It was taken private in 2016 at a valuation of 1.35Bil. Tomorrow at IPO they are pricing shares at $17 for a valuation of 2.72 billion. Really? It's doubled in a 5 year period? No. It hasn't, this is JAB holdings realizing they bought something they probably shouldn't have, milked it for all it's worth and trying to scrap it for more then it paid for.
What are some RED FLAGS you might ask? Take a look at the S-1...
Of the last three fiscal years, it's only lost money in the last three. Said otherwise, 100% of the time of the required amount they need to show they have lost money. FY19-FY20 Organic revenue growth of 1.2%.. That won't even beat inflation. On the bright side- bottom-line was negative. They went from only losing 37 million in 2019 to losing 64 million in 2020. I didn't look to much more in-depth at the S-1 to see the valuation even though below the $21-24 they initially were trying to get.
It also has a billion in debt it didn't have when it went private.. curious...
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Don't be a fool, don't buy Krispy Kreme. The fresh donuts are delicious, but the stock is a no-go.
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S-1 filing on SEC.GOV \- https://www.sec.gov/Archives/edgar/data/0001857154/000119312521177720/d107564ds1.htm#rom107564\_10