Pret A Manger’s parent company JAB Holding is reportedly consulting advisors to consider future opportunities for the popular sandwich chain, which may include a sale or an initial public offering (IPO).
The Luxembourg-based firm, which acquired Pret for £1.5 billion in 2018, admitted to the Financial Times that it isn’t “currently” eyeing a sale but noted: “As we move closer to a potential IPO, we may evaluate bringing on a pre-IPO investor.”
Since the takeover, Pret has faced multiple hurdles despite healthy product demand, as reported by City AM.
The chain notably suffered during the pandemic, with its operating loss deep-diving to £343 million in 2020, and now confronts financial stress due to rising wage costs.
Leveraging a revamped coffee subscription service, Pret competes against budget-friendly alternatives such as Greggs, although price hikes have sparked customer criticism.
An attempt last year to double its monthly coffee subscription to £10 met with customer disapproval, prompting Pret to rescind the increase.
In 2023, Pret’s sales climbed by 20% to reach £1.1 billion, and its adjusted EBITDA grew by 12% to £166 million, significantly helped by aggressive international expansion.
Predominantly UK-based, with one third of its outlets sited in London, Pret now extends its presence across 18 markets.
Eyes set on growth, Pret envisages inaugurating 10 more stores along the US east coast by 2026, marking New York as its principal hub abroad.
Pret A Manger’s chief executive, Pano Christou, revealed that a quarter of the company’s revenue came from international sales last year.
“I… look forward to taking Pret to even more people, in more places, next year,” said Christou.
According to Companies House filings, Pret had outstanding loans and borrowings totalling £740m at the close of 2023, despite raising £250m in capital during the year.
