Uganda’s tax system isn’t bringing in enough revenue but is targeting small business the answer? 
The UK has become the world’s fourth largest exporter, but can it maintain this momentum? 
Why banks consider renewable energy to be a riskier investment than fossil fuels 
Nike vs. Adidas: Anthony Edwards’ and Wembanyama’s Sneakers Soar in Popularity 
From Burger King to McDonald’s: Fast-Food Prices Surge Dramatically in Recent Years 
BYD Launches Shark Hybrid Pickup in Mexico, Eyes New Factory Amid US Tariff Hike 
Semaglutide's Benefits Beyond Weight Loss: New Insights from the SELECT Trial 
Latest inflation figures are good news 
Burger King’s Largest Franchisee Carrols, Acquired by RBI for $1 Billion, $500M Revamp 
Some experts say the US economy is on the up, but here’s why voters don’t think so 
High interest rates aren’t going away anytime soon – a business economist explains why 
ECB Calls for Monitoring and Possible Regulation of AI in Finance 
Reducing energy demand and improving efficiency will help prevent the next gas crisis 
Krispy Kreme Inc. announced it is considering the sale of its Insomnia Cookies brand. If this plan pushes through, the company will arrange for an all-cash sale of its majority stake in the US-based chain of bakeries.
Krispy Kreme said it is still at the point of exploring all alternatives, including the unloading of its stake in Insomnia Cookies. The main reason for this is that it would like to direct most of its focus on selling donuts, which is its core business, to begin with.
Krispy Kreme’s Takeover of Insomnia Cookies
In 2021, Krispy Kreme went public for the second time with a valuation of about $2.7 billion at that time. It was in 2000 when it went public for the first time but was taken private when JAB Holding purchased it in 2016.
According to CNBC, the donut and coffeehouse chain acquired a controlling stake in Insomnia Cookies two years after going private. The company bought the cookie firm for less than $500 million.
After the acquisition of a majority stake, the firm expected high profits, and in fact, its expectation for the fiscal year 2023 is about $230 million. Krispy Kreme said that its decision to consider the sale of insomnia Cookies will allow it to unlock shareholder value as well as shift its focus on the production, selling, and distribution of fresh donut products daily.
The Sale of Insomnia Cookies
Fox Business reported that the cookie bakery chain is currently operating more than 250 store outlets across three countries. Krispy Kreme hired Evercore and Morgan Stanley to serve as its financial advisers on the acquisition deal.
“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,” Krispy Kreme chief executive officer, Mike Tattersfield, said in a press release. “Both efforts have been successful and it’s time for the next strategic step for both companies.”
He further stated, “Krispy Kreme has expanded rapidly through our capital light omnichannel 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.”
Photo by: Alex Haney/Unsplash
