Shipley Do-Nuts reports sales growth and new stores in 2024

The chain has opened new stores with plans for more down the road.

Courtesy of Shipley Do-Nuts

Houston-based Shipley Do-Nuts, one of the nation’s largest and fastest-growing donut brands, amped up growth through the first half of 2024, increasing its development pipeline by 33%, opening eight new stores, and posting its 14th consecutive quarter of positive same-store sales.

Reportedly bolstered by an expanded development team, Shipley accelerated its rate of store openings through Q2 and is projected to gain steam in the second half of the year. More than double the number of additional locations is underway and scheduled to open before December 31, including in Colorado, Maryland, and (for the first time) North Carolina and Virginia.

The company also shared an updated FDD in Q2 that highlighted lower investment costs, higher Average Unit Volumes, and EBITDA profitability projected at 18%-20%. As a result, the brand closed 11 multi-unit development deals through Q2 2024, a significant increase over last year.

“With our faster development cycle, new stores now in the pipeline, and some major multi-unit deals in the works, we are on pace to meet our aggressive growth goals,” says Shipley Senior Vice President of Franchise Development Keith Sizemore. “We’re seeing tenured franchisees growing again while also attracting new franchisees to our system with our updated business model, proven profitability, and product line that is perfect for multi-unit operators who want to diversify their portfolios.”

For the first time in company history, Shipley is leaning into product innovation to drive engagement and increase sales, which were positive despite industrywide softness through Q2. Shipley introduced its first new limited-time product in decades, the Poptastic donut featuring freeze-dried Skittles, in January; followed by the Oreo Cookies & Dream donut in April. Most recently, the company reports the early test of its Q3 promotion, the breakfast Egg & Cheese Kolache line, far exceeded expectations and showed it will be Shipley’s largest limited-time offer in company history.

Looking forward, Shipley is focusing on growing in Georgia, with a potential for 90 units in the Atlanta area, plus opportunities in Savannah, Augusta, and Columbus. North Carolina is another high-growth market, with 95 potential units for development in Raleigh, Charlotte, Greensboro, and Winston-Salem. Shipley also has available territories throughout the Southeast, the Mid-South, and the Midwest.

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Jenni Spinner is the chief editor of Snack Food and Wholesale with more than 25 years of experience in business-to-business communications. She has written extensively about food production, safety and packaging; pharmaceutical drug development; concrete and masonry construction; and more. She holds a Bachelor’s in Communications from the University of Illinois. Jenni can be reached at spinnerj@bnpmedia.com.