Krispy Kreme, Inc. Announces Updated 2021 Guidance

Rhea-AI Summary

Krispy Kreme (NASDAQ: DNUT) updated its fiscal year 2021 guidance, driven by strong momentum in Q4. The company expects net revenue between $1.37 billion and $1.39 billion, reflecting a growth of 22-23% compared to 2020. Organic revenue growth is projected at 10-12%, with adjusted EBITDA of $182-$187 million, representing a 25-29% increase. Furthermore, the adjusted net income is forecasted at $65-$68 million, signifying a growth of 46-61%. The company maintains a long-term outlook, anticipating organic revenue growth of 9-11%.

Positive

• Net revenue guidance increases to $1.37B-$1.39B, representing 22%-23% growth over 2020.
• Adjusted EBITDA expected to be $182M-$187M, showing 25%-29% growth compared to the prior year.
• Adjusted net income projected at $65M-$68M, indicating a rise of 46%-61% year-over-year.

Negative

• None.

Company Updates Fiscal Year 2021 Expected Results Incorporating Higher Organic Growth and Reaffirms Long-Term Outlook

CHARLOTTE, N.C.--(BUSINESS WIRE)-- Krispy Kreme, Inc. (NASDAQ: DNUT) (“Krispy Kreme” or the “Company”) today updated its guidance for full year 2021 because of strong momentum in the fourth quarter. As a result of better than previously expected growth, the Company is providing the following updated guidance for the full year of 2021:

Full Year 2021			Updated Guidance									Prior Guidance
			$				% Δ vs 2020					$				% Δ vs 2020
Millions, except %s			Low		High		Low		High			Low		High		Low		High
Net Revenue			$1,370		$1,385		22%		23%			$1,340		$1,380		19%		23%
Organic Revenue growth							12%		13%							10%		12%
Adjusted EBITDA			$182		$187		25%		29%			$178		$185		22%		27%
Adjusted Net Income			$65		$68		53%		61%			$62		$68		46%		61%

“Our global omni-channel business has continued to perform well as we benefit from the sharing and gifting occasions of the holiday season,” stated Mike Tattersfield, Chief Executive Officer. “Our U.S. and international businesses have both contributed significantly to our growth this quarter. We have been able to successfully pass through price increases in the U.S. in September and November addressing inflation.”

Krispy Kreme also reiterated the following long-term outlook:

Organic Revenue growth of 9% to 11%
Adjusted EBITDA growth of 12% to 14%
Adjusted Net Income growth of 18% to 22%

We anticipate exceeding these long-term targets in the full year 2022 as we will no longer be lapping the exit of our legacy wholesale business in the U.S.

About Krispy Kreme

Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in over 30 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing ecommerce and delivery business. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme, and www.Twitter.com/KrispyKreme.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. The words “will,” “should,” “anticipate,” “estimate,” “expect,” “targets,” “outlook,” “guidance,” or similar words, or the negative of these words, identify forward-looking statements. Such forward-looking statements are based on certain assumptions and estimates that we consider reasonable but are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial conditions, business, prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included herein. . Factors that could cause actual results to differ from those expressed in forward-looking statements include, without limitation, the risks and uncertainties described under the headings “Special Note Regarding Forward-Looking Statements” and “Risk Factors” in the Prospectus, dated June 30, 2021, filed by us with the Securities and Exchange Commission (“SEC”) and described in the other filings we make from time to time with the SEC. We believe that these factors include, but are not limited to, the impact of pandemics, changes in consumer preferences, and our ability to execute on our omni-channel business strategy. These forward-looking statements are made only as of the date of this document, and we do not undertake any obligation, other than as may be required by applicable law, to update or revise any forward-looking or cautionary statement to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.

Non-GAAP Measures

This press release includes guidance regarding certain non-GAAP financial measures including organic revenue growth, Adjusted EBITDA, and Adjusted Net Income, which differ from results using U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP financial measures are not universally consistent calculations, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, non-GAAP financial measures are not measurements of financial performance under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, you should examine our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC.

The Company does not provide reconciliations of the forward-looking non-GAAP measures to GAAP due to the inability to predict the amount and timing of impacts outside of the Company’s control on certain items, such as net income and other charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211219005074/en/

Investor Relations

Rob Ballew, Head of Investor Relations

rballew@krispykreme.com

Financial Media

Edelman for Krispy Kreme, Inc.

Allie McLarty & Ashley Firlan, KrispyKremeIR@edelman.com

Source: Krispy Kreme, Inc.

FAQ

What is Krispy Kreme's updated revenue guidance for fiscal year 2021?

Krispy Kreme's updated revenue guidance for fiscal year 2021 is between $1.37 billion and $1.39 billion.

How much is Krispy Kreme expecting in adjusted EBITDA for 2021?

Krispy Kreme expects adjusted EBITDA to be between $182 million and $187 million for 2021.

What growth does Krispy Kreme anticipate for organic revenue?

Krispy Kreme anticipates organic revenue growth between 10% and 12%.

What is the projected adjusted net income for Krispy Kreme in 2021?

The projected adjusted net income for Krispy Kreme in 2021 is between $65 million and $68 million.

When will Krispy Kreme provide its next long-term outlook?

Krispy Kreme has reiterated its long-term outlook, expecting organic revenue growth of 9% to 11%.