CHARLOTTE, N.C.--(BUSINESS WIRE)--Krispy Kreme, Inc. (NASDAQ: DNUT) (“Krispy Kreme”, “KKI”, or the “Company”) today reported financial results for the quarter ended June 30, 2024.
Second Quarter Highlights (vs Q2 2023)
- Net revenue grew 7.3% to $438.8 million
- Organic revenue grew 7.8% to $440.2 million
- GAAP net loss of $4.9 million ($5.5 million net loss attributable to KKI)
- Adjusted EBITDA grew 12.1% to $54.7 million, Adjusted EBITDA margin up 60 basis points year-over-year
- GAAP operating cash flow of $33.2 million
- Global Points of Access (“POA”) increased 2,981, or 23.2%, to 15,853
“Krispy Kreme had another strong quarter as our fresh doughnuts are becoming even easier to purchase and more available globally,” said Josh Charlesworth, CEO. “Our innovative specialty doughnut collections continue to resonate with consumers and drove increased Delivered Fresh Daily (“DFD”) and digital sales in the quarter.”
“Our points of access also grew, and we’re excited about upcoming launches in Germany, Brazil, and our recent announcements of entries into Spain and Morocco,” continued Charlesworth. “In the U.S., our profitable nationwide expansion is accelerating as we grow with existing customers and add new national partners. This includes the nationwide rollout to McDonald’s, starting this fall in the Midwest with Chicago.”
“The recent sale of a majority stake in Insomnia Cookies allows us to focus on our core strategy of producing, selling, and distributing fresh doughnuts daily whilst also further improving our financial profile,” he said.
Financial Highlights |
|
Quarter Ended |
||||||||||
$ in millions, except per share data |
|
June 30, 2024 |
|
July 2, 2023 |
|
Change |
||||||
GAAP: |
|
|
|
|
|
|
||||||
Net revenue |
|
$ |
438.8 |
|
|
$ |
408.9 |
|
|
|
7.3 |
% |
Operating income |
|
$ |
6.9 |
|
|
$ |
5.6 |
|
|
|
21.5 |
% |
Operating income margin |
|
|
1.6 |
% |
|
|
1.4 |
% |
|
20 bps |
||
Net (loss)/income |
|
$ |
(4.9 |
) |
|
$ |
0.1 |
|
|
nm |
||
Net (loss)/income attributable to KKI |
|
$ |
(5.5 |
) |
|
$ |
0.2 |
|
|
nm |
||
Diluted (loss)/income per share |
|
$ |
(0.03 |
) |
|
$ |
0.00 |
|
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
||||||
Non-GAAP(1): |
|
|
|
|
|
|
||||||
Organic revenue |
|
$ |
440.2 |
|
|
$ |
408.2 |
|
|
|
7.8 |
% |
Adjusted net income, diluted |
|
$ |
9.1 |
|
|
$ |
11.4 |
|
|
|
(20.1 |
)% |
Adjusted EBITDA |
|
$ |
54.7 |
|
|
$ |
48.8 |
|
|
|
12.1 |
% |
Adjusted EBITDA margin |
|
|
12.5 |
% |
|
|
11.9 |
% |
|
60 bps |
||
Adjusted diluted EPS |
|
$ |
0.05 |
|
|
$ |
0.07 |
|
|
$ |
(0.02 |
) |
Notes: |
|
(1) |
Non-GAAP figures – please refer to Reconciliation of Non-GAAP Financial Measures. |
Key Operating Metrics |
|
Quarter Ended |
|||||||||
$ in millions |
|
June 30, 2024 |
|
July 2, 2023 |
|
Change |
|||||
Global Points of Access |
|
|
15,853 |
|
|
|
12,872 |
|
|
23.2 |
% |
Sales per Hub (U.S.) TTM |
|
$ |
5.0 |
|
|
$ |
4.7 |
|
|
6.4 |
% |
Sales per Hub (International) TTM |
|
$ |
10.1 |
|
|
$ |
9.9 |
|
|
2.0 |
% |
Digital Sales as a Percent of Retail Sales |
|
|
22.2 |
% |
|
|
18.8 |
% |
|
340 bps |
|
Second Quarter 2024 Consolidated Results (vs Q2 2023)
Krispy Kreme’s second quarter results represent continued execution of its omni-channel strategy, with net revenue growth of 7.3% to $438.8 million, compared to $408.9 million last year. GAAP net loss was $4.9 million compared to prior year net income of $0.1 million. GAAP diluted loss per share was $(0.03), a decline of $(0.03) from the same quarter last year.
Total company organic revenue grew 7.8%, fueled by a 23.2% increase in POA, a digital sales increase of 22%, and an increase in DFD sales of 18%, driven by the success of global brand activations including the Dolly Parton Southern Sweets collection, and Kit Kat, among others.
Adjusted EBITDA in the quarter grew 12.1% to $54.7 million, with Adjusted EBITDA margins improving 60 bps to 12.5%, benefiting from the optimization of the Company’s Hub and Spoke strategy and SG&A leverage driven by cost controls and lower compensation costs. Adjusted Net Income, diluted declined 20.1% to $9.1 million in the quarter. Adjusted Diluted EPS declined to $0.05 from $0.07 in the same quarter last year, primarily driven by increased depreciation and amortization linked to the strategy of making fresh doughnuts more available and Insomnia Cookies’ continued expansion.
Second Quarter 2024 Segment Results (vs Q2 2023)
U.S.: In the U.S. segment, net revenue grew $21.9 million, or 8.2%, with organic revenue growth of 8.4%. Revenue growth was driven by innovative specialty doughnut collections which continued to resonate with consumers, resulting in a 24% increase in Delivered Fresh Daily sales and a 26% increase in digital sales. Sales per hub in the U.S. increased 6.4% to $5.0 million, with DFD average sales per door per week increasing 4% to $657.
U.S. Adjusted EBITDA increased 16.3% to $32.7 million with Adjusted EBITDA margin expansion of 80 basis points to 11.3%, driven by the impact of labor and waste optimization and productivity benefits from the Company’s Hub and Spoke model, partially offset by increased promotional activity and McDonald’s start up costs.
International: In the International segment, net revenue grew $4.7 million, or 3.9%. International organic revenue grew 5.0%, driven by record POA growth of 1,515, or 39%, and successful marketing activations.
International Adjusted EBITDA decreased 12.3% to $21.7 million with adjusted EBITDA margin declining approximately 320 basis points to 17.3%, primarily linked to softer transaction volumes in the U.K.
Market Development: In the Market Development segment net revenue and organic revenue increased $3.4 million, or 16.1%, driven by greater equipment sales than in the prior year.
Market Development Adjusted EBITDA grew 22.7% to $12.9 million. Adjusted EBITDA margins expanded 280 basis points to 53.1%, driven by greater flow through from product sales.
Balance Sheet and Capital Expenditures
During the second quarter of 2024, strong Adjusted EBITDA translated to GAAP Operating Cash Flow of $33.3 million. The Company invested $31.7 million in capital expenditures, driven primarily by the investments in the Hub and Spoke model for the U.S. expansion of the DFD network. This drove positive Free Cash Flow of $1.6 million in the quarter.
Subsequent to the quarter, the Company received $127.4 million following the sale of a majority stake in Insomnia Cookies and have received an additional $45 million following the refinancing of intercompany debt.
2024 Financial Guidance
Krispy Kreme provides the following guidance update for the full year 2024 (vs FY2023) solely to reflect the recent sale of a majority ownership stake in Insomnia Cookies, which closed on July 17, 2024.
- Net Revenue of $1,650 to $1,685 million
- Organic Revenue growth of +5% to +7%
- Adjusted EBITDA of $215 to $220 million
- Adjusted Diluted EPS of $0.24 to $0.28
- Income Tax rate between 28% and 30%
- Capital Expenditures of 7% to 8% of net revenue
- Interest Expense, net of $55 million to $60 million
The Company expects net leverage to trend towards 3.5x by year end, 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 digital), as well as DFD sales, but excluding sales from Branded Sweet Treats. It also excludes all Insomnia Cookies revenues as the measure is focused on the Krispy Kreme business. Fresh Revenues from Hubs with Spokes equals the Fresh Revenues derived from those Hubs currently producing product for other shops, Carts and Food Trucks, and/or DFD doors, but excluding Fresh Revenues derived from those Hubs not currently producing product for other shops, Carts and Food Trucks, and/or DFD doors.
- Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment.
Conference Call
Krispy Kreme will host a public conference call at 8:30 AM Eastern Time today to discuss its results for the second quarter of 2024. The conference call can be accessed by dialing 1 (800) 715-9871 and entering the conference ID 5985470. International participants can access the call via the corresponding number listed HERE and entering the conference ID 5985470. 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 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business with more than 15,500 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, 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 “continue,” “towards,” “expect,” “outlook,” “guidance,” “explore,” or similar words, or the negative of these words, identify forward-looking statements. Such forward-looking statements are based on certain assumptions and estimates that we consider reasonable but are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial conditions, business, prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included herein. Factors that could cause actual results to differ from those expressed in forward-looking statements include, without limitation, the risks and uncertainties described under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed by us with the Securities and Exchange Commission (“SEC”) and described in the other filings we make from time to time with the SEC. We believe that these factors include, but are not limited to, the impact of pandemics, changes in consumer preferences, the impact of inflation, and our ability to execute on our omni-channel business strategy. These forward-looking statements are made only as of the date of this document, and we do not undertake any obligation, other than as may be required by applicable law, to update or revise any forward-looking or cautionary statement to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.
Non-GAAP Measures
This press release includes certain non-GAAP financial measures including organic revenue growth, Adjusted EBITDA, Adjusted Net Income, Diluted, Adjusted Diluted EPS, Net Debt, Fresh Revenue from Hubs with Spokes and Sales per Hub, which differ from results using 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. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share amounts) |
||||||||||||||||
|
Quarter Ended |
|
Two Quarters Ended |
|||||||||||||
|
June 30,
|
|
July 2,
|
|
June 30,
|
|
July 2,
|
|||||||||
Net revenues |
|
|
|
|
|
|
|
|||||||||
Product sales |
$ |
429,411 |
|
|
$ |
400,348 |
|
|
$ |
862,923 |
|
|
$ |
811,022 |
|
|
Royalties and other revenues |
|
9,398 |
|
|
|
8,534 |
|
|
|
18,584 |
|
|
|
16,810 |
|
|
Total net revenues |
|
438,809 |
|
|
|
408,882 |
|
|
|
881,507 |
|
|
|
827,832 |
|
|
Product and distribution costs |
|
107,846 |
|
|
|
111,106 |
|
|
|
214,861 |
|
|
|
228,939 |
|
|
Operating expenses |
|
212,504 |
|
|
|
189,165 |
|
|
|
417,699 |
|
|
|
380,573 |
|
|
Selling, general and administrative expense |
|
64,466 |
|
|
|
62,582 |
|
|
|
136,040 |
|
|
|
124,050 |
|
|
Marketing expenses |
|
12,416 |
|
|
|
9,770 |
|
|
|
24,531 |
|
|
|
19,623 |
|
|
Pre-opening costs |
|
967 |
|
|
|
1,104 |
|
|
|
2,072 |
|
|
|
1,868 |
|
|
Other (income)/expenses, net |
|
(849 |
) |
|
|
314 |
|
|
|
(649 |
) |
|
|
(4,949 |
) |
|
Depreciation and amortization expense |
|
34,600 |
|
|
|
29,196 |
|
|
|
68,186 |
|
|
|
57,135 |
|
|
Operating income |
|
6,859 |
|
|
|
5,645 |
|
|
|
18,767 |
|
|
|
20,593 |
|
|
Interest expense, net |
|
14,452 |
|
|
|
12,063 |
|
|
|
28,188 |
|
|
|
24,051 |
|
|
Other non-operating expense, net |
|
949 |
|
|
|
1,061 |
|
|
|
1,522 |
|
|
|
2,060 |
|
|
Loss before income taxes |
|
(8,542 |
) |
|
|
(7,479 |
) |
|
|
(10,943 |
) |
|
|
(5,518 |
) |
|
Income tax (benefit)/expense |
|
(3,611 |
) |
|
|
(7,563 |
) |
|
|
651 |
|
|
|
(7,246 |
) |
|
Net (loss)/income |
|
(4,931 |
) |
|
|
84 |
|
|
|
(11,594 |
) |
|
|
1,728 |
|
|
Net income/(loss) attributable to noncontrolling interest |
|
560 |
|
|
|
(139 |
) |
|
|
2,431 |
|
|
|
1,806 |
|
|
Net (loss)/income attributable to Krispy Kreme, Inc. |
$ |
(5,491 |
) |
|
$ |
223 |
|
|
$ |
(14,025 |
) |
|
$ |
(78 |
) |
|
Net (loss)/income per share: |
|
|
|
|
|
|
|
|||||||||
Common stock — Basic |
$ |
(0.03 |
) |
|
$ |
0.00 |
|
|
$ |
(0.08 |
) |
|
$ |
0.00 |
|
|
Common stock — Diluted |
$ |
(0.03 |
) |
|
$ |
0.00 |
|
|
$ |
(0.08 |
) |
|
$ |
0.00 |
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|||||||||
Basic |
|
169,095 |
|
|
|
168,184 |
|
|
|
168,890 |
|
|
|
168,162 |
|
|
Diluted |
|
169,095 |
|
|
|
170,659 |
|
|
|
168,890 |
|
|
|
168,162 |
|
|
Krispy Kreme, Inc. Condensed Consolidated Balance Sheets (in thousands, except per share data) |
||||||||
|
As of |
|||||||
|
(Unaudited)
|
|
December 31,
|
|||||
ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
28,625 |
|
|
$ |
38,185 |
|
|
Restricted cash |
|
483 |
|
|
|
429 |
|
|
Accounts receivable, net |
|
57,348 |
|
|
|
59,362 |
|
|
Inventories |
|
39,461 |
|
|
|
34,716 |
|
|
Taxes receivable |
|
18,143 |
|
|
|
15,526 |
|
|
Prepaid expense and other current assets |
|
24,110 |
|
|
|
25,363 |
|
|
Total current assets |
|
168,170 |
|
|
|
173,581 |
|
|
Property and equipment, net |
|
551,406 |
|
|
|
538,220 |
|
|
Goodwill |
|
1,096,249 |
|
|
|
1,101,939 |
|
|
Other intangible assets, net |
|
927,714 |
|
|
|
946,349 |
|
|
Operating lease right of use asset, net |
|
456,124 |
|
|
|
456,964 |
|
|
Other assets |
|
23,823 |
|
|
|
23,539 |
|
|
Total assets |
$ |
3,223,486 |
|
|
$ |
3,240,592 |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Current portion of long-term debt |
$ |
59,827 |
|
|
$ |
54,631 |
|
|
Current operating lease liabilities |
|
54,937 |
|
|
|
50,365 |
|
|
Accounts payable |
|
135,197 |
|
|
|
156,488 |
|
|
Accrued liabilities |
|
114,269 |
|
|
|
134,005 |
|
|
Structured payables |
|
129,344 |
|
|
|
130,104 |
|
|
Total current liabilities |
|
493,574 |
|
|
|
525,593 |
|
|
Long-term debt, less current portion |
|
894,979 |
|
|
|
836,615 |
|
|
Noncurrent operating lease liabilities |
|
453,338 |
|
|
|
454,583 |
|
|
Deferred income taxes, net |
|
115,800 |
|
|
|
123,925 |
|
|
Other long-term obligations and deferred credits |
|
36,538 |
|
|
|
36,093 |
|
|
Total liabilities |
|
1,994,229 |
|
|
|
1,976,809 |
|
|
Commitments and contingencies |
|
|
|
|||||
Shareholders’ equity: |
|
|
|
|||||
Common stock, $0.01 par value; 300,000 shares authorized as of both June 30, 2024 and December 31, 2023; 169,357 and 168,628 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively |
|
1,694 |
|
|
|
1,686 |
|
|
Additional paid-in capital |
|
1,453,944 |
|
|
|
1,443,591 |
|
|
Shareholder note receivable |
|
(2,865 |
) |
|
|
(3,850 |
) |
|
Accumulated other comprehensive (loss)/income, net of income tax |
|
(12,594 |
) |
|
|
7,246 |
|
|
Retained deficit |
|
(304,840 |
) |
|
|
(278,990 |
) |
|
Total shareholders’ equity attributable to Krispy Kreme, Inc. |
|
1,135,339 |
|
|
|
1,169,683 |
|
|
Noncontrolling interest |
|
93,918 |
|
|
|
94,100 |
|
|
Total shareholders’ equity |
|
1,229,257 |
|
|
|
1,263,783 |
|
|
Total liabilities and shareholders’ equity |
$ |
3,223,486 |
|
|
$ |
3,240,592 |
|
|
Krispy Kreme, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
||||||||
|
Two Quarters Ended |
|||||||
|
June 30,
|
|
July 2,
|
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|||||
Net (loss)/income |
$ |
(11,594 |
) |
|
$ |
1,728 |
|
|
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: |
|
|
|
|||||
Depreciation and amortization expense |
|
68,186 |
|
|
|
57,135 |
|
|
Deferred and other income taxes |
|
(5,338 |
) |
|
|
(11,743 |
) |
|
Loss on extinguishment of debt |
|
— |
|
|
|
472 |
|
|
Impairment and lease termination charges |
|
448 |
|
|
|
7,808 |
|
|
Gain on disposal of property and equipment |
|
(3 |
) |
|
|
(151 |
) |
|
Gain on sale-leaseback |
|
— |
|
|
|
(9,646 |
) |
|
Share-based compensation |
|
14,634 |
|
|
|
10,369 |
|
|
Change in accounts and notes receivable allowances |
|
327 |
|
|
|
372 |
|
|
Inventory write-off |
|
1,038 |
|
|
|
10,244 |
|
|
Settlement of interest rate swap derivatives |
|
— |
|
|
|
7,657 |
|
|
Amortization related to settlement of interest rate swap derivatives |
|
(5,910 |
) |
|
|
(4,379 |
) |
|
Other |
|
858 |
|
|
|
996 |
|
|
Change in operating assets and liabilities, excluding foreign currency translation adjustments |
|
(47,121 |
) |
|
|
(24,609 |
) |
|
Net cash provided by operating activities |
|
15,525 |
|
|
|
46,253 |
|
|
CASH FLOWS USED FOR INVESTING ACTIVITIES: |
|
|
|
|||||
Purchase of property and equipment |
|
(60,735 |
) |
|
|
(54,290 |
) |
|
Proceeds from sale-leaseback |
|
— |
|
|
|
10,025 |
|
|
Purchase of equity method investment |
|
(3,506 |
) |
|
|
— |
|
|
Disbursement for loan receivable |
|
(1,086 |
) |
|
|
— |
|
|
Other investing activities |
|
166 |
|
|
|
163 |
|
|
Net cash used for investing activities |
|
(65,161 |
) |
|
|
(44,102 |
) |
|
CASH FLOWS FROM/(USED FOR) FINANCING ACTIVITIES: |
|
|
|
|||||
Proceeds from the issuance of debt |
|
365,000 |
|
|
|
989,198 |
|
|
Repayment of long-term debt and lease obligations |
|
(306,797 |
) |
|
|
(916,580 |
) |
|
Payment of financing costs |
|
— |
|
|
|
(5,000 |
) |
|
Proceeds from structured payables |
|
190,162 |
|
|
|
73,939 |
|
|
Payments on structured payables |
|
(190,811 |
) |
|
|
(126,920 |
) |
|
Capital contribution by shareholders, net of loans issued |
|
919 |
|
|
|
631 |
|
|
Distribution to shareholders |
|
(11,807 |
) |
|
|
(11,771 |
) |
|
Payments for repurchase and retirement of common stock |
|
(4,275 |
) |
|
|
(147 |
) |
|
Distribution to noncontrolling interest |
|
(2,146 |
) |
|
|
(11,246 |
) |
|
Net cash provided by/(used for) financing activities |
|
40,245 |
|
|
|
(7,896 |
) |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(115 |
) |
|
|
(3,011 |
) |
|
Net decrease in cash, cash equivalents and restricted cash |
|
(9,506 |
) |
|
|
(8,756 |
) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
38,614 |
|
|
|
35,730 |
|
|
Cash, cash equivalents and restricted cash at end of period |
$ |
29,108 |
|
|
$ |
26,974 |
|
|
|
|
|
|
|||||
Net cash provided by operating activities |
$ |
15,525 |
|
|
$ |
46,253 |
|
|
Less: Purchase of property and equipment |
|
(60,735 |
) |
|
|
(54,290 |
) |
|
Free cash flow |
$ |
(45,210 |
) |
|
$ |
(8,037 |
) |
|
Krispy Kreme, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(in thousands, except per share amounts)
We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and other certain non-recurring, infrequent or non-core income and expense items. Adjusted EBITDA is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods.
We define “Adjusted Net Income, Diluted” as net loss attributable to common shareholders, adjusted for interest expense, share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and other certain non-recurring, infrequent or non-core income and expense items. “Adjusted EPS” is Adjusted Net Income, Diluted converted to a per share amount.
Adjusted EBITDA, Adjusted Net Income, Diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of Adjusted EBITDA, Adjusted Net Income, Diluted, and Adjusted EPS should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA, Adjusted Net Income, Diluted, and Adjusted EPS supplementally.
|
Quarter Ended |
|
Two Quarters Ended |
|||||||||||||
(in thousands) |
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
|||||||||
Net (loss)/income |
$ |
(4,931 |
) |
|
$ |
84 |
|
|
$ |
(11,594 |
) |
|
$ |
1,728 |
|
|
Interest expense, net |
|
14,452 |
|
|
|
12,063 |
|
|
|
28,188 |
|
|
|
24,051 |
|
|
Income tax (benefit)/expense |
|
(3,611 |
) |
|
|
(7,563 |
) |
|
|
651 |
|
|
|
(7,246 |
) |
|
Depreciation and amortization expense |
|
34,600 |
|
|
|
29,196 |
|
|
|
68,186 |
|
|
|
57,135 |
|
|
Share-based compensation |
|
7,648 |
|
|
|
4,824 |
|
|
|
14,634 |
|
|
|
10,369 |
|
|
Employer payroll taxes related to share-based compensation |
|
207 |
|
|
|
189 |
|
|
|
250 |
|
|
|
214 |
|
|
Other non-operating expense, net (1) |
|
949 |
|
|
|
1,061 |
|
|
|
1,522 |
|
|
|
2,060 |
|
|
Strategic initiatives (2) |
|
4,187 |
|
|
|
4,477 |
|
|
|
9,008 |
|
|
|
17,946 |
|
|
Acquisition and integration expenses (3) |
|
851 |
|
|
|
339 |
|
|
|
1,099 |
|
|
|
430 |
|
|
New market penetration expenses (4) |
|
572 |
|
|
|
241 |
|
|
|
1,038 |
|
|
|
335 |
|
|
Shop closure expenses, net (5) |
|
628 |
|
|
|
1,484 |
|
|
|
767 |
|
|
|
805 |
|
|
Restructuring and severance expenses (6) |
|
132 |
|
|
|
1,667 |
|
|
|
138 |
|
|
|
2,247 |
|
|
Gain on sale-leaseback |
|
— |
|
|
|
15 |
|
|
|
— |
|
|
|
(9,646 |
) |
|
Other (7) |
|
(958 |
) |
|
|
737 |
|
|
|
(973 |
) |
|
|
3,314 |
|
|
Adjusted EBITDA |
$ |
54,726 |
|
|
$ |
48,814 |
|
|
$ |
112,914 |
|
|
$ |
103,742 |
|
|
|
Quarter Ended |
|
Two Quarters Ended |
|||||||||||||
(in thousands) |
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
|||||||||
Segment Adjusted EBITDA: |
|
|
|
|
|
|
|
|||||||||
U.S. |
$ |
32,668 |
|
|
$ |
28,085 |
|
|
$ |
75,284 |
|
|
$ |
66,620 |
|
|
International |
|
21,655 |
|
|
|
24,702 |
|
|
|
42,191 |
|
|
|
43,684 |
|
|
Market Development |
|
12,875 |
|
|
|
10,495 |
|
|
|
24,775 |
|
|
|
22,046 |
|
|
Corporate |
|
(12,472 |
) |
|
|
(14,468 |
) |
|
|
(29,336 |
) |
|
|
(28,608 |
) |
|
Total Adjusted EBITDA |
$ |
54,726 |
|
|
$ |
48,814 |
|
|
$ |
112,914 |
|
|
$ |
103,742 |
|
|
|
Quarter Ended |
|
Two Quarters Ended |
|||||||||||||
(in thousands, except per share amounts) |
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
|||||||||
Net (loss)/income |
$ |
(4,931 |
) |
|
$ |
84 |
|
|
$ |
(11,594 |
) |
|
$ |
1,728 |
|
|
Share-based compensation |
|
7,648 |
|
|
|
4,824 |
|
|
|
14,634 |
|
|
|
10,369 |
|
|
Employer payroll taxes related to share-based compensation |
|
207 |
|
|
|
189 |
|
|
|
250 |
|
|
|
214 |
|
|
Other non-operating expense, net (1) |
|
949 |
|
|
|
1,061 |
|
|
|
1,522 |
|
|
|
2,060 |
|
|
Strategic initiatives (2) |
|
4,187 |
|
|
|
4,477 |
|
|
|
9,008 |
|
|
|
17,946 |
|
|
Acquisition and integration expenses (3) |
|
851 |
|
|
|
339 |
|
|
|
1,099 |
|
|
|
430 |
|
|
New market penetration expenses (4) |
|
572 |
|
|
|
241 |
|
|
|
1,038 |
|
|
|
335 |
|
|
Shop closure expenses (5) |
|
628 |
|
|
|
1,484 |
|
|
|
767 |
|
|
|
805 |
|
|
Restructuring and severance expenses (6) |
|
132 |
|
|
|
1,667 |
|
|
|
138 |
|
|
|
2,247 |
|
|
Gain on sale-leaseback |
|
— |
|
|
|
15 |
|
|
|
— |
|
|
|
(9,646 |
) |
|
Other (7) |
|
(958 |
) |
|
|
737 |
|
|
|
(973 |
) |
|
|
3,314 |
|
|
Amortization of acquisition related intangibles (8) |
|
7,397 |
|
|
|
7,368 |
|
|
|
14,817 |
|
|
|
14,641 |
|
|
Loss on extinguishment of 2019 Facility (9) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
472 |
|
|
Tax impact of adjustments (10) |
|
(6,777 |
) |
|
|
(9,464 |
) |
|
|
(7,001 |
) |
|
|
(14,120 |
) |
|
Tax specific adjustments (11) |
|
(226 |
) |
|
|
(1,758 |
) |
|
|
(815 |
) |
|
|
(2,315 |
) |
|
Net (income)/loss attributable to noncontrolling interest |
|
(560 |
) |
|
|
139 |
|
|
|
(2,431 |
) |
|
|
(1,806 |
) |
|
Adjusted net income attributable to common shareholders - Basic |
$ |
9,119 |
|
|
$ |
11,403 |
|
|
$ |
20,459 |
|
|
$ |
26,674 |
|
|
Additional income attributed to noncontrolling interest due to subsidiary potential common shares |
|
(11 |
) |
|
|
(4 |
) |
|
|
(30 |
) |
|
|
(7 |
) |
|
Adjusted net income attributable to common shareholders - Diluted |
$ |
9,108 |
|
|
$ |
11,399 |
|
|
$ |
20,429 |
|
|
$ |
26,667 |
|
|
Basic weighted average common shares outstanding |
|
169,095 |
|
|
|
168,184 |
|
|
|
168,890 |
|
|
|
168,162 |
|
|
Dilutive effect of outstanding common stock options, RSUs, and PSUs |
|
2,397 |
|
|
|
2,475 |
|
|
|
2,442 |
|
|
|
2,163 |
|
|
Diluted weighted average common shares outstanding |
|
171,492 |
|
|
|
170,659 |
|
|
|
171,332 |
|
|
|
170,325 |
|
|
Adjusted net income per share attributable to common shareholders: |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
0.05 |
|
|
$ |
0.07 |
|
|
$ |
0.12 |
|
|
$ |
0.16 |
|
|
Diluted |
$ |
0.05 |
|
|
$ |
0.07 |
|
|
$ |
0.12 |
|
|
$ |
0.16 |
|
|
(1) |
Primarily foreign translation gains and losses in each period. |
|
(2) |
The quarter and two quarters ended June 30, 2024 consist primarily of costs associated with global transformation, exploring strategic alternatives for the Insomnia Cookies business, and preparing for the McDonald’s U.S. expansion (with these three specific initiatives aggregating to approximately $3.9 million and $8.5 million for the quarter and two quarters ended June 30, 2024, respectively). The quarter and two quarters ended July 2, 2023 consists primarily of costs associated with the decision to exit the Branded Sweet Treats business, including property, plant and equipment impairments, inventory write-offs, employee severance, and other related costs. |
|
(3) |
Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period. |
|
(4) |
Consists of start-up costs associated with entry into new countries for which the Company’s brands have not previously operated, including Brazil, Spain, and the Insomnia Cookies brand entering Canada and the U.K. |
|
(5) |
Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment. |
|
(6) |
The quarter and two quarters ended June 30, 2024 and July 2, 2023 consist primarily of costs associated with restructuring of the global executive team. |
|
(7) |
The quarter and two quarters ended June 30, 2024 consist primarily of a gain from insurance proceeds received related to a shop in the U.S. that was destroyed and subsequently rebuilt. The quarter and two quarters ended July 2, 2023 consist primarily of legal and other regulatory expenses incurred outside the ordinary course of business. |
|
(8) |
Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statements of Operations. |
|
(9) |
Includes interest expenses related to unamortized debt issuance costs from the 2019 Facility associated with extinguished lenders as a result of the March 2023 debt refinancing. |
|
(10) |
Tax impact of adjustments calculated applying the applicable statutory rates. The quarter and two quarters ended June 30, 2024 and July 2, 2023 also include the impact of disallowed executive compensation expense. |
|
(11) |
The quarter and two quarters ended June 30, 2024 consist of the recognition of previously unrecognized tax benefits unrelated to ongoing operations, a discrete tax benefit unrelated to ongoing operations, and the effect of various tax law changes on existing temporary differences. The quarter and two quarters ended July 2, 2023 consist of the recognition of a previously unrecognized tax benefit unrelated to ongoing operations, the effect of tax law changes on existing temporary differences, and a discrete tax benefit unrelated to ongoing operations. |
Krispy Kreme, Inc. Segment Reporting (Unaudited) (in thousands, except percentages or otherwise stated) |
||||||||||||
|
Quarter Ended |
|
Two Quarters Ended |
|||||||||
|
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
|||||
Net revenues: |
|
|
|
|
|
|
|
|||||
U.S. |
$ |
289,304 |
|
$ |
267,417 |
|
$ |
585,239 |
|
$ |
548,761 |
|
International |
|
125,269 |
|
|
120,588 |
|
|
250,019 |
|
|
232,576 |
|
Market Development |
|
24,236 |
|
|
20,877 |
|
|
46,249 |
|
|
46,495 |
|
Total net revenues |
$ |
438,809 |
|
$ |
408,882 |
|
$ |
881,507 |
|
$ |
827,832 |
|
Q2 2024 Organic Revenue - QTD (in thousands, except percentages) |
U.S. |
|
International |
|
Market Development |
|
Total Company |
|||||||||
Total net revenues in second quarter of fiscal 2024 |
$ |
289,304 |
|
|
$ |
125,269 |
|
|
$ |
24,236 |
|
|
$ |
438,809 |
|
|
Total net revenues in second quarter of fiscal 2023 |
|
267,417 |
|
|
|
120,588 |
|
|
|
20,877 |
|
|
|
408,882 |
|
|
Total Net Revenues Growth |
|
21,887 |
|
|
|
4,681 |
|
|
|
3,359 |
|
|
|
29,927 |
|
|
Total Net Revenues Growth % |
|
8.2 |
% |
|
|
3.9 |
% |
|
|
16.1 |
% |
|
|
7.3 |
% |
|
Less: Impact of shop optimization program closures |
|
(147 |
) |
|
|
— |
|
|
|
— |
|
|
|
(147 |
) |
|
Less: Impact of Branded Sweet Treats exit |
|
(486 |
) |
|
|
— |
|
|
|
— |
|
|
|
(486 |
) |
|
Adjusted net revenues in second quarter of fiscal 2023 |
|
266,784 |
|
|
|
120,588 |
|
|
|
20,877 |
|
|
|
408,249 |
|
|
Adjusted net revenue growth |
|
22,520 |
|
|
|
4,681 |
|
|
|
3,359 |
|
|
|
30,560 |
|
|
Impact of foreign currency translation |
|
— |
|
|
|
1,404 |
|
|
|
— |
|
|
|
1,404 |
|
|
Organic Revenue Growth |
$ |
22,520 |
|
|
$ |
6,085 |
|
|
$ |
3,359 |
|
|
$ |
31,964 |
|
|
Organic Revenue Growth % |
|
8.4 |
% |
|
|
5.0 |
% |
|
|
16.1 |
% |
|
|
7.8 |
% |
|
Q2 2024 Organic Revenue - YTD (in thousands, except percentages) |
U.S. |
|
International |
|
Market Development |
|
Total Company |
|||||||||
Total net revenues in first two quarters of fiscal 2024 |
$ |
585,239 |
|
|
$ |
250,019 |
|
|
$ |
46,249 |
|
|
$ |
881,507 |
|
|
Total net revenues in first two quarters of fiscal 2023 |
|
548,761 |
|
|
|
232,576 |
|
|
|
46,495 |
|
|
|
827,832 |
|
|
Total Net Revenues Growth |
|
36,478 |
|
|
|
17,443 |
|
|
|
(246 |
) |
|
|
53,675 |
|
|
Total Net Revenues Growth % |
|
6.6 |
% |
|
|
7.5 |
% |
|
|
-0.5 |
% |
|
|
6.5 |
% |
|
Less: Impact of shop optimization program closures |
|
(463 |
) |
|
|
— |
|
|
|
— |
|
|
|
(463 |
) |
|
Less: Impact of Branded Sweet Treats exit |
|
(5,853 |
) |
|
|
— |
|
|
|
— |
|
|
|
(5,853 |
) |
|
Adjusted net revenues in first two quarters of fiscal 2023 |
|
542,445 |
|
|
|
232,576 |
|
|
|
46,495 |
|
|
|
821,516 |
|
|
Adjusted net revenue growth |
|
42,794 |
|
|
|
17,443 |
|
|
|
(246 |
) |
|
|
59,991 |
|
|
Impact of foreign currency translation |
|
— |
|
|
|
(432 |
) |
|
|
— |
|
|
|
(432 |
) |
|
Organic Revenue Growth |
$ |
42,794 |
|
|
$ |
17,011 |
|
|
$ |
(246 |
) |
|
$ |
59,559 |
|
|
Organic Revenue Growth % |
|
7.9 |
% |
|
|
7.3 |
% |
|
|
-0.5 |
% |
|
|
7.2 |
% |
|
Q2 2023 Organic Revenue - QTD (in thousands, except percentages) |
U.S. |
|
International |
|
Market Development |
|
Total Company |
|||||||||
Total net revenues in second quarter of fiscal 2023 |
$ |
267,417 |
|
|
$ |
120,588 |
|
|
$ |
20,877 |
|
|
$ |
408,882 |
|
|
Total net revenues in second quarter of fiscal 2022 |
|
244,665 |
|
|
|
110,558 |
|
|
|
20,022 |
|
|
|
375,245 |
|
|
Total Net Revenues Growth |
|
22,752 |
|
|
|
10,030 |
|
|
|
855 |
|
|
|
33,637 |
|
|
Total Net Revenues Growth % |
|
9.3 |
% |
|
|
9.1 |
% |
|
|
4.3 |
% |
|
|
9.0 |
% |
|
Less: Impact of shop optimization program closures |
|
(3,330 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3,330 |
) |
|
Less: Impact of Branded Sweet Treats exit |
|
(6,701 |
) |
|
|
— |
|
|
|
— |
|
|
|
(6,701 |
) |
|
Adjusted net revenues in second quarter of fiscal 2022 |
|
234,634 |
|
|
|
110,558 |
|
|
|
20,022 |
|
|
|
365,214 |
|
|
Adjusted net revenue growth |
|
32,783 |
|
|
|
10,030 |
|
|
|
855 |
|
|
|
43,668 |
|
|
Impact of acquisitions |
|
(3,023 |
) |
|
|
— |
|
|
|
877 |
|
|
|
(2,146 |
) |
|
Impact of foreign currency translation |
|
— |
|
|
|
15 |
|
|
|
— |
|
|
|
15 |
|
|
Organic Revenue Growth |
$ |
29,760 |
|
|
$ |
10,045 |
|
|
$ |
1,732 |
|
|
$ |
41,537 |
|
|
Organic Revenue Growth % |
|
12.7 |
% |
|
|
9.1 |
% |
|
|
8.7 |
% |
|
|
11.4 |
% |
|
Q2 2023 Organic Revenue - YTD (in thousands, except percentages) |
U.S. |
|
International |
|
Market Development |
|
Total Company |
|||||||||
Total net revenues in first two quarters of fiscal 2023 |
$ |
548,761 |
|
|
$ |
232,576 |
|
|
$ |
46,495 |
|
|
$ |
827,832 |
|
|
Total net revenues in first two quarters of fiscal 2022 |
|
492,584 |
|
|
|
215,051 |
|
|
|
40,142 |
|
|
|
747,777 |
|
|
Total Net Revenues Growth |
|
56,177 |
|
|
|
17,525 |
|
|
|
6,353 |
|
|
|
80,055 |
|
|
Total Net Revenues Growth % |
|
11.4 |
% |
|
|
8.1 |
% |
|
|
15.8 |
% |
|
|
10.7 |
% |
|
Less: Impact of shop optimization program closures |
|
(6,517 |
) |
|
|
— |
|
|
|
— |
|
|
|
(6,517 |
) |
|
Less: Impact of Branded Sweet Treats exit |
|
(6,701 |
) |
|
|
— |
|
|
|
— |
|
|
|
(6,701 |
) |
|
Adjusted net revenues in first two quarters of fiscal 2022 |
|
479,366 |
|
|
|
215,051 |
|
|
|
40,142 |
|
|
|
734,559 |
|
|
Adjusted net revenue growth |
|
69,395 |
|
|
|
17,525 |
|
|
|
6,353 |
|
|
|
93,273 |
|
|
Impact of acquisitions |
|
(6,103 |
) |
|
|
— |
|
|
|
1,770 |
|
|
|
(4,333 |
) |
|
Impact of foreign currency translation |
|
— |
|
|
|
5,794 |
|
|
|
— |
|
|
|
5,794 |
|
|
Organic Revenue Growth |
$ |
63,292 |
|
|
$ |
23,319 |
|
|
$ |
8,123 |
|
|
$ |
94,734 |
|
|
Organic Revenue Growth % |
|
13.2 |
% |
|
|
10.8 |
% |
|
|
20.2 |
% |
|
|
12.9 |
% |
|
|
Trailing Four Quarters Ended |
|
Fiscal Year Ended |
|||||||||
(in thousands, unless otherwise stated) |
June 30, 2024 |
|
December 31, 2023 |
|
January 1, 2023 |
|||||||
U.S.: |
|
|
|
|
|
|||||||
Revenues |
$ |
1,141,422 |
|
|
$ |
1,104,944 |
|
|
$ |
1,010,250 |
|
|
Non-Fresh Revenues (1) |
|
(3,760 |
) |
|
|
(9,416 |
) |
|
|
(38,380 |
) |
|
Fresh Revenues from Insomnia Cookies and Hubs without Spokes (2) |
|
(400,618 |
) |
|
|
(399,061 |
) |
|
|
(404,430 |
) |
|
Sales from Hubs with Spokes |
|
737,044 |
|
|
|
696,467 |
|
|
|
567,440 |
|
|
Sales per Hub (millions) |
|
5.0 |
|
|
|
4.9 |
|
|
|
4.5 |
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|||||||
Sales from Hubs with Spokes (3) |
$ |
507,074 |
|
|
$ |
489,631 |
|
|
$ |
435,651 |
|
|
Sales per Hub (millions) (4) |
|
10.1 |
|
|
|
10.0 |
|
|
|
9.7 |
|
|
(1) |
Includes the exited Branded Sweet Treats business 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. |
|
(4) |
International sales per Hub comparative data has been restated in constant currency based on current exchange rates. |
Krispy Kreme, Inc. Global Points of Access (Unaudited) |
||||||
|
Global Points of Access |
|||||
|
Quarter Ended |
|
Fiscal Year Ended |
|||
|
June 30, 2024 |
|
July 2, 2023 |
|
December 31, 2023 |
|
U.S.: |
|
|
|
|
|
|
Hot Light Theater Shops |
229 |
|
228 |
|
229 |
|
Fresh Shops |
70 |
|
66 |
|
70 |
|
Cookie Bakeries |
286 |
|
244 |
|
267 |
|
DFD Doors (2) |
7,497 |
|
6,320 |
|
6,808 |
|
Total |
8,082 |
|
6,858 |
|
7,374 |
|
International: |
|
|
|
|
|
|
Hot Light Theater Shops |
46 |
|
44 |
|
44 |
|
Fresh Shops |
502 |
|
466 |
|
483 |
|
Carts, Food Trucks, and Other (1) |
18 |
|
16 |
|
16 |
|
DFD Doors |
4,871 |
|
3,396 |
|
3,977 |
|
Total |
5,437 |
|
3,922 |
|
4,520 |
|
Market Development: |
|
|
|
|
|
|
Hot Light Theater Shops |
117 |
|
111 |
|
116 |
|
Fresh Shops |
1,033 |
|
873 |
|
968 |
|
Carts, Food Trucks, and Other (1) |
30 |
|
28 |
|
30 |
|
DFD Doors |
1,154 |
|
1,080 |
|
1,139 |
|
Total |
2,334 |
|
2,092 |
|
2,253 |
|
Total Global Points of Access (as defined) |
15,853 |
|
12,872 |
|
14,147 |
|
Total Hot Light Theater Shops |
392 |
|
383 |
|
389 |
|
Total Fresh Shops |
1,605 |
|
1,405 |
|
1,521 |
|
Total Cookie Bakeries |
286 |
|
244 |
|
267 |
|
Total Shops |
2,283 |
|
2,032 |
|
2,177 |
|
Total Carts, Food Trucks, and Other |
48 |
|
44 |
|
46 |
|
Total DFD Doors |
13,522 |
|
10,796 |
|
11,924 |
|
Total Global Points of Access (as defined) |
15,853 |
|
12,872 |
|
14,147 |
|
(1) |
Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of Access in this category are primarily found in international locations in airports, train stations, etc. |
|
(2) |
Includes over 160 McDonald’s shops located in Louisville and Lexington, Kentucky and the surrounding area as of June 30, 2024. |
Krispy Kreme, Inc. Global Hubs (Unaudited) |
||||||
|
Hubs |
|||||
|
Quarter Ended |
|
Fiscal Year Ended |
|||
|
June 30, 2024 |
|
July 2, 2023 |
|
December 31, 2023 |
|
U.S.: |
|
|
|
|
|
|
Hot Light Theater Shops (1) |
222 |
|
221 |
|
220 |
|
Doughnut Factories |
5 |
|
4 |
|
4 |
|
Total |
227 |
|
225 |
|
224 |
|
Hubs with Spokes |
151 |
|
143 |
|
149 |
|
Hubs without Spokes |
76 |
|
82 |
|
75 |
|
International: |
|
|
|
|
|
|
Hot Light Theater Shops (1) |
37 |
|
35 |
|
36 |
|
Doughnut Factories |
14 |
|
14 |
|
14 |
|
Total |
51 |
|
49 |
|
50 |
|
Hubs with Spokes |
51 |
|
49 |
|
50 |
|
Market Development: |
|
|
|
|
|
|
Hot Light Theater Shops (1) |
115 |
|
108 |
|
112 |
|
Doughnut Factories |
26 |
|
23 |
|
23 |
|
Total |
141 |
|
131 |
|
135 |
|
Total Hubs |
419 |
|
405 |
|
409 |
|
(1) |
Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a Spoke location that produces some doughnuts for itself and also receives doughnuts from another producing location. |
Krispy Kreme, Inc. Net Debt and Leverage (Unaudited) (in thousands, except leverage ratio) |
||||||||
|
June 30, 2024 |
|
December 31, 2023 |
|||||
Current portion of long-term debt |
$ |
59,827 |
|
|
$ |
54,631 |
|
|
Long-term debt, less current portion |
|
894,979 |
|
|
|
836,615 |
|
|
Total long-term debt, including debt issuance costs |
|
954,806 |
|
|
|
891,246 |
|
|
Add back: Debt issuance costs |
|
3,847 |
|
|
|
4,371 |
|
|
Total long-term debt, excluding debt issuance costs |
|
958,653 |
|
|
|
895,617 |
|
|
Less: Cash and cash equivalents |
|
(28,625 |
) |
|
|
(38,185 |
) |
|
Net debt |
$ |
930,028 |
|
|
$ |
857,432 |
|
|
Adjusted EBITDA - trailing four quarters |
|
220,796 |
|
|
|
211,624 |
|
|
Net leverage ratio |
4.2 x |
|
4.1 x |
|||||
