Krispy Kreme Set to Go Public After the Company Confidentially Filed for an IPO Earlier This Year

By Thomas Price Wednesday, May 5, 2021

With a major surge in companies going public through special purpose acquisition companies (SPACs) and initial public offerings (IPOs), several different business types have entered the stock market. This now includes coffee and doughnut company Krispy Kreme, which recently confidentially filed for an IPO with the intention of becoming a publicly traded business later this year. Krispy Kreme also has been expanding on its business decisions to show its value to potential investors and maintain relevance in the public eye.

Box of Krispy Kreme donuts.

Current Details Available About the Krispy Kreme IPO

While not much is known about the Krispy Kreme IPO so far, the doughnut company had publicly announced the confidential filing with US regulators earlier this week to much fanfare. Krispy Kreme had previously taken the business public in 2000 as it looked to capitalize on the massive popularity of its product. However, despite the excitement surrounding the doughnuts themselves, the initial experiment on the public market did not go as planned.

Following a series of financial restatements, investigations into company accounting practices, and surprisingly, poor sales at a number of locations across the United States (US), Krispy Kreme plummeted to nearly $1 per share. This eventually led to the company filing for Chapter 11 bankruptcy.

Krispy Kreme was then bought in 2016 by JAB Holding Co. for $1.35 billion and has remained a private company since then. However, following a renewed enthusiasm for dessert items during the COVID-19 pandemic alongside the historically massive $167 billion raised by companies going public in 2020, Krispy Kreme sees a major opportunity in 2021. This is especially true considering that most analysts expect to see even more money raised this year.

Krispy Kreme has also been making several business decisions to boost company value and garner public excitement for doughnuts.

Krispy Kreme Promotions and Marketing

The doughnut company has been making refurbishments to locations across the US in recent years to maintain a classic yet modern design that does not get stale over time. The company has also been opening up new locations, with the crown jewel being a 4,500 square foot shop on Times Square in New York City that debuted last year.

The Times Square location comes equipped with a glaze waterfall, a 24-hour doughnut pickup window, and a doughnut-making theater that can make over 4,500 doughnuts in just one hour.

Outside of new locations, the business also launched a promotional campaign promising all customers a free doughnut if they showed proof of a COVID-19 vaccination. While the campaign may not spur a major jump in revenues, the announcement made major headlines that brought significant attention to the Krispy Kreme product once again.

As it currently stands, Krispy Kreme operates nearly 1,400 shops in 33 different countries, while an additional 12,000 grocery and convenience stores sell branded products. Considering the widespread reach of the business, public valuation will certainly be much higher than the $1.35 billion price tag it was purchased for back in 2016.

The company has yet to release target prices for shares or any further details about the IPO, though it is expected to take place this year almost immediately after the SEC approves the filing.

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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