Pret A Manger Carnaby Street London

Pret has been focusing on international expansion in recent months

Pret a Manger’s owner, European investment group JAB Holding, is sounding out new investors for the sandwich shop chain before a possible initial public offering. 

According to an exclusive report by the Financial Times, advisors are looking into a number of options for Pret before a potential listing, including a stake sale, said sources close to the matter.

However, the investment group said it is “currently” not considering a stake sale in the business. JAB told the FT: “As we move closer to a potential IPO, we may evaluate bringing on a pre-IPO investor.” 

The group, which also owns Krispy Kreme, first acquired the food-to-go chain in 2018 for £1.5bn. However, in 2020, Pret suffered a £343m operating loss as the pandemic forced many of its customers to stay at home, resulting in the closure of dozens of stores. 

The company’s finances have improved since, as adjusted core profit increased 12% to £166m in 2023 and as Pret raised £250m of new capital last year to limit its debt load, which stood at £740m at the end of 2023. 

The sandwich and coffee chain has also been focusing more heavily on international expansion in recent months, having opened its first site in Africa earlier this year. 

The new shop, located in Johannesburg, South Africa, marks the business’s 20th international market. According to Pret, £1 in every £4 spent in its stores now comes from outside the UK.

The chain reported worldwide sales above £1.1bn in 2023, boosted by “international expansion and new franchise partnerships”.

It is understood that JAB is now exploring bringing in new investors as it is moving its focus away from the consumer sector and over to the insurance and asset management industry.