Krispy Kreme and More: Restaurant IPOs in 2021 Face Mixed Fortunes
Several restaurant chains that went public in 2021 have seen their share prices plummet, with Krispy Kreme being one of the most notable, now trading below $4 after starting at $17. Despite mixed fortunes, Dutch Bros has bucked the trend, currently trading above its IPO price of $23.
Krispy Kreme's share price has dropped by 77% since its IPO, with profitability concerns, poor sales, and quality issues with its McDonald's rollout contributing to its decline. Other chains like Sweetgreen and Portillo's have also seen significant drops, by 71% and 70% respectively, due to profitability issues and expansion struggles. First Watch, while not performing as poorly as others, is still facing profitability challenges and traffic growth issues, with its share price only slightly below its IPO price. Dutch Bros, however, has seen its share price more than double since its IPO, despite facing sales challenges and high labor costs in California.
The performance of these restaurant chains since their 2021 IPOs varies greatly, with Krispy Kreme and others struggling, while Dutch Bros has thrived. Despite the mixed results, investors will continue to watch these chains as they navigate the competitive restaurant industry.
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