant increase in income.
Krispy Kreme, which will trade on the Nasdaq stock exchange under the symbol DNUT, reported a loss of $ 3 million in the quarter ended April 4, although this was improved from a loss of $ 11.5 million. of dollars in the same period a year ago. The company generated revenue of $ 321.8 million, up 23% from a year ago.
Krispy Kreme was a state-owned company until it was privatized by European investment firm JAB Holdings in 2016.
In the years that followed, he increased his income by an average of 19% per year. In 2018, the company acquired the cookie delivery concept Insomnia Cookies, which currently operates 191 sites.
Krispy Kreme has also shifted its retail strategy to what he calls “delivered fresh every day” in places like convenience stores and grocery stores, choosing to leave unprofitable places and select places where it can supply. fresher donuts. She has also created a line of âbranded goodiesâ for retailers.
The number of Krispy Kreme sites has also increased to 1,515 worldwide last year from 1,409 at the end of 2018, according to federal securities filings. It sells products in an additional 7,371 âdaily deliveredâ locations around the world.
JP Morgan, Morgan Stanley, BofA Securities and Citigroup are the main accounting managers of the Krispy Kreme offering. BNP Paribas, Deutsche Bank Securities, Evercore ISI, Goldman Sachs & Co, HSBC, Truist Securities and Wells Fargo Securities are joint bookkeepers.
Capital One Securities, CL King & Associates, Credit Agricole CIB, Mischler Financial Group, MUFG, Ramirez & Co., Santander Investment Securities and Siebert Williams Shank are co-managers.