Sweet Success: Crumbl Cookies Eyes $2 Billion Sale
In a move that could send shockwaves through the dessert industry, the owners of Crumbl Cookies are considering a sale that could value the beloved cookie chain at a staggering $2 billion, including debt. This valuation would be equivalent to more than 10 times its annual earnings before interest, taxes, depreciation, and amortization of nearly $150 million.
A Recipe for Success
Founded in 2017 by cousins Jason McGowan and Sawyer Hemsley, Crumbl has built a massive social media following across platforms like TikTok, Instagram, and YouTube. The company’s distinctive pink boxes with its logo have become a staple in many households. From its humble beginnings in Logan, Utah, Crumbl has expanded to an impressive 1,071 locations across North America.
The Attraction of Franchise Operators
The decision to explore a sale comes at a time when large investment firms are actively seeking to acquire franchise operators. These businesses typically generate steady royalty fees and are less expensive to operate. Recent deals, such as Verlinvest and Mistral Equity Partners’ acquisition of Insomnia Cookies from Krispy Kreme for $350 million, demonstrate the appeal of franchise operators.
A Growing Trend
Private equity firms are also showing interest in restaurant franchise operators. In December, it was reported that Bain Capital is in talks to acquire Sizzling Platter. As the demand for franchise operators continues to grow, Crumbl’s owners are hoping to capitalize on the trend.
The Sale Process
Crumbl is working with investment bank North Point to facilitate the sale process. The company is expected to attract interest from private equity firms, although neither Crumbl nor North Point has commented on the matter.
A Sweet Deal Ahead?
As the sale process unfolds, one thing is clear: Crumbl’s owners are confident in the value of their business. With its strong brand recognition and impressive growth, Crumbl is poised to attract a significant buyer. Whether the deal reaches the expected $2 billion valuation remains to be seen, but one thing is certain – Crumbl’s future looks bright.
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