Fourth quarter net revenue grew 9.2% with organic revenue growth of 12.5% Points of Access increased to 11,837, up 14% from 2021 Introduces robust 2023 guidance

Krispy Kreme, Inc. (NASDAQ: DNUT) (“Krispy Kreme” or the “Company”) today reported financial results for the fourth quarter and full year ended January 1, 2023. Net revenue in the quarter grew 9.2%, inclusive of a negative 3.7% impact from foreign currency exchange (“FX”) headwinds. Sales Per Hub grew 15.0% in the U.S. and Canada to $4.6 million and 7.7% in International to $9.8 million. Organic revenue in the quarter grew 12.5% driven by double digit organic growth in all three business segments. For the full year 2022, net revenue grew 10.5%, inclusive of a negative 2.7% impact from FX headwinds, and organic revenue grew 12.1%.

Our efforts to improve performance through our network optimization and closing unprofitable shops led to expenses of $12.4 million, over 90% non cash, which contributed to a GAAP Net Loss of $1.0 million for the fourth quarter. The Company is already seeing improved performance from our Hubs without Spokes in the U.S.

Adjusted EBITDA grew 17%, or an even stronger 25% in constant currency, and Adjusted EBITDA margins expanded 90 basis points in the quarter compared to the same quarter a year ago, led by strong performance from the U.S. and Canada and Market Development segments and sequential improvement in our International segment. GAAP Diluted Loss Per Share for the quarter was $0.02 compared to income of $0.01 in the same quarter last year. Adjusted Diluted Earnings Per Share was $0.11 for the quarter, up 38% compared to the same quarter a year ago. Free cash flow in the fourth quarter was $32.4 million.

Commenting on the performance, CEO Mike Tattersfield stated, “We are pleased with the strong end to 2022, with notable progress on expanding our omni-channel model, furthering our global growth strategy and executing successfully on the initial phase of our hub optimization efforts. Our global fresh, premium Halloween and winter holiday specialty doughnuts resonated strongly with consumers, helping drive a record of more than 1.6 billion doughnuts sold in 2022. Our Ecommerce business also achieved impressive growth of 23%, marking the best quarter in this channel since the pandemic, led by growth in Insomnia Cookies and Krispy Kreme in the U.S.”

Mike continued, “Looking to 2023, we are well-positioned to deliver another year of terrific growth with a great start led by premium offerings for celebrations. Our performance this year will be led by continued expansion of our capital efficient omni-channel model as we aim to grow our fresh points of access by 10% to 15% in 2023. We are particularly excited for our global growth this year as we expect to open in five to seven new countries in 2023, including in France, as we continue on our journey to being the most loved sweet treat brand in the world.”

Financial Highlights

$ in millions, except per share data

Q4 2022

vs Q4 2021

2022

vs 2021

Net Revenue

$404.6

9.2%

$1,529.9

10.5%

Organic Revenue (1)

$415.4

12.5%

$1,549.8

12.1%

GAAP Net Loss

$(1.0)

nm

$(8.8)

40.9%

Adjusted Net Income, Diluted (1)

$18.6

38.9%

$49.6

(10.6)%

Operating Income

$5.2

(68.4)%

$29.0

(29.5)%

Operating Income Margin

1.3%

-310 bps

1.9%

-110 bps

Adjusted EBITDA (1)

$55.9

17.2%

$190.7

1.5%

Adjusted EBITDA Margin (1)

13.8%

+90 bps

12.5%

-110 bps

GAAP Diluted Loss Per Share

$(0.02)

$(0.03)

$(0.10)

$0.08

Adjusted Diluted EPS (1)

$0.11

$0.03

$0.29

$(0.08)

Notes: (1) Non-GAAP figures – please refer to Reconciliation of Non-GAAP Financial Measures.

Key Operating Metrics

$ in millions, except access points

Q4 2022

vs Q4 2021

Global Points of Access

11,837

13.5%

Sales per Hub (U.S. and Canada) TTM

$4.6

15.0%

Sales per Hub (International) TTM

$9.8

7.7%

Ecommerce as a Percent of Retail Sales

18.3%

+260 bps

Fourth Quarter and Full Year 2022 Consolidated Results

Net revenue grew 9.2% in the quarter to $404.6 million, or 23.0% on a two-year stack basis. Total company organic revenue grew 12.5% in the quarter compared to the same quarter last year, and 26.4% on a two-year stack basis. Organic revenue growth in the quarter was strong across all segments due to the increase in Points of Access and a strong Delivered Fresh Daily (“DFD”) performance.

For the full year 2022, net revenue grew 10.5% to $1.53 billion, or 33.9% on a two-year stack basis. Organic revenue grew 12.1% in 2022, or 24.6% on a two-year stack basis, driven by Points of Access growth and a 10% increase in sales per DFD door in the U.S. and Canada.

GAAP Net Loss for the quarter was $1.0 million, compared to a GAAP Net Income of $4.3 million a year ago. The decrease was driven by expenses of $12.4 million, over 90% of which were non-cash, associated with previously announced optimization efforts and shop closures. Excluding that expense, GAAP Net Income would have increased in the fourth quarter.

Adjusted EBITDA in the quarter grew 17.2% to $55.9 million, or 25.0% in constant currency, with Adjusted EBITDA margins expanding 90 basis points to 13.8%. Adjusted Net Income, diluted grew 38.9% to $18.6 million in the quarter. GAAP Diluted Loss per Share in the quarter was $0.02 compared to income of $0.01 in the same quarter last year. Adjusted Diluted EPS increased 37.5% to $0.11 from $0.08 in the same quarter last year.

For the full year 2022, GAAP Net Loss was $8.8 million, an improvement of 40.9% compared to 2021. GAAP Net Loss for the year included $19.0 million in expense related to the previously discussed optimization efforts, over 90% of which were non-cash. Adjusted EBITDA grew 1.5% to $190.7 million in 2022, or 7.1% in constant currency. Adjusted Net Income, diluted for 2022 declined 10.6% to $49.6 million. GAAP Diluted Loss per Share for the full year 2022 was $0.10 compared to a loss of $0.18 in 2021. Adjusted Diluted EPS for the year was $0.29.

Weighted diluted average shares outstanding for the fourth quarter of 2022 were 169.8 million, compared to 169.1 million in the same quarter last year. Weighted diluted average shares outstanding for the full year 2022 were 169.5 million, compared to 150.3 million for the full year 2021, primarily as a result of the IPO.

Fourth Quarter and Full Year 2022 Segment Results

U.S. and Canada: In the U.S. and Canada segment in the fourth quarter, net revenue grew 11.1% to $276.9 million from $249.2 million a year ago, driven by strong Points of Access expansion over the last year and a record average weekly revenue per door of approximately $620 driven by strong sales of specialty doughnuts. Sales per Hub increased 15.0% to $4.6 million. Organic revenue in the quarter increased 11.6% driven by our omni-channel model, primarily the strength of DFD, as well as double digit same-store sales growth from Insomnia Cookies. For the full year, net revenue grew 11.3% to $1.0 billion while organic revenue increased 9.1%.

U.S. and Canada Adjusted EBITDA in the fourth quarter increased 16.2% to $37.0 million, with margin expansion of 50 basis points to 13.3%, driven primarily by the strong performance of our Hub and Spoke model from increased DFD doors and sales per door as well as improved performance from our Hubs without Spokes as optimization efforts highlighted at our Investor Day in December 2022 are already producing results. Price increases were successfully implemented on fresh doughnuts in October 2022 showing low levels of elasticity. For the full year, U.S. and Canada Adjusted EBITDA increased 10.1% to $118.5 million while margins were approximately flat at 11.5%.

International: In the International segment, net revenue in the fourth quarter grew 3.3% to $92.9 million, with the stronger dollar reducing growth by 8.0%. Sales per Hub increased 7.7% to $9.8 million. Organic growth of 11.3% in the quarter was driven by successful specialty doughnut sales and expansion of DFD. The company saw growth across all of our International markets, including in the U.K. which saw sequential improvement compared to the third quarter. For the full year, the International segment saw net revenue increase 9.9% to $365.9 million, with organic growth of 17.7%, which excludes the impact of the stronger U.S. dollar.

International Adjusted EBITDA in the fourth quarter was approximately flat over the prior year at $20.5 million, or an increase of 13.5% in constant currency. International Adjusted EBITDA margin was 22.0% for the quarter, down 110 basis points from the prior year but an increase of 210 basis points from the prior quarter. For the full year, International Adjusted EBITDA declined 7.3% to $75.5 million, or an increase of 3.8% in constant currency.

Market Development: In the Market Development segment net revenue in the fourth quarter grew 10.7% to $34.7 million or 20.9% in constancy currency. Organic growth accelerated to 23.4% in the quarter with strong performances across our global franchise partners and our equity owned Japanese market. For the full year, Market Development net revenue increased 6.4% to $130.9 million, or 13.7% in constant currency, while organic growth was 19.3%.

Market Development Adjusted EBITDA in the fourth quarter increased 11.3% to $12.3 million, or 22.0% in constant currency, led by strong increases in international franchise and our equity owned Japan business, partially offset by domestic franchise acquisitions. For the full year, Market Development Adjusted EBITDA increased 8.8% to $44.4 million, or 17.1% in constant currency.

Balance Sheet and Capital Expenditures

During the fourth quarter 2022, the company invested $36.7 million in capital expenditures, primarily to support Hub and Spoke expansion. For the full year 2022, the Company invested $111.7 million in capital expenditures, or 7.3% of revenue, and $17.3 million for franchise acquisitions in the U.S.

As of January 1, 2023, the Company had $35.4 million of cash and cash equivalents and net debt of $746.0 million. Free cash flow in the fourth quarter was $32.4 million with the Adjusted EBITDA generated from operating activities in excess of capital expenditures reflecting the capital-efficient Hub and Spoke growth model and free cash flow of $28.1 million for the full year 2022.

2023 Financial Outlook

Krispy Kreme issues the following guidance for the full year 2023

  • Net Revenue of $1.65 billion to $1.68 billion, +8% to +10% vs 2022 (+9% to +11% in constant currency)
  • Organic Revenue growth of 9% to 11%
  • Adjusted EBITDA of $205 million to $215 million, +8% to +13% vs 2022 (+10% to +14% in constant currency)
  • Adjusted Net Income, diluted, of $52 million to $58 million, +5% to +17% vs 2022 (+9% to +21% in constant currency)
  • Adjusted Diluted EPS of $0.31 to $0.34, +7% to +17% vs 2022 (+10% to +21% in constant currency)
  • Income Tax rate between 24.5% to 26.0%
  • Capital Expenditures between $105 million to $115 million, or approximately 6.6% of revenue
  • Interest Expense, net between $39 million to $43 million

The above guidance assumes a negative 1% impact to 2023 revenue and a negative $3 million impact to 2023 Adjusted EBITDA from FX headwinds, with the impact entirely in the first half of the year. The Company expects to reduce its net leverage in 2023, as we make progress towards our 2026 goal of approximately 2.0x to 2.5x net leverage.

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 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.
  • 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.
  • 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 include product sales generated from our Doughnut Shop business (including ecommerce and delivery), as well as DFD sales, but excluding sales from our legacy wholesale business and our Branded Sweet Treat Line. 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 fourth quarter of 2022. The conference call can be accessed by dialing 1 (800) 599-5188 and entering the conference ID 5487868. International participants can access the call via the corresponding number listed HERE and entering the conference ID 5487868. 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 Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in over 30 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing Ecommerce and delivery business with nearly 12,000 fresh points of access. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme and www.Twitter.com/KrispyKreme.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. The words “believe,” “may,” “could,” “will,” “should,” “anticipate,” “estimate,” “expect,” “outlook,” “guidance,” or similar words, or the negative of these words, identify forward-looking statements. Such forward-looking statements are based on certain assumptions and estimates that we consider reasonable but are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial conditions, business, prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included herein. Factors that could cause actual results to differ from those expressed in forward-looking statements include, without limitation, the risks and uncertainties described under the headings “Special Note Regarding Forward-Looking Statements” and “Risk Factors” in the Prospectus, dated June 30, 2022, 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, Adjusted Diluted EPS, Fresh Revenue from Hubs with Spokes and Sales per Hub, which differ from results using U.S. Generally Accepted Accounting Principles (“GAAP”). These non-GAAP financial measures are not universally consistent calculations, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, you should examine our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC.

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.

Consolidated Statements of Operations

(in thousands, except per share amounts)

 

 

Fiscal Years Ended

 

January 1, 2023 (52 weeks)

 

January 2, 2022 (52 weeks)

 

January 3, 2021 (53 weeks)

 

(unaudited)

 

 

 

 

Net revenues

 

 

 

 

 

Product sales

$

1,497,882

 

 

$

1,353,466

 

 

$

1,085,110

 

Royalties and other revenues

 

32,016

 

 

 

30,925

 

 

 

36,926

 

Total net revenues

 

1,529,898

 

 

 

1,384,391

 

 

 

1,122,036

 

Product and distribution costs

 

406,227

 

 

 

354,093

 

 

 

310,909

 

Operating expenses

 

704,287

 

 

 

630,239

 

 

 

488,061

 

Selling, general and administrative expense

 

223,198

 

 

 

222,394

 

 

 

182,317

 

Marketing expenses

 

42,566

 

 

 

39,489

 

 

 

34,000

 

Pre-opening costs

 

4,227

 

 

 

5,568

 

 

 

11,583

 

Other expenses/(income), net

 

10,157

 

 

 

(10,102

)

 

 

10,488

 

Depreciation and amortization expense

 

110,261

 

 

 

101,608

 

 

 

80,398

 

Operating income

 

28,975

 

 

 

41,102

 

 

 

4,280

 

Interest expense, net

 

34,102

 

 

 

32,622

 

 

 

34,741

 

Interest expense – related party

 

 

 

 

10,387

 

 

 

22,468

 

Other non-operating expense/(income), net

 

3,036

 

 

 

2,191

 

 

 

(1,101

)

Loss before income taxes

 

(8,163

)

 

 

(4,098

)

 

 

(51,828

)

Income tax expense

 

612

 

 

 

10,745

 

 

 

9,112

 

Net loss

 

(8,775

)

 

 

(14,843

)

 

 

(60,940

)

Net income attributable to noncontrolling interest

 

6,847

 

 

 

9,663

 

 

 

3,361

 

Net loss attributable to Krispy Kreme, Inc

$

(15,622

)

 

$

(24,506

)

 

$

(64,301

)

Net loss per share:

 

 

 

 

 

Common stock - Basic

$

(0.10

)

 

$

(0.18

)

 

$

(0.52

)

Common stock - Diluted

$

(0.10

)

 

$

(0.18

)

 

$

(0.52

)

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

167,471

 

 

 

147,655

 

 

 

124,987

 

Diluted

 

167,471

 

 

 

147,655

 

 

 

124,987

 

 

Quarter Ended

 

January 1, 2023 (13 weeks)

 

January 2, 2022 (13 weeks)

Net revenue

 

 

 

Product sales

$

395,837

 

 

$

364,334

 

Royalties and other revenues

 

8,762

 

 

 

6,263

 

Total net revenues

 

404,599

 

 

 

370,597

 

Product and distribution costs

 

106,688

 

 

 

96,927

 

Operating expenses

 

184,027

 

 

 

167,506

 

Selling, general and administrative expense

 

62,932

 

 

 

58,977

 

Marketing expenses

 

10,197

 

 

 

7,868

 

Pre-opening costs

 

713

 

 

 

1,233

 

Other expenses/(income), net

 

8,357

 

 

 

(5,737

)

Depreciation and amortization expense

 

26,479

 

 

 

27,350

 

Operating income

 

5,206

 

 

 

16,473

 

Interest expense, net

 

10,294

 

 

 

7,394

 

Other non-operating expense, net

 

953

 

 

 

2,317

 

(Loss)/income before income taxes

 

(6,041

)

 

 

6,762

 

Income tax (benefit)/expense

 

(5,056

)

 

 

2,479

 

Net (loss)/income

 

(985

)

 

 

4,283

 

Net income attributable to noncontrolling interest

 

1,734

 

 

 

2,927

 

Net (loss)/income attributable to Krispy Kreme, Inc.

$

(2,719

)

 

$

1,356

 

Net (loss)/income per share:

 

 

 

Common stock - Basic

$

(0.02

)

 

$

0.01

 

Common stock - Diluted

$

(0.02

)

 

$

0.01

 

Weighted average shares outstanding:

 

 

 

Basic

 

167,826

 

 

 

167,246

 

Diluted

 

167,826

 

 

 

169,130

 

 

Krispy Kreme, Inc.

Consolidated Balance Sheets

(in thousands, except per share data)

 

 

As of

 

January 1, 2023

 

January 2, 2022

 

(unaudited)

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

35,371

 

 

$

38,562

 

Restricted cash

 

359

 

 

 

630

 

Accounts receivable, net

 

51,089

 

 

 

47,491

 

Inventories

 

46,239

 

 

 

34,851

 

Taxes receivable

 

18,263

 

 

 

14,662

 

Prepaid expense and other current assets

 

26,953

 

 

 

20,701

 

Total current assets

 

178,274

 

 

 

156,897

 

Property and equipment, net

 

472,358

 

 

 

438,918

 

Goodwill

 

1,087,908

 

 

 

1,105,322

 

Other intangible assets, net

 

966,088

 

 

 

992,520

 

Operating lease right of use asset, net

 

417,381

 

 

 

435,168

 

Other assets

 

26,528

 

 

 

16,429

 

Total assets

$

3,148,537

 

 

$

3,145,254

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

40,034

 

 

$

36,583

 

Current operating lease liabilities

 

43,160

 

 

 

50,359

 

Accounts payable

 

225,276

 

 

 

182,104

 

Accrued liabilities

 

104,424

 

 

 

140,750

 

Structured payables

 

103,575

 

 

 

116,361

 

Total current liabilities

 

516,469

 

 

 

526,157

 

Long-term debt, less current portion

 

739,052

 

 

 

680,307

 

Noncurrent operating lease liabilities

 

412,759

 

 

 

415,208

 

Deferred income taxes, net

 

143,124

 

 

 

145,418

 

Other long-term obligations and deferred credits

 

38,258

 

 

 

42,509

 

Total liabilities

 

1,849,662

 

 

 

1,809,599

 

Commitments and contingencies

 

 

 

Shareholders’ equity:

 

 

 

Common stock, $0.01 par value; 300,000 shares authorized as of both January 1, 2023 and January 2, 2022; 168,137 and 167,251 shares issued and outstanding as of January 1, 2023 and January 2, 2022, respectively

 

1,681

 

 

 

1,673

 

Additional paid-in capital

 

1,426,105

 

 

 

1,415,185

 

Shareholder note receivable

 

(4,813

)

 

 

(4,382

)

Accumulated other comprehensive loss, net of income tax

 

(9,151

)

 

 

(2,478

)

Retained deficit

 

(217,490

)

 

 

(178,409

)

Total shareholders’ equity attributable to Krispy Kreme, Inc.

 

1,196,332

 

 

 

1,231,589

 

Noncontrolling interest

 

102,543

 

 

 

104,066

 

Total shareholders’ equity

 

1,298,875

 

 

 

1,335,655

 

Total liabilities and shareholders’ equity

$

3,148,537

 

 

$

3,145,254

 

 

Krispy Kreme, Inc.

Consolidated Statements of Cash Flows

(in thousands)

 

 

Fiscal Years Ended

 

January 1, 2023 (52 weeks)

 

January 2, 2022 (52 weeks)

 

January 3, 2021 (53 weeks)

 

(unaudited)

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

Net loss

$

(8,775

)

 

$

(14,843

)

 

$

(60,940

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization expense

 

110,261

 

 

 

101,608

 

 

 

80,398

 

Deferred income taxes

 

(14,237

)

 

 

(3,496

)

 

 

(36

)

Loss on extinguishment of debt

 

 

 

 

1,700

 

 

 

 

Impairment and lease termination charges

 

18,297

 

 

 

3,507

 

 

 

4,701

 

Loss on disposal of property and equipment

 

393

 

 

 

458

 

 

 

2,771

 

Gain on sale-leaseback

 

(6,549

)

 

 

(8,673

)

 

 

 

Share-based compensation

 

18,170

 

 

 

22,923

 

 

 

11,601

 

Change in accounts and notes receivable allowances

 

570

 

 

 

275

 

 

 

1,047

 

Inventory write-off

 

868

 

 

 

4,071

 

 

 

726

 

Gain on contingent consideration related to a business combination

 

 

 

 

 

 

 

(1,521

)

Settlement of interest rate swap derivatives

 

8,476

 

 

 

 

 

 

 

Other

 

2,232

 

 

 

594

 

 

 

410

 

Change in operating assets and liabilities, excluding business acquisitions and foreign currency translation adjustments:

 

 

 

 

 

Accounts, notes, and taxes receivable

 

(9,485

)

 

 

(3,817

)

 

 

(11,942

)

Inventories

 

(12,515

)

 

 

(301

)

 

 

(15,353

)

Other current and noncurrent assets

 

(24,057

)

 

 

(316

)

 

 

434

 

Operating lease assets and liabilities

 

(793

)

 

 

7,787

 

 

 

(1,575

)

Accounts payable and accrued liabilities

 

40,622

 

 

 

30,240

 

 

 

12,906

 

Other long-term obligations and deferred credits

 

16,340

 

 

 

(493

)

 

 

5,048

 

Net cash provided by operating activities

 

139,818

 

 

 

141,224

 

 

 

28,675

 

CASH FLOWS USED FOR INVESTING ACTIVITIES:

 

 

 

 

 

Purchase of property and equipment

 

(111,717

)

 

 

(119,497

)

 

 

(97,826

)

Proceeds from disposals of assets

 

1,077

 

 

 

218

 

 

 

2,837

 

Proceeds from sale-leaseback

 

8,401

 

 

 

11,091

 

 

 

 

Acquisition of shops and franchise rights from franchisees, net of cash acquired

 

(17,330

)

 

 

(46,330

)

 

 

(74,890

)

Purchase of equity method investment

 

(989

)

 

 

 

 

 

 

Principal payments received from loans to franchisees

 

59

 

 

 

92

 

 

 

684

 

Disbursement for loan receivable

 

(975

)

 

 

 

 

 

 

Purchases of held-to-maturity debt securities

 

 

 

 

 

 

 

(57

)

Maturities of held-to-maturity debt securities

 

 

 

 

1,019

 

 

 

1,124

 

Net cash used for investing activities

 

(121,474

)

 

 

(153,407

)

 

 

(168,128

)

CASH FLOWS (USED FOR)/FROM FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from the issuance of debt

 

149,000

 

 

 

695,000

 

 

 

288,097

 

Repayment of long-term debt and lease obligations

 

(101,181

)

 

 

(1,147,049

)

 

 

(225,541

)

Payment of financing costs

 

 

 

 

(1,700

)

 

 

 

Proceeds from structured payables

 

282,023

 

 

 

266,851

 

 

 

292,756

 

Payments on structured payables

 

(294,457

)

 

 

(287,625

)

 

 

(225,320

)

Payment of contingent consideration related to a business combination

 

(900

)

 

 

 

 

 

(506

)

Capital contribution by shareholders, net of loans issued

 

(288

)

 

 

120,532

 

 

 

 

Proceeds from IPO, net of underwriting discounts (excluding unpaid issuance costs)

 

 

 

 

527,329

 

 

 

 

Payments of issuance costs in connection with IPO

 

(12,458

)

 

 

 

 

 

 

Proceeds from sale of noncontrolling interest in subsidiary

 

593

 

 

 

53,404

 

 

 

21,386

 

Distribution to shareholders

 

(23,430

)

 

 

(48,187

)

 

 

(42

)

Payments for repurchase and retirement of common stock

 

(4,019

)

 

 

(139,103

)

 

 

 

Distribution to noncontrolling interest

 

(11,721

)

 

 

(23,356

)

 

 

(11,389

)

Net cash (used for)/provided by financing activities

 

(16,838

)

 

 

16,096

 

 

 

139,441

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(4,968

)

 

 

(2,204

)

 

 

2,045

 

Net (decrease)/increase in cash, cash equivalents and restricted cash

 

(3,462

)

 

 

1,709

 

 

 

2,033

 

Cash, cash equivalents and restricted cash at beginning of the fiscal year

 

39,192

 

 

 

37,483

 

 

 

35,450

 

Cash, cash equivalents and restricted cash at end of the fiscal year

$

35,730

 

 

$

39,192

 

 

$

37,483

 

 

 

 

 

 

 

Net cash provided by operating activities

$

139,818

 

 

$

141,224

 

 

$

28,675

 

Less: Purchase of property and equipment

 

(111,717

)

 

 

(119,497

)

 

 

(97,826

)

Free cash flow

$

28,101

 

 

$

21,727

 

 

$

(69,151

)

 

Krispy Kreme, Inc.

Reconciliation of Non-GAAP Financial Measures

(unaudited and in thousands, except per share amounts)

 

 

Quarter Ended

 

Fiscal Years Ended

(in thousands)

January 1, 2023

 

January 2, 2022

 

January 1, 2023

 

January 2, 2022

Net (loss)/income

$

(985

)

 

$

4,283

 

 

$

(8,775

)

 

$

(14,843

)

Interest expense, net

 

10,294

 

 

 

7,394

 

 

 

34,102

 

 

 

32,622

 

Interest expense — related party (1)

 

 

 

 

 

 

 

 

 

 

10,387

 

Income tax (benefit)/expense

 

(5,056

)

 

 

2,479

 

 

 

612

 

 

 

10,745

 

Depreciation and amortization expense

 

26,479

 

 

 

27,350

 

 

 

110,261

 

 

 

101,608

 

Share-based compensation

 

4,852

 

 

 

5,950

 

 

 

18,170

 

 

 

22,923

 

Employer payroll taxes related to share-based compensation

 

220

 

 

 

32

 

 

 

312

 

 

 

2,044

 

Other non-operating expense, net (2)

 

953

 

 

 

2,317

 

 

 

3,036

 

 

 

2,191

 

BST strategic initiatives (3)

 

2,635

 

 

 

 

 

 

2,841

 

 

 

 

Acquisition and integration expenses (4)

 

944

 

 

 

1,592

 

 

 

2,333

 

 

 

5,255

 

New market penetration expenses (5)

 

828

 

 

 

 

 

 

1,511

 

 

 

 

Shop closure expenses (6)

 

11,606

 

 

 

2,766

 

 

 

19,465

 

 

 

2,766

 

Restructuring and severance expenses (7)

 

4,321

 

 

 

340

 

 

 

7,125

 

 

 

1,733

 

IPO-related expenses (8)

 

 

 

 

313

 

 

 

 

 

 

14,534

 

Gain on sale-leaseback

 

(2,238

)

 

 

(8,673

)

 

 

(6,549

)

 

 

(8,673

)

Other (9)

 

1,066

 

 

 

1,589

 

 

 

6,285

 

 

 

4,653

 

Adjusted EBITDA

$

55,919

 

 

$

47,732

 

 

$

190,729

 

 

$

187,945

 

 

Quarter Ended

 

Fiscal Years Ended

(in thousands)

January 1, 2023

 

January 2, 2022

 

January 1, 2023

 

January 2, 2022

Segment Adjusted EBITDA:

 

 

 

 

 

 

 

U.S. and Canada

$

36,962

 

 

$

31,811

 

 

$

118,483

 

 

$

107,571

 

International

 

20,479

 

 

 

20,746

 

 

 

75,512

 

 

 

81,422

 

Market Development

 

12,286

 

 

 

11,042

 

 

 

44,421

 

 

 

40,824

 

Corporate

 

(13,808

)

 

 

(15,867

)

 

 

(47,687

)

 

 

(41,872

)

Total Adjusted EBITDA

$

55,919

 

 

$

47,732

 

 

$

190,729

 

 

$

187,945

 

 

Quarter Ended

 

Fiscal Years Ended

(in thousands)

January 1, 2023

 

January 2, 2022

 

January 1, 2023

 

January 2, 2022

Net (loss)/income

$

(985

)

 

$

4,283

 

 

$

(8,775

)

 

$

(14,843

)

Interest expense — related party (1)

 

 

 

 

 

 

 

 

 

 

10,387

 

Share-based compensation

 

4,852

 

 

 

5,950

 

 

 

18,170

 

 

 

22,923

 

Employer payroll taxes related to share-based compensation

 

220

 

 

 

32

 

 

 

312

 

 

 

2,044

 

Other non-operating expense, net (2)

 

953

 

 

 

2,317

 

 

 

3,036

 

 

 

2,191

 

BST strategic initiatives (3)

 

2,635

 

 

 

 

 

 

2,841

 

 

 

 

Acquisition and integration expenses (4)

 

944

 

 

 

1,592

 

 

 

2,333

 

 

 

5,255

 

New market penetration expenses (5)

 

828

 

 

 

 

 

 

1,511

 

 

 

 

Shop closure expenses (6)

 

11,606

 

 

 

2,766

 

 

 

19,715

 

 

 

2,766

 

Restructuring and severance expenses (7)

 

4,321

 

 

 

340

 

 

 

7,125

 

 

 

1,733

 

IPO-related expenses (8)

 

 

 

 

313

 

 

 

 

 

 

14,534

 

Gain on sale-leaseback

 

(2,238

)

 

 

(8,673

)

 

 

(6,549

)

 

 

(8,673

)

Other (9)

 

1,066

 

 

 

1,589

 

 

 

6,285

 

 

 

4,653

 

Amortization of acquisition related intangibles (10)

 

7,149

 

 

 

7,230

 

 

 

28,456

 

 

 

29,803

 

KKI Term Loan Facility interest and debt issuance costs (11)

 

 

 

 

 

 

 

 

 

 

2,448

 

Tax impact of adjustments (12)

 

(8,720

)

 

 

(1,830

)

 

 

(14,609

)

 

 

(12,434

)

Tax specific adjustments (13)

 

(2,248

)

 

 

103

 

 

 

(2,876

)

 

 

3,936

 

Net income attributable to noncontrolling interest

 

(1,734

)

 

 

(2,927

)

 

 

(6,847

)

 

 

(9,663

)

Adjustment to adjusted net income attributable to common shareholders

 

 

 

 

317

 

 

 

(374

)

 

 

(1,468

)

Adjusted net income attributable to common shareholders - Basic

$

18,649

 

 

$

13,402

 

 

$

49,754

 

 

$

55,592

 

Additional income attributed to noncontrolling interest due to subsidiary potential common shares

 

(37

)

 

 

(5

)

 

 

(143

)

 

 

(122

)

Adjusted net income attributable to common shareholders - Diluted

$

18,612

 

 

$

13,397

 

 

$

49,611

 

 

$

55,470

 

Basic weighted average common shares outstanding

 

167,826

 

 

 

167,246

 

 

 

167,471

 

 

 

147,655

 

Dilutive effect of outstanding common stock options and RSUs

 

2,000

 

 

 

1,884

 

 

 

2,005

 

 

 

2,671

 

Diluted weighted average common shares outstanding

 

169,826

 

 

 

169,130

 

 

 

169,476

 

 

 

150,326

 

Adjusted net income per share attributable to common shareholders:

 

 

 

 

 

 

 

Basic

$

0.11

 

 

$

0.08

 

 

$

0.30

 

 

$

0.38

 

Diluted

$

0.11

 

 

$

0.08

 

 

$

0.29

 

 

$

0.37

 

(1)

  Consists of interest expense related to the Related Party Notes which were paid off in full during the second quarter of fiscal 2021.

(2)

  Primarily foreign translation gains and losses in each period.

(3)

  Fiscal 2022 consists mainly of equipment disposals, equipment relocation and installation, consulting and advisory fees, and other costs associated with our shift of Branded Sweet Treat Line manufacturing capability from Burlington, Iowa to Winston-Salem, North Carolina.

(4)

  Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, consulting and advisory fees incurred in connection with acquisition-related activities for the applicable period.

(5)

  Consists of start-up costs associated with entry into new countries for which the Company’s brands have not previously operated, including the Insomnia Cookies brand entering Canada and the U.K.

(6)

  Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment.

(7)

  Fiscal 2022 consists of costs associated with restructuring of the global and U.S. executive teams. Fiscal 2021 consists of severance and related benefits costs associated with the Company’s realignment of the Company Shop organizational structure to better support the DFD and Branded Sweet Treat Line businesses.

(8)

  Includes consulting and advisory fees incurred in connection with preparation for and execution of the Company’s IPO.

(9)

  Fiscal 2022 and fiscal 2021 consist primarily of legal expenses incurred outside the ordinary course of business, including the net settlement of approximately $3.3 million negotiated with TSW Foods, LLC in fiscal 2022.

(10)

  Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Consolidated Statements of Operations.

(11)

  Includes interest expense and debt issuance costs incurred and recognized as expenses in connection with the extinguishment of the KKI Term Loan Facility within four business days of receipt of the net proceeds from the IPO.

(12)

  Tax impact of adjustments calculated applying the applicable statutory rates. The Company’s adjusted effective tax rate is 24.1% and 22.4% for the fiscal years 2022 and 2021, respectively. Fiscal 2022 includes the impact of disallowed executive compensation expense and a discrete tax benefit related to a legal accrual. Fiscal 2021 includes the impact of disallowed executive compensation expense incurred in connection with the IPO.

(13)

  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 include the effect of discrete adjustments to the Company’s deferred tax liabilities that are unrelated to the Company’s ongoing operations. Fiscal 2021 consists primarily of the effect of tax law changes on existing temporary differences.  

Krispy Kreme, Inc.

Segment Reporting

(unaudited and in thousands, except percentages or otherwise stated)

 

 

Quarter Ended

 

January 1, 2023

 

January 2, 2022

 

January 3, 2021

Net revenues:

 

 

 

 

 

U.S. and Canada

$

276,929

 

$

249,218

 

$

225,437

International

 

92,928

 

 

89,990

 

 

71,610

Market Development

 

34,742

 

 

31,389

 

 

28,568

Total net revenues

$

404,599

 

$

370,597

 

$

325,615

Q4 2022 Organic Revenue

U.S. and Canada

 

International

 

Market Development

 

Total Company

Total net revenues in fourth quarter of fiscal 2022 (13 weeks)

$

276,929

 

 

$

92,928

 

 

$

34,742

 

 

$

404,599

 

Total net revenues in fourth quarter of fiscal 2021 (13 weeks)

 

249,218

 

 

 

89,990

 

 

 

31,389

 

 

 

370,597

 

Total Net Revenue Growth

 

27,711

 

 

 

2,938

 

 

 

3,353

 

 

 

34,002

 

Total Net Revenue Growth %

 

11.1

%

 

 

3.3

%

 

 

10.7

%

 

 

9.2

%

Less: Impact of shop optimization program closures

 

(1,374

)

 

 

 

 

 

 

 

 

(1,374

)

Adjusted net revenues in fourth quarter of fiscal 2021

 

247,844

 

 

 

89,990

 

 

 

31,389

 

 

 

369,223

 

Adjusted Net Revenue Growth

 

29,085

 

 

 

2,938

 

 

 

3,353

 

 

 

35,376

 

Impact of acquisitions

 

(2,652

)

 

 

 

 

 

769

 

 

 

(1,883

)

Impact of foreign currency translation

 

2,299

 

 

 

7,211

 

 

 

3,221

 

 

 

12,731

 

Organic Revenue Growth

$

28,732

 

 

$

10,149

 

 

$

7,343

 

 

$

46,224

 

Organic Revenue Growth %

 

11.6

%

 

 

11.3

%

 

 

23.4

%

 

 

12.5

%

Q4 2021 Organic Revenue

U.S. and Canada

 

International

 

Market Development

 

Total Company

Total net revenues in fourth quarter of fiscal 2021 (13 weeks)

$

249,218

 

 

$

89,990

 

 

$

31,389

 

 

$

370,597

 

Total net revenues in fourth quarter of fiscal 2020 (14 weeks)

 

225,437

 

 

 

71,610

 

 

 

28,568

 

 

 

325,615

 

Total Net Revenue Growth

 

23,781

 

 

 

18,380

 

 

 

2,821

 

 

 

44,982

 

Total Net Revenue Growth %

 

10.5

%

 

 

25.7

%

 

 

9.9

%

 

 

13.8

%

Less: Impact of 53rd week

 

(15,615

)

 

 

(3,287

)

 

 

(1,603

)

 

 

(20,505

)

Adjusted net revenues in fourth quarter of fiscal 2020

 

209,822

 

 

 

68,323

 

 

 

26,965

 

 

 

305,110

 

Adjusted Net Revenue Growth

 

39,396

 

 

 

21,667

 

 

 

4,424

 

 

 

65,487

 

Impact of acquisitions

 

(20,315

)

 

 

 

 

 

(2,591

)

 

 

(22,906

)

Impact of foreign currency translation

 

 

 

 

(624

)

 

 

543

 

 

 

(81

)

Organic Revenue Growth

$

19,081

 

 

$

21,043

 

 

$

2,376

 

 

$

42,500

 

Organic Revenue Growth %

 

9.1

%

 

 

30.8

%

 

 

8.8

%

 

 

13.9

%

 

Fiscal Years Ended

 

January 1, 2023

 

January 2, 2022

 

January 3, 2021

Net revenues:

 

 

 

U.S. and Canada

$

1,033,125

 

$

928,413

 

$

782,717

International

 

365,916

 

 

332,995

 

 

230,185

Market Development

 

130,857

 

 

122,983

 

 

109,134

Total net revenues

$

1,529,898

 

$

1,384,391

 

$

1,122,036

Full Year 2022 Organic Revenue

U.S. and Canada

 

International

 

Market Development

 

Total Company

Total net revenues in fiscal 2022 (52 weeks)

$

1,033,125

 

 

$

365,916

 

 

$

130,857

 

 

$

1,529,898

 

Total net revenues in fiscal 2021 (52 weeks)

 

928,413

 

 

 

332,995

 

 

 

122,983

 

 

 

1,384,391

 

Total Net Revenue Growth

 

104,712

 

 

 

32,921

 

 

 

7,874

 

 

 

145,507

 

Total Net Revenue Growth %

 

11.3

%

 

 

9.9

%

 

 

6.4

%

 

 

10.5

%

Less: Impact of shop optimization program closures

 

(1,374

)

 

 

 

 

 

 

 

 

(1,374

)

Adjusted net revenues in fiscal 2021

 

927,039

 

 

 

332,995

 

 

 

122,983

 

 

 

1,383,017

 

Adjusted Net Revenue Growth

 

106,086

 

 

 

32,921

 

 

 

7,874

 

 

 

146,881

 

Impact of acquisitions

 

(24,391

)

 

 

 

 

 

6,899

 

 

 

(17,492

)

Impact of foreign currency translation

 

2,299

 

 

 

26,052

 

 

 

8,991

 

 

 

37,342

 

Organic Revenue Growth

$

83,994

 

 

$

58,973

 

 

$

23,764

 

 

$

166,731

 

Organic Revenue Growth %

 

9.1

%

 

 

17.7

%

 

 

19.3

%

 

 

12.1

%

Full Year 2021 Organic Revenue

U.S. and Canada

 

International

 

Market Development

 

Total Company

Total net revenues in fiscal 2021 (52 weeks)

$

928,413

 

 

$

332,995

 

 

$

122,983

 

 

$

1,384,391

 

Total net revenues in fiscal 2020 (53 weeks)

 

782,717

 

 

 

230,185

 

 

 

109,134

 

 

 

1,122,036

 

Total Net Revenue Growth

$

145,696

 

 

$

102,810

 

 

$

13,849

 

 

$

262,355

 

Total Net Revenue Growth %

 

18.6

%

 

 

44.7

%

 

 

12.7

%

 

 

23.4

%

Less: Impact of 53rd week

 

(15,615

)

 

 

(3,287

)

 

 

(1,603

)

 

 

(20,505

)

Adjusted net revenues in fiscal 2020

 

767,102

 

 

 

226,898

 

 

 

107,531

 

 

 

1,101,531

 

Adjusted Net Revenue Growth

 

161,311

 

 

 

106,097

 

 

 

15,452

 

 

 

282,860

 

Impact of acquisitions

 

(119,377

)

 

 

 

 

 

(4,175

)

 

 

(123,552

)

Impact of foreign currency translation

 

 

 

 

(22,391

)

 

 

543

 

 

 

(21,848

)

Organic Revenue Growth

$

41,934

 

 

$

83,706

 

 

$

11,820

 

 

$

137,460

 

Organic Revenue Growth %

 

5.5

%

 

 

36.9

%

 

 

11.0

%

 

 

12.5

%

 

Fiscal Years Ended

Sales per Hub

January 1, 2023 (52 weeks)

 

January 2, 2022 (52 weeks)

 

January 3, 2021 (53 weeks)

U.S. and Canada:

 

 

 

 

 

Revenues

$

1,033,125

 

 

$

928,413

 

 

$

782,717

 

Non-Fresh Revenues (1)

 

(38,380

)

 

 

(37,311

)

 

 

(128,619

)

Fresh Revenues from Insomnia Cookies and Hubs without Spokes (2)

 

(407,558

)

 

 

(415,768

)

 

 

(323,079

)

Sales from Hubs with Spokes

 

587,187

 

 

 

475,334

 

 

 

331,019

 

Sales per Hub (millions)

 

4.6

 

 

 

4.0

 

 

 

3.5

 

 

 

 

 

 

 

International:

 

 

 

 

 

Sales from Hubs with Spokes (3)

$

365,916

 

 

$

332,995

 

 

$

230,185

 

Sales per Hub (millions)

 

9.8

 

 

 

9.1

 

 

 

6.4

 

(1)

  Includes legacy wholesale business revenues and Branded Sweet Treat Line revenues.

(2)

  Includes Insomnia Cookies revenues 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.  

Krispy Kreme, Inc.

Global Points of Access

 

 

Global Points of Access (1)

 

Fiscal Years Ended

 

January 1, 2023

 

January 2, 2022

 

January 3, 2021

 

(unaudited)

 

 

 

 

U.S. and Canada: (2)

 

 

 

 

 

Hot Light Theater Shops

238

 

241

 

229

Fresh Shops

68

 

66

 

47

Cookie Shops

231

 

210

 

184

Carts, Food Trucks, and Other (3)

 

2

 

DFD Doors

5,741

 

5,204

 

4,137

Total

6,278

 

5,723

 

4,597

International:

 

 

 

 

 

Hot Light Theater Shops

37

 

32

 

28

Fresh Shops

388

 

370

 

359

Carts, Food Trucks, and Other (3)

14

 

1

 

DFD Doors

3,032

 

2,488

 

1,986

Total

3,471

 

2,891

 

2,373

Market Development: (4)

 

 

 

 

 

Hot Light Theater Shops

111

 

109

 

119

Fresh Shops

867

 

782

 

732

Carts, Food Trucks, and Other (3)

27

 

31

 

30

DFD Doors

1,083

 

891

 

465

Total

2,088

 

1,813

 

1,346

Total global points of access (as defined)

11,837

 

10,427

 

8,316

Total Hot Light Theater Shops

386

 

382

 

376

Total Fresh Shops

1,323

 

1,218

 

1,138

Total Cookie Shops

231

 

210

 

184

Total Shops

1,940

 

1,810

 

1,698

Total Carts, Food Trucks, and Other

41

 

34

 

30

Total DFD Doors

9,856

 

8,583

 

6,588

Total global points of access (as defined)

11,837

 

10,427

 

8,316

(1)

  Excludes Branded Sweet Treat Line distribution points.

(2)

  Includes Points of Access that were acquired from franchisees in the U.S. and Canada. These Points of Access were previously included in the Market Development segment prior to the respective acquisition dates.

(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, train stations, etc.

(4)

  Includes locations in Japan, which are Company-owned. All remaining Points of Access in the Market Development segment relate to our franchise business. As of January 1, 2023, there were five Hot Light Theater Shops, 54 Fresh Shops and 166 DFD Doors in Japan operating. As of January 2, 2022, there were four Hot Light Theater Shops, 48 Fresh Shops and 105 DFD Doors in Japan operating.   

Krispy Kreme, Inc.

Global Hubs

 

 

Hubs

 

Fiscal Years Ended

 

January 1, 2023

 

January 2, 2022

 

January 3, 2021

 

(unaudited)

 

 

 

 

U.S. and Canada:

 

 

 

 

 

Hot Light Theater Shops (1)

232

 

238

 

226

Doughnut Factories

4

 

4

 

5

Total

236

 

242

 

231

Hubs with Spokes

137

 

126

 

113

Hubs without Spokes

99

 

116

 

118

International:

 

 

 

 

 

Hot Light Theater Shops (1)

28

 

25

 

27

Doughnut Factories

11

 

11

 

9

Total

39

 

36

 

36

Hubs with Spokes

39

 

36

 

36

Market Development:

 

 

 

 

 

Hot Light Theater Shops (1)

106

 

106

 

116

Doughnut Factories

27

 

27

 

26

Total

133

 

133

 

142

Total Hubs

408

 

411

 

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

(in thousands, except leverage ratio)

 

 

As of

 

January 1, 2023

 

January 2, 2022

 

(unaudited)

 

 

Current portion of long-term debt

$

40,034

 

 

$

36,583

 

Long-term debt, less current portion

 

739,052

 

 

 

680,307

 

Total long-term debt, including debt issuance costs

 

779,086

 

 

 

716,890

 

Add back: Debt issuance costs

 

2,247

 

 

 

3,833

 

Total long-term debt, excluding debt issuance costs

 

781,333

 

 

 

720,723

 

Less: Cash and cash equivalents

 

(35,371

)

 

 

(38,562

)

Net debt

$

745,962

 

 

$

682,161

 

Adjusted EBITDA - trailing four quarters

 

190,729

 

 

 

187,945

 

Net leverage ratio

3.9 x

 

3.6 x

 

Investor Relations Rob Ballew, VP of Investor Relations rballew@krispykreme.com Financial Media Edelman Smithfield for Krispy Kreme, Inc. Allie McLarty & Ashley Firlan, KrispyKremeIR@edelman.com

Krispy Kreme (NASDAQ:DNUT)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Krispy Kreme Charts.
Krispy Kreme (NASDAQ:DNUT)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Krispy Kreme Charts.