Krispy Kreme IPO: Doughnut Maker Returning To Public Market After Best Year, Growth Of Insomnia Cookies

One of the largest doughnut companies is returning to the public markets.

Krispy Kreme IPO: Doughnut chain Krispy Kreme is planning an IPO where shares will trade under the ticker DNUT on the Nasdaq.

Krispy Kreme was taken private in 2016 at $1.35 billion by JAB Holding. Shares previously traded as ticker KKD on the NYSE.

About Krispy Kreme: For more than 80 years, Krispy Kreme has offered fresh doughnuts through retail locations and partnered retailers.

At the end of 2020, Krispy Kreme had over 8,200 global points of access from its stores and partnered retail locations.

Financials: Krispy Kreme saw the highest sales amount in company history in 2020 with sales of $1.12 billion. The company had adjusted EBITDA of $152.8 million in fiscal 2020.

From 2016 to 2020, Krispy Kreme had compounded annual growth of 19.1%

64% of the company’s 2020 sales came from its original glazed donut. The company recognized 75% of sales from popular quantities of 12 or six.

First-quarter revenue for Krispy Kreme was $321.8 million, compared to $261.2 million in the prior year’s first quarter.

Insomnia Cookies: Along with its doughnut business, Krispy Kreme also owns Insomnia Cookies, a growing company that offers cookies, cookie cakes, ice cream, cookiewiches and brownies.

Insomnia Cookies had sales of 65 million cookies in 2020. The brand had 50% of 2020 revenue come from e-commerce.

Insomnia Cookies opened 17 locations in 2020 and has plans to open 30 stores in 2021. The company locations offer delivery up to 30 minutes. The company plans to offer next-day delivery in the future, covering a larger percentage of the U.S. market.

Related Link: An $8.8B Deal Puts Dunkin Donuts Under Same Roof As Sonic, Jimmy John's 

Growth Ahead: Krispy Kreme is growing brand awareness and increased frequency through new holiday offerings and marketing campaigns. This included Mars-themed doughnuts, free doughnuts for people who got Covid-19 vaccines and holiday-themed doughnuts.

Krispy Kreme had over 38 million total media impressions in 2020.

Krispy Kreme owns stores and also operates a franchise business. The company acquired certain franchised locations in the U.S. and also acquired existing franchise businesses in the United Kingdom, Australia, Mexico and Japan last year.

The company is growing its e-commerce business, which represented 18% of U.S. sales in 2020.

Another area for growth and expansion is the company’s branded sweet treat line that will offer doughnut bites and mini crullers in stores under the Krispy Kreme brand.