Food & Drink

IPO Lands Krispy Kreme A $3 Billion Valuation

The public listing for the most iconic doughnut shop in America glazed over expectations. 

Shares of Krispy Kreme made their highly anticipated return to public markets on Thursday after being taken private by JAB Holdings in 2016 for $1.35 billion. After shares started to trade Thursday afternoon, Krispy Kreme’s market cap rose to nearly $3 billion. By the end of the day, it had hit nearly $3.4 billion.

Trading under ticker DNUT, shares initially priced at $17 per share but soon inched up past $18. Krispy Kreme had initially planned to price between $21 and $24, but lackluster demand had the deal price initially below that range. By the end of Krispy Kreme’s first day, it had risen more than 20% and hit $21 in after-hours trading.

JAB is the investment vehicle of the billionaire Reinmann family, worth at least $16.5 billion by Forbes’ estimates. The four billionaire heirs brought in pros years ago to build a strategy for their family fortune, which extends back to Germany in 1828. The portfolio is now heavy on food companies and includes Panera Bread, Au Bon Pain, Pret a Manger and Caribou Coffee, as JAB has rolled up several coffee brands and sandwich chains to compete with the likes of Starbucks, Dunkin’ and bigger fast-food companies. 

Insiders at JAB have a lockup on selling shares for 180 days—watch out for a stock drop after that. 

Follow me on Twitter or LinkedInCheck out my websiteSend me a secure tip

Chloe Sorvino leads coverage of food and agriculture at Forbes. Her seven years of reporting at Forbes has brought her to In-N-Out Burger’s secret test kitchen,

Chloe Sorvino leads coverage of food and agriculture at Forbes. Her seven years of reporting at Forbes has brought her to In-N-Out Burger’s secret test kitchen, drought-ridden farms in California’s Central Valley, burnt-out national forests logged by a timber billionaire, a century-old slaughterhouse in Omaha, and even a chocolate croissant factory designed like a medieval castle in Northern France. She manages a team of 50+ expert contributors, along with the 30 Under 30 Food and Drink list and the Forbes Ag Tech Summits. Her book on the fight for the future of meat is forthcoming from Simon & Schuster’s Atria Books in 2022. 




Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button