Krispy Kreme wants to change the makeup of its board of directors.
Mired in a stock price that has struggled since its 2021 initial public offering, the Charlotte, North Carolina-based doughnut chain nominated four people to its board of directors on Wednesday.
The nominees include two people familiar with the restaurant business: Bernardo Hees, the former CEO of Burger King and later Kraft Heinz, along with Patrick Grismer, the former CFO and current chairman at Panera Brands.
In addition, Krispy Kreme nominated former JetBlue Chief Digital and Technology Officer Easwaran Sundaram, along with Gordon von Bretten, a senior partner with major Krispy Kreme shareholder JAB Holding Co.
Six others, including former JAB CEO Olivier Goudet, will not be nominated. Five others, including Krispy Kreme CEO Josh Charlesworth, were nominated to what would be a nine-person board. Shareholders will vote on the director nominees in June.
Krispy Kreme said that it is believed that the board will form a strategy and operating committee that Hees will chair. Hees, who has been executive chairman of the car rental company Avis Budget Group, has a long track record of aggressive cost cuts, both at Burger King and Kraft Heinz.
“Welcoming Bernardo to our board at a pivotal time for Krispy Kreme as we seek to maximize shareholder value through our two largest growth opportunities: profitable U.S. expansion and capital-light international growth,” Charlesworth said in a statement. The board’s strategy committee, he added, “leverages Bernardo’s experience” and will “support me and my team as we strive to drive operational and financial success.”
It’s unusual for companies to nominate so many newcomers to a board of directors like this, but it follows a difficult four years on the public markets for the doughnut chain. Krispy Kreme’s stock has lost nearly three quarters of its market value since its 2021 public offering. That includes a decline of more than 50%, one that was worsened by general market conditions.
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