DNUT Krispy Kreme Inc

Full Year 2024 Net Revenue of $1.7 billion and Full Year Organic Revenue growth of 5.0%

Introduces 2025 guidance

Krispy Kreme, Inc. (NASDAQ: DNUT) (“Krispy Kreme”, “KKI”, or the “Company”) today reported financial results for the fourth quarter and full year ended December 29, 2024.

Fourth Quarter Highlights (vs Q4 2023)

• Net revenue of $404.0 million
• Organic revenue(1) grew 1.8%, to $400.6 million, and was impacted adversely by an estimated 280 basis points from lost revenue linked to the 2024 Cybersecurity Incident
• GAAP net loss of $22.2 million
• Adjusted EBITDA(1) of $45.9 million, impacted adversely by an estimated $10 million impact from the 2024 Cybersecurity Incident
• GAAP operating cash flow of $27.0 million

Full Year Highlights (vs FY 2023)

• Net revenue of $1,665.4 million
• Organic revenue(1) grew 5.0%, to $1,658.1 million, and was impacted adversely by an estimated 70 basis points from lost revenue linked to the 2024 Cybersecurity Incident
• GAAP net income of $3.8 million
• Adjusted EBITDA(1) of $193.5 million, impacted adversely by an estimated $10 million impact from the 2024 Cybersecurity Incident
• GAAP operating cash flow of $45.8 million
• Global Points of Access increased 3,410, or 24.1% to 17,557

“We delivered an 18th consecutive quarter of year-over-year organic sales growth. Excluding the estimated cybersecurity incident impact, results were largely in line with our expectations,” said Josh Charlesworth, Krispy Kreme CEO.

“Last quarter, we announced we were aligning our talent and capital to our business priorities, and we have taken significant action. We have restructured our management teams to maximize profitable U.S. expansion and capital-light international growth. We expect to soon award contracts to outsource U.S. logistics. Finally, we have begun a process to evaluate refranchising certain international markets. I believe these changes will drive capital efficient growth, as we continue our transformation into a bigger and better Krispy Kreme.”

Financial Highlights

 

Quarters Ended

 

Fiscal Years Ended

$ in millions, except per share data

 

December 29,

2024

 

December 31,

2023

 

Change

 

December 29,

2024

 

December 31,

2023

 

Change

GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

404.0

 

 

$

450.9

 

 

 

(10.4

)%

 

$

1,665.4

 

 

$

1,686.1

 

 

 

(1.2

)%

Operating (loss)/income

 

$

(11.5

)

 

$

(5.3

)

 

nm

 

$

(8.7

)

 

$

13.1

 

 

nm

Operating (loss)/income margin

 

 

(2.8

)%

 

 

(1.2

)%

 

-160 bps

 

 

(0.5

)%

 

 

0.8

%

 

-130 bps

Net (loss)/income

 

$

(22.2

)

 

$

1.9

 

 

nm

 

$

3.8

 

 

$

(36.6

)

 

nm

Net (loss)/income attributable to KKI

 

$

(22.4

)

 

$

2.6

 

 

nm

 

$

3.1

 

 

$

(37.9

)

 

nm

Diluted (loss)/income per share

 

$

(0.13

)

 

$

0.02

 

 

$

(0.15

)

 

$

0.02

 

 

$

(0.23

)

 

$

0.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP (1):

 

 

 

 

 

 

 

 

 

 

 

 

Organic revenue

 

$

400.6

 

 

$

393.5

 

 

 

1.8

%

 

$

1,658.1

 

 

$

1,578.8

 

 

 

5.0

%

Adjusted net income, diluted

 

$

1.2

 

 

$

15.1

 

 

nm

 

$

19.2

 

 

$

46.2

 

 

nm

Adjusted EBITDA

 

$

45.9

 

 

$

64.1

 

 

 

(28.4

)%

 

$

193.5

 

 

$

211.6

 

 

 

(8.6

)%

Adjusted EBITDA margin

 

 

11.4

%

 

 

14.2

%

 

-280 bps

 

 

11.6

%

 

 

12.6

%

 

-100 bps

Adjusted EPS

 

$

0.01

 

 

$

0.09

 

 

$

(0.08

)

 

$

0.11

 

 

$

0.27

 

 

$

(0.16

)

(1)

Non-GAAP figures – please refer to “Non-GAAP Measures” and “Reconciliation of Non-GAAP Financial Measures.”

Key Operating Metrics

 

Fiscal Years Ended

$ in millions

 

December 29, 2024

 

December 31, 2023

 

Change

Global Points of Access

 

 

17,557

 

 

 

14,147

 

 

24.1

%

Sales per Hub (U.S.) trailing four quarters

 

$

4.9

 

 

$

4.9

 

 

—

%

Sales per Hub (International) trailing four quarters

 

$

10.1

 

 

$

9.9

 

 

2.0

%

Digital Sales as a Percent of Retail Sales

 

 

14.4

%

 

 

19.3

%

 

-490 bps

Fourth Quarter 2024 Consolidated Results (vs Q4 2023)

Krispy Kreme’s fourth quarter results reflect the strength of the omni-channel model, delivering net revenue of $404.0 million, a decline of 10.4%, compared to $450.9 million in the same quarter last year primarily due to the sale of a majority ownership stake of Insomnia Cookies in the third quarter of 2024 ($101 million impact) and the 2024 Cybersecurity Incident (estimated $11 million impact). Organic revenue grew 1.8%, driven by the Company’s first quarter of Delivered Fresh Daily (“DFD”) sales in excess of $100 million worldwide. Organic revenue was impacted adversely by an estimated 280 basis points from lost revenue linked to the 2024 Cybersecurity Incident.

GAAP net loss was $22.2 million, compared to income in the prior year of $1.9 million. GAAP Diluted Loss per Share was $(0.13), a decline of $(0.15) from the same quarter last year.

Global Points of Access grew 24.1%, linked to the Company’s accelerating U.S. expansion now reaching more than 1,900 McDonald’s restaurants with daily deliveries of Krispy Kreme doughnuts, alongside growth internationally.

Adjusted EBITDA in the quarter declined 28.4% to $45.9 million, linked to an estimated $10 million dollar impact from the 2024 Cybersecurity Incident, with Adjusted EBITDA margins contracting 280 basis points to 11.4%. Adjusted EBITDA Margin reflects an estimated 210 basis point negative impact from the 2024 Cybersecurity Incident.

Adjusted Net Income, diluted declined to $1.2 million in the quarter from $15.1 million in the same quarter last year. Adjusted EPS declined $0.08 to $0.01 from $0.09 in the same quarter last year, due to increased interest expense and depreciation and amortization and an estimated impact of $0.04 due to the 2024 Cybersecurity Incident.

Full Year 2024 Consolidated Results (vs FY 2023)

Krispy Kreme’s full year results reflect the sale of a majority ownership stake of Insomnia Cookies, as net revenue declined 1.2% to $1.67 billion in 2024, compared to $1.69 billion in the prior year. GAAP net income was $3.8 million, compared to a loss of $36.6 million. GAAP Diluted EPS was $0.02 compared to a loss of $0.23.

Total company organic revenue grew 5.0%, and was impacted adversely by an estimated 70 basis points from lost revenue due to the 2024 Cybersecurity Incident. Organic revenue growth was driven by Global Points of Access growth, strong marketing activations, and pricing actions.

Adjusted EBITDA declined 8.6% to $193.5 million, primarily linked to the sale of a majority ownership stake of Insomnia Cookies and an estimated $10 million impact from the 2024 Cybersecurity Incident. Adjusted Net Income, diluted declined to $19.2 million from $46.2 million in the prior year. Adjusted EPS declined $0.16 to $0.11 from $0.27 in the prior year, due to increased depreciation and amortization, as we invested in our global expansion as well as higher tax rates with a greater portion of earnings generated in higher tax rate jurisdictions.

Diluted weighted average common shares outstanding for the full year 2024 were 171.5 million, compared to 170.5 million for the full year 2023.

Fourth Quarter 2024 Segment Results (vs Q4 2023)

U.S.: In the U.S. segment, net revenue declined $50.9 million, or 17.2%, largely attributable to the sale of Insomnia Cookies ($57.4 million impact), a decline in retail sales, and the 2024 Cybersecurity Incident; partially offset by growth in the DFD business. Organic revenue declined by 1.2%, with an estimated headwind of 460 basis points attributable to the 2024 Cybersecurity Incident. Sales per Hub in the U.S. remained consistent at $4.9 million and DFD average sales per door per week decreased, as expected, and were $631, driven by changing customer mix.

U.S. Adjusted EBITDA decreased 44.0% to $23.6 million with Adjusted EBITDA margin contraction of 460 basis points to 9.6%, of which an estimated 350 basis points were attributable the 2024 Cybersecurity Incident.

International: In the International segment, net revenue grew $7.4 million, or 5.7%. International organic revenue grew 7.8%, driven by points of access growth of 648, or 14%, and continued premiumization efforts.

International Adjusted EBITDA declined 7.7% to $25.7 million with adjusted EBITDA margin declining approximately 270 basis points, as strength in Australia was offset by lower volume in the U.K. leading to deleveraging.

Market Development: In the Market Development segment, net revenue declined $3.4 million, or 14.2%, driven by the impact of franchise acquisitions. Organic revenue decline in the segment was 0.7%.

Market Development Adjusted EBITDA grew 6.8% to $11.9 million. Adjusted EBITDA margins expanded to 57.8%, driven by favorable sales mix and selling, general and administrative expense improvement.

Balance Sheet and Capital Expenditures

During the fourth quarter 2024, the Company invested $33.9 million in capital expenditures, driven primarily by investments in the Hub and Spoke model for the U.S. expansion of the DFD network. For the full year 2024, capital expenditures as a percentage of revenue were 7.25%.

In the full year 2024, the Company reduced its supply chain financing liabilities by $44.3 million, including a $23.2 million impact from the Insomnia Cookies divestiture. The company generated Operating Cash Flow of $45.8 million in the year.

2024 Cybersecurity Incident

As previously disclosed, unauthorized activity on a portion of our information technology systems resulted in the Company experiencing certain operational disruptions, including with online ordering in parts of the U.S. (the “2024 Cybersecurity Incident”). Online ordering, retail shops, and core business functions are now fully operational. The incident materially affected the Company’s business operations and is reasonably likely to materially impact the Company’s results of operations and financial condition. In the fourth quarter of 2024, we incurred approximately $3 million of remediation expenses related to the 2024 Cybersecurity Incident. In addition, we estimate that we lost revenue within our U.S. segment in an amount of $11 million related to the incident with a corresponding estimated $10 million impact on Adjusted EBITDA (includes margin on the aforementioned lost revenues, as well as operational inefficiencies). We expect to continue to incur costs in full year 2025 related to the incident, including operational inefficiencies early in the first quarter and costs related to fees for our cybersecurity experts and other advisors. The Company holds cybersecurity insurance that is expected to offset a portion of the losses and costs from the incident.

2025 Financial Outlook

Krispy Kreme issues the following guidance for the full year 2025 (vs FY2024)

• Net Revenue of $1,550 to $1,650 million
• Organic Revenue growth(1) of +5% to +7%
• Adjusted EBITDA(1) of $180 to $200 million
• Adjusted EPS(1) of $0.04 to $0.08
• Income Tax rate between 32% and 36%
• Capital Expenditures of 6% to 7% of net revenue
• Interest Expense, net of $65 million to $75 million

The company expects leverage to trend towards 4.0x by year end 2025.

Notes:

(1)

Non-GAAP figures. The Company does not reconcile forward-looking non-GAAP measures. See “Non-GAAP Measures.”

Definitions

The following definitions apply to terms used throughout this press release:

• Global Points of Access: Reflects all locations at which fresh doughnuts can be purchased. We define global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors (which includes Delivered Fresh Daily (“DFD”) branded cabinets and merchandising units within high traffic grocery and convenience stores, quick service or fast casual restaurants (“QSR”), club memberships, and drug stores) and Cookie Bakeries (through the date of the Insomnia cookies divestiture), and other points at which fresh doughnuts can be purchased at both Company-owned and franchise locations as of the end of the respective reporting period. We monitor Global Points of Access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type.
• Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any point of access. We define Hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the respective reporting period.
• Hubs with Spokes: Reflects Hubs currently producing product for other Fresh Shops, Carts and Food Trucks, or DFD Doors, and excludes Hubs not currently producing product for other shops, Carts and Food Trucks, or DFD Doors.
• Sales Per Hub: Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes at the end of the five most recent quarters.
• Fresh Revenues from Hubs with Spokes: Fresh Revenues is a measure focused on the Krispy Kreme doughnut business and includes product sales generated from our Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors, and digital channels and excludes sales from Cookie Bakeries and Branded Sweet Treats (through the date of the Insomnia cookies divestiture and Branded Sweet Treats exit, respectively). Fresh Revenues from Hubs with Spokes equals the Fresh Revenues derived from Hubs with Spokes.
• Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment.

Conference Call

Krispy Kreme will host a public conference call and webcast at 8:30 AM Eastern Time today to discuss its results for the fourth quarter of 2024. To register for the conference call, please use this link. After registering, confirmation will be sent through email, including dial-in details and unique conference call codes for entry. To listen to the live webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay of the webcast will be available on the website within 24 hours after the call. Krispy Kreme’s earnings press release and related materials will also be available on the investor relations section of the Company’s website.

Investor Relations ir@krispykreme.com

Financial Media Edelman Smithfield for Krispy Kreme, Inc. Ashley Firlan & Ashna Vasa KrispyKremeIR@edelman.com

About Krispy Kreme

Headquartered in 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 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business with more than 17,500 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 and follow us on social: X, Instagram and Facebook.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as “plan,” “believe,” “may,” “continue,” “guidance,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “expect,” “intend,” “outlook,” “objective,” “seek,” “strive,” “working towards” or, in each case, the negatives of these words, comparable terminology, or similar references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included in this press release. We consider the assumptions and estimates on which our forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements, including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross-contamination; impacts from the 2024 Cybersecurity Incident or any other material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents; any harm to our reputation or brand image; changes in consumer preferences or demographic trends; the impact of inflation or changes in foreign exchange rates; our ability to execute on our omni-channel business strategy; regulatory investigations, enforcement actions or material litigation; and other risks and uncertainties described under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and in other filings we make from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law.

Non-GAAP Measures

This press release includes certain financial information that is not presented in conformity with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures including organic revenue growth/(decline), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted Net Income, Diluted, Adjusted EPS, Free Cash Flow, Net Debt, Fresh Revenue from Hubs with Spokes and Sales per Hub. These non-GAAP financial measures are not standardized, and it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names, 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 or a substitute for results reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC and not to rely on any single financial measure.

The Company does not provide reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure because it is unable to predict with reasonable certainty or without unreasonable effort non-recurring items, such as those reflected in our reconciliation of historic numbers. The variability of these items is unpredictable and may have a significant impact.

See “Reconciliation of Non-GAAP Financial Measures” below for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

Krispy Kreme, Inc.

Consolidated Statements of Operations

(in thousands, except per share amounts)

 

 

Fiscal Years Ended

 

December 29,

2024 (52 weeks)

 

December 31,

2023 (52 weeks)

 

January 1,

2023 (52 weeks)

 

(unaudited)

 

 

 

 

Net revenues

 

 

 

 

 

Product sales

$

1,627,778

 

 

$

1,651,166

 

 

$

1,497,882

 

Royalties and other revenues

 

37,619

 

 

 

34,938

 

 

 

32,016

 

Total net revenues

 

1,665,397

 

 

 

1,686,104

 

 

 

1,529,898

 

Product and distribution costs

 

409,177

 

 

 

443,243

 

 

 

406,227

 

Operating expenses

 

809,916

 

 

 

776,589

 

 

 

704,287

 

Selling, general and administrative expense

 

274,303

 

 

 

266,863

 

 

 

223,198

 

Marketing expenses

 

47,695

 

 

 

45,872

 

 

 

42,566

 

Pre-opening costs

 

3,411

 

 

 

4,120

 

 

 

4,227

 

Other (income)/expenses, net

 

(3,967

)

 

 

10,378

 

 

 

10,157

 

Depreciation and amortization expense

 

133,597

 

 

 

125,894

 

 

 

110,261

 

Operating (loss)/income

 

(8,735

)

 

 

13,145

 

 

 

28,975

 

Interest expense, net

 

60,066

 

 

 

50,341

 

 

 

34,102

 

Gain on divestiture of Insomnia Cookies

 

(90,455

)

 

 

—

 

 

 

—

 

Other non-operating expense, net

 

1,885

 

 

 

3,798

 

 

 

3,036

 

Income/(loss) before income taxes

 

19,769

 

 

 

(40,994

)

 

 

(8,163

)

Income tax expense/(benefit)

 

15,954

 

 

 

(4,347

)

 

 

612

 

Net income/(loss)

 

3,815

 

 

 

(36,647

)

 

 

(8,775

)

Net income attributable to noncontrolling interest

 

720

 

 

 

1,278

 

 

 

6,847

 

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

$

3,095

 

 

$

(37,925

)

 

$

(15,622

)

Net income/(loss) per share:

 

 

 

 

 

Common stock - Basic

$

0.02

 

 

$

(0.23

)

 

$

(0.10

)

Common stock - Diluted

$

0.02

 

 

$

(0.23

)

 

$

(0.10

)

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

169,341

 

 

 

168,289

 

 

 

167,471

 

Diluted

 

171,500

 

 

 

168,289

 

 

 

167,471

 

 

 

Quarter Ended

 

December 29,

2024 (13 weeks)

 

December 31,

2023 (13 weeks)

 

(unaudited)

 

 

Net revenues

 

 

 

Product sales

$

394,193

 

 

$

441,399

 

Royalties and other revenues

 

9,830

 

 

 

9,506

 

Total net revenues

 

404,023

 

 

 

450,905

 

Product and distribution costs

 

98,476

 

 

 

112,951

 

Operating expenses

 

200,190

 

 

 

200,636

 

Selling, general and administrative expense

 

67,153

 

 

 

74,508

 

Marketing expenses

 

12,484

 

 

 

13,771

 

Pre-opening costs

 

720

 

 

 

1,193

 

Other expenses, net

 

2,463

 

 

 

16,429

 

Depreciation and amortization expense

 

34,035

 

 

 

36,752

 

Operating loss

 

(11,498

)

 

 

(5,335

)

Interest expense, net

 

15,598

 

 

 

13,483

 

Gain on divestiture of Insomnia Cookies

 

(3,327

)

 

 

—

 

Other non-operating expense, net

 

770

 

 

 

767

 

Loss before income taxes

 

(24,539

)

 

 

(19,585

)

Income tax benefit

 

(2,376

)

 

 

(21,468

)

Net (loss)/income

 

(22,163

)

 

 

1,883

 

Net income/(loss) attributable to noncontrolling interest

 

280

 

 

 

(727

)

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

$

(22,443

)

 

$

2,610

 

Net (loss)/income per share:

 

 

 

Common stock - Basic

$

(0.13

)

 

$

0.02

 

Common stock - Diluted

$

(0.13

)

 

$

0.02

 

Weighted average shares outstanding:

 

 

 

Basic

 

169,989

 

 

 

168,609

 

Diluted

 

169,989

 

 

 

170,678

 

 

Krispy Kreme, Inc.

Consolidated Balance Sheets

(in thousands, except per share data)

 

 

As of

 

December 29, 2024

 

December 31, 2023

 

(unaudited)

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

28,962

 

 

$

38,185

 

Restricted cash

 

353

 

 

 

429

 

Accounts receivable, net

 

67,722

 

 

 

59,362

 

Inventories

 

28,133

 

 

 

34,716

 

Taxes receivable

 

16,155

 

 

 

15,526

 

Prepaid expense and other current assets

 

31,615

 

 

 

25,363

 

Total current assets

 

172,940

 

 

 

173,581

 

Property and equipment, net

 

511,139

 

 

 

538,220

 

Goodwill

 

1,047,581

 

 

 

1,101,939

 

Other intangible assets, net

 

819,934

 

 

 

946,349

 

Operating lease right of use asset, net

 

409,869

 

 

 

456,964

 

Investments in unconsolidated entities

 

91,070

 

 

 

2,806

 

Other assets

 

19,497

 

 

 

20,733

 

Total assets

$

3,072,030

 

 

$

3,240,592

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

56,356

 

 

$

54,631

 

Current operating lease liabilities

 

46,620

 

 

 

50,365

 

Accounts payable

 

123,316

 

 

 

156,488

 

Accrued liabilities

 

124,212

 

 

 

134,005

 

Structured payables

 

135,668

 

 

 

130,104

 

Total current liabilities

 

486,172

 

 

 

525,593

 

Long-term debt, less current portion

 

844,547

 

 

 

836,615

 

Noncurrent operating lease liabilities

 

405,366

 

 

 

454,583

 

Deferred income taxes, net

 

130,745

 

 

 

123,925

 

Other long-term obligations and deferred credits

 

40,768

 

 

 

36,093

 

Total liabilities

 

1,907,598

 

 

 

1,976,809

 

Commitments and contingencies

 

 

 

Shareholders’ equity:

 

 

 

Common stock, $0.01 par value; 300,000 shares authorized as of both December 29, 2024 and December 31, 2023; 170,060 and 168,628 shares issued and outstanding as of December 29, 2024 and December 31, 2023, respectively

 

1,701

 

 

 

1,686

 

Additional paid-in capital

 

1,466,508

 

 

 

1,443,591

 

Shareholder note receivable

 

(1,906

)

 

 

(3,850

)

Accumulated other comprehensive (loss)/income, net of income tax

 

(32,128

)

 

 

7,246

 

Retained deficit

 

(299,638

)

 

 

(278,990

)

Total shareholders’ equity attributable to Krispy Kreme, Inc.

 

1,134,537

 

 

 

1,169,683

 

Noncontrolling interest

 

29,895

 

 

 

94,100

 

Total shareholders’ equity

 

1,164,432

 

 

 

1,263,783

 

Total liabilities and shareholders’ equity

$

3,072,030

 

 

$

3,240,592

 

 

Krispy Kreme, Inc.

Consolidated Statements of Cash Flows

(in thousands)

 

 

Fiscal Years Ended

 

December 29,

2024 (52 weeks)

 

December 31,

2023 (52 weeks)

 

January 1,

2023 (52 weeks)

 

(unaudited)

 

 

 

 

CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:

 

 

 

 

 

Net income/(loss)

$

3,815

 

 

$

(36,647

)

 

$

(8,775

)

Adjustments to reconcile net income/(loss) to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization expense

 

133,597

 

 

 

125,894

 

 

 

110,261

 

Deferred and other income taxes

 

3,067

 

 

 

(18,486

)

 

 

(14,237

)

Loss on extinguishment of debt

 

—

 

 

 

472

 

 

 

—

 

Impairment and lease termination charges

 

4,464

 

 

 

24,909

 

 

 

18,297

 

Loss on disposal of property and equipment

 

1,250

 

 

 

110

 

 

 

393

 

Gain on divestiture of Insomnia Cookies

 

(90,455

)

 

 

—

 

 

 

—

 

Gain on remeasurement of equity method investment

 

(5,579

)

 

 

—

 

 

 

—

 

Gain on sale-leaseback

 

(1,569

)

 

 

(9,646

)

 

 

(6,549

)

Share-based compensation

 

35,149

 

 

 

24,196

 

 

 

18,170

 

Change in accounts and notes receivable allowances

 

646

 

 

 

654

 

 

 

570

 

Inventory write-off

 

2,783

 

 

 

11,248

 

 

 

868

 

Settlement of interest rate swap derivatives

 

—

 

 

 

7,657

 

 

 

8,476

 

Amortization related to settlement of interest rate swap derivatives

 

(5,910

)

 

 

(10,289

)

 

 

—

 

Other

 

(619

)

 

 

2,155

 

 

 

2,232

 

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

 

 

 

 

 

Accounts, notes, and taxes receivable

 

(13,895

)

 

 

(3,523

)

 

 

(9,485

)

Inventories

 

(2,011

)

 

 

780

 

 

 

(12,515

)

Other current and noncurrent assets

 

(873

)

 

 

(2,395

)

 

 

(1,691

)

Operating lease assets and liabilities

 

(1,227

)

 

 

5,111

 

 

 

(793

)

Accounts payable and accrued liabilities

 

(20,156

)

 

 

(74,471

)

 

 

32,015

 

Other long-term obligations and deferred credits

 

3,355

 

 

 

(2,185

)

 

 

2,581

 

Net cash provided by operating activities

 

45,832

 

 

 

45,544

 

 

 

139,818

 

CASH FLOWS PROVIDED BY/(USED FOR) INVESTING ACTIVITIES:

 

 

 

 

 

Purchase of property and equipment

 

(120,792

)

 

 

(121,427

)

 

 

(111,717

)

Proceeds from disposals of assets

 

183

 

 

 

218

 

 

 

1,077

 

Proceeds from sale-leaseback

 

6,308

 

 

 

10,025

 

 

 

8,401

 

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

 

(31,938

)

 

 

—

 

 

 

(17,330

)

Purchase of equity method investment

 

(3,506

)

 

 

(1,424

)

 

 

(989

)

Net proceeds from divestiture of Insomnia Cookies

 

124,126

 

 

 

—

 

 

 

—

 

Principal payment received from loan to Insomnia Cookies

 

45,000

 

 

 

—

 

 

 

—

 

Principal payments received from loans to franchisees

 

985

 

 

 

20

 

 

 

59

 

Disbursement for loan receivable

 

(1,086

)

 

 

—

 

 

 

(975

)

Net cash provided by/(used for) investing activities

 

19,280

 

 

 

(112,588

)

 

 

(121,474

)

CASH FLOWS (USED FOR)/PROVIDED BY FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from the issuance of debt

 

676,250

 

 

 

1,175,698

 

 

 

149,000

 

Repayment of long-term debt and lease obligations

 

(712,778

)

 

 

(1,084,390

)

 

 

(101,181

)

Payment of financing costs

 

—

 

 

 

(5,175

)

 

 

—

 

Proceeds from structured payables

 

376,189

 

 

 

241,148

 

 

 

282,023

 

Payments on structured payables

 

(345,327

)

 

 

(214,574

)

 

 

(294,457

)

Payment of contingent consideration related to a business combination

 

—

 

 

 

(925

)

 

 

(900

)

Capital contribution from shareholders, net of loans issued

 

919

 

 

 

764

 

 

 

(288

)

Payments of issuance costs in connection with initial public offering

 

—

 

 

 

—

 

 

 

(12,458

)

Proceeds from sale of noncontrolling interest in subsidiary

 

1,562

 

 

 

292

 

 

 

593

 

Distribution to shareholders

 

(23,692

)

 

 

(23,558

)

 

 

(23,430

)

Payments for repurchase and retirement of common stock

 

(5,489

)

 

 

(1,880

)

 

 

(4,019

)

Distribution to noncontrolling interest

 

(41,583

)

 

 

(15,538

)

 

 

(11,721

)

Net cash (used for)/provided by financing activities

 

(73,949

)

 

 

71,862

 

 

 

(16,838

)

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

 

(462

)

 

 

(1,934

)

 

 

(4,968

)

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

 

(9,299

)

 

 

2,884

 

 

 

(3,462

)

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

 

38,614

 

 

 

35,730

 

 

 

39,192

 

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

$

29,315

 

 

$

38,614

 

 

$

35,730

 

 

 

 

 

 

 

Net cash provided by operating activities

$

45,832

 

 

$

45,544

 

 

$

139,818

 

Less: Purchase of property and equipment

 

(120,792

)

 

 

(121,427

)

 

 

(111,717

)

Free cash flow

$

(74,960

)

 

$

(75,883

)

 

$

28,101

 

 

Krispy Kreme, Inc. Reconciliation of Non-GAAP Financial Measures (unaudited and in thousands, except per share amounts)

We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent or non-core income and expense items. Adjusted EBITDA is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. “Adjusted EBITDA margin” reflects Adjusted EBITDA as a percentage of net revenues.

We define “Adjusted EBIT” as earnings before interest expense, net and income tax expense, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent or non-core income and expense items. Adjusted EBIT is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods.

We define “Adjusted Net Income, Diluted” as net income/(loss) attributable to common shareholders, adjusted for interest expense, share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent or non-core income and expense items. “Adjusted EPS” is Adjusted Net Income, Diluted converted to a per share amount.

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted Net Income, Diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP measures supplementally.

 

Quarter Ended

 

Fiscal Years Ended

(in thousands)

December 29,

2024

 

December 31,

2023

 

December 29,

2024

 

December 31,

2023

Net (loss)/income

$

(22,163

)

 

$

1,883

 

 

$

3,815

 

 

$

(36,647

)

Interest expense, net

 

15,598

 

 

 

13,483

 

 

 

60,066

 

 

 

50,341

 

Income tax (benefit)/expense

 

(2,376

)

 

 

(21,468

)

 

 

15,954

 

 

 

(4,347

)

Share-based compensation

 

10,546

 

 

 

6,375

 

 

 

35,149

 

 

 

24,196

 

Employer payroll taxes related to share-based compensation

 

59

 

 

 

85

 

 

 

358

 

 

 

395

 

Gain on divestiture of Insomnia Cookies

 

(3,327

)

 

 

—

 

 

 

(90,455

)

 

 

—

 

Other non-operating expense, net (1)

 

770

 

 

 

767

 

 

 

1,885

 

 

 

3,798

 

Strategic initiatives (2)

 

(441

)

 

 

5,216

 

 

 

19,993

 

 

 

29,057

 

Acquisition and integration expenses (3)

 

245

 

 

 

32

 

 

 

3,282

 

 

 

511

 

New market penetration expenses (4)

 

213

 

 

 

367

 

 

 

1,407

 

 

 

1,380

 

Shop closure expenses, net (5)

 

4,073

 

 

 

16,979

 

 

 

4,861

 

 

 

17,335

 

Restructuring and severance expenses (6)

 

6,792

 

 

 

2,251

 

 

 

7,561

 

 

 

5,050

 

Gain on remeasurement of equity method investment (7)

 

—

 

 

 

—

 

 

 

(5,579

)

 

 

—

 

Gain on sale-leaseback

 

(1,569

)

 

 

—

 

 

 

(1,569

)

 

 

(9,646

)

Other (8)

 

3,460

 

 

 

1,419

 

 

 

3,203

 

 

 

4,307

 

Amortization of acquisition related intangibles (9)

 

7,700

 

 

 

7,346

 

 

 

30,297

 

 

 

29,373

 

Adjusted EBIT

$

19,580

 

 

$

34,735

 

 

$

90,228

 

 

$

115,103

 

Depreciation expense and amortization of right of use assets

 

26,335

 

 

 

29,406

 

 

 

103,300

 

 

 

96,521

 

Adjusted EBITDA

$

45,915

 

 

$

64,141

 

 

$

193,528

 

 

$

211,624

 

 

Quarter Ended

 

Fiscal Years Ended

(in thousands)

December 29,

2024

 

December 31,

2023

 

December 29,

2024

 

December 31,

2023

Segment Adjusted EBITDA:

 

 

 

 

 

 

 

U.S.

$

23,561

 

 

$

42,101

 

 

$

112,767

 

 

$

130,979

 

International

 

25,746

 

 

 

27,887

 

 

 

90,716

 

 

 

96,532

 

Market Development

 

11,858

 

 

 

11,104

 

 

 

47,904

 

 

 

42,966

 

Corporate

 

(15,250

)

 

 

(16,951

)

 

 

(57,859

)

 

 

(58,853

)

Total Adjusted EBITDA

$

45,915

 

 

$

64,141

 

 

$

193,528

 

 

$

211,624

 

 

Quarter Ended

 

Fiscal Years Ended

(in thousands, except per share amounts)

December 29,

2024

 

December 31,

2023

 

December 29,

2024

 

December 31,

2023

Net (loss)/income

$

(22,163

)

 

$

1,883

 

 

$

3,815

 

 

$

(36,647

)

Share-based compensation

 

10,546

 

 

 

6,375

 

 

 

35,149

 

 

 

24,196

 

Employer payroll taxes related to share-based compensation

 

59

 

 

 

85

 

 

 

358

 

 

 

395

 

Gain on divestiture of Insomnia Cookies

 

(3,327

)

 

 

—

 

 

 

(90,455

)

 

 

—

 

Other non-operating expense, net (1)

 

770

 

 

 

767

 

 

 

1,885

 

 

 

3,798

 

Strategic initiatives (2)

 

(441

)

 

 

5,216

 

 

 

19,993

 

 

 

29,057

 

Acquisition and integration expenses (3)

 

245

 

 

 

32

 

 

 

3,282

 

 

 

511

 

New market penetration expenses (4)

 

213

 

 

 

367

 

 

 

1,407

 

 

 

1,380

 

Shop closure expenses, net (5)

 

4,073

 

 

 

16,979

 

 

 

4,861

 

 

 

17,335

 

Restructuring and severance expenses (6)

 

6,792

 

 

 

2,251

 

 

 

7,561

 

 

 

5,050

 

Gain on remeasurement of equity method investment (7)

 

—

 

 

 

—

 

 

 

(5,579

)

 

 

—

 

Gain on sale-leaseback

 

(1,569

)

 

 

—

 

 

 

(1,569

)

 

 

(9,646

)

Other (8)

 

3,460

 

 

 

1,419

 

 

 

3,203

 

 

 

4,307

 

Amortization of acquisition related intangibles (9)

 

7,700

 

 

 

7,346

 

 

 

30,297

 

 

 

29,373

 

Loss on extinguishment of 2019 Facility (10)

 

—

 

 

 

—

 

 

 

—

 

 

 

472

 

Tax impact of adjustments (11)

 

(4,075

)

 

 

(29,303

)

 

 

9,690

 

 

 

(20,729

)

Tax specific adjustments (12)

 

(778

)

 

 

979

 

 

 

(3,988

)

 

 

(1,364

)

Net (income)/loss attributable to noncontrolling interest

 

(280

)

 

 

727

 

 

 

(720

)

 

 

(1,278

)

Adjusted net income attributable to common shareholders - Basic

$

1,225

 

 

$

15,123

 

 

$

19,190

 

 

$

46,210

 

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

 

(8

)

 

 

(13

)

 

 

(20

)

 

 

(28

)

Adjusted net income attributable to common shareholders - Diluted

$

1,217

 

 

$

15,110

 

 

$

19,170

 

 

$

46,182

 

Basic weighted average common shares outstanding

 

169,989

 

 

 

168,609

 

 

 

169,341

 

 

 

168,289

 

Dilutive effect of outstanding common stock options, RSUs, and PSUs

 

1,861

 

 

 

2,069

 

 

 

2,159

 

 

 

2,204

 

Diluted weighted average common shares outstanding

 

171,850

 

 

 

170,678

 

 

 

171,500

 

 

 

170,493

 

Adjusted net income per share attributable to common shareholders:

 

 

 

 

 

 

 

Basic

$

0.01

 

 

$

0.09

 

 

$

0.11

 

 

$

0.27

 

Diluted

$

0.01

 

 

$

0.09

 

 

$

0.11

 

 

$

0.27

 

(1)

Primarily foreign translation gains and losses in each period. Fiscal 2024 also consists of equity method income from Insomnia Cookies following the divestiture.

(2)

Fiscal 2024 consists primarily of costs associated with the divestiture of the Insomnia Cookies business, preparing for the McDonald’s U.S. expansion, and global transformation. Fiscal 2023 consists primarily of costs associated with global transformation and U.S. initiatives such as the decision to exit the Branded Sweet Treats business, including property, plant and equipment impairments, inventory write-offs, employee severance, and other related costs. Fiscal 2022 consists mainly of equipment disposals, equipment relocation and installation, consulting and advisory fees, and other costs associated with the shift of Branded Sweet Treats manufacturing capability from Burlington, Iowa to Winston-Salem, North Carolina.

(3)

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

(4)

Consists of start-up costs associated with entry into new countries in which the Company has not previously operated, including Brazil and Spain.

(5)

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

(6)

Fiscal 2024 consists primarily of costs associated with the restructuring of the U.S. and U.K. executive teams. Fiscal 2023 and 2022 consist primarily of costs associated with restructuring of the global executive team.

(7)

Consists of a gain related to the remeasurement of the equity method investments in KremeWorks USA, LLC and KremeWorks Canada, L.P. to fair value immediately prior to the acquisition of the shops.

(8)

Fiscal 2024 consists primarily of $3.1 million in costs related to remediation of the 2024 Cybersecurity Incident, including fees for cybersecurity experts and other advisors. Fiscal 2023 and fiscal 2022 consist primarily of legal and other regulatory expenses incurred outside the ordinary course of business.

(9)

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

(10)

Includes interest expenses related to unamortized debt issuance costs from our prior credit agreement (the “2019 Facility”) associated with extinguished lenders as a result of the March 2023 debt refinancing.

(11)

Tax impact of adjustments calculated by applying the applicable statutory rates. The Company’s adjusted effective tax rate is 34.0%, 27.2%, and 24.1% for each of the fiscal years 2024, 2023, and 2022, respectively. Fiscal 2024 and fiscal 2023 also include the impact of disallowed executive compensation expense. Fiscal 2022 includes the impact of disallowed executive compensation expense and a discrete tax benefit related to a legal accrual.

(12)

Fiscal 2024 consists of the recognition of previously unrecognized tax benefits unrelated to ongoing operations, a discrete tax benefit unrelated to ongoing operations, the release of valuation allowances associated with the divestiture of Insomnia Cookies, and the effect of various tax law changes on existing temporary differences. Fiscal 2023 consists of the recognition of a previously unrecognized tax benefit unrelated to ongoing operations, the effect of tax law changes on existing temporary differences, and a discrete tax benefit unrelated to ongoing operations. Fiscal 2022 consists of the recognition of previously unrecognized tax benefits unrelated to ongoing operations, as well as benefits attributable to multiple tax years due to lapse of the statute of limitations. Fiscal 2022 also includes the effect of discrete adjustments to the Company’s deferred tax liabilities that are unrelated to the Company’s ongoing operations.

 

Krispy Kreme, Inc.

Segment Reporting

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

 

 

Quarter Ended

 

December 29,

2024

 

December 31,

2023

 

January 1,

2023

Net revenues:

 

 

 

 

 

U.S.

$

245,121

 

$

296,006

 

$

270,836

International

 

138,386

 

 

130,978

 

 

113,015

Market Development

 

20,516

 

 

23,921

 

 

20,748

Total net revenues

$

404,023

 

$

450,905

 

$

404,599

Organic revenue growth measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define “organic revenue growth” as the growth in revenues, excluding (i) acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs such as the shop portfolio optimization program initiated for Krispy Kreme U.S. during fiscal 2022, (iv) the impact of the Branded Sweat Treats business exit, (v) the impact of the divestiture of Insomnia Cookies, and (vi) revenues generated during the 53rd week for those fiscal years that have a 53rd week based on our fiscal calendar.

Q4 2024 Organic Revenue - QTD

(in thousands, except percentages)

U.S.

 

International

 

Market

Development

 

Total Company

Total net revenues in fourth quarter of fiscal 2024

$

245,121

 

 

$

138,386

 

 

$

20,516

 

 

$

404,023

 

Total net revenues in fourth quarter of fiscal 2023

 

296,006

 

 

 

130,978

 

 

 

23,921

 

 

 

450,905

 

Total Net Revenues (Decline)/Growth

 

(50,885

)

 

 

7,408

 

 

 

(3,405

)

 

 

(46,882

)

Total Net Revenues (Decline)/Growth %

 

-17.2

%

 

 

5.7

%

 

 

-14.2

%

 

 

-10.4

%

Less: Impact of Insomnia Cookies divestiture

 

(57,434

)

 

 

—

 

 

 

—

 

 

 

(57,434

)

Adjusted net revenues in fourth quarter of fiscal 2023

 

238,572

 

 

 

130,978

 

 

 

23,921

 

 

 

393,471

 

Adjusted net revenue growth/(decline)

 

6,549

 

 

 

7,408

 

 

 

(3,405

)

 

 

10,552

 

Impact of acquisitions

 

(9,428

)

 

 

(1,757

)

 

 

3,244

 

 

 

(7,941

)

Impact of foreign currency translation

 

—

 

 

 

4,545

 

 

 

—

 

 

 

4,545

 

Organic Revenue (Decline)/Growth

$

(2,879

)

 

$

10,196

 

 

$

(161

)

 

$

7,156

 

Organic Revenue (Decline)/Growth %

 

-1.2

%

 

 

7.8

%

 

 

-0.7

%

 

 

1.8

%

Q4 2023 Organic Revenue - QTD

(in thousands, except percentages)

U.S.

 

International

 

Market

Development

 

Total Company

Total net revenues in fourth quarter of fiscal 2023

$

296,006

 

 

$

130,978

 

 

$

23,921

 

 

$

450,905

 

Total net revenues in fourth quarter of fiscal 2022

 

270,836

 

 

 

113,015

 

 

 

20,748

 

 

 

404,599

 

Total Net Revenues Growth

 

25,170

 

 

 

17,963

 

 

 

3,173

 

 

 

46,306

 

Total Net Revenues Growth %

 

9.3

%

 

 

15.9

%

 

 

15.3

%

 

 

11.4

%

Less: Impact of shop optimization program closures

 

(1,754

)

 

 

—

 

 

 

—

 

 

 

(1,754

)

Less: Impact of Branded Sweet Treats exit

 

(8,841

)

 

 

—

 

 

 

—

 

 

 

(8,841

)

Adjusted net revenues in fourth quarter of fiscal 2022

 

260,241

 

—

 

113,015

 

 

 

20,748

 

 

 

394,004

 

Adjusted net revenue growth

 

35,765

 

 

 

17,963

 

 

 

3,173

 

 

 

56,901

 

Impact of foreign currency translation

 

—

 

 

 

(4,921

)

 

 

—

 

 

 

(4,921

)

Organic Revenue Growth

$

35,765

 

 

$

13,042

 

 

$

3,173

 

 

$

51,980

 

Organic Revenue Growth %

 

13.7

%

 

 

11.5

%

 

 

15.3

%

 

 

13.2

%

 

Fiscal Years Ended

 

December 29,

2024

 

December 31,

2023

 

January 1,

2023

Net revenues:

 

 

 

U.S.

$

1,058,736

 

$

1,104,944

 

$

1,010,250

International

 

519,102

 

 

489,631

 

 

435,651

Market Development

 

87,559

 

 

91,529

 

 

83,997

Total net revenues

$

1,665,397

 

$

1,686,104

 

$

1,529,898

Full Year 2024 Organic Revenue - YTD

(in thousands, except percentages)

U.S.

 

International

 

Market

Development

 

Total Company

Total net revenues in fiscal 2024

$

1,058,736

 

 

$

519,102

 

 

$

87,559

 

 

$

1,665,397

 

Total net revenues in fiscal 2023

 

1,104,944

 

 

 

489,631

 

 

 

91,529

 

 

 

1,686,104

 

Total Net Revenues (Decline)/Growth

 

(46,208

)

 

 

29,471

 

 

 

(3,970

)

 

 

(20,707

)

Total Net Revenues (Decline)/Growth %

 

-4.2

%

 

 

6.0

%

 

 

-4.3

%

 

 

-1.2

%

Less: Impact of shop optimization program closures

 

(463

)

 

 

—

 

 

 

—

 

 

 

(463

)

Less: Impact of Insomnia Cookies divestiture

 

(100,965

)

 

 

—

 

 

 

—

 

 

 

(100,965

)

Less: Impact of Branded Sweet Treats exit

 

(5,853

)

 

 

—

 

 

 

—

 

 

 

(5,853

)

Adjusted net revenues in fiscal 2023

 

997,663

 

 

 

489,631

 

 

 

91,529

 

 

 

1,578,823

 

Adjusted net revenue growth/(decline)

 

61,073

 

 

 

29,471

 

 

 

(3,970

)

 

 

86,574

 

Impact of acquisitions

 

(15,656

)

 

 

(2,865

)

 

 

5,371

 

 

 

(13,150

)

Impact of foreign currency translation

 

—

 

 

 

5,883

 

 

 

—

 

 

 

5,883

 

Organic Revenue Growth

$

45,417

 

 

$

32,489

 

 

$

1,401

 

 

$

79,307

 

Organic Revenue Growth %

 

4.6

%

 

 

6.6

%

 

 

1.5

%

 

 

5.0

%

Full Year 2023 Organic Revenue - YTD

(in thousands, except percentages)

U.S.

 

International

 

Market

Development

 

Total Company

Total net revenues in fiscal 2023

$

1,104,944

 

 

$

489,631

 

 

$

91,529

 

 

$

1,686,104

 

Total net revenues in fiscal 2022

 

1,010,250

 

 

 

435,651

 

 

 

83,997

 

 

 

1,529,898

 

Total Net Revenues Growth

 

94,694

 

 

 

53,980

 

 

 

7,532

 

 

 

156,206

 

Total Net Revenues Growth %

 

9.4

%

 

 

12.4

%

 

 

9.0

%

 

 

10.2

%

Less: Impact of shop optimization program closures

 

(11,367

)

 

 

—

 

 

 

—

 

 

 

(11,367

)

Less: Impact of Branded Sweet Treats exit

 

(24,577

)

 

 

—

 

 

 

—

 

 

 

(24,577

)

Adjusted net revenues in fiscal 2022

 

974,306

 

 

 

435,651

 

 

 

83,997

 

 

 

1,493,954

 

Adjusted net revenue growth

 

130,638

 

 

 

53,980

 

 

 

7,532

 

 

 

192,150

 

Impact of acquisitions

 

(7,678

)

 

 

—

 

 

 

2,227

 

 

 

(5,451

)

Impact of foreign currency translation

 

—

 

 

 

(5,039

)

 

 

—

 

 

 

(5,039

)

Organic Revenue Growth

$

122,960

 

 

$

48,941

 

 

$

9,759

 

 

$

181,660

 

Organic Revenue Growth %

 

12.6

%

 

 

11.2

%

 

 

11.6

%

 

 

12.2

%

 

Fresh Revenues from Hubs with Spokes and Sales per Hub are defined above.

 

Fiscal Years Ended

Sales per Hub

(in thousands, unless otherwise stated)

December 29,

2024 (52 weeks)

 

December 31,

2023 (52 weeks)

 

January 1,

2023 (52 weeks)

U.S.:

 

 

 

 

 

Revenues

$

1,058,736

 

 

$

1,104,944

 

 

$

1,010,250

 

Non-Fresh Revenues (1)

 

(3,161

)

 

 

(9,416

)

 

 

(38,380

)

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

 

(307,665

)

 

 

(399,061

)

 

 

(404,430

)

Fresh Revenues from Hubs with Spokes

 

747,910

 

 

 

696,467

 

 

 

567,440

 

Sales per Hub (millions)

 

4.9

 

 

 

4.9

 

 

 

4.5

 

 

 

 

 

 

 

International:

 

 

 

 

 

Fresh Revenues from Hubs with Spokes (3)

$

519,102

 

 

$

489,631

 

 

$

435,651

 

Sales per Hub (millions) (4)

 

10.1

 

 

 

9.9

 

 

 

9.6

 

(1)

Includes the exited Branded Sweet Treats business revenues as well as licensing royalties from customers for use of the Krispy Kreme brand.

(2)

Includes Insomnia Cookies revenues (through the date of the divestiture) and Fresh Revenues generated by Hubs without Spokes.

(3)

Total International net revenues is equal to Fresh Revenues from Hubs with Spokes for that business segment.

(4)

International sales per Hub comparative data has been restated in constant currency based on current exchange rates.

 

Krispy Kreme, Inc.

Global Points of Access

 

 

Global Points of Access

 

Fiscal Years Ended

 

December 29, 2024

 

December 31, 2023

 

January 1, 2023

 

(unaudited)

 

 

 

 

U.S.:

 

 

 

 

 

Hot Light Theater Shops

237

 

229

 

234

Fresh Shops

70

 

70

 

62

Cookie Bakeries (1)

—

 

267

 

231

DFD Doors (2)

9,644

 

6,808

 

5,729

Total

9,951

 

7,374

 

6,256

International:

 

 

 

 

 

Hot Light Theater Shops

49

 

44

 

46

Fresh Shops

519

 

483

 

448

Carts, Food Trucks, and Other (3)

17

 

16

 

14

DFD Doors

4,583

 

3,977

 

3,210

Total

5,168

 

4,520

 

3,718

Market Development:

 

 

 

 

 

Hot Light Theater Shops

108

 

116

 

106

Fresh Shops

1,095

 

968

 

813

Carts, Food Trucks, and Other (3)

30

 

30

 

27

DFD Doors

1,205

 

1,139

 

917

Total

2,438

 

2,253

 

1,863

Total Global Points of Access (as defined)

17,557

 

14,147

 

11,837

Total Hot Light Theater Shops

394

 

389

 

386

Total Fresh Shops

1,684

 

1,521

 

1,323

Total Cookie Bakeries (1)

—

 

267

 

231

Total Shops

2,078

 

2,177

 

1,940

Total Carts, Food Trucks, and Other

47

 

46

 

41

Total DFD Doors

15,432

 

11,924

 

9,856

Total Global Points of Access (as defined)

17,557

 

14,147

 

11,837

(1)

Reflects the divestiture of Insomnia Cookies during fiscal 2024.

(2)

Includes more than 1,900 McDonald’s QSR shops as of December 29, 2024.

(3)

Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of Access in this category are primarily found in international locations in airports and train stations.

Krispy Kreme, Inc.

Global Hubs

 

 

Hubs

 

Fiscal Years Ended

 

December 29, 2024

 

December 31, 2023

 

January 1, 2023

 

(unaudited)

 

 

 

 

U.S.:

 

 

 

 

 

Hot Light Theater Shops (1)

232

 

220

 

228

Doughnut Factories

6

 

4

 

4

Total

238

 

224

 

232

Hubs with Spokes

158

 

149

 

133

Hubs without Spokes

80

 

75

 

99

International:

 

 

 

 

 

Hot Light Theater Shops (1)

40

 

36

 

34

Doughnut Factories

14

 

14

 

14

Total

54

 

50

 

48

Hubs with Spokes

54

 

50

 

48

Market Development:

 

 

 

 

 

Hot Light Theater Shops (1)

106

 

112

 

104

Doughnut Factories

27

 

23

 

24

Total

133

 

135

 

128

Total Hubs

425

 

409

 

408

(1)

Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a Spoke location that produces some doughnuts for itself and also receives doughnuts from another producing location.

 

Krispy Kreme, Inc.

Net Debt and Leverage

(in thousands, except leverage ratio)

 

 

As of

 

December 29, 2024

 

December 31, 2023

 

(unaudited)

 

 

Current portion of long-term debt

$

56,356

 

 

$

54,631

 

Long-term debt, less current portion

 

844,547

 

 

 

836,615

 

Total long-term debt, including debt issuance costs

 

900,903

 

 

 

891,246

 

Add back: Debt issuance costs

 

3,322

 

 

 

4,371

 

Total long-term debt, excluding debt issuance costs

 

904,225

 

 

 

895,617

 

Less: Cash and cash equivalents

 

(28,962

)

 

 

(38,185

)

Net debt

$

875,263

 

 

$

857,432

 

Adjusted EBITDA - trailing four quarters

 

193,528

 

 

 

211,624

 

Net leverage ratio

4.5 x

 

4.1 x

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250224225524/en/

Investor Relations ir@krispykreme.com

Financial Media Edelman Smithfield for Krispy Kreme, Inc. Ashley Firlan & Ashna Vasa KrispyKremeIR@edelman.com