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Krispy Kreme Inc. said Tuesday it’s exploring its strategic options for Insomnia Cookies, including a potential all-cash sale.
The company
DNUT,
acquired a controlling stake in Insomnia Cookies in 2018 and is expecting the provider of warm cookies and ice cream for delivery to generate sales of about $230 million in fiscal 2023.
Insomnia was started as a late-night bakery in Philadelphia by then-student Seth Berkowitz and has been delivering its warm cookies day and night since 2003.
“Today’s decision enables Krispy Kreme to unlock shareholder value and focus on its core strategy of producing, selling and distributing fresh doughnuts daily,” the company said in a statement.
Krispy Kreme currently sells doughnuts from nearly 13,000 points of access daily and is aiming to expand to more than 75,000 points, by entering three to five new countries a year and developing channels like quick service restaurants, said Chief Executive Mike Tattersfield in a statement.
The company has hired Evercore and Morgan Stanley as financial advisers.
The stock was up 3% premarket and has gained 20% in the year to date, while the S&P 500
SPX
has gained 11.7%.
