Krispy Kreme Outlined its Long-Term Growth Strategy at 2022 Investor Day
Krispy Kreme hosted an Investor Day in Charlotte, NC, reiterating its 2022 guidance and introducing 2026 targets. CEO Mike Tattersfield emphasized the company's transformation strategy aimed at sustainable growth and profitability. Key growth drivers include expanding its U.S. hub & spoke model, international market presence, and leveraging partnerships like Insomnia Cookies. The 2022 outlook includes net revenue between $1.49 billion and $1.52 billion, with organic revenue growth of 10-12%. For 2023, low double-digit revenue and EBITDA growth is anticipated, while 2026 forecasts project net revenue of approximately $2.15 billion.
- 2022 revenue guidance of $1.49 to $1.52 billion with 10-12% organic growth.
- Strategic initiatives focus on expanding U.S. access points to over 15,000.
- International expansion strategy expects three to five new development deals annually.
- Partnership with Insomnia Cookies has improved margins and growth potential.
- 2026 targets set net revenue at ~$2.15 billion and adjusted EBITDA at ~$315 million.
- None.
Reiterated 2022 guidance and introduced 2026 Financial Targets
President and CEO
Event Overview
During today’s event, members of Krispy Kreme’s leadership team outlined the drivers underlying its growth strategy and strategic initiatives, including:
-
Capturing Opportunities Through Krispy Kreme’s Iconic Brand: As the number one sweet treat brand in the
U.S. ,U.K. ,Australia ,Thailand andTurkey ,Krispy Kreme has enormous potential to increase its presence globally. The Company is especially focused on driving innovation through impactful Limited Time Offers and premium products, and increasing access through ecommerce,Delivered Fresh Daily (“DFD”) and its Branded Sweet Treats (“BST”) line. -
Maximizing the
U.S. Hub & Spoke Opportunity:Krispy Kreme is well positioned for sustainable and profitable growth in theU.S. , enabled by its transformation into a fresh omni-channel business. With the potential to grow points of access to over 15,000 in the long-term in this geography alone, the Company is focused on expanding access and purchase frequency, increasing hub & spoke productivity and driving efficiencies to earn a higher ROIC. -
Accelerating Global Expansion:
Krispy Kreme is making impressive progress against its international expansion strategy and has more than doubled international point-of-access growth in the past five years. This has paved the way for continued growth, with the Company expecting to sign three to five international development deals per year. With a strong pipeline for new market growth, the Company believes it can achieve 75,000 points of access globally over the long term. - Capitalizing on the Insomnia Cookies Global Opportunity: From the beginning of Insomnia and Krispy Kreme’s partnership in 2018, Insomnia has scaled significantly and achieved substantial margin improvement. As a result of its digital-first approach and consistent product innovation, Insomnia is uniquely positioned with a massive opportunity to expand globally.
Financial Outlook
Global President, COO and CFO
2022 Outlook
-
Net Revenue of
to$1.49 billion $1.52 billion -
Organic Revenue growth of
10% to12% -
Adjusted EBITDA of
to$189 million $195 million -
Adjusted Diluted EPS of
to$0.29 $0.32 - Global Points of Access of ~11,700
-
Capital Expenditures of approximately
7% of revenue - Net Leverage of approximately 3.6x
As previously disclosed, the Company expects to be near the higher end of its revenue ranges and the lower end of Adjusted EBITDA and Adjusted Diluted EPS ranges.
2023 Outlook
- 2023 Revenue growth of low double-digits in constant currency
- 2023 Adjusted EBITDA growth of low double-digits in constant currency
2026 Outlook
-
Net Revenue of
~ $2.15 billion -
Adjusted EBITDA of
~ $315 million -
Adjusted Diluted EPS of
~ $0.53 - Global Points of Access of ~18,500
-
Capital Expenditures of approximately
6% of revenue - Net Leverage of 2.0 to 2.5x
Replay Information
Krispy Kreme’s Investor Day replay will be available via here or on the Events section of Krispy Kreme’s Investor Relations website at investors.krispykreme.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. The words “believe,” “may,” “could,” “will,” “should,” “anticipate,” “estimate,” “expect,” “outlook,” “guidance,” “working towards” 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 “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K for the year ended
Non-GAAP Measures
This press release includes certain non-GAAP financial measures including organic revenue growth, Adjusted EBITDA, and Adjusted Diluted EPS, which differ from results using
To the extent that the Company provides guidance, it does so only on a non-GAAP basis. The Company does not provide reconciliations of such 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.
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Investor Relations
rballew@krispykreme.com
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