Bullish

In June, Magnolia Bakery changed ownership. The new owner, RSE Ventures, obviously bought the company to grow it.

Weeks later came news that Hickory Farms bought Wicked Good Cupcakes, a Boston company with a Shark Tank claim to fame. When the cupcakery appeared on the show, history was made. Kevin O’Leary says it was his most profitable investment via the show and the first time he entered into a royalty-based deal.

The company created a “Mr. Wonderful” cupcake for O’Leary, a cookie butter flavor containing cinnamon cake with caramel and cookie butter frosting.

As summer ends, the industry is hardly cooling off. The heartland Smallcakes chain was acquired by a new parent company in September. The cupcakery was founded in Kansas in 2008 and operates more than 180 stores.

According to a media report, the new Smallcakes owner aspires to “worldwide cupcake domination.”

Meanwhile, Sprinkles announced plans for more cupcake ATMs plus national and international franchising. The company discussed these and other growth plans with Nation’s Restaurant News this month.

Three major cupcakeries have undergone corporate ownership changes within three months. These capitalists are evidently bullish on cupcakes. The market is active. The profits and potential are rising. The story is evolving.