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Bloomberg
Krispy Kreme Inc’s shares rose in their first day of trading, giving the doughnut chain a much-needed lift a day after it was forced to downsize its initial public offering.
The stock reversed an early decline and jumped 24% to $21 a share in New York. The Charlotte, North Carolina-based company, which is owned by investment firm JAB Holdings BV, opened at $16.30, below the $17 IPO price.
The roller-coaster debut reflects the volatile environment for restaurants as the pandemic subsides.
Many US eateries, particularly those focused on breakfast, faced a difficult period of store closures and reduced sales as Covid-19 led Americans to eat more at home.
Krispy Kreme Chief Executive Officer Michael Tattersfield downplayed the stock’s early performance, saying he was focused more on the investor base than the stock price.
“How I measure it is a little different — when you look at who is the quality of the investor that you brought on in your IPO,†he said. He said Krispy Kreme has attracted long-term holders, including sovereign wealth funds.