Krispy Kreme Reports Fourth Quarter and Full Year 2024 Financial Results
Full Year 2024 Net Revenue of
Introduces 2025 guidance
Fourth Quarter Highlights (vs Q4 2023)
-
Net revenue of
$404.0 million -
Organic revenue(1) grew
1.8% , to$400.6 million -
GAAP net loss of
$22.2 million -
Adjusted EBITDA(1) of
$45.9 million $10 million -
GAAP operating cash flow of
$27.0 million
Full Year Highlights (vs FY 2023)
-
Net revenue of
$1,665.4 million -
Organic revenue(1) grew
5.0% , to$1,658.1 million -
GAAP net income of
$3.8 million -
Adjusted EBITDA(1) of
$193.5 million $10 million -
GAAP operating cash flow of
$45.8 million -
Global Points of Access increased 3,410, or
24.1% to 17,557
“We delivered an 18th consecutive quarter of year-over-year organic sales growth. Excluding the estimated cybersecurity incident impact, results were largely in line with our expectations,” said Josh Charlesworth, Krispy Kreme CEO.
“Last quarter, we announced we were aligning our talent and capital to our business priorities, and we have taken significant action. We have restructured our management teams to maximize profitable
Financial Highlights |
|
Quarters Ended |
|
Fiscal Years Ended |
||||||||||||||||||||
$ in millions, except per share data |
|
December 29, 2024 |
|
December 31, 2023 |
|
Change |
|
December 29, 2024 |
|
December 31, 2023 |
|
Change |
||||||||||||
GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net revenue |
|
$ |
404.0 |
|
|
$ |
450.9 |
|
|
|
(10.4 |
)% |
|
$ |
1,665.4 |
|
|
$ |
1,686.1 |
|
|
|
(1.2 |
)% |
Operating (loss)/income |
|
$ |
(11.5 |
) |
|
$ |
(5.3 |
) |
|
nm |
|
$ |
(8.7 |
) |
|
$ |
13.1 |
|
|
nm |
||||
Operating (loss)/income margin |
|
|
(2.8 |
)% |
|
|
(1.2 |
)% |
|
-160 bps |
|
|
(0.5 |
)% |
|
|
0.8 |
% |
|
-130 bps |
||||
Net (loss)/income |
|
$ |
(22.2 |
) |
|
$ |
1.9 |
|
|
nm |
|
$ |
3.8 |
|
|
$ |
(36.6 |
) |
|
nm |
||||
Net (loss)/income attributable to KKI |
|
$ |
(22.4 |
) |
|
$ |
2.6 |
|
|
nm |
|
$ |
3.1 |
|
|
$ |
(37.9 |
) |
|
nm |
||||
Diluted (loss)/income per share |
|
$ |
(0.13 |
) |
|
$ |
0.02 |
|
|
$ |
(0.15 |
) |
|
$ |
0.02 |
|
|
$ |
(0.23 |
) |
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-GAAP (1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Organic revenue |
|
$ |
400.6 |
|
|
$ |
393.5 |
|
|
|
1.8 |
% |
|
$ |
1,658.1 |
|
|
$ |
1,578.8 |
|
|
|
5.0 |
% |
Adjusted net income, diluted |
|
$ |
1.2 |
|
|
$ |
15.1 |
|
|
nm |
|
$ |
19.2 |
|
|
$ |
46.2 |
|
|
nm |
||||
Adjusted EBITDA |
|
$ |
45.9 |
|
|
$ |
64.1 |
|
|
|
(28.4 |
)% |
|
$ |
193.5 |
|
|
$ |
211.6 |
|
|
|
(8.6 |
)% |
Adjusted EBITDA margin |
|
|
11.4 |
% |
|
|
14.2 |
% |
|
-280 bps |
|
|
11.6 |
% |
|
|
12.6 |
% |
|
-100 bps |
||||
Adjusted EPS |
|
$ |
0.01 |
|
|
$ |
0.09 |
|
|
$ |
(0.08 |
) |
|
$ |
0.11 |
|
|
$ |
0.27 |
|
|
$ |
(0.16 |
) |
(1) |
Non-GAAP figures – please refer to “Non-GAAP Measures” and “Reconciliation of Non-GAAP Financial Measures.” |
Key Operating Metrics |
|
Fiscal Years Ended |
|||||||||
$ in millions |
|
December 29, 2024 |
|
December 31, 2023 |
|
Change |
|||||
Global Points of Access |
|
|
17,557 |
|
|
|
14,147 |
|
|
24.1 |
% |
Sales per Hub ( |
|
$ |
4.9 |
|
|
$ |
4.9 |
|
|
— |
% |
Sales per Hub (International) trailing four quarters |
|
$ |
10.1 |
|
|
$ |
9.9 |
|
|
2.0 |
% |
Digital Sales as a Percent of Retail Sales |
|
|
14.4 |
% |
|
|
19.3 |
% |
|
-490 bps |
|
Fourth Quarter 2024 Consolidated Results (vs Q4 2023)
Krispy Kreme’s fourth quarter results reflect the strength of the omni-channel model, delivering net revenue of
GAAP net loss was
Global Points of Access grew
Adjusted EBITDA in the quarter declined
Adjusted Net Income, diluted declined to
Full Year 2024 Consolidated Results (vs FY 2023)
Krispy Kreme’s full year results reflect the sale of a majority ownership stake of Insomnia Cookies, as net revenue declined
Total company organic revenue grew
Adjusted EBITDA declined
Diluted weighted average common shares outstanding for the full year 2024 were 171.5 million, compared to 170.5 million for the full year 2023.
Fourth Quarter 2024 Segment Results (vs Q4 2023)
International: In the International segment, net revenue grew
International Adjusted EBITDA declined
Market Development: In the Market Development segment, net revenue declined
Market Development Adjusted EBITDA grew
Balance Sheet and Capital Expenditures
During the fourth quarter 2024, the Company invested
In the full year 2024, the Company reduced its supply chain financing liabilities by
2024 Cybersecurity Incident
As previously disclosed, unauthorized activity on a portion of our information technology systems resulted in the Company experiencing certain operational disruptions, including with online ordering in parts of the
2025 Financial Outlook
Krispy Kreme issues the following guidance for the full year 2025 (vs FY2024)
-
Net Revenue of
$1,550 $1,650 million -
Organic Revenue growth(1) of +
5% to +7% -
Adjusted EBITDA(1) of
$180 $200 million -
Adjusted EPS(1) of
$0.04 $0.08 -
Income Tax rate between
32% and36% -
Capital Expenditures of
6% to7% of net revenue -
Interest Expense, net of
$65 million $75 million
The company expects leverage to trend towards 4.0x by year end 2025.
Notes: |
||
(1) |
Non-GAAP figures. The Company does not reconcile forward-looking non-GAAP measures. See “Non-GAAP Measures.” |
|
Definitions
The following definitions apply to terms used throughout this press release:
- Global Points of Access: Reflects all locations at which fresh doughnuts can be purchased. We define global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors (which includes Delivered Fresh Daily (“DFD”) branded cabinets and merchandising units within high traffic grocery and convenience stores, quick service or fast casual restaurants (“QSR”), club memberships, and drug stores) and Cookie Bakeries (through the date of the Insomnia cookies divestiture), and other points at which fresh doughnuts can be purchased at both Company-owned and franchise locations as of the end of the respective reporting period. We monitor Global Points of Access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type.
- Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any point of access. We define Hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the respective reporting period.
- Hubs with Spokes: Reflects Hubs currently producing product for other Fresh Shops, Carts and Food Trucks, or DFD Doors, and excludes Hubs not currently producing product for other shops, Carts and Food Trucks, or DFD Doors.
- Sales Per Hub: Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes at the end of the five most recent quarters.
- Fresh Revenues from Hubs with Spokes: Fresh Revenues is a measure focused on the Krispy Kreme doughnut business and includes product sales generated from our Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors, and digital channels and excludes sales from Cookie Bakeries and Branded Sweet Treats (through the date of the Insomnia cookies divestiture and Branded Sweet Treats exit, respectively). Fresh Revenues from Hubs with Spokes equals the Fresh Revenues derived from Hubs with Spokes.
- Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment.
Conference Call
Krispy Kreme will host a public conference call and webcast at 8:30 AM Eastern Time today to discuss its results for the fourth quarter of 2024. To register for the conference call, please use this link. After registering, confirmation will be sent through email, including dial-in details and unique conference call codes for entry. To listen to the live webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay of the webcast will be available on the website within 24 hours after the call. Krispy Kreme’s earnings press release and related materials will also be available on the investor relations section of the Company’s website.
Investor Relations
ir@krispykreme.com
Financial Media
Edelman Smithfield for Krispy Kreme, Inc.
Ashley Firlan & Ashna Vasa
KrispyKremeIR@edelman.com
About Krispy Kreme
Headquartered in
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as “plan,” “believe,” “may,” “continue,” “guidance,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “expect,” “intend,” “outlook,” “objective,” “seek,” “strive,” “working towards” or, in each case, the negatives of these words, comparable terminology, or similar references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not 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 in this press release. We consider the assumptions and estimates on which our forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements, including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross-contamination; impacts from the 2024 Cybersecurity Incident or any other material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents; any harm to our reputation or brand image; changes in consumer preferences or demographic trends; the impact of inflation or changes in foreign exchange rates; our ability to execute on our omni-channel business strategy; regulatory investigations, enforcement actions or material litigation; and other risks and uncertainties described under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and in other filings we make from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law.
Non-GAAP Measures
This press release includes certain financial information that is not presented in conformity with accounting principles generally accepted in the
The Company does not provide reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure because it is unable to predict with reasonable certainty or without unreasonable effort non-recurring items, such as those reflected in our reconciliation of historic numbers. The variability of these items is unpredictable and may have a significant impact.
See “Reconciliation of Non-GAAP Financial Measures” below for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure.
Krispy Kreme, Inc. Consolidated Statements of Operations (in thousands, except per share amounts) |
||||||||||||
|
Fiscal Years Ended |
|||||||||||
|
December 29, 2024 (52 weeks) |
|
December 31, 2023 (52 weeks) |
|
January 1, 2023 (52 weeks) |
|||||||
|
(unaudited) |
|
|
|
|
|||||||
Net revenues |
|
|
|
|
|
|||||||
Product sales |
$ |
1,627,778 |
|
|
$ |
1,651,166 |
|
|
$ |
1,497,882 |
|
|
Royalties and other revenues |
|
37,619 |
|
|
|
34,938 |
|
|
|
32,016 |
|
|
Total net revenues |
|
1,665,397 |
|
|
|
1,686,104 |
|
|
|
1,529,898 |
|
|
Product and distribution costs |
|
409,177 |
|
|
|
443,243 |
|
|
|
406,227 |
|
|
Operating expenses |
|
809,916 |
|
|
|
776,589 |
|
|
|
704,287 |
|
|
Selling, general and administrative expense |
|
274,303 |
|
|
|
266,863 |
|
|
|
223,198 |
|
|
Marketing expenses |
|
47,695 |
|
|
|
45,872 |
|
|
|
42,566 |
|
|
Pre-opening costs |
|
3,411 |
|
|
|
4,120 |
|
|
|
4,227 |
|
|
Other (income)/expenses, net |
|
(3,967 |
) |
|
|
10,378 |
|
|
|
10,157 |
|
|
Depreciation and amortization expense |
|
133,597 |
|
|
|
125,894 |
|
|
|
110,261 |
|
|
Operating (loss)/income |
|
(8,735 |
) |
|
|
13,145 |
|
|
|
28,975 |
|
|
Interest expense, net |
|
60,066 |
|
|
|
50,341 |
|
|
|
34,102 |
|
|
Gain on divestiture of Insomnia Cookies |
|
(90,455 |
) |
|
|
— |
|
|
|
— |
|
|
Other non-operating expense, net |
|
1,885 |
|
|
|
3,798 |
|
|
|
3,036 |
|
|
Income/(loss) before income taxes |
|
19,769 |
|
|
|
(40,994 |
) |
|
|
(8,163 |
) |
|
Income tax expense/(benefit) |
|
15,954 |
|
|
|
(4,347 |
) |
|
|
612 |
|
|
Net income/(loss) |
|
3,815 |
|
|
|
(36,647 |
) |
|
|
(8,775 |
) |
|
Net income attributable to noncontrolling interest |
|
720 |
|
|
|
1,278 |
|
|
|
6,847 |
|
|
Net income/(loss) attributable to Krispy Kreme, Inc. |
$ |
3,095 |
|
|
$ |
(37,925 |
) |
|
$ |
(15,622 |
) |
|
Net income/(loss) per share: |
|
|
|
|
|
|||||||
Common stock - Basic |
$ |
0.02 |
|
|
$ |
(0.23 |
) |
|
$ |
(0.10 |
) |
|
Common stock - Diluted |
$ |
0.02 |
|
|
$ |
(0.23 |
) |
|
$ |
(0.10 |
) |
|
Weighted average shares outstanding: |
|
|
|
|
|
|||||||
Basic |
|
169,341 |
|
|
|
168,289 |
|
|
|
167,471 |
|
|
Diluted |
|
171,500 |
|
|
|
168,289 |
|
|
|
167,471 |
|
|
|
Quarter Ended |
|||||||
|
December 29, 2024 (13 weeks) |
|
December 31, 2023 (13 weeks) |
|||||
|
(unaudited) |
|
|
|||||
Net revenues |
|
|
|
|||||
Product sales |
$ |
394,193 |
|
|
$ |
441,399 |
|
|
Royalties and other revenues |
|
9,830 |
|
|
|
9,506 |
|
|
Total net revenues |
|
404,023 |
|
|
|
450,905 |
|
|
Product and distribution costs |
|
98,476 |
|
|
|
112,951 |
|
|
Operating expenses |
|
200,190 |
|
|
|
200,636 |
|
|
Selling, general and administrative expense |
|
67,153 |
|
|
|
74,508 |
|
|
Marketing expenses |
|
12,484 |
|
|
|
13,771 |
|
|
Pre-opening costs |
|
720 |
|
|
|
1,193 |
|
|
Other expenses, net |
|
2,463 |
|
|
|
16,429 |
|
|
Depreciation and amortization expense |
|
34,035 |
|
|
|
36,752 |
|
|
Operating loss |
|
(11,498 |
) |
|
|
(5,335 |
) |
|
Interest expense, net |
|
15,598 |
|
|
|
13,483 |
|
|
Gain on divestiture of Insomnia Cookies |
|
(3,327 |
) |
|
|
— |
|
|
Other non-operating expense, net |
|
770 |
|
|
|
767 |
|
|
Loss before income taxes |
|
(24,539 |
) |
|
|
(19,585 |
) |
|
Income tax benefit |
|
(2,376 |
) |
|
|
(21,468 |
) |
|
Net (loss)/income |
|
(22,163 |
) |
|
|
1,883 |
|
|
Net income/(loss) attributable to noncontrolling interest |
|
280 |
|
|
|
(727 |
) |
|
Net (loss)/income attributable to Krispy Kreme, Inc. |
$ |
(22,443 |
) |
|
$ |
2,610 |
|
|
Net (loss)/income per share: |
|
|
|
|||||
Common stock - Basic |
$ |
(0.13 |
) |
|
$ |
0.02 |
|
|
Common stock - Diluted |
$ |
(0.13 |
) |
|
$ |
0.02 |
|
|
Weighted average shares outstanding: |
|
|
|
|||||
Basic |
|
169,989 |
|
|
|
168,609 |
|
|
Diluted |
|
169,989 |
|
|
|
170,678 |
|
|
Krispy Kreme, Inc. Consolidated Balance Sheets (in thousands, except per share data) |
||||||||
|
As of |
|||||||
|
December 29, 2024 |
|
December 31, 2023 |
|||||
|
(unaudited) |
|
|
|||||
ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
28,962 |
|
|
$ |
38,185 |
|
|
Restricted cash |
|
353 |
|
|
|
429 |
|
|
Accounts receivable, net |
|
67,722 |
|
|
|
59,362 |
|
|
Inventories |
|
28,133 |
|
|
|
34,716 |
|
|
Taxes receivable |
|
16,155 |
|
|
|
15,526 |
|
|
Prepaid expense and other current assets |
|
31,615 |
|
|
|
25,363 |
|
|
Total current assets |
|
172,940 |
|
|
|
173,581 |
|
|
Property and equipment, net |
|
511,139 |
|
|
|
538,220 |
|
|
Goodwill |
|
1,047,581 |
|
|
|
1,101,939 |
|
|
Other intangible assets, net |
|
819,934 |
|
|
|
946,349 |
|
|
Operating lease right of use asset, net |
|
409,869 |
|
|
|
456,964 |
|
|
Investments in unconsolidated entities |
|
91,070 |
|
|
|
2,806 |
|
|
Other assets |
|
19,497 |
|
|
|
20,733 |
|
|
Total assets |
$ |
3,072,030 |
|
|
$ |
3,240,592 |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Current portion of long-term debt |
$ |
56,356 |
|
|
$ |
54,631 |
|
|
Current operating lease liabilities |
|
46,620 |
|
|
|
50,365 |
|
|
Accounts payable |
|
123,316 |
|
|
|
156,488 |
|
|
Accrued liabilities |
|
124,212 |
|
|
|
134,005 |
|
|
Structured payables |
|
135,668 |
|
|
|
130,104 |
|
|
Total current liabilities |
|
486,172 |
|
|
|
525,593 |
|
|
Long-term debt, less current portion |
|
844,547 |
|
|
|
836,615 |
|
|
Noncurrent operating lease liabilities |
|
405,366 |
|
|
|
454,583 |
|
|
Deferred income taxes, net |
|
130,745 |
|
|
|
123,925 |
|
|
Other long-term obligations and deferred credits |
|
40,768 |
|
|
|
36,093 |
|
|
Total liabilities |
|
1,907,598 |
|
|
|
1,976,809 |
|
|
Commitments and contingencies |
|
|
|
|||||
Shareholders’ equity: |
|
|
|
|||||
Common stock, |
|
1,701 |
|
|
|
1,686 |
|
|
Additional paid-in capital |
|
1,466,508 |
|
|
|
1,443,591 |
|
|
Shareholder note receivable |
|
(1,906 |
) |
|
|
(3,850 |
) |
|
Accumulated other comprehensive (loss)/income, net of income tax |
|
(32,128 |
) |
|
|
7,246 |
|
|
Retained deficit |
|
(299,638 |
) |
|
|
(278,990 |
) |
|
Total shareholders’ equity attributable to Krispy Kreme, Inc. |
|
1,134,537 |
|
|
|
1,169,683 |
|
|
Noncontrolling interest |
|
29,895 |
|
|
|
94,100 |
|
|
Total shareholders’ equity |
|
1,164,432 |
|
|
|
1,263,783 |
|
|
Total liabilities and shareholders’ equity |
$ |
3,072,030 |
|
|
$ |
3,240,592 |
|
|
Krispy Kreme, Inc. Consolidated Statements of Cash Flows (in thousands) |
||||||||||||
|
Fiscal Years Ended |
|||||||||||
|
December 29, 2024 (52 weeks) |
|
December 31, 2023 (52 weeks) |
|
January 1, 2023 (52 weeks) |
|||||||
|
(unaudited) |
|
|
|
|
|||||||
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES: |
|
|
|
|
|
|||||||
Net income/(loss) |
$ |
3,815 |
|
|
$ |
(36,647 |
) |
|
$ |
(8,775 |
) |
|
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: |
|
|
|
|
|
|||||||
Depreciation and amortization expense |
|
133,597 |
|
|
|
125,894 |
|
|
|
110,261 |
|
|
Deferred and other income taxes |
|
3,067 |
|
|
|
(18,486 |
) |
|
|
(14,237 |
) |
|
Loss on extinguishment of debt |
|
— |
|
|
|
472 |
|
|
|
— |
|
|
Impairment and lease termination charges |
|
4,464 |
|
|
|
24,909 |
|
|
|
18,297 |
|
|
Loss on disposal of property and equipment |
|
1,250 |
|
|
|
110 |
|
|
|
393 |
|
|
Gain on divestiture of Insomnia Cookies |
|
(90,455 |
) |
|
|
— |
|
|
|
— |
|
|
Gain on remeasurement of equity method investment |
|
(5,579 |
) |
|
|
— |
|
|
|
— |
|
|
Gain on sale-leaseback |
|
(1,569 |
) |
|
|
(9,646 |
) |
|
|
(6,549 |
) |
|
Share-based compensation |
|
35,149 |
|
|
|
24,196 |
|
|
|
18,170 |
|
|
Change in accounts and notes receivable allowances |
|
646 |
|
|
|
654 |
|
|
|
570 |
|
|
Inventory write-off |
|
2,783 |
|
|
|
11,248 |
|
|
|
868 |
|
|
Settlement of interest rate swap derivatives |
|
— |
|
|
|
7,657 |
|
|
|
8,476 |
|
|
Amortization related to settlement of interest rate swap derivatives |
|
(5,910 |
) |
|
|
(10,289 |
) |
|
|
— |
|
|
Other |
|
(619 |
) |
|
|
2,155 |
|
|
|
2,232 |
|
|
Change in operating assets and liabilities, excluding business acquisitions and divestitures, and foreign currency translation adjustments: |
|
|
|
|
|
|||||||
Accounts, notes, and taxes receivable |
|
(13,895 |
) |
|
|
(3,523 |
) |
|
|
(9,485 |
) |
|
Inventories |
|
(2,011 |
) |
|
|
780 |
|
|
|
(12,515 |
) |
|
Other current and noncurrent assets |
|
(873 |
) |
|
|
(2,395 |
) |
|
|
(1,691 |
) |
|
Operating lease assets and liabilities |
|
(1,227 |
) |
|
|
5,111 |
|
|
|
(793 |
) |
|
Accounts payable and accrued liabilities |
|
(20,156 |
) |
|
|
(74,471 |
) |
|
|
32,015 |
|
|
Other long-term obligations and deferred credits |
|
3,355 |
|
|
|
(2,185 |
) |
|
|
2,581 |
|
|
Net cash provided by operating activities |
|
45,832 |
|
|
|
45,544 |
|
|
|
139,818 |
|
|
CASH FLOWS PROVIDED BY/(USED FOR) INVESTING ACTIVITIES: |
|
|
|
|
|
|||||||
Purchase of property and equipment |
|
(120,792 |
) |
|
|
(121,427 |
) |
|
|
(111,717 |
) |
|
Proceeds from disposals of assets |
|
183 |
|
|
|
218 |
|
|
|
1,077 |
|
|
Proceeds from sale-leaseback |
|
6,308 |
|
|
|
10,025 |
|
|
|
8,401 |
|
|
Acquisition of shops and franchise rights from franchisees, net of cash acquired |
|
(31,938 |
) |
|
|
— |
|
|
|
(17,330 |
) |
|
Purchase of equity method investment |
|
(3,506 |
) |
|
|
(1,424 |
) |
|
|
(989 |
) |
|
Net proceeds from divestiture of Insomnia Cookies |
|
124,126 |
|
|
|
— |
|
|
|
— |
|
|
Principal payment received from loan to Insomnia Cookies |
|
45,000 |
|
|
|
— |
|
|
|
— |
|
|
Principal payments received from loans to franchisees |
|
985 |
|
|
|
20 |
|
|
|
59 |
|
|
Disbursement for loan receivable |
|
(1,086 |
) |
|
|
— |
|
|
|
(975 |
) |
|
Net cash provided by/(used for) investing activities |
|
19,280 |
|
|
|
(112,588 |
) |
|
|
(121,474 |
) |
|
CASH FLOWS (USED FOR)/PROVIDED BY FINANCING ACTIVITIES: |
|
|
|
|
|
|||||||
Proceeds from the issuance of debt |
|
676,250 |
|
|
|
1,175,698 |
|
|
|
149,000 |
|
|
Repayment of long-term debt and lease obligations |
|
(712,778 |
) |
|
|
(1,084,390 |
) |
|
|
(101,181 |
) |
|
Payment of financing costs |
|
— |
|
|
|
(5,175 |
) |
|
|
— |
|
|
Proceeds from structured payables |
|
376,189 |
|
|
|
241,148 |
|
|
|
282,023 |
|
|
Payments on structured payables |
|
(345,327 |
) |
|
|
(214,574 |
) |
|
|
(294,457 |
) |
|
Payment of contingent consideration related to a business combination |
|
— |
|
|
|
(925 |
) |
|
|
(900 |
) |
|
Capital contribution from shareholders, net of loans issued |
|
919 |
|
|
|
764 |
|
|
|
(288 |
) |
|
Payments of issuance costs in connection with initial public offering |
|
— |
|
|
|
— |
|
|
|
(12,458 |
) |
|
Proceeds from sale of noncontrolling interest in subsidiary |
|
1,562 |
|
|
|
292 |
|
|
|
593 |
|
|
Distribution to shareholders |
|
(23,692 |
) |
|
|
(23,558 |
) |
|
|
(23,430 |
) |
|
Payments for repurchase and retirement of common stock |
|
(5,489 |
) |
|
|
(1,880 |
) |
|
|
(4,019 |
) |
|
Distribution to noncontrolling interest |
|
(41,583 |
) |
|
|
(15,538 |
) |
|
|
(11,721 |
) |
|
Net cash (used for)/provided by financing activities |
|
(73,949 |
) |
|
|
71,862 |
|
|
|
(16,838 |
) |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(462 |
) |
|
|
(1,934 |
) |
|
|
(4,968 |
) |
|
Net (decrease)/increase in cash, cash equivalents and restricted cash |
|
(9,299 |
) |
|
|
2,884 |
|
|
|
(3,462 |
) |
|
Cash, cash equivalents and restricted cash at beginning of the fiscal year |
|
38,614 |
|
|
|
35,730 |
|
|
|
39,192 |
|
|
Cash, cash equivalents and restricted cash at end of the fiscal year |
$ |
29,315 |
|
|
$ |
38,614 |
|
|
$ |
35,730 |
|
|
|
|
|
|
|
|
|||||||
Net cash provided by operating activities |
$ |
45,832 |
|
|
$ |
45,544 |
|
|
$ |
139,818 |
|
|
Less: Purchase of property and equipment |
|
(120,792 |
) |
|
|
(121,427 |
) |
|
|
(111,717 |
) |
|
Free cash flow |
$ |
(74,960 |
) |
|
$ |
(75,883 |
) |
|
$ |
28,101 |
|
|
Krispy Kreme, Inc.
Reconciliation of Non-GAAP Financial Measures
(unaudited and in thousands, except per share amounts)
We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent or non-core income and expense items. Adjusted EBITDA is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. “Adjusted EBITDA margin” reflects Adjusted EBITDA as a percentage of net revenues.
We define “Adjusted EBIT” as earnings before interest expense, net and income tax expense, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent or non-core income and expense items. Adjusted EBIT is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods.
We define “Adjusted Net Income, Diluted” as net income/(loss) attributable to common shareholders, adjusted for interest expense, share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent or non-core income and expense items. “Adjusted EPS” is Adjusted Net Income, Diluted converted to a per share amount.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted Net Income, Diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP measures supplementally.
|
Quarter Ended |
|
Fiscal Years Ended |
|||||||||||||
(in thousands) |
December 29, 2024 |
|
December 31, 2023 |
|
December 29, 2024 |
|
December 31, 2023 |
|||||||||
Net (loss)/income |
$ |
(22,163 |
) |
|
$ |
1,883 |
|
|
$ |
3,815 |
|
|
$ |
(36,647 |
) |
|
Interest expense, net |
|
15,598 |
|
|
|
13,483 |
|
|
|
60,066 |
|
|
|
50,341 |
|
|
Income tax (benefit)/expense |
|
(2,376 |
) |
|
|
(21,468 |
) |
|
|
15,954 |
|
|
|
(4,347 |
) |
|
Share-based compensation |
|
10,546 |
|
|
|
6,375 |
|
|
|
35,149 |
|
|
|
24,196 |
|
|
Employer payroll taxes related to share-based compensation |
|
59 |
|
|
|
85 |
|
|
|
358 |
|
|
|
395 |
|
|
Gain on divestiture of Insomnia Cookies |
|
(3,327 |
) |
|
|
— |
|
|
|
(90,455 |
) |
|
|
— |
|
|
Other non-operating expense, net (1) |
|
770 |
|
|
|
767 |
|
|
|
1,885 |
|
|
|
3,798 |
|
|
Strategic initiatives (2) |
|
(441 |
) |
|
|
5,216 |
|
|
|
19,993 |
|
|
|
29,057 |
|
|
Acquisition and integration expenses (3) |
|
245 |
|
|
|
32 |
|
|
|
3,282 |
|
|
|
511 |
|
|
New market penetration expenses (4) |
|
213 |
|
|
|
367 |
|
|
|
1,407 |
|
|
|
1,380 |
|
|
Shop closure expenses, net (5) |
|
4,073 |
|
|
|
16,979 |
|
|
|
4,861 |
|
|
|
17,335 |
|
|
Restructuring and severance expenses (6) |
|
6,792 |
|
|
|
2,251 |
|
|
|
7,561 |
|
|
|
5,050 |
|
|
Gain on remeasurement of equity method investment (7) |
|
— |
|
|
|
— |
|
|
|
(5,579 |
) |
|
|
— |
|
|
Gain on sale-leaseback |
|
(1,569 |
) |
|
|
— |
|
|
|
(1,569 |
) |
|
|
(9,646 |
) |
|
Other (8) |
|
3,460 |
|
|
|
1,419 |
|
|
|
3,203 |
|
|
|
4,307 |
|
|
Amortization of acquisition related intangibles (9) |
|
7,700 |
|
|
|
7,346 |
|
|
|
30,297 |
|
|
|
29,373 |
|
|
Adjusted EBIT |
$ |
19,580 |
|
|
$ |
34,735 |
|
|
$ |
90,228 |
|
|
$ |
115,103 |
|
|
Depreciation expense and amortization of right of use assets |
|
26,335 |
|
|
|
29,406 |
|
|
|
103,300 |
|
|
|
96,521 |
|
|
Adjusted EBITDA |
$ |
45,915 |
|
|
$ |
64,141 |
|
|
$ |
193,528 |
|
|
$ |
211,624 |
|
|
|
Quarter Ended |
|
Fiscal Years Ended |
|||||||||||||
(in thousands) |
December 29, 2024 |
|
December 31, 2023 |
|
December 29, 2024 |
|
December 31, 2023 |
|||||||||
Segment Adjusted EBITDA: |
|
|
|
|
|
|
|
|||||||||
|
$ |
23,561 |
|
|
$ |
42,101 |
|
|
$ |
112,767 |
|
|
$ |
130,979 |
|
|
International |
|
25,746 |
|
|
|
27,887 |
|
|
|
90,716 |
|
|
|
96,532 |
|
|
Market Development |
|
11,858 |
|
|
|
11,104 |
|
|
|
47,904 |
|
|
|
42,966 |
|
|
Corporate |
|
(15,250 |
) |
|
|
(16,951 |
) |
|
|
(57,859 |
) |
|
|
(58,853 |
) |
|
Total Adjusted EBITDA |
$ |
45,915 |
|
|
$ |
64,141 |
|
|
$ |
193,528 |
|
|
$ |
211,624 |
|
|
|
Quarter Ended |
|
Fiscal Years Ended |
|||||||||||||
(in thousands, except per share amounts) |
December 29, 2024 |
|
December 31, 2023 |
|
December 29, 2024 |
|
December 31, 2023 |
|||||||||
Net (loss)/income |
$ |
(22,163 |
) |
|
$ |
1,883 |
|
|
$ |
3,815 |
|
|
$ |
(36,647 |
) |
|
Share-based compensation |
|
10,546 |
|
|
|
6,375 |
|
|
|
35,149 |
|
|
|
24,196 |
|
|
Employer payroll taxes related to share-based compensation |
|
59 |
|
|
|
85 |
|
|
|
358 |
|
|
|
395 |
|
|
Gain on divestiture of Insomnia Cookies |
|
(3,327 |
) |
|
|
— |
|
|
|
(90,455 |
) |
|
|
— |
|
|
Other non-operating expense, net (1) |
|
770 |
|
|
|
767 |
|
|
|
1,885 |
|
|
|
3,798 |
|
|
Strategic initiatives (2) |
|
(441 |
) |
|
|
5,216 |
|
|
|
19,993 |
|
|
|
29,057 |
|
|
Acquisition and integration expenses (3) |
|
245 |
|
|
|
32 |
|
|
|
3,282 |
|
|
|
511 |
|
|
New market penetration expenses (4) |
|
213 |
|
|
|
367 |
|
|
|
1,407 |
|
|
|
1,380 |
|
|
Shop closure expenses, net (5) |
|
4,073 |
|
|
|
16,979 |
|
|
|
4,861 |
|
|
|
17,335 |
|
|
Restructuring and severance expenses (6) |
|
6,792 |
|
|
|
2,251 |
|
|
|
7,561 |
|
|
|
5,050 |
|
|
Gain on remeasurement of equity method investment (7) |
|
— |
|
|
|
— |
|
|
|
(5,579 |
) |
|
|
— |
|
|
Gain on sale-leaseback |
|
(1,569 |
) |
|
|
— |
|
|
|
(1,569 |
) |
|
|
(9,646 |
) |
|
Other (8) |
|
3,460 |
|
|
|
1,419 |
|
|
|
3,203 |
|
|
|
4,307 |
|
|
Amortization of acquisition related intangibles (9) |
|
7,700 |
|
|
|
7,346 |
|
|
|
30,297 |
|
|
|
29,373 |
|
|
Loss on extinguishment of 2019 Facility (10) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
472 |
|
|
Tax impact of adjustments (11) |
|
(4,075 |
) |
|
|
(29,303 |
) |
|
|
9,690 |
|
|
|
(20,729 |
) |
|
Tax specific adjustments (12) |
|
(778 |
) |
|
|
979 |
|
|
|
(3,988 |
) |
|
|
(1,364 |
) |
|
Net (income)/loss attributable to noncontrolling interest |
|
(280 |
) |
|
|
727 |
|
|
|
(720 |
) |
|
|
(1,278 |
) |
|
Adjusted net income attributable to common shareholders - Basic |
$ |
1,225 |
|
|
$ |
15,123 |
|
|
$ |
19,190 |
|
|
$ |
46,210 |
|
|
Additional income attributed to noncontrolling interest due to subsidiary potential common shares |
|
(8 |
) |
|
|
(13 |
) |
|
|
(20 |
) |
|
|
(28 |
) |
|
Adjusted net income attributable to common shareholders - Diluted |
$ |
1,217 |
|
|
$ |
15,110 |
|
|
$ |
19,170 |
|
|
$ |
46,182 |
|
|
Basic weighted average common shares outstanding |
|
169,989 |
|
|
|
168,609 |
|
|
|
169,341 |
|
|
|
168,289 |
|
|
Dilutive effect of outstanding common stock options, RSUs, and PSUs |
|
1,861 |
|
|
|
2,069 |
|
|
|
2,159 |
|
|
|
2,204 |
|
|
Diluted weighted average common shares outstanding |
|
171,850 |
|
|
|
170,678 |
|
|
|
171,500 |
|
|
|
170,493 |
|
|
Adjusted net income per share attributable to common shareholders: |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
0.01 |
|
|
$ |
0.09 |
|
|
$ |
0.11 |
|
|
$ |
0.27 |
|
|
Diluted |
$ |
0.01 |
|
|
$ |
0.09 |
|
|
$ |
0.11 |
|
|
$ |
0.27 |
|
|
(1) |
Primarily foreign translation gains and losses in each period. Fiscal 2024 also consists of equity method income from Insomnia Cookies following the divestiture. |
|
(2) |
Fiscal 2024 consists primarily of costs associated with the divestiture of the Insomnia Cookies business, preparing for the McDonald’s |
|
(3) |
Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period. |
|
(4) |
Consists of start-up costs associated with entry into new countries in which the Company has not previously operated, including |
|
(5) |
Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment. |
|
(6) |
Fiscal 2024 consists primarily of costs associated with the restructuring of the |
|
(7) |
Consists of a gain related to the remeasurement of the equity method investments in KremeWorks |
|
(8) |
Fiscal 2024 consists primarily of |
|
(9) |
Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Consolidated Statements of Operations. |
|
(10) |
Includes interest expenses related to unamortized debt issuance costs from our prior credit agreement (the “2019 Facility”) associated with extinguished lenders as a result of the March 2023 debt refinancing. |
|
(11) |
Tax impact of adjustments calculated by applying the applicable statutory rates. The Company’s adjusted effective tax rate is |
|
(12) |
Fiscal 2024 consists of the recognition of previously unrecognized tax benefits unrelated to ongoing operations, a discrete tax benefit unrelated to ongoing operations, the release of valuation allowances associated with the divestiture of Insomnia Cookies, and the effect of various tax law changes on existing temporary differences. Fiscal 2023 consists of the recognition of a previously unrecognized tax benefit unrelated to ongoing operations, the effect of tax law changes on existing temporary differences, and a discrete tax benefit unrelated to ongoing operations. Fiscal 2022 consists of the recognition of previously unrecognized tax benefits unrelated to ongoing operations, as well as benefits attributable to multiple tax years due to lapse of the statute of limitations. Fiscal 2022 also includes the effect of discrete adjustments to the Company’s deferred tax liabilities that are unrelated to the Company’s ongoing operations. |
|
Krispy Kreme, Inc. Segment Reporting (unaudited and in thousands, except percentages or otherwise stated) |
|||||||||
|
Quarter Ended |
||||||||
|
December 29, 2024 |
|
December 31, 2023 |
|
January 1, 2023 |
||||
Net revenues: |
|
|
|
|
|
||||
|
$ |
245,121 |
|
$ |
296,006 |
|
$ |
270,836 |
|
International |
|
138,386 |
|
|
130,978 |
|
|
113,015 |
|
Market Development |
|
20,516 |
|
|
23,921 |
|
|
20,748 |
|
Total net revenues |
$ |
404,023 |
|
$ |
450,905 |
|
$ |
404,599 |
|
Organic revenue growth measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define “organic revenue growth” as the growth in revenues, excluding (i) acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs such as the shop portfolio optimization program initiated for Krispy Kreme
Q4 2024 Organic Revenue - QTD (in thousands, except percentages) |
|
|
International |
|
Market Development |
|
Total Company |
|||||||||
Total net revenues in fourth quarter of fiscal 2024 |
$ |
245,121 |
|
|
$ |
138,386 |
|
|
$ |
20,516 |
|
|
$ |
404,023 |
|
|
Total net revenues in fourth quarter of fiscal 2023 |
|
296,006 |
|
|
|
130,978 |
|
|
|
23,921 |
|
|
|
450,905 |
|
|
Total Net Revenues (Decline)/Growth |
|
(50,885 |
) |
|
|
7,408 |
|
|
|
(3,405 |
) |
|
|
(46,882 |
) |
|
Total Net Revenues (Decline)/Growth % |
|
-17.2 |
% |
|
|
5.7 |
% |
|
|
-14.2 |
% |
|
|
-10.4 |
% |
|
Less: Impact of Insomnia Cookies divestiture |
|
(57,434 |
) |
|
|
— |
|
|
|
— |
|
|
|
(57,434 |
) |
|
Adjusted net revenues in fourth quarter of fiscal 2023 |
|
238,572 |
|
|
|
130,978 |
|
|
|
23,921 |
|
|
|
393,471 |
|
|
Adjusted net revenue growth/(decline) |
|
6,549 |
|
|
|
7,408 |
|
|
|
(3,405 |
) |
|
|
10,552 |
|
|
Impact of acquisitions |
|
(9,428 |
) |
|
|
(1,757 |
) |
|
|
3,244 |
|
|
|
(7,941 |
) |
|
Impact of foreign currency translation |
|
— |
|
|
|
4,545 |
|
|
|
— |
|
|
|
4,545 |
|
|
Organic Revenue (Decline)/Growth |
$ |
(2,879 |
) |
|
$ |
10,196 |
|
|
$ |
(161 |
) |
|
$ |
7,156 |
|
|
Organic Revenue (Decline)/Growth % |
|
-1.2 |
% |
|
|
7.8 |
% |
|
|
-0.7 |
% |
|
|
1.8 |
% |
|
Q4 2023 Organic Revenue - QTD (in thousands, except percentages) |
|
|
International |
|
Market Development |
|
Total Company |
|||||||||
Total net revenues in fourth quarter of fiscal 2023 |
$ |
296,006 |
|
|
$ |
130,978 |
|
|
$ |
23,921 |
|
|
$ |
450,905 |
|
|
Total net revenues in fourth quarter of fiscal 2022 |
|
270,836 |
|
|
|
113,015 |
|
|
|
20,748 |
|
|
|
404,599 |
|
|
Total Net Revenues Growth |
|
25,170 |
|
|
|
17,963 |
|
|
|
3,173 |
|
|
|
46,306 |
|
|
Total Net Revenues Growth % |
|
9.3 |
% |
|
|
15.9 |
% |
|
|
15.3 |
% |
|
|
11.4 |
% |
|
Less: Impact of shop optimization program closures |
|
(1,754 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,754 |
) |
|
Less: Impact of Branded Sweet Treats exit |
|
(8,841 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8,841 |
) |
|
Adjusted net revenues in fourth quarter of fiscal 2022 |
|
260,241 |
|
— |
|
113,015 |
|
|
|
20,748 |
|
|
|
394,004 |
|
|
Adjusted net revenue growth |
|
35,765 |
|
|
|
17,963 |
|
|
|
3,173 |
|
|
|
56,901 |
|
|
Impact of foreign currency translation |
|
— |
|
|
|
(4,921 |
) |
|
|
— |
|
|
|
(4,921 |
) |
|
Organic Revenue Growth |
$ |
35,765 |
|
|
$ |
13,042 |
|
|
$ |
3,173 |
|
|
$ |
51,980 |
|
|
Organic Revenue Growth % |
|
13.7 |
% |
|
|
11.5 |
% |
|
|
15.3 |
% |
|
|
13.2 |
% |
|
|
Fiscal Years Ended |
||||||||
|
December 29, 2024 |
|
December 31, 2023 |
|
January 1, 2023 |
||||
Net revenues: |
|
|
|
||||||
|
$ |
1,058,736 |
|
$ |
1,104,944 |
|
$ |
1,010,250 |
|
International |
|
519,102 |
|
|
489,631 |
|
|
435,651 |
|
Market Development |
|
87,559 |
|
|
91,529 |
|
|
83,997 |
|
Total net revenues |
$ |
1,665,397 |
|
$ |
1,686,104 |
|
$ |
1,529,898 |
|
Full Year 2024 Organic Revenue - YTD (in thousands, except percentages) |
|
|
International |
|
Market Development |
|
Total Company |
|||||||||
Total net revenues in fiscal 2024 |
$ |
1,058,736 |
|
|
$ |
519,102 |
|
|
$ |
87,559 |
|
|
$ |
1,665,397 |
|
|
Total net revenues in fiscal 2023 |
|
1,104,944 |
|
|
|
489,631 |
|
|
|
91,529 |
|
|
|
1,686,104 |
|
|
Total Net Revenues (Decline)/Growth |
|
(46,208 |
) |
|
|
29,471 |
|
|
|
(3,970 |
) |
|
|
(20,707 |
) |
|
Total Net Revenues (Decline)/Growth % |
|
-4.2 |
% |
|
|
6.0 |
% |
|
|
-4.3 |
% |
|
|
-1.2 |
% |
|
Less: Impact of shop optimization program closures |
|
(463 |
) |
|
|
— |
|
|
|
— |
|
|
|
(463 |
) |
|
Less: Impact of Insomnia Cookies divestiture |
|
(100,965 |
) |
|
|
— |
|
|
|
— |
|
|
|
(100,965 |
) |
|
Less: Impact of Branded Sweet Treats exit |
|
(5,853 |
) |
|
|
— |
|
|
|
— |
|
|
|
(5,853 |
) |
|
Adjusted net revenues in fiscal 2023 |
|
997,663 |
|
|
|
489,631 |
|
|
|
91,529 |
|
|
|
1,578,823 |
|
|
Adjusted net revenue growth/(decline) |
|
61,073 |
|
|
|
29,471 |
|
|
|
(3,970 |
) |
|
|
86,574 |
|
|
Impact of acquisitions |
|
(15,656 |
) |
|
|
(2,865 |
) |
|
|
5,371 |
|
|
|
(13,150 |
) |
|
Impact of foreign currency translation |
|
— |
|
|
|
5,883 |
|
|
|
— |
|
|
|
5,883 |
|
|
Organic Revenue Growth |
$ |
45,417 |
|
|
$ |
32,489 |
|
|
$ |
1,401 |
|
|
$ |
79,307 |
|
|
Organic Revenue Growth % |
|
4.6 |
% |
|
|
6.6 |
% |
|
|
1.5 |
% |
|
|
5.0 |
% |
|
Full Year 2023 Organic Revenue - YTD (in thousands, except percentages) |
|
|
International |
|
Market Development |
|
Total Company |
|||||||||
Total net revenues in fiscal 2023 |
$ |
1,104,944 |
|
|
$ |
489,631 |
|
|
$ |
91,529 |
|
|
$ |
1,686,104 |
|
|
Total net revenues in fiscal 2022 |
|
1,010,250 |
|
|
|
435,651 |
|
|
|
83,997 |
|
|
|
1,529,898 |
|
|
Total Net Revenues Growth |
|
94,694 |
|
|
|
53,980 |
|
|
|
7,532 |
|
|
|
156,206 |
|
|
Total Net Revenues Growth % |
|
9.4 |
% |
|
|
12.4 |
% |
|
|
9.0 |
% |
|
|
10.2 |
% |
|
Less: Impact of shop optimization program closures |
|
(11,367 |
) |
|
|
— |
|
|
|
— |
|
|
|
(11,367 |
) |
|
Less: Impact of Branded Sweet Treats exit |
|
(24,577 |
) |
|
|
— |
|
|
|
— |
|
|
|
(24,577 |
) |
|
Adjusted net revenues in fiscal 2022 |
|
974,306 |
|
|
|
435,651 |
|
|
|
83,997 |
|
|
|
1,493,954 |
|
|
Adjusted net revenue growth |
|
130,638 |
|
|
|
53,980 |
|
|
|
7,532 |
|
|
|
192,150 |
|
|
Impact of acquisitions |
|
(7,678 |
) |
|
|
— |
|
|
|
2,227 |
|
|
|
(5,451 |
) |
|
Impact of foreign currency translation |
|
— |
|
|
|
(5,039 |
) |
|
|
— |
|
|
|
(5,039 |
) |
|
Organic Revenue Growth |
$ |
122,960 |
|
|
$ |
48,941 |
|
|
$ |
9,759 |
|
|
$ |
181,660 |
|
|
Organic Revenue Growth % |
|
12.6 |
% |
|
|
11.2 |
% |
|
|
11.6 |
% |
|
|
12.2 |
% |
|
Fresh Revenues from Hubs with Spokes and Sales per Hub are defined above.
|
Fiscal Years Ended |
|||||||||||
Sales per Hub (in thousands, unless otherwise stated) |
December 29, 2024 (52 weeks) |
|
December 31, 2023 (52 weeks) |
|
January 1, 2023 (52 weeks) |
|||||||
|
|
|
|
|
|
|||||||
Revenues |
$ |
1,058,736 |
|
|
$ |
1,104,944 |
|
|
$ |
1,010,250 |
|
|
Non-Fresh Revenues (1) |
|
(3,161 |
) |
|
|
(9,416 |
) |
|
|
(38,380 |
) |
|
Fresh Revenues from Insomnia Cookies and Hubs without Spokes (2) |
|
(307,665 |
) |
|
|
(399,061 |
) |
|
|
(404,430 |
) |
|
Fresh Revenues from Hubs with Spokes |
|
747,910 |
|
|
|
696,467 |
|
|
|
567,440 |
|
|
Sales per Hub (millions) |
|
4.9 |
|
|
|
4.9 |
|
|
|
4.5 |
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|||||||
Fresh Revenues from Hubs with Spokes (3) |
$ |
519,102 |
|
|
$ |
489,631 |
|
|
$ |
435,651 |
|
|
Sales per Hub (millions) (4) |
|
10.1 |
|
|
|
9.9 |
|
|
|
9.6 |
|
|
(1) |
Includes the exited Branded Sweet Treats business revenues as well as licensing royalties from customers for use of the Krispy Kreme brand. |
|
(2) |
Includes Insomnia Cookies revenues (through the date of the divestiture) and Fresh Revenues generated by Hubs without Spokes. |
|
(3) |
Total International net revenues is equal to Fresh Revenues from Hubs with Spokes for that business segment. |
|
(4) |
International sales per Hub comparative data has been restated in constant currency based on current exchange rates. |
|
Krispy Kreme, Inc. Global Points of Access |
||||||
|
Global Points of Access |
|||||
|
Fiscal Years Ended |
|||||
|
December 29, 2024 |
|
December 31, 2023 |
|
January 1, 2023 |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Hot Light Theater Shops |
237 |
|
229 |
|
234 |
|
Fresh Shops |
70 |
|
70 |
|
62 |
|
Cookie Bakeries (1) |
— |
|
267 |
|
231 |
|
DFD Doors (2) |
9,644 |
|
6,808 |
|
5,729 |
|
Total |
9,951 |
|
7,374 |
|
6,256 |
|
International: |
|
|
|
|
|
|
Hot Light Theater Shops |
49 |
|
44 |
|
46 |
|
Fresh Shops |
519 |
|
483 |
|
448 |
|
Carts, Food Trucks, and Other (3) |
17 |
|
16 |
|
14 |
|
DFD Doors |
4,583 |
|
3,977 |
|
3,210 |
|
Total |
5,168 |
|
4,520 |
|
3,718 |
|
Market Development: |
|
|
|
|
|
|
Hot Light Theater Shops |
108 |
|
116 |
|
106 |
|
Fresh Shops |
1,095 |
|
968 |
|
813 |
|
Carts, Food Trucks, and Other (3) |
30 |
|
30 |
|
27 |
|
DFD Doors |
1,205 |
|
1,139 |
|
917 |
|
Total |
2,438 |
|
2,253 |
|
1,863 |
|
Total Global Points of Access (as defined) |
17,557 |
|
14,147 |
|
11,837 |
|
Total Hot Light Theater Shops |
394 |
|
389 |
|
386 |
|
Total Fresh Shops |
1,684 |
|
1,521 |
|
1,323 |
|
Total Cookie Bakeries (1) |
— |
|
267 |
|
231 |
|
Total Shops |
2,078 |
|
2,177 |
|
1,940 |
|
Total Carts, Food Trucks, and Other |
47 |
|
46 |
|
41 |
|
Total DFD Doors |
15,432 |
|
11,924 |
|
9,856 |
|
Total Global Points of Access (as defined) |
17,557 |
|
14,147 |
|
11,837 |
|
(1) |
Reflects the divestiture of Insomnia Cookies during fiscal 2024. |
|
(2) |
Includes more than 1,900 McDonald’s QSR shops as of December 29, 2024. |
|
(3) |
Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of Access in this category are primarily found in international locations in airports and train stations. |
Krispy Kreme, Inc. Global Hubs |
||||||
|
Hubs |
|||||
|
Fiscal Years Ended |
|||||
|
December 29, 2024 |
|
December 31, 2023 |
|
January 1, 2023 |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Hot Light Theater Shops (1) |
232 |
|
220 |
|
228 |
|
Doughnut Factories |
6 |
|
4 |
|
4 |
|
Total |
238 |
|
224 |
|
232 |
|
Hubs with Spokes |
158 |
|
149 |
|
133 |
|
Hubs without Spokes |
80 |
|
75 |
|
99 |
|
International: |
|
|
|
|
|
|
Hot Light Theater Shops (1) |
40 |
|
36 |
|
34 |
|
Doughnut Factories |
14 |
|
14 |
|
14 |
|
Total |
54 |
|
50 |
|
48 |
|
Hubs with Spokes |
54 |
|
50 |
|
48 |
|
Market Development: |
|
|
|
|
|
|
Hot Light Theater Shops (1) |
106 |
|
112 |
|
104 |
|
Doughnut Factories |
27 |
|
23 |
|
24 |
|
Total |
133 |
|
135 |
|
128 |
|
Total Hubs |
425 |
|
409 |
|
408 |
|
(1) |
Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a Spoke location that produces some doughnuts for itself and also receives doughnuts from another producing location. |
|
Krispy Kreme, Inc. Net Debt and Leverage (in thousands, except leverage ratio) |
||||||||
|
As of |
|||||||
|
December 29, 2024 |
|
December 31, 2023 |
|||||
|
(unaudited) |
|
|
|||||
Current portion of long-term debt |
$ |
56,356 |
|
|
$ |
54,631 |
|
|
Long-term debt, less current portion |
|
844,547 |
|
|
|
836,615 |
|
|
Total long-term debt, including debt issuance costs |
|
900,903 |
|
|
|
891,246 |
|
|
Add back: Debt issuance costs |
|
3,322 |
|
|
|
4,371 |
|
|
Total long-term debt, excluding debt issuance costs |
|
904,225 |
|
|
|
895,617 |
|
|
Less: Cash and cash equivalents |
|
(28,962 |
) |
|
|
(38,185 |
) |
|
Net debt |
$ |
875,263 |
|
|
$ |
857,432 |
|
|
Adjusted EBITDA - trailing four quarters |
|
193,528 |
|
|
|
211,624 |
|
|
Net leverage ratio |
4.5 x |
|
4.1 x |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250224225524/en/
Investor Relations
ir@krispykreme.com
Financial Media
Edelman Smithfield for Krispy Kreme, Inc.
Ashley Firlan & Ashna Vasa
KrispyKremeIR@edelman.com
Source: Krispy Kreme, Inc.
FAQ
What was Krispy Kreme's (DNUT) organic revenue growth for full year 2024?
How did the 2024 cybersecurity incident impact Krispy Kreme's (DNUT) Q4 results?
What is Krispy Kreme's (DNUT) financial outlook for 2025?
How many global points of access did Krispy Kreme (DNUT) add in 2024?
What strategic changes is Krispy Kreme (DNUT) implementing in 2025?
What happened to Krispy Kreme's (DNUT) Insomnia Cookies business in 2024?
