Pret A Manger Prepares for a New Chapter - IPO on the Horizon?

Pret A Manger, the sandwich and coffee chain known for its organic ethos and grab-and-go model, may soon be making its debut on the stock market. Its parent company, JAB Holding, is reportedly weighing up strategic options for the business, including a potential initial public offering (IPO) and new investment from a pre-IPO partner.

JAB acquired Pret for £1.5 billion in 2018, and since then, the brand has undergone a period of expansion, resilience, and transformation. According to reports in the Financial Times, JAB has recently engaged financial advisers to assess the viability of a listing or partial stake sale, though the group stated it is not “currently” pursuing a stake sale. However, it acknowledged that it “may evaluate bringing on a pre-IPO investor” as preparations develop.

In a move that signals growing momentum towards a possible IPO, Pret recently appointed José Cil as its new chairman. Cil, the former CEO of Restaurant Brands International—the parent company of Burger King and Tim Hortons—brings with him a reputation for driving global sales, having helped grow RBI’s revenues to over £30 billion. He succeeds Konrad Meyer, a long-standing figure at JAB who was instrumental in Pret’s acquisition and has served on its board since.

Pret A Manger has come a long way since opening its first London store in 1986. With over 700 outlets across 21 countries—from Hong Kong to Qatar—a quarter of Pret’s sales now come from outside the UK. France and the US lead the brand’s international markets, supported by newer entries into India, Canada, Greece, and Spain.

Under the leadership of CEO Pano Christou, a Pret veteran who began his journey with the company as an assistant manager at age 22, the business has rebounded from pandemic-related turbulence. In 2020, the COVID-19 crisis inflicted a £343 million operating loss, forcing Pret to close dozens of shops and lay off more than 3,000 employees. The chain’s heavy reliance on city centre footfall from office workers proved a vulnerability during lockdowns.

In response, Pret has adapted its model to win back customers. Initiatives included new product lines, breakfast offerings, and digital subscription schemes. Yet not all innovations were well received—Pret faced criticism in 2023 after doubling the price of its popular coffee subscription, a decision it later reversed.

Nonetheless, Pret’s international outlook has become a core driver of growth. Sales rose 20% to £1.1 billion in 2023, with adjusted core profit up 12% to £166 million, largely due to overseas expansion. The company’s outstanding debt stood at £740 million at the end of the year, but a £250 million capital injection has helped reduce the financial burden.

JAB’s interest in a potential IPO coincides with a broader strategic pivot. The investment group—whose portfolio includes Krispy Kreme and Keurig Dr Pepper—is increasingly shifting away from consumer brands towards insurance and asset management. This transition marks a generational shift in how the Reimann family, whose wealth JAB manages, approaches its investment priorities after years of high-profile consumer sector acquisitions totalling £50 billion.

As Pret A Manger continues to reinvent itself for a global audience, its future may soon lie not just on high streets and airport concourses—but on trading floors too.