Crispy Cream Donuts began production at the opening of the Harrods store in London, UK, on October 3, 2003.
David Bebber | Acesparks
Shares of Krispy Kreme rose more than 5 percent after opening at $ 16.30 per share when the company returned to the public markets on Thursday afternoon.
On Wednesday night, the donut chain evaluated its initial public offering, which was well below the planned price of $ 27 to $ 24 per share. The offer raised $ 500 million for the company and was estimated at $ 2.7 billion. Krispy Kreme, which also owns insomnia cookies, is trading on the Nasdaq under the DNUT brand.
The chain first became popular 21 years ago during the dotcom bubble. In 2016, JAB Holding, an investment arm of the Reimann family, privatized Krispy Kreme after buying it for $ 1.35 billion. JAB owns a number of other restaurant businesses such as Panera Bread and Caribou Coffee.
“The change this company has made over the last five years has been amazing,” CEO Mike Tattersfield said on Acesparks’s Squawk Box channel on Thursday. “We worked on our brand, we worked on culture.”
In fiscal year 2020, Crispy Kreme’s revenue grew 17 percent to $ 1.12 billion, but the chain suffered a net loss of $ 60.9 million. It recorded a net loss of $ 10.3 million over the past three fiscal years when it re-opened its 24-hour flagship location in New York City’s Times Square and invested in its business, as it bought many franchised locations. Today, about 85 percent of its locations are owned by companies.
Sales of Krispy Kreme coincide with the busiest week for U.S. IPOs in 2021, with at least 16 other companies making mass debuts.