In this photo illustration, a Krispy Kreme glazed doughnut is shown on May 12, 2022 in Daly City, California.
Justin Sullivan | Getty Images
Krispy Kreme is currently exploring various strategic options, including a potential cash sale, for its controlling stake in Insomnia Cookies, as announced by the company on Tuesday.
This decision is aimed at allowing Krispy Kreme to prioritize its core donut business, according to the company.
In 2018, Krispy Kreme obtained majority ownership of Insomnia Cookies through a partnership with European investment firm JAB Holding, which had previously taken Krispy Kreme private in 2016. At that time, the deal valued Insomnia Cookies at under $500 million, as reported by CNBC sources.
“Our acquisition of a majority stake in Insomnia Cookies was intended to strengthen our e-commerce and digital capabilities, as well as facilitate the expansion of Insomnia both domestically and internationally,” stated Krispy Kreme CEO Mike Tattersfield. “Both objectives have been accomplished successfully, and now it is time for the next strategic move for both companies.”
Krispy Kreme went public for the second time in 2021, with an estimated valuation of $2.7 billion. The doughnut chain initially went public in 2000 but was privatized through a sale to JAB Holding in 2016.
Insomnia Cookies, renowned for its late-night cookie service, has witnessed a three-fold increase in revenue since 2017, as confirmed by Krispy Kreme on Tuesday. The cookie chain has expanded from over 135 locations in 2018 to its current count of 250 locations.
Founded in 2003 by Seth Berkowitz, a University of Pennsylvania student who now serves as CEO, Insomnia Cookies frequently establishes its bakeries near college campuses to cater to the late-night cravings of students.
“It has been an absolute privilege to partner with Krispy Kreme in this unprecedented phase of growth for Insomnia Cookies,” stated Berkowitz in a press release.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
