The marriage between the owner of Krispy Kreme Doughnuts and the bakery cafe chain is the biggest ever U.S. restaurant deal. Fred Katayama reports.
The owner of Krispy Kreme Doughnuts is adding sandwiches to its mix. JAB Holdings is buying Panera Bread for $7.5 billion. That's a 20 percent premium, and S&P Global Market Intelligence says it's the biggest ever U.S. restaurant deal. JAB is expanding its empire of coffee and breakfast with brands like Keurig Green Mountain and Peet's Coffee & Tea by adding the bakery chain to its lineup. Wedbush Securities analyst Nick Setyan said, "It's a done deal. The premium paid precludes other competitors from coming in. We think the premium is well deserved." Panera Bread's 2,000 bakery cafes appeal to health-conscious diners. It bakes fresh bread every day at its cafes and features antibiotic-free meat in its sandwiches. The company has been a stock market darling from the start. Its shares have multiplied nearly 50 times in value since it went public in 1991. Panera shares, already up 34 percent this year, shot up sharply at the start of trading Wednesday.