DoorDash (DASH) and Panera are all about inorganic growth (and no, we’re not talking about food).
DoorDash announced two days ago that it’ll be taking on European food-delivery company, Wolt Enterprises, for about $8b. The all-equity deal is set to help the largest food delivery operator in the US break into the overseas market with the transaction set to close in H1 2022. Finland-based Wolt is a scrappy start-up with a presence in 23 countries and its operations could lead DoorDash to record $500m in net profits next year.
While DoorDash is priming up for a private deal, US-based cafe chain Panera Bread is going public (again). The company, which has the likes of Caribou Coffee and Einstein Bros Bagels as subsidiaries, is listing on the NYSE through a SPAC-merger with USHG Acquisition Corp (HUGS). The HUGS SPAC is backed by Danny Meyer, the restaurateur and Shake Shack founder, making Panera Bread a perfect tie-in.
Why it matters
Panera’s listing is a move seen by other restaurant companies that were privately held before and now going public — Krispy Kreme went public in July while coffee chain Dutch Bros has filed plans to list as well. DoorDash, on the other hand, is a markets veteran by the looks of it as its stock closed off at a 11.7% high yesterday.
