CHARLOTTE, N.C. - Krispy Kreme, Inc. (NASDAQ: DNUT) has announced plans to enter the Brazilian market through a joint venture with local retailer AmPm Comestíveis Ltda. The renowned doughnut company aims to open a network of Krispy Kreme shops and offer its products at AmPm convenience stores throughout Brazil.
Chief Development Officer of Krispy Kreme, Raphael Duvivier, expressed enthusiasm about introducing the brand's signature fresh doughnuts to Brazil, a country celebrated for its vibrant culture and social dining traditions. Duvivier highlighted the company's commitment to crafting each doughnut by hand daily to ensure consistent quality and taste that resonates with consumers globally.
The collaboration with AmPm, known for its robust retail presence, is expected to leverage the convenience store's experience in supporting iconic brands and expanding their reach. Krispy Kreme's strategy focuses on increasing accessibility to its products and reinforcing the brand's association with joyful experiences, as evidenced by seasonal offerings like its Valentine's Day doughnuts.
This move into Brazil follows Krispy Kreme's successful launch in Paris in December 2023. The company targets a launch window between late 2024 and early 2025 for its Brazilian venture, pending approval from the Brazilian antitrust authority.
Krispy Kreme, headquartered in Charlotte, N.C., operates in over 35 countries and is known for its Original Glazed® doughnut. The company's growth strategy includes expanding its network of fresh doughnut shops, partnerships with leading retailers, and a burgeoning Ecommerce and delivery business that boasts more than 13,000 points of access.
The information in this article is based on a press release statement.
InvestingPro Insights
As Krispy Kreme (NASDAQ: DNUT) sets its sights on the Brazilian market with a strategic joint venture, investors are closely monitoring the company's financial health and growth potential. According to InvestingPro data, Krispy Kreme boasts a market capitalization of $2.28 billion, reflecting investor confidence in its brand and expansion plans. The company has experienced a revenue growth of 9.62% in the last twelve months as of Q3 2023, indicating a positive trajectory in its sales performance.
Two notable InvestingPro Tips suggest a mixed financial perspective for the doughnut giant. Analysts have revised their earnings upwards for the upcoming period, signaling optimism in Krispy Kreme's profitability prospects. This aligns with the company's global expansion efforts, including the recent move into Brazil. On the flip side, the company's short-term obligations exceed its liquid assets, which could present financial challenges in the near term. Despite this, analysts predict that Krispy Kreme will be profitable this year, offering a potential upside for investors.
For those considering an investment in Krispy Kreme, additional insights are available on InvestingPro. There are 6 more InvestingPro Tips that could help investors make a more informed decision. Interested readers can access these tips and take advantage of a special offer: use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/DNUT.
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