Krispy Kreme has become the first food brand to feature in the top 20 of The Sunday Times’ Profit Track 100, which ranks the fastest growing businesses in Britain.
Published earlier this month, the league table shows that Krispy Kreme UK experienced annual compound profit growth of more than 84% during the last three years. The coffee and doughnut retailer’s last recorded profit was shown as £6.2m.
According to the company, the chain “has seen strong results from its network expansion, enhanced by strong product innovation,” since launching in 2003. Last year, Krispy Kreme expanded its distribution network to 670 locations in the UK; this included five new retail stores in key locations, and the brand has plans for 60 “additional touch points” in 2015.
The Sunday Times’ annual Profit Track 100 records the fastest growing companies in the UK based on their operating profits. Sponsored by accountancy firm BDO, the next fastest growing food company on the list was biscuit and cake manufacturer Tunnock’s, which generated average three-year growth of 78%.
Krispy Kreme UK chief executive officer Mike Dowell said: “We’re delighted that this success is being recognised in The Sunday Times BDO Profit Track. New openings such as our most recent store in Leicester and exciting new product developments across both doughnuts and drinks has contributed significantly to this success.
“Whilst we have grown our retail network rapidly over the last year, our vertically integrated hub and spoke model has ensured that we achieve rapid payback on our investment. This means that we can continue to make strong progress in the current year, in terms of both revenue and profits.”
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