Krispy Kreme Reports Third Quarter 2024 Financial Results
Krispy Kreme (NASDAQ: DNUT) reported Q3 2024 financial results with net revenue of $379.9 million, representing a 6.8% decline from the previous year. The company achieved organic revenue growth of 3.5% to $376.4 million. GAAP net income was $37.6 million, primarily due to the sale of Insomnia Cookies stake. Adjusted EBITDA decreased 20.7% to $34.7 million, with margin declining to 9.1%. Global Points of Access increased 18% to 15,811. The company highlighted its McDonald's partnership expansion and expects to be in nearly 2,000 McDonald's restaurants by end of 2024.
Krispy Kreme (NASDAQ: DNUT) ha riportato i risultati finanziari del terzo trimestre 2024 con ricavi netti di $379,9 milioni, che rappresentano un calo del 6,8% rispetto all'anno precedente. L'azienda ha raggiunto una crescita organica dei ricavi del 3,5% fino a $376,4 milioni. L'utile netto secondo i principi contabili GAAP è stato di $37,6 milioni, principalmente grazie alla vendita della partecipazione in Insomnia Cookies. L'EBITDA rettificato è diminuito del 20,7% a $34,7 milioni, con un margine in calo al 9,1%. I Punti di Accesso Globali sono aumentati del 18% a 15.811. L'azienda ha messo in evidenza l'espansione della partnership con McDonald's e prevede di essere presente in quasi 2.000 ristoranti McDonald's entro la fine del 2024.
Krispy Kreme (NASDAQ: DNUT) reportó los resultados financieros del tercer trimestre de 2024 con ingresos netos de $379,9 millones, lo que representa una disminución del 6,8% en comparación con el año anterior. La compañía logró un crecimiento orgánico de ingresos del 3,5%, alcanzando los $376,4 millones. La utilidad neta según los principios contables GAAP fue de $37,6 millones, principalmente debido a la venta de su participación en Insomnia Cookies. El EBITDA ajustado se redujo un 20,7% a $34,7 millones, con un margen que cayó al 9,1%. Los Puntos de Acceso Globales aumentaron un 18% a 15,811. La empresa destacó la expansión de su asociación con McDonald's y espera estar en casi 2,000 restaurantes de McDonald's para finales de 2024.
크리스피 크림 (NASDAQ: DNUT)은 2024년 3분기 재무 결과를 발표했으며, 순수익은 $379.9백만으로 전년 대비 6.8% 감소했습니다. 회사는 유기적 수익 성장률이 3.5% 증가하여 $376.4백만에 달했습니다. GAAP 순이익은 $37.6백만으로 주로 인솜니아 쿠키의 지분 매각 때문이었습니다. 조정 EBITDA는 20.7% 감소하여 $34.7백만에 이르렀으며, 마진은 9.1%로 줄어들었습니다. 글로벌 접근 지점은 18% 증가하여 15,811에 도달했습니다. 회사는 맥도날드와의 파트너십 확대를 강조하며 2024년 말까지 거의 2,000개의 맥도날드 레스토랑에 입점할 것으로 예상하고 있습니다.
Krispy Kreme (NASDAQ: DNUT) a annoncé ses résultats financiers pour le troisième trimestre 2024 avec un chiffre d'affaires net de 379,9 millions de dollars, représentant une diminution de 6,8 % par rapport à l'année précédente. L'entreprise a réalisé une croissance organique des revenus de 3,5 %, atteignant 376,4 millions de dollars. Le bénéfice net selon les normes comptables GAAP était de 37,6 millions de dollars, principalement en raison de la vente de sa participation dans Insomnia Cookies. L'EBITDA ajusté a diminué de 20,7 % pour s'établir à 34,7 millions de dollars, avec une marge tombant à 9,1 %. Les Points d'Accès Globaux ont augmenté de 18 % pour atteindre 15 811. L'entreprise a souligné l'expansion de son partenariat avec McDonald's et prévoit d'être présente dans près de 2 000 restaurants McDonald's d'ici la fin de 2024.
Krispy Kreme (NASDAQ: DNUT) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem Nettoumsatz von $379,9 Millionen, was einem Rückgang von 6,8 % im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte ein organisches Umsatzwachstum von 3,5 % auf $376,4 Millionen. Der GAAP-Nettogewinn betrug $37,6 Millionen, was hauptsächlich auf den Verkauf von Anteilen an Insomnia Cookies zurückzuführen ist. Das bereinigte EBITDA fiel um 20,7 % auf $34,7 Millionen, wobei die Marge auf 9,1 % sank. Die globalen Zugangsstellen stiegen um 18 % auf 15.811. Das Unternehmen hob die Erweiterung der Partnerschaft mit McDonald's hervor und erwartet, bis Ende 2024 in fast 2.000 McDonald's-Restaurants präsent zu sein.
- Organic revenue growth of 3.5% marking 17th consecutive quarter of growth
- Global Points of Access increased 18% to 15,811
- Digital sales grew 15% year-over-year
- Delivered Fresh Daily (DFD) sales increased 15%
- Expansion partnership with McDonald's targeting 2,000 locations by end of 2024
- Net revenue declined 6.8% to $379.9 million
- Adjusted EBITDA decreased 20.7% to $34.7 million
- Adjusted EBITDA margin declined 160 basis points to 9.1%
- U.S. segment revenue declined 12.2%
- Adjusted diluted EPS declined to -$0.01 from $0.03 year-over-year
Insights
The Q3 results present a mixed picture for Krispy Kreme. While organic revenue grew
The strategic pivot to focus on fresh doughnut distribution shows promise through the
Third quarter Net Revenue of
Third Quarter Highlights (vs Q3 2023)
-
Net revenue of
$379.9 million -
Organic revenue grew
3.5% to$376.4 million -
GAAP net income of
$37.6 million $39.6 million -
Adjusted EBITDA of
$34.7 million -
GAAP operating cash flow of
$3.3 million -
Global Points of Access (“POA”) increased 2,417, or
18.0% , to 15,811
“Krispy Kreme delivered a seventeenth consecutive quarter of year-over-year organic sales growth driven by increased Delivered Fresh Daily and digital sales,” said Josh Charlesworth, CEO.
“Consumers ask us every day, ‘When can you bring Krispy Kreme to my town?’ hence our strategy of making our fresh doughnuts more available around the world. The successful start of our nationwide
“Now well into my first year as CEO, we have streamlined and focused our business with the sale of our majority stake in Insomnia Cookies complete and the acceleration of our US DFD expansion underway. To better align our talent and our capital to our business priorities, we are now restructuring our management teams to concentrate on maximizing our profitable expansion of the
Financial Highlights |
|
Quarter Ended |
||||||||||
$ in millions, except per share data |
|
September 29, 2024 |
|
October 1, 2023 |
|
Change |
||||||
GAAP: |
|
|
|
|
|
|
||||||
Net revenue |
|
$ |
379.9 |
|
|
$ |
407.4 |
|
|
|
(6.8 |
)% |
Operating loss |
|
$ |
(16.0 |
) |
|
$ |
(2.1 |
) |
|
nm |
||
Operating loss margin |
|
|
(4.2 |
)% |
|
|
(0.5 |
)% |
|
(370) bps |
||
Net income/(loss) |
|
$ |
37.6 |
|
|
$ |
(40.3 |
) |
|
nm |
||
Net income/(loss) attributable to KKI |
|
$ |
39.6 |
|
|
$ |
(40.5 |
) |
|
nm |
||
Diluted income/(loss) per share |
|
$ |
0.23 |
|
|
$ |
(0.24 |
) |
|
$ |
0.47 |
|
|
|
|
|
|
|
|
||||||
Non-GAAP (1): |
|
|
|
|
|
|
||||||
Organic revenue |
|
$ |
376.4 |
|
|
$ |
363.8 |
|
|
|
3.5 |
% |
Adjusted net (loss)/income, diluted |
|
$ |
(2.5 |
) |
|
$ |
4.4 |
|
|
nm |
||
Adjusted EBITDA |
|
$ |
34.7 |
|
|
$ |
43.7 |
|
|
|
(20.7 |
)% |
Adjusted EBITDA margin |
|
|
9.1 |
% |
|
|
10.7 |
% |
|
(160) bps |
||
Adjusted diluted (loss)/income per share |
|
$ |
(0.01 |
) |
|
$ |
0.03 |
|
|
$ |
(0.04 |
) |
Notes: |
|
(1) |
Non-GAAP figures – please refer to Reconciliation of Non-GAAP Financial Measures. |
Key Operating Metrics |
|
Quarter Ended |
|||||||||
$ in millions |
|
September 29, 2024 |
|
October 1, 2023 |
|
Change |
|||||
Global Points of Access |
|
|
15,811 |
|
|
|
13,394 |
|
|
18.0 |
% |
Sales per Hub ( |
|
$ |
4.9 |
|
|
$ |
4.8 |
|
|
2.1 |
% |
Sales per Hub (International) TTM |
|
$ |
10.1 |
|
|
$ |
9.9 |
|
|
2.0 |
% |
Digital Sales as a Percent of Doughnut Shop Sales |
|
|
15.5 |
% |
|
|
12.6 |
% |
|
290 bps |
|
Third Quarter 2024 Consolidated Results (vs Q3 2023)
Krispy Kreme’s third-quarter results reflect the sale of a majority ownership stake of Insomnia Cookies. The business is now fully focused on its core strategy of producing, selling and distributing fresh doughnuts daily and executing on its profitable
Total company organic revenue grew
Adjusted EBITDA was
Third Quarter 2024 Segment Results (vs Q3 2023)
International: In the International segment, net revenue grew
International segment Adjusted EBITDA margin improved sequentially despite the seasonally weaker quarter as actions taken to reduce costs delivered improved results. Year over year, Adjusted EBITDA decreased
Market Development: In the Market Development segment, net revenue declined
Market Development Adjusted EBITDA grew
Balance Sheet and Capital Expenditures
During the third quarter of 2024, Operating Cash Flow was
2024 Financial Guidance
We are adjusting our full year guide to reflect the third quarter results, the acceleration of our expansion with McDonald’s, and the completion of the Insomnia Cookies transaction in July 2024:
-
Net Revenue of
$1,650 $1,685 million -
Organic Revenue growth of +
5% to +7% -
Adjusted EBITDA of
$205 $210 million -
Adjusted Diluted EPS of
$0.18 $0.22 -
Income Tax rate between
28% and30% -
Capital Expenditures of
7% to8% of net revenue -
Interest Expense, net of
$55 million $60 million
Definitions
The following definitions apply to terms used throughout this press release:
- Global Points of Access: Reflects all locations at which fresh doughnuts or cookies can be purchased. We define global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors and Cookie Shops, at both Company-owned and franchise locations as of the end of the applicable 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.
- 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 applicable reporting period.
- 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 each of the five most recent quarters.
- Fresh Revenues from Hubs with Spokes: Fresh Revenues include product sales generated from our Doughnut Shop business (including digital), as well as DFD sales, but excluding sales from Branded Sweet Treats. It also excludes all Insomnia Cookies revenues as the measure is focused on the Krispy Kreme business. Fresh Revenues from Hubs with Spokes equals the Fresh Revenues derived from those Hubs currently producing product for other shops, Carts and Food Trucks, and/or DFD doors, but excluding Fresh Revenues derived from those Hubs not currently producing product for other shops, Carts and Food Trucks, and/or DFD doors.
- 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 at 8:30 AM Eastern Time today to discuss its results for the third quarter of 2024. The conference call can be accessed by dialing 1 (800) 715-9871 and entering the conference ID 1277949. International participants can access the call via the corresponding number listed HERE and entering the conference ID 1277949. To listen to the live audio webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay and transcript 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.
About Krispy Kreme
Headquartered in
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. The words “continue,” “towards,” “expect,” “outlook,” “guidance,” “explore,” 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 relating to our operations, financial results, financial conditions, business, prospects, growth strategy and liquidity. Accordingly, there are, and may 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 December 31, 2023, 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, the impact of inflation, 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 certain non-GAAP financial measures including organic revenue growth, Adjusted EBITDA, Adjusted Net Income, Diluted, Adjusted Diluted EPS, Net Debt, Fresh Revenue from Hubs with Spokes and Sales per Hub, 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.
Krispy Kreme, Inc. |
|||||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||||||||
(in thousands, except per share amounts) |
|||||||||||||||
|
Quarter Ended |
|
Three Quarters Ended |
||||||||||||
|
September 29,
|
|
October 1,
|
|
September 29,
|
|
October 1,
|
||||||||
Net revenues |
|
|
|
|
|
|
|
||||||||
Product sales |
$ |
370,662 |
|
|
$ |
398,745 |
|
|
$ |
1,233,585 |
|
|
$ |
1,209,767 |
|
Royalties and other revenues |
|
9,205 |
|
|
|
8,622 |
|
|
|
27,789 |
|
|
|
25,432 |
|
Total net revenues |
|
379,867 |
|
|
|
407,367 |
|
|
|
1,261,374 |
|
|
|
1,235,199 |
|
Product and distribution costs |
|
95,840 |
|
|
|
101,353 |
|
|
|
310,701 |
|
|
|
330,292 |
|
Operating expenses |
|
192,027 |
|
|
|
195,380 |
|
|
|
609,726 |
|
|
|
575,953 |
|
Selling, general and administrative expense |
|
71,110 |
|
|
|
68,305 |
|
|
|
207,150 |
|
|
|
192,355 |
|
Marketing expenses |
|
10,680 |
|
|
|
12,478 |
|
|
|
35,211 |
|
|
|
32,101 |
|
Pre-opening costs |
|
619 |
|
|
|
1,059 |
|
|
|
2,691 |
|
|
|
2,927 |
|
Other income, net |
|
(5,781 |
) |
|
|
(1,102 |
) |
|
|
(6,430 |
) |
|
|
(6,051 |
) |
Depreciation and amortization expense |
|
31,376 |
|
|
|
32,007 |
|
|
|
99,562 |
|
|
|
89,142 |
|
Operating (loss)/income |
|
(16,004 |
) |
|
|
(2,113 |
) |
|
|
2,763 |
|
|
|
18,480 |
|
Interest expense, net |
|
16,280 |
|
|
|
12,807 |
|
|
|
44,468 |
|
|
|
36,858 |
|
Gain on divestiture of Insomnia Cookies |
|
(87,128 |
) |
|
|
— |
|
|
|
(87,128 |
) |
|
|
— |
|
Other non-operating (income)/expense, net |
|
(407 |
) |
|
|
971 |
|
|
|
1,115 |
|
|
|
3,031 |
|
Income/(loss) before income taxes |
|
55,251 |
|
|
|
(15,891 |
) |
|
|
44,308 |
|
|
|
(21,409 |
) |
Income tax expense |
|
17,679 |
|
|
|
24,367 |
|
|
|
18,330 |
|
|
|
17,121 |
|
Net income/(loss) |
|
37,572 |
|
|
|
(40,258 |
) |
|
|
25,978 |
|
|
|
(38,530 |
) |
Net (loss)/income attributable to noncontrolling interest |
|
(1,991 |
) |
|
|
199 |
|
|
|
440 |
|
|
|
2,005 |
|
Net income/(loss) attributable to Krispy Kreme, Inc. |
$ |
39,563 |
|
|
$ |
(40,457 |
) |
|
$ |
25,538 |
|
|
$ |
(40,535 |
) |
Net income/(loss) per share: |
|
|
|
|
|
|
|
||||||||
Common stock — Basic |
$ |
0.23 |
|
|
$ |
(0.24 |
) |
|
$ |
0.15 |
|
|
$ |
(0.24 |
) |
Common stock — Diluted |
$ |
0.23 |
|
|
$ |
(0.24 |
) |
|
$ |
0.15 |
|
|
$ |
(0.24 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
169,596 |
|
|
|
168,224 |
|
|
|
169,125 |
|
|
|
168,183 |
|
Diluted |
|
171,486 |
|
|
|
168,224 |
|
|
|
171,384 |
|
|
|
168,183 |
|
Krispy Kreme, Inc. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in thousands, except per share data) |
|||||||
|
As of |
||||||
|
(Unaudited) September 29,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
25,410 |
|
|
$ |
38,185 |
|
Restricted cash |
|
474 |
|
|
|
429 |
|
Accounts receivable, net |
|
62,019 |
|
|
|
59,362 |
|
Inventories |
|
31,486 |
|
|
|
34,716 |
|
Taxes receivable |
|
19,406 |
|
|
|
15,526 |
|
Prepaid expense and other current assets |
|
25,531 |
|
|
|
25,363 |
|
Total current assets |
|
164,326 |
|
|
|
173,581 |
|
Property and equipment, net |
|
489,782 |
|
|
|
538,220 |
|
Goodwill |
|
1,060,393 |
|
|
|
1,101,939 |
|
Other intangible assets, net |
|
831,735 |
|
|
|
946,349 |
|
Operating lease right of use asset, net |
|
409,425 |
|
|
|
456,964 |
|
Investments in unconsolidated entities |
|
91,033 |
|
|
|
2,806 |
|
Other assets |
|
18,430 |
|
|
|
20,733 |
|
Total assets |
$ |
3,065,124 |
|
|
$ |
3,240,592 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current portion of long-term debt |
$ |
47,577 |
|
|
$ |
54,631 |
|
Current operating lease liabilities |
|
45,767 |
|
|
|
50,365 |
|
Accounts payable |
|
123,125 |
|
|
|
156,488 |
|
Accrued liabilities |
|
119,832 |
|
|
|
134,005 |
|
Structured payables |
|
139,170 |
|
|
|
130,104 |
|
Total current liabilities |
|
475,471 |
|
|
|
525,593 |
|
Long-term debt, less current portion |
|
804,638 |
|
|
|
836,615 |
|
Noncurrent operating lease liabilities |
|
406,726 |
|
|
|
454,583 |
|
Deferred income taxes, net |
|
119,291 |
|
|
|
123,925 |
|
Other long-term obligations and deferred credits |
|
49,858 |
|
|
|
36,093 |
|
Total liabilities |
|
1,855,984 |
|
|
|
1,976,809 |
|
Commitments and contingencies |
|
|
|
||||
Shareholders’ equity: |
|
|
|
||||
Common stock, |
|
1,698 |
|
|
|
1,686 |
|
Additional paid-in capital |
|
1,460,416 |
|
|
|
1,443,591 |
|
Shareholder note receivable |
|
(1,924 |
) |
|
|
(3,850 |
) |
Accumulated other comprehensive (loss)/income, net of income tax |
|
(9,276 |
) |
|
|
7,246 |
|
Retained deficit |
|
(271,238 |
) |
|
|
(278,990 |
) |
Total shareholders’ equity attributable to Krispy Kreme, Inc. |
|
1,179,676 |
|
|
|
1,169,683 |
|
Noncontrolling interest |
|
29,464 |
|
|
|
94,100 |
|
Total shareholders’ equity |
|
1,209,140 |
|
|
|
1,263,783 |
|
Total liabilities and shareholders’ equity |
$ |
3,065,124 |
|
|
$ |
3,240,592 |
|
Krispy Kreme, Inc. |
|||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||
(in thousands) |
|||||||
|
Three Quarters Ended |
||||||
|
September 29,
|
|
October 1,
|
||||
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES: |
|
|
|
||||
Net income/(loss) |
$ |
25,978 |
|
|
$ |
(38,530 |
) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
99,562 |
|
|
|
89,142 |
|
Deferred and other income taxes |
|
(22 |
) |
|
|
12,634 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
472 |
|
Impairment and lease termination charges |
|
368 |
|
|
|
7,711 |
|
Loss/(gain) on disposal of property and equipment |
|
470 |
|
|
|
(168 |
) |
Gain on divestiture of Insomnia Cookies |
|
(87,128 |
) |
|
|
— |
|
Gain on remeasurement of equity method investment |
|
(5,579 |
) |
|
|
— |
|
Gain on sale-leaseback |
|
— |
|
|
|
(9,646 |
) |
Share-based compensation |
|
24,603 |
|
|
|
17,821 |
|
Change in accounts and notes receivable allowances |
|
433 |
|
|
|
504 |
|
Inventory write-off |
|
1,731 |
|
|
|
10,522 |
|
Settlement of interest rate swap derivatives |
|
— |
|
|
|
7,657 |
|
Amortization related to settlement of interest rate swap derivatives |
|
(5,910 |
) |
|
|
(7,334 |
) |
Other |
|
263 |
|
|
|
566 |
|
Change in operating assets and liabilities, excluding business acquisitions and divestitures, and foreign currency translation adjustments |
|
(35,982 |
) |
|
|
(47,319 |
) |
Net cash provided by operating activities |
|
18,787 |
|
|
|
44,032 |
|
CASH FLOWS PROVIDED BY/(USED FOR) INVESTING ACTIVITIES: |
|
|
|
||||
Purchase of property and equipment |
|
(86,877 |
) |
|
|
(88,605 |
) |
Proceeds from sale-leaseback |
|
— |
|
|
|
10,025 |
|
Acquisition of shops and franchise rights from franchisees, net of cash acquired |
|
(26,612 |
) |
|
|
— |
|
Purchase of equity method investment |
|
(3,506 |
) |
|
|
— |
|
Net proceeds from divestiture of Insomnia Cookies |
|
117,646 |
|
|
|
— |
|
Principal payment received from loan to Insomnia Cookies |
|
45,000 |
|
|
|
— |
|
Disbursement for loan receivable |
|
(1,086 |
) |
|
|
— |
|
Other investing activities |
|
180 |
|
|
|
222 |
|
Net cash provided by/(used for) investing activities |
|
44,745 |
|
|
|
(78,358 |
) |
CASH FLOWS (USED FOR)/PROVIDED BY FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from the issuance of debt |
|
490,000 |
|
|
|
1,044,698 |
|
Repayment of long-term debt and lease obligations |
|
(545,692 |
) |
|
|
(965,250 |
) |
Payment of financing costs |
|
— |
|
|
|
(5,000 |
) |
Proceeds from structured payables |
|
298,551 |
|
|
|
145,099 |
|
Payments on structured payables |
|
(264,346 |
) |
|
|
(159,571 |
) |
Payment of contingent consideration related to a business combination |
|
— |
|
|
|
(925 |
) |
Capital contribution by shareholders, net of loans issued |
|
919 |
|
|
|
631 |
|
Proceeds from sale of noncontrolling interest in subsidiary |
|
364 |
|
|
|
— |
|
Distribution to shareholders |
|
(17,743 |
) |
|
|
(17,657 |
) |
Payments for repurchase and retirement of common stock |
|
(4,366 |
) |
|
|
(1,609 |
) |
Distribution to noncontrolling interest |
|
(35,035 |
) |
|
|
(12,883 |
) |
Net cash (used for)/provided by financing activities |
|
(77,348 |
) |
|
|
27,533 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
1,086 |
|
|
|
(2,796 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
(12,730 |
) |
|
|
(9,589 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
38,614 |
|
|
|
35,730 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
25,884 |
|
|
$ |
26,141 |
|
|
|
|
|
||||
Net cash provided by operating activities |
$ |
18,787 |
|
|
$ |
44,032 |
|
Less: Purchase of property and equipment |
|
(86,877 |
) |
|
|
(88,605 |
) |
Free cash flow |
$ |
(68,090 |
) |
|
$ |
(44,573 |
) |
Krispy Kreme, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(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 other certain 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.
We define “Adjusted Net Income, Diluted” as net 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 other certain 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 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 Adjusted EBITDA, Adjusted Net Income, Diluted, and Adjusted EPS 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 Adjusted EBITDA, Adjusted Net Income, Diluted, and Adjusted EPS supplementally.
|
Quarter Ended |
|
Three Quarters Ended |
||||||||||||
(in thousands) |
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
||||||||
Net income/(loss) |
$ |
37,572 |
|
|
$ |
(40,258 |
) |
|
$ |
25,978 |
|
|
$ |
(38,530 |
) |
Interest expense, net |
|
16,280 |
|
|
|
12,807 |
|
|
|
44,468 |
|
|
|
36,858 |
|
Income tax expense |
|
17,679 |
|
|
|
24,367 |
|
|
|
18,330 |
|
|
|
17,121 |
|
Depreciation and amortization expense |
|
31,376 |
|
|
|
32,007 |
|
|
|
99,562 |
|
|
|
89,142 |
|
Share-based compensation |
|
9,969 |
|
|
|
7,452 |
|
|
|
24,603 |
|
|
|
17,821 |
|
Employer payroll taxes related to share-based compensation |
|
49 |
|
|
|
96 |
|
|
|
299 |
|
|
|
310 |
|
Gain on divestiture of Insomnia Cookies |
|
(87,128 |
) |
|
|
— |
|
|
|
(87,128 |
) |
|
|
— |
|
Other non-operating (income)/expense, net (1) |
|
(407 |
) |
|
|
971 |
|
|
|
1,115 |
|
|
|
3,031 |
|
Strategic initiatives (2) |
|
11,426 |
|
|
|
5,895 |
|
|
|
20,434 |
|
|
|
23,841 |
|
Acquisition and integration expenses (3) |
|
1,938 |
|
|
|
49 |
|
|
|
3,037 |
|
|
|
479 |
|
New market penetration expenses (4) |
|
156 |
|
|
|
678 |
|
|
|
1,194 |
|
|
|
1,013 |
|
Shop closure expenses/(income), net (5) |
|
21 |
|
|
|
(449 |
) |
|
|
788 |
|
|
|
356 |
|
Restructuring and severance expenses (6) |
|
631 |
|
|
|
552 |
|
|
|
769 |
|
|
|
2,799 |
|
Gain on remeasurement of equity method investment (7) |
|
(5,579 |
) |
|
|
— |
|
|
|
(5,579 |
) |
|
|
— |
|
Gain on sale-leaseback |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,646 |
) |
Other (8) |
|
716 |
|
|
|
(426 |
) |
|
|
(257 |
) |
|
|
2,888 |
|
Adjusted EBITDA |
$ |
34,699 |
|
|
$ |
43,741 |
|
|
$ |
147,613 |
|
|
$ |
147,483 |
|
|
Quarter Ended |
|
Three Quarters Ended |
||||||||||||
(in thousands) |
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
||||||||
Segment Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
|
$ |
13,922 |
|
|
$ |
22,258 |
|
|
$ |
89,206 |
|
|
$ |
88,878 |
|
International |
|
22,779 |
|
|
|
24,961 |
|
|
|
64,970 |
|
|
|
68,645 |
|
Market Development |
|
11,271 |
|
|
|
9,816 |
|
|
|
36,046 |
|
|
|
31,862 |
|
Corporate |
|
(13,273 |
) |
|
|
(13,294 |
) |
|
|
(42,609 |
) |
|
|
(41,902 |
) |
Total Adjusted EBITDA |
$ |
34,699 |
|
|
$ |
43,741 |
|
|
$ |
147,613 |
|
|
$ |
147,483 |
|
|
Quarter Ended |
|
Three Quarters Ended |
||||||||||||
(in thousands, except per share amounts) |
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
||||||||
Net income/(loss) |
$ |
37,572 |
|
|
$ |
(40,258 |
) |
|
$ |
25,978 |
|
|
$ |
(38,530 |
) |
Share-based compensation |
|
9,969 |
|
|
|
7,452 |
|
|
|
24,603 |
|
|
|
17,821 |
|
Employer payroll taxes related to share-based compensation |
|
49 |
|
|
|
96 |
|
|
|
299 |
|
|
|
310 |
|
Gain on divestiture of Insomnia Cookies |
|
(87,128 |
) |
|
|
— |
|
|
|
(87,128 |
) |
|
|
— |
|
Other non-operating (income)/expense, net (1) |
|
(407 |
) |
|
|
971 |
|
|
|
1,115 |
|
|
|
3,031 |
|
Strategic initiatives (2) |
|
11,426 |
|
|
|
5,895 |
|
|
|
20,434 |
|
|
|
23,841 |
|
Acquisition and integration expenses (3) |
|
1,938 |
|
|
|
49 |
|
|
|
3,037 |
|
|
|
479 |
|
New market penetration expenses (4) |
|
156 |
|
|
|
678 |
|
|
|
1,194 |
|
|
|
1,013 |
|
Shop closure expenses/(income) (5) |
|
21 |
|
|
|
(449 |
) |
|
|
788 |
|
|
|
356 |
|
Restructuring and severance expenses (6) |
|
631 |
|
|
|
552 |
|
|
|
769 |
|
|
|
2,799 |
|
Gain on remeasurement of equity method investment (7) |
|
(5,579 |
) |
|
|
— |
|
|
|
(5,579 |
) |
|
|
— |
|
Gain on sale-leaseback |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,646 |
) |
Other (8) |
|
716 |
|
|
|
(426 |
) |
|
|
(257 |
) |
|
|
2,888 |
|
Amortization of acquisition related intangibles (9) |
|
7,780 |
|
|
|
7,386 |
|
|
|
22,597 |
|
|
|
22,027 |
|
Loss on extinguishment of 2019 Facility (10) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
472 |
|
Tax impact of adjustments (11) |
|
20,766 |
|
|
|
22,694 |
|
|
|
13,765 |
|
|
|
8,574 |
|
Tax specific adjustments (12) |
|
(2,395 |
) |
|
|
(28 |
) |
|
|
(3,210 |
) |
|
|
(2,343 |
) |
Net loss/(income) attributable to noncontrolling interest |
|
1,991 |
|
|
|
(199 |
) |
|
|
(440 |
) |
|
|
(2,005 |
) |
Adjusted net (loss)/income attributable to common shareholders - Basic |
$ |
(2,494 |
) |
|
$ |
4,413 |
|
|
$ |
17,965 |
|
|
$ |
31,087 |
|
Additional income attributed to noncontrolling interest due to subsidiary potential common shares |
|
(4 |
) |
|
|
(7 |
) |
|
|
(28 |
) |
|
|
(14 |
) |
Adjusted net (loss)/income attributable to common shareholders - Diluted |
$ |
(2,498 |
) |
|
$ |
4,406 |
|
|
$ |
17,937 |
|
|
$ |
31,073 |
|
Basic weighted average common shares outstanding |
|
169,596 |
|
|
|
168,224 |
|
|
|
169,125 |
|
|
|
168,183 |
|
Dilutive effect of outstanding common stock options, RSUs, and PSUs |
|
— |
|
|
|
2,421 |
|
|
|
2,259 |
|
|
|
2,249 |
|
Diluted weighted average common shares outstanding |
|
169,596 |
|
|
|
170,645 |
|
|
|
171,384 |
|
|
|
170,432 |
|
Adjusted net (loss)/income per share attributable to common shareholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.01 |
) |
|
$ |
0.03 |
|
|
$ |
0.11 |
|
|
$ |
0.18 |
|
Diluted |
$ |
(0.01 |
) |
|
$ |
0.03 |
|
|
$ |
0.10 |
|
|
$ |
0.18 |
|
(1) |
Primarily foreign translation gains and losses in each period. |
(2) |
The quarter and three quarters ended September 29, 2024 consist 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 for which the Company’s brands have not previously operated, including |
(5) |
Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment. The quarter and three quarters ended October 1, 2023 include gains related to the termination of leases at certain Krispy Kreme shops in the |
(6) |
The quarter and three quarters ended September 29, 2024 consists primarily of costs associated with the restructuring of the KK |
(7) |
Consists of a gain related to the remeasurement of the equity method investments in KremeWorks |
(8) |
The quarter and three quarters ended September 29, 2024 and October 1, 2023 consist primarily of legal and other regulatory expenses incurred outside the ordinary course of business. The three quarters ended September 29, 2024 also include a gain from insurance proceeds received related to a shop in the |
(9) |
Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statements of Operations. |
(10) |
Includes interest expenses related to unamortized debt issuance costs from the 2019 Facility associated with extinguished lenders as a result of the March 2023 debt refinancing. |
(11) |
Tax impact of adjustments calculated applying the applicable statutory rates. The quarter and three quarters ended September 29, 2024 and October 1, 2023 also include the impact of disallowed executive compensation expense. |
(12) |
The quarter and three quarters ended September 29, 2024 consist 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 on state net operating losses associated with the divestiture of Insomnia Cookies, and the effect of various tax law changes on existing temporary differences. The quarter and three quarters ended October 1, 2023 consist 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. |
Krispy Kreme, Inc. |
|||||||||||
Segment Reporting (Unaudited) |
|||||||||||
(in thousands, except percentages or otherwise stated) |
|||||||||||
|
Quarter Ended |
|
Three Quarters Ended |
||||||||
|
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
||||
Net revenues: |
|
|
|
|
|
|
|
||||
|
$ |
228,376 |
|
$ |
260,177 |
|
$ |
813,615 |
|
$ |
808,938 |
International |
|
130,697 |
|
|
126,077 |
|
|
380,716 |
|
|
358,653 |
Market Development |
|
20,794 |
|
|
21,113 |
|
|
67,043 |
|
|
67,608 |
Total net revenues |
$ |
379,867 |
|
$ |
407,367 |
|
$ |
1,261,374 |
|
$ |
1,235,199 |
Q3 2024 Organic Revenue - QTD (in thousands, except percentages) |
|
|
International |
|
Market Development |
|
Total Company |
||||||||
Total net revenues in third quarter of fiscal 2024 |
$ |
228,376 |
|
|
$ |
130,697 |
|
|
$ |
20,794 |
|
|
$ |
379,867 |
|
Total net revenues in third quarter of fiscal 2023 |
|
260,177 |
|
|
|
126,077 |
|
|
|
21,113 |
|
|
|
407,367 |
|
Total Net Revenues Growth |
|
(31,801 |
) |
|
|
4,620 |
|
|
|
(319 |
) |
|
|
(27,500 |
) |
Total Net Revenues Growth % |
|
-12.2 |
% |
|
|
3.7 |
% |
|
|
-1.5 |
% |
|
|
-6.8 |
% |
Less: Impact of Insomnia Cookies divestiture |
|
(43,531 |
) |
|
|
— |
|
|
|
— |
|
|
|
(43,531 |
) |
Adjusted net revenues in third quarter of fiscal 2023 |
|
216,646 |
|
|
|
126,077 |
|
|
|
21,113 |
|
|
|
363,836 |
|
Adjusted net revenue growth |
|
11,730 |
|
|
|
4,620 |
|
|
|
(319 |
) |
|
|
16,031 |
|
Impact of acquisitions |
|
(6,228 |
) |
|
|
(1,108 |
) |
|
|
2,127 |
|
|
|
(5,209 |
) |
Impact of foreign currency translation |
|
— |
|
|
|
1,770 |
|
|
|
— |
|
|
|
1,770 |
|
Organic Revenue Growth |
$ |
5,502 |
|
|
$ |
5,282 |
|
|
$ |
1,808 |
|
|
$ |
12,592 |
|
Organic Revenue Growth % |
|
2.5 |
% |
|
|
4.2 |
% |
|
|
8.6 |
% |
|
|
3.5 |
% |
Q3 2024 Organic Revenue - YTD (in thousands, except percentages) |
|
|
International |
|
Market Development |
|
Total Company |
||||||||
Total net revenues in first three quarters of fiscal 2024 |
$ |
813,615 |
|
|
$ |
380,716 |
|
|
$ |
67,043 |
|
|
$ |
1,261,374 |
|
Total net revenues in first three quarters of fiscal 2023 |
|
808,938 |
|
|
|
358,653 |
|
|
|
67,608 |
|
|
|
1,235,199 |
|
Total Net Revenues Growth |
|
4,677 |
|
|
|
22,063 |
|
|
|
(565 |
) |
|
|
26,175 |
|
Total Net Revenues Growth % |
|
0.6 |
% |
|
|
6.2 |
% |
|
|
-0.8 |
% |
|
|
2.1 |
% |
Less: Impact of shop optimization program closures |
|
(463 |
) |
|
|
— |
|
|
|
— |
|
|
|
(463 |
) |
Less: Impact of Branded Sweet Treats exit |
|
(5,853 |
) |
|
|
— |
|
|
|
— |
|
|
|
(5,853 |
) |
Less: Impact of Insomnia Cookies divestiture |
|
(43,531 |
) |
|
|
— |
|
|
|
— |
|
|
|
(43,531 |
) |
Adjusted net revenues in first three quarters of fiscal 2023 |
|
759,091 |
|
|
|
358,653 |
|
|
|
67,608 |
|
|
|
1,185,352 |
|
Adjusted net revenue growth |
|
54,524 |
|
|
|
22,063 |
|
|
|
(565 |
) |
|
|
76,022 |
|
Impact of acquisitions |
|
(6,228 |
) |
|
|
(1,108 |
) |
|
|
2,127 |
|
|
|
(5,209 |
) |
Impact of foreign currency translation |
|
— |
|
|
|
1,338 |
|
|
|
— |
|
|
|
1,338 |
|
Organic Revenue Growth |
$ |
48,296 |
|
|
$ |
22,293 |
|
|
$ |
1,562 |
|
|
$ |
72,151 |
|
Organic Revenue Growth % |
|
6.4 |
% |
|
|
6.2 |
% |
|
|
2.3 |
% |
|
|
6.1 |
% |
Q3 2023 Organic Revenue - QTD (in thousands, except percentages) |
|
|
International |
|
Market Development |
|
Total Company |
||||||||
Total net revenues in third quarter of fiscal 2023 |
$ |
260,177 |
|
|
$ |
126,077 |
|
|
$ |
21,113 |
|
|
$ |
407,367 |
|
Total net revenues in third quarter of fiscal 2022 |
|
246,830 |
|
|
|
107,585 |
|
|
|
23,107 |
|
|
|
377,522 |
|
Total Net Revenues Growth |
|
13,347 |
|
|
|
18,492 |
|
|
|
(1,994 |
) |
|
|
29,845 |
|
Total Net Revenues Growth % |
|
5.4 |
% |
|
|
17.2 |
% |
|
|
-8.6 |
% |
|
|
7.9 |
% |
Less: Impact of shop optimization program closures |
|
(3,096 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3,096 |
) |
Less: Impact of Branded Sweet Treats exit |
|
(9,035 |
) |
|
|
— |
|
|
|
— |
|
|
|
(9,035 |
) |
Adjusted net revenues in third quarter of fiscal 2022 |
|
234,699 |
|
|
|
107,585 |
|
|
|
23,107 |
|
|
|
365,391 |
|
Adjusted net revenue growth |
|
25,478 |
|
|
|
18,492 |
|
|
|
(1,994 |
) |
|
|
41,976 |
|
Impact of acquisitions |
|
(1,575 |
) |
|
|
— |
|
|
|
457 |
|
|
|
(1,118 |
) |
Impact of foreign currency translation |
|
— |
|
|
|
(5,912 |
) |
|
|
— |
|
|
|
(5,912 |
) |
Organic Revenue Growth |
$ |
23,903 |
|
|
$ |
12,580 |
|
|
$ |
(1,537 |
) |
|
$ |
34,946 |
|
Organic Revenue Growth % |
|
10.2 |
% |
|
|
11.7 |
% |
|
|
-6.7 |
% |
|
|
9.6 |
% |
Q3 2023 Organic Revenue - YTD (in thousands, except percentages) |
|
|
International |
|
Market Development |
|
Total Company |
||||||||
Total net revenues in first three quarters of fiscal 2023 |
$ |
808,938 |
|
|
$ |
358,653 |
|
|
$ |
67,608 |
|
|
$ |
1,235,199 |
|
Total net revenues in first three quarters of fiscal 2022 |
|
739,414 |
|
|
|
322,636 |
|
|
|
63,249 |
|
|
|
1,125,299 |
|
Total Net Revenues Growth |
|
69,524 |
|
|
|
36,017 |
|
|
|
4,359 |
|
|
|
109,900 |
|
Total Net Revenues Growth % |
|
9.4 |
% |
|
|
11.2 |
% |
|
|
6.9 |
% |
|
|
9.8 |
% |
Less: Impact of shop optimization program closures |
|
(9,613 |
) |
|
|
— |
|
|
|
— |
|
|
|
(9,613 |
) |
Less: Impact of Branded Sweet Treats exit |
|
(15,736 |
) |
|
|
— |
|
|
|
— |
|
|
|
(15,736 |
) |
Adjusted net revenues in first three quarters of fiscal 2022 |
|
714,065 |
|
|
|
322,636 |
|
|
|
63,249 |
|
|
|
1,099,950 |
|
Adjusted net revenue growth |
|
94,873 |
|
|
|
36,017 |
|
|
|
4,359 |
|
|
|
135,249 |
|
Impact of acquisitions |
|
(7,678 |
) |
|
|
— |
|
|
|
2,227 |
|
|
|
(5,451 |
) |
Impact of foreign currency translation |
|
— |
|
|
|
(118 |
) |
|
|
— |
|
|
|
(118 |
) |
Organic Revenue Growth |
$ |
87,195 |
|
|
$ |
35,899 |
|
|
$ |
6,586 |
|
|
$ |
129,680 |
|
Organic Revenue Growth % |
|
12.2 |
% |
|
|
11.1 |
% |
|
|
10.4 |
% |
|
|
11.8 |
% |
|
Trailing Four Quarters Ended |
|
Fiscal Year Ended |
||||||||
(in thousands, unless otherwise stated) |
September 29,
|
|
December 31,
|
|
January 1,
|
||||||
|
|
|
|
|
|
||||||
Revenues |
$ |
1,109,621 |
|
|
$ |
1,104,944 |
|
|
$ |
1,010,250 |
|
Non-Fresh Revenues (1) |
|
(3,857 |
) |
|
|
(9,416 |
) |
|
|
(38,380 |
) |
Fresh Revenues from Insomnia Cookies and Hubs without Spokes (2) |
|
(360,354 |
) |
|
|
(399,061 |
) |
|
|
(404,430 |
) |
Sales from Hubs with Spokes |
|
745,410 |
|
|
|
696,467 |
|
|
|
567,440 |
|
Sales per Hub (millions) |
|
4.9 |
|
|
|
4.9 |
|
|
|
4.5 |
|
|
|
|
|
|
|
||||||
International: |
|
|
|
|
|
||||||
Sales from Hubs with Spokes (3) |
$ |
511,694 |
|
|
$ |
489,631 |
|
|
$ |
435,651 |
|
Sales per Hub (millions) (4) |
|
10.1 |
|
|
|
10.0 |
|
|
|
9.7 |
|
(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 (Unaudited) |
|||||
|
Global Points of Access |
||||
|
Quarter Ended |
|
Fiscal Year Ended |
||
|
September 29, 2024 |
|
October 1, 2023 |
|
December 31, 2023 |
|
|
|
|
|
|
Hot Light Theater Shops |
236 |
|
229 |
|
229 |
Fresh Shops |
71 |
|
65 |
|
70 |
Cookie Bakeries (3) |
— |
|
249 |
|
267 |
DFD Doors (2) |
7,711 |
|
6,506 |
|
6,808 |
Total |
8,018 |
|
7,049 |
|
7,374 |
International: |
|
|
|
|
|
Hot Light Theater Shops |
48 |
|
45 |
|
44 |
Fresh Shops |
508 |
|
479 |
|
483 |
Carts, Food Trucks, and Other (1) |
17 |
|
16 |
|
16 |
DFD Doors |
4,867 |
|
3,588 |
|
3,977 |
Total |
5,440 |
|
4,128 |
|
4,520 |
Market Development: |
|
|
|
|
|
Hot Light Theater Shops |
110 |
|
113 |
|
116 |
Fresh Shops |
1,059 |
|
920 |
|
968 |
Carts, Food Trucks, and Other (1) |
30 |
|
29 |
|
30 |
DFD Doors |
1,154 |
|
1,155 |
|
1,139 |
Total |
2,353 |
|
2,217 |
|
2,253 |
Total Global Points of Access (as defined) |
15,811 |
|
13,394 |
|
14,147 |
Total Hot Light Theater Shops |
394 |
|
387 |
|
389 |
Total Fresh Shops |
1,638 |
|
1,464 |
|
1,521 |
Total Cookie Bakeries (3) |
— |
|
249 |
|
267 |
Total Shops |
2,032 |
|
2,100 |
|
2,177 |
Total Carts, Food Trucks, and Other |
47 |
|
45 |
|
46 |
Total DFD Doors |
13,732 |
|
11,249 |
|
11,924 |
Total Global Points of Access (as defined) |
15,811 |
|
13,394 |
|
14,147 |
(1) |
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, train stations, etc. |
(2) |
Includes over 160 McDonald’s shops located in |
(3) |
Reflects the divestiture of Insomnia Cookies during the quarter ended September 29, 2024. |
Krispy Kreme, Inc. |
|||||
Global Hubs (Unaudited) |
|||||
|
Hubs |
||||
|
Quarter Ended |
|
Fiscal Year Ended |
||
|
September 29, 2024 |
|
October 1, 2023 |
|
December 31, 2023 |
|
|
|
|
|
|
Hot Light Theater Shops (1) |
230 |
|
222 |
|
220 |
Doughnut Factories |
6 |
|
4 |
|
4 |
Total |
236 |
|
226 |
|
224 |
Hubs with Spokes |
152 |
|
148 |
|
149 |
Hubs without Spokes |
84 |
|
78 |
|
75 |
International: |
|
|
|
|
|
Hot Light Theater Shops (1) |
39 |
|
36 |
|
36 |
Doughnut Factories |
14 |
|
14 |
|
14 |
Total |
53 |
|
50 |
|
50 |
Hubs with Spokes |
53 |
|
50 |
|
50 |
Market Development: |
|
|
|
|
|
Hot Light Theater Shops (1) |
108 |
|
109 |
|
112 |
Doughnut Factories |
26 |
|
23 |
|
23 |
Total |
134 |
|
132 |
|
135 |
Total Hubs |
423 |
|
408 |
|
409 |
(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 (Unaudited) |
|||||||
(in thousands, except leverage ratio) |
|||||||
|
September 29, 2024 |
|
December 31, 2023 |
||||
Current portion of long-term debt |
$ |
47,577 |
|
|
$ |
54,631 |
|
Long-term debt, less current portion |
|
804,638 |
|
|
|
836,615 |
|
Total long-term debt, including debt issuance costs |
|
852,215 |
|
|
|
891,246 |
|
Add back: Debt issuance costs |
|
3,584 |
|
|
|
4,371 |
|
Total long-term debt, excluding debt issuance costs |
|
855,799 |
|
|
|
895,617 |
|
Less: Cash and cash equivalents |
|
(25,410 |
) |
|
|
(38,185 |
) |
Net debt |
$ |
830,389 |
|
|
$ |
857,432 |
|
Adjusted EBITDA - trailing four quarters |
|
211,754 |
|
|
|
211,624 |
|
Net leverage ratio |
3.9 |
x |
|
4.1 |
x |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106595255/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) revenue in Q3 2024?
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