Crumbl is reportedly considering a sale that could value it at roughly $2 billion, according to Reuters.
The publication said the dessert giant is working with investment bank North Point on a sales process and that private equity firms may be interested. Crumbl wants a valuation 10 times its annual EBITDA, which is around $150 million.
Over eight years, the chain has grown to nearly 1,100 shops in the U.S., Canada, and Puerto Rico. It quickly became the largest cookie chain in North America.
It was founded in Utah in 2017 by cousins Jason McGowan and Sawyer Hemsley. The company is well known for its pink boxes and hundreds of cookie flavors that rotate each week. The flavor drops are highly anticipated on social media, especially TikTok, where Crumbl has 9.7 million followers. Many customers use “#crumblreview” to rate cookies each week.
The brand began as “Crumbl Cookies” but switched to “Crumbl” so it could diversify the menu with additional dessert items like cakes, pies, and pudding.
Two years ago, Crumbl shuttered restaurants for the first time in company history—four in California, and one in Florida, Georgia, and Utah, according to its FDD. The brand also saw notable drops in sales that year. In 2023, 571 Crumbl locations reported average revenue of $1.16 million and average net profit of $122,955. That’s a notable decrease from 2022 when 324 units reported average revenue of $1.84 million and average net profit of $298,319. That’s a drop of 37 percent and 59 percent, respectively.
Additionally, in 2023, the company reportedly laid off dozens of workers from its headquarters in Utah. Crumbl also reached settlements with Dirty Dough and Crave Cookies after accusing them of using similar packaging and designs.
Crumbl finished 2023 with 970 units nationwide, after opening a net of 184 outlets. That followed a net of 363 stores in 2022 and 184 in 2021. The 1,000th shop opened in February 2024.
Private equity has recently shown significant interest in large franchise concepts.
Last year, Blackstone purchased Jersey Mike’s and Tropical Smoothie Cafe and invested in 7 Brew. Roark Capital also finalized its acquisition of Subway. In December, Reuters reported that Bain Capital is looking to acquire 750-unit Wingstop, Dunkin’, and Jersey Mike’s franchisee Sizzling Platter for more than $1 billion. To kick off 2025, new private equity player Maple Park Capital bought a majority interest in 575-unit franchise Rita’s Italian Ice and Frozen Custard.
