(Bloomberg) — Krispy Kreme reported a rebound in sales ahead of its planned return to public markets as American diners begin to come back to breakfast restaurants across the U.S.
Net revenue at the doughnut chain rose 23% to $321.8 million in the first quarter ended April 4, the company said in a filing with the U.S. Securities and Exchange Commission Tuesday ahead of its initial public offering. Its losses in the period significantly narrowed to $378,000 compared with nearly $11 million a year earlier.
Breakfast has been one of the hardest hit parts of the day for U.S. restaurant chains during the pandemic, with disruptions to commuting and school drop offs hitting those eateries focused on morning meals and coffee particularly hard. Big chains like McDonald’s Corp. that saw morning guest visits drop during the onset of the virus have since seen demand rebound as economies begin to reopen, with many eateries reporting pent-up demand from consumers tired of cooking breakfast at home.
Since its acquisition by JAB in 2016, Krispy Kreme has expanded its e-commerce business, which now accounts for close to a fifth of sales in the U.S., fueled by its Insomnia Cookies delivery concept. It has also tightened control of its distribution network by buying back some of its franchises in the U.S., plus purchasing the existing businesses in the U.K., Australia, Mexico and Japan.
JAB also controls restaurant brands Panera Brand and Pret a Manger. Last year, the investment firm led an IPO of its JDE Peet’s coffee business.
The company plans to list on the Nasdaq under the symbol DNUT. The lead book-running managers are J.P. Morgan, Morgan Stanley, BofA Securities and Citigroup, according to the filing.
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