Decision will allow Krispy Kreme to unlock
value in the highly successful Insomnia platform and focus on its
core strategy of producing, selling and distributing fresh
doughnuts daily
Insomnia has tripled its revenue since 2017
Krispy Kreme, Inc. (NASDAQ: DNUT) today announced it is
exploring strategic alternatives for Insomnia Cookies, to include
considering an all-cash sale. Krispy Kreme acquired a majority
stake in Insomnia Cookies in 2018 and expects revenues of
approximately $230 million in fiscal year 2023. Today’s decision
enables Krispy Kreme to unlock shareholder value and focus on its
core strategy of producing, selling and distributing fresh
doughnuts daily.
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“We acquired a majority stake in Insomnia Cookies to build our
e-commerce and digital capability as well as assist Insomnia’s U.S.
and International expansion. Both efforts have been successful and
it’s time for the next strategic step for both companies,” said
Mike Tattersfield, Krispy Kreme CEO.
“Krispy Kreme has expanded rapidly through our capital light
omni-channel model, and the brand is now in 37 countries selling
fresh doughnuts through nearly 13,000 points of access daily,”
continued Tattersfield. “Looking ahead, our goal is to expand to
more than 75,000 points both by entering 3-5 new countries each
year and developing new channels like quick service
restaurants.”
Insomnia Cookies, the cookie brand known for serving warm
cookies all day and late into the night, has rapidly grown since
the 2018 acquisition, operating in three countries with over 250
bakeries. It is a pioneer and industry leader in digital marketing
and e-commerce revenue, with 45% of revenue generated digitally
while driving industry leading capital return over the past few
years.
“It has been an honor to partner with Krispy Kreme in an
unprecedented chapter of growth for Insomnia Cookies,” said Founder
and Insomnia CEO Seth Berkowitz. “As we enter our 20th year of
delivering warm, delicious cookies, we are now a sizeable
multi-channel enterprise but still have a huge runway ahead in the
attractive $700 billion indulgence industry*, and I look forward to
leading our Insomniacs in our next phase of significant domestic
and global expansion.”
Krispy Kreme has hired Evercore and Morgan Stanley & Co. LLC
to act as financial advisors.
*Source: Euromonitor, June 2023
About Krispy Kreme
Headquartered in Charlotte, N.C., Krispy Kreme is one of the
most beloved and well-known sweet treat brands in the world. Our
iconic Original Glazed® doughnut is universally recognized for its
hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme
operates in more than 30 countries through its unique network of
fresh doughnut shops, partnerships with leading retailers, and a
rapidly growing Ecommerce and delivery business with nearly 13,000
fresh points of access. Our purpose of touching and enhancing lives
through the joy that is Krispy Kreme guides how we operate every
day and is reflected in the love we have for our people, our
communities, and the planet. Connect with Krispy Kreme Doughnuts at
WWW.KRISPYKREME.COM, or on one of its many social media channels,
including WWW.FACEBOOK.COM/KRISPYKREME and
WWW.TWITTER.COM/KRISPYKREME.
About Insomnia Cookies
Insomnia Cookies is a rapidly expanding late-night bakery
concept headquartered in Philadelphia, PA. Founded at the
University of Pennsylvania by then-student Seth Berkowitz, Insomnia
Cookies has been feeding the insatiable hunger of loyal Insomniacs
since 2003. Today, with over 250 locations worldwide, Insomnia
Cookies offers a wide variety of delicious cookies, ice cream, and
other sweet treats in-store, for local delivery, and nationwide
shipping. Details about Insomnia's menu, delivery, and nationwide
shipping options can be found here (late-night delivery until 1
a.m. or later). To place an order or learn more about Insomnia
Cookies, visit www.InsomniaCookies.com. Keep up-to-date on the
latest cookie news and grand opening deals by following Insomnia
Cookies on Instagram, Facebook, Twitter, and TikTok.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties. The words “expect,” “goal,” or
similar words, or the negative of these words, identify
forward-looking statements. Such forward-looking statements are
based on certain assumptions and estimates that we consider
reasonable but are subject to various risks and uncertainties and
assumptions relating to our operations, financial results,
financial conditions, business, prospects, growth strategy and
liquidity. Accordingly, there are, or will be, important factors
that could cause our actual results to differ materially from those
indicated in these statements. The inclusion of this
forward-looking information should not be regarded as a
representation by us that the future plans, estimates, or
expectations contemplated by us will be achieved. Our actual
results could differ materially from the forward-looking statements
included herein. Factors that could cause actual results to differ
from those expressed in forward-looking statements include, without
limitation, the risks and uncertainties described under the
headings “Cautionary Note Regarding Forward-Looking Statements” and
“Risk Factors” in our Annual Report on Form 10-K for the year ended
January 1, 2023, filed by us with the Securities and Exchange
Commission (“SEC”) and described in the other filings we make from
time to time with the SEC. We believe that these factors include,
but are not limited to, changes in consumer preferences, the impact
of inflation, the inability to identify strategic partners, and our
ability to execute on our omni-channel business strategy. These
forward-looking statements are made only as of the date of this
document, and we do not undertake any obligation, other than as may
be required by applicable law, to update or revise any
forward-looking or cautionary statement to reflect changes in
assumptions, the occurrence of events, unanticipated or otherwise,
or changes in future operating results over time or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20231002459647/en/
Investor Relations Stephanie
Daukus IR@KRISPYKREME.COM
Financial Media Edelman
Smithfield for Krispy Kreme, Inc. Ashley Firlan & Ashna Vasa
KRISPYKREMEIR@EDELMAN.COM
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