Private equity is now taking a bite out of Crumbl.
TSG Consumer Partners has reportedly agreed to take a minority stake in the 1,100-unit dessert chain, according to Bloomberg. The investment is in the form of preferred equity. Private credit funds are also in talks to give Crumbl about $500 million of debt financing, sources told the publication.
“We are confident that, in TSG, we have found a partner with a demonstrated track record of building industry-leading franchise food brands,” a Crumbl representative told Bloomberg.
TSG is familiar with the food and beverage space. In 2018, it invested in Dutch Bros, back when the chain eyed 800 stores. The company since went public and now has more than 1,000 outlets nationwide.
Bloomberg reported earlier this year that Crumbl is exploring a $2 billion sale. The brand is working with investment bank North Point on a sales process. Private equity firms may be interested. Crumbl wants a valuation 10 times its annual EBITDA, which is around $150 million.
The cookie giant—the largest of its kind in North America—finished 2024 with 1,059 stores after opening a net of 87. This follows net openings of 281, 363, and 184 stores in the prior three years, respectively. Crumbl also shuttered 19 units in the past two years after not closing any in its first six years of business.
In 2024, 858 locations reported average sales of $1.35 million. This represents a roughly 17 percent increase from the previous year when 571 units reported $1.16 million. Average net profit was $251,706, or 105 percent growth from $122,955 during the prior year.
Founded in 2017 by cousins Jason McGowan and Sawyer Hemsley, the chain began as “Crumbl Cookies” but switched to “Crumbl” so it could diversify the menu with additional dessert items like cakes, pies, and pudding. The company is well-known for its pink boxes and rotating flavors that drop every Sunday. It’s become a social media sensation, with more than 10 million followers on TikTok, 1.4 million on Twitter, and 6.2 million on Instagram.
