Food & Drink

Krispy Kreme parent company buys Panera Bread Co.

  • Last Updated:
  • Apr 7th, 2017 6:54 am
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Dec 7, 2012
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Krispy Kreme parent company buys Panera Bread Co.

Investment firm JAB Holding Co. announced plans to purchase Panera Bread Co. for $315 per share in a cash deal estimated at $7.5 billion.
http://cnews.canoe.com/CNEWS/World/2017 ... 15851.html
ST. LOUIS — Panera is being acquired by Europe’s JAB Holding Co. for more than $7 billion, the second largest restaurant deal ever made in North America.

Americans are likely more familiar with JAB than they know. The Luxembourg investment fund has controlling interests in Peet’s Coffee & Tea, Caribou Coffee Co., Stumptown Coffee and Krispy Kreme Doughnuts. The deal for Panera, however, underscores its sway over what people eat when away from home in the morning.

For days there had been speculation about a takeover at Panera, with Starbucks Corp. being suggested as the potential buyer. Starbucks appeared to shoot down those rumours this week by talking about how excited it was about the launch of a new food menu in Chicago later this month.

On Wednesday, Panera revealed the buyer was JAB, which has quietly become a rival of the giant Seattle coffee brewer.

Panera founder and CEO Ron Shaich said a deal with JAB will allow the company to focus on growth rather than placating shareholders. If and when the deal closes, Panera will be a privately-held company not required to file quarterly financial reports for investors.

Not that Shaich has left investors wanting. Shares are up 50% this year and on Wednesday, the company said that sales rose 5.3% at established company-owned locations in the first quarter, outperforming the broader restaurant industry.

“Many of these deals happen when people feel weak,” said Shaich. “We’re doing this from a position of strength.”

Shaich opened a Boston cookie store in the early 1980s and expanded to more than 2,000 bakery-cafes with annual revenue of $5 billion in sales.

JAB will pay $315 per Panera Bread Co. share. That’s a 14.5% premium to the company’s Tuesday closing price of $274.

The only North American restaurant deal bigger the sale of Panera was, according to FactSet, was the buyout of Tim Hortons in 2014 by the parent company of Burger King, run by 3G Capital.

The Panera deal, which includes approximately $340 million of debt, is expected to close in the third quarter. It still needs the approval of Panera shareholders.

Shares of Panera jumped more than 12% before the opening bell Wednesday.
8 replies
Deal Expert
Feb 9, 2012
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Well, at least it wasn't 3G snatching them up. lol
I actually like the Panera coffee though.
If they switch to Peet's coffee I hope it's just as good. (I have never tried Peet's coffee)
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Sep 19, 2015
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Up until now I had no idea Panera Bread is a $7.5 billion US company. They're more valuable than Bombardier and Blackberry/RIM!!
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sure is .. they charge enough .... had lunch there (soup and sandwich) and typical bills came to $15. Started eating at this place probably 5+ yrs ago and I recalled the same would cost about $10.
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PNRA is up like 6000% since start, insane eh... could be best restaurant stock OF THE CENTURY, says MarketWatch

I feel bad for shorts...I thought about shorting at USD $292 too, then it dropped to $275, then BAM, up to $310+ against $315 buyout price, all in 2 days!!
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Feb 9, 2012
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booblehead wrote: sure is .. they charge enough .... had lunch there (soup and sandwich) and typical bills came to $15. Started eating at this place probably 5+ yrs ago and I recalled the same would cost about $10.
Every so often they hand out coupons. The last one I used (a good 6 months ago, @ location near Eaton Centre) offered a free coffee with sandwich purchase. Sandwich was still rather expensive, but both the sandwich and the coffee were very good.
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Sep 19, 2015
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jerryhung wrote: PNRA is up like 6000% since start, insane eh... could be best restaurant stock OF THE CENTURY, says MarketWatch

I feel bad for shorts...I thought about shorting at USD $292 too, then it dropped to $275, then BAM, up to $310+ against $315 buyout price, all in 2 days!!
Yeah, no one really buys food services stock, so whoever did is deep in the black and in the money.
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Aug 22, 2006
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JKKim2983 wrote: Yeah, no one really buys food services stock, so whoever did is deep in the black and in the money.
To be fair, that's like buying a lottery ticket normally.
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McD has been doing pretty well for the last few yrs

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