Vernon Rudolph founded Krispy Kreme in 1937 after buying a secret doughnut recipe from a New Orleans chef. Initially, he sold doughnuts to local groceries before offering them directly to customers. There have been several Krispy Kreme ownership changes since Rudolph’s death in 1973.
In 1976, Beatrice Foods Company acquired Krispy Kreme but the association was short-lived. In 1982, early Krispy Kreme franchises bought the company back from Beatrice.
A Krispy Kreme store in a busy metro area makes 50,000 doughnuts daily. Overall, the company makes over 20 million doughnuts and 32 varieties. This creativity and market analysis makes DNUT stock stand out from other fast food businesses, translating into strong revenue growth. In fiscal 2020, Krispy Kreme generated $1.12 billion in sales, up 17% year-over-year.
The initial franchise investment ranges from $440,000 to $4 million covering equipment, supplies, real estate, and more. Franchisees pay a 4.5% royalty and 1.5% for marketing. High-volume stores can make $60,000 to $70,000 weekly, around $3.4 million annually.
Krispy Kreme filed to trade publicly on the Nasdaq under the ticker DNUT, as it did during its 2000 IPO. The filing must be made public 15 days before the IPO date, suggesting the offering could come as early as June 16, 2021.
Krispy Kreme now has 1,003 locations across Bahrain, Canada, Colombia, Dominican Republic, India, Indonesia, Kuwait, Malaysia, the Philippines, Puerto Rico, South Korea, Taiwan, Thailand, Turkey, the UK, the UAE, and the US.