Second IPO
Read management/analysts’ comments on quarterly results
In a submission made to the Securities and Exchange Commission this week, the company said it is planning to return to the stock market. While it intends to have the stock listed under the ticker symbol DNUT, the other terms and the IPO date are yet to be disclosed. In the previous run, the shares traded under the ticker symbol KKD until Krispy was taken private by Germany-based JAB Holding in 2016 for $1.35 billion.
Record Sales
In fiscal 2020, the company recorded total sales of $1.12 billion, the highest in its history. Earnings, adjusted for one-off items, came in at $47.9 million. Full-year adjusted EBITDA was $152.8 million. The combined annual sales growth rate of 19% — between 2016 and 2020 — underscores the sustainability of the business model and resilience to macroeconomic uncertainties like those triggered by the pandemic. It is estimated to have sold 1.3 billion doughnuts in 30 countries last year.
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The management expects that recent growth initiatives, with a focus on innovation and product quality, would position the company to expand its market share in the rapidly growing global indulgence market, with an estimated value of $650 billion. Krispy has been serving doughnuts to all kinds of customers through its retail outlets and partner outlets for 83 years. It has a full-fledged omnichannel network and a fast-growing e-commerce platform.
Road Ahead
After ending what is probably the best year in its history, the company looks to tap new opportunities created by the vaccine-led market reopening. Insomnia Cookies, in which Krispy acquired majority stake a few years ago, continues to be a key growth driver.