Krispy Kreme doughnuts are put into production at Harrods in London, United Kingdom, on October 3, 2003. Reuters/David Bebber When Krispy Kreme re-entered the public markets on Thursday afternoon, the company’s stock jumped more than 5% to $16.30 per share. The doughnut restaurant priced its initial public offering at $17 per share on Wednesday night, significantly below the expected range of $21 to $24 per share. The company raised $500 million in the offering, giving it a $2.7 billion implied valuation. The Nasdaq symbol “DNUT” is used by Krispy Kreme, which also owns Insomnia Cookies. During the dotcom bubble, the chain went public for the first time 21 years ago. After purchasing Krispy Kreme for $1.35 billion in 2016, JAB Holding, the Reimann family’s investment arm, made it private. JAB also owns Panera Bread and Caribou Coffee, as well as a number of other restaurant chains. On CNBC’s “Squawk Box” on Thursday, CEO Mike Tattersfield stated, “The change that this firm has done in the last five years has been extraordinary.” “We’ve worked on our brand and our culture,” she says. Krispy Kreme’s revenue increased 17 percent to $1.12 billion in fiscal 2020, yet the firm recorded a $60.9 million net loss. It has posted net losses in each of the last three fiscal years as it reinvests in the business, such as paying $10.3 million to reopen a 24-hour flagship shop in New York City’s Times Square and purchasing many of its franchised sites. Krispy Kreme’s IPO launch coincides with the busiest week for U.S. IPOs so far in 2021, with at least 16 other firms going public./n
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