Dannko/iStock via Getty Images
Krispy Kreme (NASDAQ:DNUT) announced on Tuesday that it is exploring strategic alternatives for Insomnia Cookies. The North Carolina-based company will consider an all-cash sale for the retail business as one of its options.
Krispy Kreme acquired a majority stake in Insomnia Cookies in 2018 and expects revenues of approximately $230M in FY23. The company said the decision to move Insomnia Cookies could potentially unlock shareholder value and help it focus on its core strategy of producing, selling and distributing fresh doughnuts daily.
CEO update: “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… 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 operates in three countries and has over 250 bakeries. It is noted to be 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.
Shares of Krispy Kreme (DNUT) rose 2.57% in premarket trading on Tuesday.
