"They’re iconic brands and it takes forever to build that brand equity,” Conrad Lyon, an analyst at Los Angeles-based B. Riley, said in a telephone interview. “To be able to write a check and add that to your portfolio is probably pretty attractive.”
That about sums it up.
Anybody who thinks they could acquire this Brand for less than $1 Billion would most likely be mistaken.
Well there it is in the Press Release this morning on hiring of new Franchise Development VP:
"Patricia is an industry professional who brings current, relevant QSR franchise development skills to Krispy Kreme," said Cindy Bay, Senior Vice President, U.S. Operations and Franchising. "We have expressed our intention to re-focus on domestic franchise growth at the appropriate time, and we are now ready to begin executing a focused strategy of franchise expansion in the United States."
"I am extremely excited to be joining the team at Krispy Kreme, especially at such an exciting time," Perry said. "As one of the most recognizable brands in the world, I believe Krispy Kreme's U.S. franchising opportunities are enormous."
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"As one of the most recognizable brands in the world, I believe Krispy Kreme's U.S. franchising opportunities are enormous."
Yes...the opportunities do seem ENORMOUS. And Again...WHY? BRAND!
The Brand alone is probably worth hundreds of millions!
It looks like the Company is planning on NOT being taken over as they see a TREMENDOUS opportunity for stable HIGH Growth ahead.
Would have to guess it would need to be a substantial Premium paid by an acquirer to get control.