Krispy Kreme is expanding into Brazil through a minority interest joint venture with Ipiranga’s AmPm, as announced in February 2024.
BRAZIL – Krispy Kreme has officially entered the Brazilian market with the opening of its first shop in São Paulo’s Avenida Juscelino Kubitschek neighborhood, marking the brand’s latest move in its global growth strategy.
Krispy Kreme is expanding into Brazil through a minority interest joint venture with Ipiranga’s AmPm, as announced in February 2024.
The first shop will open in the Avenida Juscelino Kubitschek area of São Paulo, a bustling neighborhood.
This partnership will leverage AmPm’s extensive network of approximately 1,500 retail locations across the country.
The São Paulo shop is expected to create around 100 direct jobs, with additional opportunities as the brand expands its presence in Brazil.
With annual revenue of US$1.67 billion and a significant debt burden of US$1.35 billion, this expansion represents a key growth initiative.
The venture aims to introduce Krispy Kreme’s Original Glazed doughnuts to Brazilian consumers by late April.
Krispy Kreme International President Raphael Duvivier expressed enthusiasm about the expansion, highlighting the company’s commitment to growing its global footprint while maintaining high-quality standards.
He emphasized that the partnership with AmPm aligns with Krispy Kreme’s capital-light international franchise model, allowing efficient scaling in new markets while prioritizing sustainable and profitable growth.
AmPm President Renato Stefanoni noted that the convenience store chain continuously evolves by integrating new products and partnerships to exceed consumer expectations.
He stated that introducing Krispy Kreme products would enhance AmPm’s offerings with a premium-quality selection, further differentiating its portfolio.
Krispy Kreme operates in 40 countries with more than 30 international franchise partners, enabling efficient scaling. Headquartered in Charlotte, N.C., the brand is globally recognized for its Original Glazed doughnut.
The company recently reported weaker-than-expected financial results for the fourth quarter of 2024.
Earnings per share (EPS) stood at US$0.01, significantly below the projected US$0.10, while revenue reached US$404 million, falling short of the expected US$416.09 million.
In response, Morgan Stanley downgraded Krispy Kreme’s stock to Underweight, reducing its price target to US$6.00.
JPMorgan maintained an Overweight rating but adjusted its price target to US$8.00, while Truist Securities revised its price target to US$12.00, maintaining a Buy rating despite the company’s underwhelming fiscal year 2025 guidance.
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