Panera Brands is exploring the sale of Caribou Coffee, Einstein Bros Bagels, and other bagel brands in a deal potentially valued at over $1.5 billion. Backed by JAB Holding, Panera has hired Bank of America to manage the sale process. Interested buyers include other restaurant operators and private equity firms. The brands on the block also include Bruegger’s Bagels, Noah’s New York Bagels, and Manhattan Bagel. This move marks a strategic shift for JAB, which had merged these brands under Panera Brands in 2021. Panera aims to achieve a valuation exceeding ten times the combined businesses' expected earnings of nearly $150 million in 2024. Caribou Coffee operates over 800 locations globally, while the bagel brands have almost 1,000 U.S. locations. JAB had been preparing for an IPO of Panera Brands, and may still pursue listing Panera Bread separately if the divestment succeeds. Panera Bread, founded in 1987 as St. Louis Bread Company, remains the primary revenue driver for the group.
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