CHARLOTTE, N.C.--(BUSINESS WIRE)--Krispy Kreme, Inc. (NASDAQ: DNUT) (“Krispy Kreme”, “KKI”, or the “Company”) today reported financial results for the fourth quarter and full year ended December 31, 2023.
Fourth Quarter Highlights (vs Q4 2022)
- Net revenue grew 11.4% to $450.9 million
- Organic revenue grew 13.2% to $446.0 million
- GAAP net income of $1.9 million
- GAAP net income attributable to KKI of $2.6 million
- Adjusted EBITDA increased 14.7% to $64.1 million
- Adjusted EBITDA margins improved 40 basis points to 14.2%
- Global Points of Access increased 2,310, or 19.5% to 14,147
“We reported strong double-digit fourth quarter and full-year organic revenue growth in excess of our guide,” said Josh Charlesworth, CEO. “Our growth was driven by strong consumer demand in all sales channels and increased access to our fresh doughnuts around the world. We improved profitability as we grew, showing the productivity benefits of our unique Hub and Spoke operating model.”
Josh continued, “Moving forward, we are modernizing the making and moving of doughnuts to ensure high quality, profitable growth. We are largely supplying expansion from existing capacity whilst making selective investments in geographies which have limited access to Krispy Kreme. This reflects our confidence in further scaling the Delivered Fresh Daily network in new channels, including Quick Service Restaurants. I look forward to us building a bigger and better Krispy Kreme.”
Financial Highlights |
|
Quarter Ended |
|
Fiscal Years Ended |
||||||||||||||||||
$ in millions, except per share data |
|
December 31,
|
|
January 1,
|
|
Change |
|
December 31,
|
|
January 1,
|
|
Change |
||||||||||
GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue |
|
$ |
450.9 |
|
|
$ |
404.6 |
|
|
|
11.4% |
|
$ |
1,686.1 |
|
|
$ |
1,529.9 |
|
|
|
10.2% |
Operating (loss)/income |
|
$ |
(5.3 |
) |
|
$ |
5.2 |
|
|
nm |
|
$ |
13.1 |
|
|
$ |
29.0 |
|
|
|
(54.6)% |
|
Operating (loss)/income margin |
|
|
(1.2 |
)% |
|
|
1.3 |
% |
|
(250) bps |
|
|
0.8 |
% |
|
|
1.9 |
% |
|
(110) bps |
||
Net income/(loss) |
|
$ |
1.9 |
|
|
$ |
(1.0 |
) |
|
nm |
|
$ |
(36.6 |
) |
|
$ |
(8.8 |
) |
|
nm |
||
Net income/(loss) attributable to KKI |
|
$ |
2.6 |
|
|
$ |
(2.7 |
) |
|
nm |
|
$ |
(37.9 |
) |
|
$ |
(15.6 |
) |
|
nm |
||
Diluted income/(loss) per share |
|
$ |
0.02 |
|
|
$ |
(0.02 |
) |
|
$ |
0.04 |
|
$ |
(0.23 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.13) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Organic revenue(1) |
|
$ |
446.0 |
|
|
$ |
394.0 |
|
|
|
13.2% |
|
$ |
1,675.6 |
|
|
$ |
1,494.0 |
|
|
|
12.2% |
Adjusted net income, diluted(1) |
|
$ |
15.1 |
|
|
$ |
18.6 |
|
|
|
(18.8)% |
|
$ |
46.2 |
|
|
$ |
49.6 |
|
|
|
(6.9)% |
Adjusted EBITDA(1) |
|
$ |
64.1 |
|
|
$ |
55.9 |
|
|
|
14.7% |
|
$ |
211.6 |
|
|
$ |
190.7 |
|
|
|
11.0% |
Adjusted EBITDA margin(1) |
|
|
14.2 |
% |
|
|
13.8 |
% |
|
40 bps |
|
|
12.6 |
% |
|
|
12.5 |
% |
|
10 bps |
||
Adjusted diluted EPS(1) |
|
$ |
0.09 |
|
|
$ |
0.11 |
|
|
$ |
(0.02) |
|
$ |
0.27 |
|
|
$ |
0.29 |
|
|
$ |
(0.02) |
Notes:
(1) Non-GAAP figures – please refer to Reconciliation of Non-GAAP Financial Measures.
Key Operating Metrics |
|
Fiscal Years Ended |
||||||||
$ in millions |
|
December 31, 2023 |
|
January 1, 2023 |
|
Change |
||||
Global Points of Access |
|
|
14,147 |
|
|
|
11,837 |
|
|
19.5% |
Sales per Hub (U.S.) TTM |
|
$ |
4.9 |
|
|
$ |
4.5 |
|
|
8.9% |
Sales per Hub (International) TTM |
|
$ |
10.0 |
|
|
$ |
10.1 |
|
|
(1.0)% |
Ecommerce as a Percent of Retail Sales |
|
|
19.3 |
% |
|
|
18.0 |
% |
|
130 bps |
Fourth Quarter 2023 Consolidated Results (vs Q4 2022)
Krispy Kreme’s fourth quarter results reflect continued year-over-year growth as compared to the fourth quarter of 2022. Net revenue grew 11.4% to $450.9 million, compared to $404.6 million. GAAP net income was $1.9 million, compared to a loss in the prior year of $1.0 million. GAAP Diluted EPS was $0.02, an improvement of $0.04 from the same quarter last year.
Total company organic revenue grew 13.2%, driven by high impact global brand activations and seasonal offerings, increased Points of Access and premiumization efforts. Ecommerce as a percent of retail sales increased 130 basis points to 19.3% of sales.
Adjusted EBITDA in the quarter grew 14.7% to $64.1 million, with Adjusted EBITDA margins expanding 40 basis points to 14.2%. Adjusted Net Income, diluted declined 18.8% to $15.1 million in the quarter. Adjusted Diluted EPS declined $0.02 to $0.09 from $0.11 in the same quarter last year, due to increased depreciation and amortization, as we expanded availability of our doughnuts and Insomnia Cookies globally.
Full Year 2023 Consolidated Results (vs FY 2022)
Krispy Kreme’s full year results reflect continued growth, as net revenue grew 10.2% to $1.7 billion in 2023, compared to $1.5 billion in the prior year. GAAP net loss was $36.6 million, compared to a loss of $8.8 million. GAAP Diluted Loss per Share was $0.23 compared to a loss of $0.10.
Total company organic revenue grew 12.2% for the year, driven by strong marketing activations, POA growth, and pricing actions. Adjusted EBITDA grew 11.0% to $211.6 million. Adjusted Net Income, diluted declined to $46.2 million from $49.6 million in the prior period. Adjusted diluted EPS declined $0.02 to $0.27 from $0.29 in the prior year, due to increased depreciation and amortization, as we invested in our global expansion, including Insomnia Cookies’ international development, as well as higher tax rates as a greater portion of earnings came from higher tax rate jurisdictions.
Diluted weighted average common shares outstanding for the full year 2023 were 170.5 million, compared to 169.5 million for the full year 2022.
Fourth Quarter 2023 Segment Results (vs Q4 2022)
U.S.: In the U.S. segment, net revenue grew $25.2 million, or 9.3% with organic revenue growth of 13.7%. Organic revenue growth was driven by successful marketing activations including specialty offerings and seasonal events, the continued expansion of our DFD strategy, and 16.3% organic growth at Insomnia Cookies. Sales per hub in the U.S. increased 8.9% to $4.9 million and DFD average sales per door per week increased 8.0% to $665, driven by continued premiumization efforts and a significant increase in DFD door count year over year. Ecommerce as a percentage of U.S. Fresh retail doughnut sales increased 320 basis points to 15.9%.
U.S. Adjusted EBITDA increased 19.4% to $42.1 million with Adjusted EBITDA margin expansion of 120 basis points to 14.2%, driven by the productivity benefits of our hub and spoke model, labor optimization, and waste mitigation.
International: In the International segment, net revenue grew $14.1 million, or 15.2%. International organic revenue grew 9.0%, driven by POA growth of 686, or nearly 20%, and continued premiumization efforts.
International Adjusted EBITDA grew 7.8% to $22.1 million with adjusted EBITDA margin declining approximately 140 basis points, as strength in Australia was offset by lower volume in the U.K. leading to deleveraging throughout the statement of operations.
Market Development: In the Market Development segment, net revenue grew $7.0 million, or 17.2%. Organic growth in the segment was 19.2%, driven by strong organic growth in Canada and our International Franchise businesses, led by Turkey, South Korea, and the Philippines. Additionally, Krispy Kreme opened in both France and Ecuador during the quarter.
Market Development Adjusted EBITDA grew 21.1% to $16.9 million. Adjusted EBITDA margins expanded 120 basis points to 35.4%, driven by the expansion of our hub and spoke model in Japan and Canada.
Balance Sheet and Capital Expenditures
During the fourth quarter 2023, the Company invested $32.8 million in capital expenditures, driven primarily by investments in the growth of our Hub and Spoke model alongside selective remodeling activity and investments in information technology capabilities. For the full year 2023, capital expenditures as a percentage of revenue were 7.2%.
In 2023, the Company generated operating cash flow of $45.5 million, while reducing the use of vendor finance programs by $81.7 million.
As of December 31, 2023 the Company has total available liquidity of $197.2 million, including $38.2 million of cash and cash equivalents as well as undrawn capacity of roughly $159.0 million under available credit facilities. In 2023, the Company extended maturities of its primary debt facility to 2028 and as of December 31, 2023 has a net debt of $857.4 million.
2024 Financial Outlook
Krispy Kreme issues the following guidance for the full year 2024 (vs FY2023)
- Net Revenue growth of +5% to +7%
- Organic Revenue growth of +6% to +8%
- Adjusted EBITDA growth of +8% to +11%
- Adjusted Diluted EPS of $0.27 to $0.31
- Income Tax rate between 26% and 28%
- Capital Expenditures of 7% to 8% of net revenue
- Interest Expense, net of $55 million to $65 million
The above guidance assumes nominal impact from foreign exchange. The Company continues to expect to reduce its net leverage in 2024, as we make progress towards our 2026 goal of approximately 2.0x to 2.5x net leverage.
On October 3, 2023, the Company announced it is exploring strategic alternatives for Insomnia Cookies. Guidance for the full year 2024 includes operations from Insomnia Cookies.
Definitions
The following definitions apply to terms used throughout this press release:
- Global Points of Access: Reflects all locations at which fresh doughnuts or cookies can be purchased. We define global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors and Cookie Shops, at both Company-owned and franchise locations as of the end of the respective reporting period. We monitor global points of access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments.
- Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any point of access. We define Hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the respective reporting period.
- Sales Per Hub: Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes at the end of the five most recent quarters.
- Fresh Revenues from Hubs with Spokes: Fresh Revenues include product sales generated from our Doughnut Shop business (including ecommerce and delivery), as well as DFD sales, but excluding sales from 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 fourth quarter of 2023. The conference call can be accessed by dialing 1 (800) 599-5188 and entering the conference ID 5487868. International participants can access the call via the corresponding number listed HERE and entering the conference ID 5487868. To listen to the live audio webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay and transcript of the webcast will be available on the website within 24 hours after the call. Krispy Kreme’s earnings press release and related materials will also be available on the investor relations section of the Company’s website.
About Krispy Kreme
Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in 39 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing Ecommerce and delivery business with more than 14,000 fresh points of access. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme and www.Twitter.com/KrispyKreme.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. The words “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 January 1, 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, 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.
|
|||||||||||
|
Fiscal Years Ended |
||||||||||
|
December 31,
|
|
January 1,
|
|
January 2,
|
||||||
|
(unaudited) |
|
|
|
|
||||||
Net revenues |
|
|
|
|
|
||||||
Product sales |
$ |
1,651,166 |
|
|
$ |
1,497,882 |
|
|
$ |
1,353,466 |
|
Royalties and other revenues |
|
34,938 |
|
|
|
32,016 |
|
|
|
30,925 |
|
Total net revenues |
|
1,686,104 |
|
|
|
1,529,898 |
|
|
|
1,384,391 |
|
Product and distribution costs |
|
443,243 |
|
|
|
406,227 |
|
|
|
354,093 |
|
Operating expenses |
|
776,589 |
|
|
|
704,287 |
|
|
|
630,239 |
|
Selling, general and administrative expense |
|
266,863 |
|
|
|
223,198 |
|
|
|
222,394 |
|
Marketing expenses |
|
45,872 |
|
|
|
42,566 |
|
|
|
39,489 |
|
Pre-opening costs |
|
4,120 |
|
|
|
4,227 |
|
|
|
5,568 |
|
Other expenses/(income), net |
|
10,378 |
|
|
|
10,157 |
|
|
|
(10,102 |
) |
Depreciation and amortization expense |
|
125,894 |
|
|
|
110,261 |
|
|
|
101,608 |
|
Operating income |
|
13,145 |
|
|
|
28,975 |
|
|
|
41,102 |
|
Interest expense, net |
|
50,341 |
|
|
|
34,102 |
|
|
|
32,622 |
|
Interest expense – related party |
|
— |
|
|
|
— |
|
|
|
10,387 |
|
Other non-operating expense, net |
|
3,798 |
|
|
|
3,036 |
|
|
|
2,191 |
|
Loss before income taxes |
|
(40,994 |
) |
|
|
(8,163 |
) |
|
|
(4,098 |
) |
Income tax (benefit)/expense |
|
(4,347 |
) |
|
|
612 |
|
|
|
10,745 |
|
Net loss |
|
(36,647 |
) |
|
|
(8,775 |
) |
|
|
(14,843 |
) |
Net income attributable to noncontrolling interest |
|
1,278 |
|
|
|
6,847 |
|
|
|
9,663 |
|
Net loss attributable to Krispy Kreme, Inc. |
$ |
(37,925 |
) |
|
$ |
(15,622 |
) |
|
$ |
(24,506 |
) |
Net loss per share: |
|
|
|
|
|
||||||
Common stock - Basic |
$ |
(0.23 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.18 |
) |
Common stock - Diluted |
$ |
(0.23 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.18 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
||||||
Basic |
|
168,289 |
|
|
|
167,471 |
|
|
|
147,655 |
|
Diluted |
|
168,289 |
|
|
|
167,471 |
|
|
|
147,655 |
|
|
Quarter Ended |
||||||
|
December 31,
|
|
January 1,
|
||||
|
(unaudited) |
|
|
||||
Net revenues |
|
|
|
||||
Product sales |
$ |
441,399 |
|
|
$ |
395,837 |
|
Royalties and other revenues |
|
9,506 |
|
|
|
8,762 |
|
Total net revenues |
|
450,905 |
|
|
|
404,599 |
|
Product and distribution costs |
|
112,951 |
|
|
|
106,688 |
|
Operating expenses |
|
200,636 |
|
|
|
184,027 |
|
Selling, general and administrative expense |
|
74,508 |
|
|
|
62,932 |
|
Marketing expenses |
|
13,771 |
|
|
|
10,197 |
|
Pre-opening costs |
|
1,193 |
|
|
|
713 |
|
Other expenses, net |
|
16,429 |
|
|
|
8,357 |
|
Depreciation and amortization expense |
|
36,752 |
|
|
|
26,479 |
|
Operating (loss)/income |
|
(5,335 |
) |
|
|
5,206 |
|
Interest expense, net |
|
13,483 |
|
|
|
10,294 |
|
Other non-operating expense, net |
|
767 |
|
|
|
953 |
|
Loss before income taxes |
|
(19,585 |
) |
|
|
(6,041 |
) |
Income tax benefit |
|
(21,468 |
) |
|
|
(5,056 |
) |
Net income/(loss) |
|
1,883 |
|
|
|
(985 |
) |
Net (loss)/income attributable to noncontrolling interest |
|
(727 |
) |
|
|
1,734 |
|
Net income/(loss) attributable to Krispy Kreme, Inc. |
$ |
2,610 |
|
|
$ |
(2,719 |
) |
Net income/(loss) per share: |
|
|
|
||||
Common stock - Basic |
$ |
0.02 |
|
|
$ |
(0.02 |
) |
Common stock - Diluted |
$ |
0.02 |
|
|
$ |
(0.02 |
) |
Weighted average shares outstanding: |
|
|
|
||||
Basic |
|
168,609 |
|
|
|
167,826 |
|
Diluted |
|
170,678 |
|
|
|
167,826 |
|
Krispy Kreme, Inc.
|
|||||||
|
As of |
||||||
|
December 31, 2023 |
|
January 1, 2023 |
||||
|
(unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
38,185 |
|
|
$ |
35,371 |
|
Restricted cash |
|
429 |
|
|
|
359 |
|
Accounts receivable, net |
|
59,362 |
|
|
|
51,089 |
|
Inventories |
|
34,716 |
|
|
|
46,239 |
|
Taxes receivable |
|
15,526 |
|
|
|
18,263 |
|
Prepaid expense and other current assets |
|
25,363 |
|
|
|
26,953 |
|
Total current assets |
|
173,581 |
|
|
|
178,274 |
|
Property and equipment, net |
|
538,220 |
|
|
|
472,358 |
|
Goodwill |
|
1,101,939 |
|
|
|
1,087,908 |
|
Other intangible assets, net |
|
946,349 |
|
|
|
966,088 |
|
Operating lease right of use asset, net |
|
456,964 |
|
|
|
417,381 |
|
Other assets |
|
23,539 |
|
|
|
26,528 |
|
Total assets |
$ |
3,240,592 |
|
|
$ |
3,148,537 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current portion of long-term debt |
$ |
54,631 |
|
|
$ |
40,034 |
|
Current operating lease liabilities |
|
50,365 |
|
|
|
43,160 |
|
Accounts payable |
|
156,488 |
|
|
|
225,276 |
|
Accrued liabilities |
|
134,005 |
|
|
|
104,424 |
|
Structured payables |
|
130,104 |
|
|
|
103,575 |
|
Total current liabilities |
|
525,593 |
|
|
|
516,469 |
|
Long-term debt, less current portion |
|
836,615 |
|
|
|
739,052 |
|
Noncurrent operating lease liabilities |
|
454,583 |
|
|
|
412,759 |
|
Deferred income taxes, net |
|
123,925 |
|
|
|
143,124 |
|
Other long-term obligations and deferred credits |
|
36,093 |
|
|
|
38,258 |
|
Total liabilities |
|
1,976,809 |
|
|
|
1,849,662 |
|
Commitments and contingencies |
|
|
|
||||
Shareholders’ equity: |
|
|
|
||||
Common stock, $0.01 par value; 300,000 shares authorized as of both December 31, 2023 and January 1, 2023; 168,628 and 168,137 shares issued and outstanding as of December 31, 2023 and January 1, 2023, respectively |
|
1,686 |
|
|
|
1,681 |
|
Additional paid-in capital |
|
1,443,591 |
|
|
|
1,426,105 |
|
Shareholder note receivable |
|
(3,850 |
) |
|
|
(4,813 |
) |
Accumulated other comprehensive income/(loss), net of income tax |
|
7,246 |
|
|
|
(9,151 |
) |
Retained deficit |
|
(278,990 |
) |
|
|
(217,490 |
) |
Total shareholders’ equity attributable to Krispy Kreme, Inc. |
|
1,169,683 |
|
|
|
1,196,332 |
|
Noncontrolling interest |
|
94,100 |
|
|
|
102,543 |
|
Total shareholders’ equity |
|
1,263,783 |
|
|
|
1,298,875 |
|
Total liabilities and shareholders’ equity |
$ |
3,240,592 |
|
|
$ |
3,148,537 |
|
Krispy Kreme, Inc.
|
|||||||||||
|
Fiscal Years Ended |
||||||||||
|
December 31,
|
|
January 1,
|
|
January 2,
|
||||||
|
(unaudited) |
|
|
|
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
||||||
Net loss |
$ |
(36,647 |
) |
|
$ |
(8,775 |
) |
|
$ |
(14,843 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
||||||
Depreciation and amortization expense |
|
125,894 |
|
|
|
110,261 |
|
|
|
101,608 |
|
Deferred and other income taxes |
|
(18,486 |
) |
|
|
(14,237 |
) |
|
|
(3,496 |
) |
Loss on extinguishment of debt |
|
472 |
|
|
|
— |
|
|
|
1,700 |
|
Impairment and lease termination charges |
|
24,909 |
|
|
|
18,297 |
|
|
|
3,507 |
|
Loss on disposal of property and equipment |
|
110 |
|
|
|
393 |
|
|
|
458 |
|
Gain on sale-leaseback |
|
(9,646 |
) |
|
|
(6,549 |
) |
|
|
(8,673 |
) |
Share-based compensation |
|
24,196 |
|
|
|
18,170 |
|
|
|
22,923 |
|
Change in accounts and notes receivable allowances |
|
654 |
|
|
|
570 |
|
|
|
275 |
|
Inventory write-off |
|
11,248 |
|
|
|
868 |
|
|
|
4,071 |
|
Settlement of interest rate swap derivatives |
|
7,657 |
|
|
|
8,476 |
|
|
|
— |
|
Amortization related to settlement of interest rate swap derivatives |
|
(10,289 |
) |
|
|
— |
|
|
|
— |
|
Other |
|
2,155 |
|
|
|
2,232 |
|
|
|
594 |
|
Change in operating assets and liabilities, excluding business acquisitions and foreign currency translation adjustments: |
|
|
|
|
|
||||||
Accounts, notes, and taxes receivable |
|
(3,523 |
) |
|
|
(9,485 |
) |
|
|
(3,817 |
) |
Inventories |
|
780 |
|
|
|
(12,515 |
) |
|
|
(301 |
) |
Other current and noncurrent assets |
|
(2,395 |
) |
|
|
(1,691 |
) |
|
|
(316 |
) |
Operating lease assets and liabilities |
|
5,111 |
|
|
|
(793 |
) |
|
|
7,787 |
|
Accounts payable and accrued liabilities |
|
(74,471 |
) |
|
|
32,015 |
|
|
|
30,240 |
|
Other long-term obligations and deferred credits |
|
(2,185 |
) |
|
|
2,581 |
|
|
|
(493 |
) |
Net cash provided by operating activities |
|
45,544 |
|
|
|
139,818 |
|
|
|
141,224 |
|
CASH FLOWS USED FOR INVESTING ACTIVITIES: |
|
|
|
|
|
||||||
Purchase of property and equipment |
|
(121,427 |
) |
|
|
(111,717 |
) |
|
|
(119,497 |
) |
Proceeds from disposals of assets |
|
218 |
|
|
|
1,077 |
|
|
|
218 |
|
Proceeds from sale-leaseback |
|
10,025 |
|
|
|
8,401 |
|
|
|
11,091 |
|
Acquisition of shops and franchise rights from franchisees, net of cash acquired |
|
— |
|
|
|
(17,330 |
) |
|
|
(46,330 |
) |
Purchase of equity method investment |
|
(1,424 |
) |
|
|
(989 |
) |
|
|
— |
|
Principal payments received from loans to franchisees |
|
20 |
|
|
|
59 |
|
|
|
92 |
|
Disbursement for loan receivable |
|
— |
|
|
|
(975 |
) |
|
|
— |
|
Maturities of held-to-maturity debt securities |
|
— |
|
|
|
— |
|
|
|
1,019 |
|
Net cash used for investing activities |
|
(112,588 |
) |
|
|
(121,474 |
) |
|
|
(153,407 |
) |
CASH FLOWS FROM/(USED FOR) FINANCING ACTIVITIES: |
|
|
|
|
|
||||||
Proceeds from the issuance of debt |
|
1,175,698 |
|
|
|
149,000 |
|
|
|
695,000 |
|
Repayment of long-term debt and lease obligations |
|
(1,084,390 |
) |
|
|
(101,181 |
) |
|
|
(1,147,049 |
) |
Payment of financing costs |
|
(5,175 |
) |
|
|
— |
|
|
|
(1,700 |
) |
Proceeds from structured payables |
|
241,148 |
|
|
|
282,023 |
|
|
|
266,851 |
|
Payments on structured payables |
|
(214,574 |
) |
|
|
(294,457 |
) |
|
|
(287,625 |
) |
Payment of contingent consideration related to a business combination |
|
(925 |
) |
|
|
(900 |
) |
|
|
— |
|
Capital contribution from shareholders, net of loans issued |
|
764 |
|
|
|
(288 |
) |
|
|
120,532 |
|
Proceeds from IPO, net of underwriting discounts (excluding unpaid issuance costs) |
|
— |
|
|
|
— |
|
|
|
527,329 |
|
Payments of issuance costs in connection with IPO |
|
— |
|
|
|
(12,458 |
) |
|
|
— |
|
Proceeds from sale of noncontrolling interest in subsidiary |
|
292 |
|
|
|
593 |
|
|
|
53,404 |
|
Distribution to shareholders |
|
(23,558 |
) |
|
|
(23,430 |
) |
|
|
(48,187 |
) |
Payments for repurchase and retirement of common stock |
|
(1,880 |
) |
|
|
(4,019 |
) |
|
|
(139,103 |
) |
Distribution to noncontrolling interest |
|
(15,538 |
) |
|
|
(11,721 |
) |
|
|
(23,356 |
) |
Net cash provided by/(used for) financing activities |
|
71,862 |
|
|
|
(16,838 |
) |
|
|
16,096 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(1,934 |
) |
|
|
(4,968 |
) |
|
|
(2,204 |
) |
Net increase/(decrease) in cash, cash equivalents and restricted cash |
|
2,884 |
|
|
|
(3,462 |
) |
|
|
1,709 |
|
Cash, cash equivalents and restricted cash at beginning of the fiscal year |
|
35,730 |
|
|
|
39,192 |
|
|
|
37,483 |
|
Cash, cash equivalents and restricted cash at end of the fiscal year |
$ |
38,614 |
|
|
$ |
35,730 |
|
|
$ |
39,192 |
|
|
|
|
|
|
|
||||||
Net cash provided by operating activities |
$ |
45,544 |
|
|
$ |
139,818 |
|
|
$ |
141,224 |
|
Less: Purchase of property and equipment |
|
(121,427 |
) |
|
|
(111,717 |
) |
|
|
(119,497 |
) |
Free cash flow |
$ |
(75,883 |
) |
|
$ |
28,101 |
|
|
$ |
21,727 |
|
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 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 |
|
Fiscal Years Ended |
||||||||||||
(in thousands) |
December 31,
|
|
January 1,
|
|
December 31,
|
|
January 1,
|
||||||||
Net income/(loss) |
$ |
1,883 |
|
|
$ |
(985 |
) |
|
$ |
(36,647 |
) |
|
$ |
(8,775 |
) |
Interest expense, net |
|
13,483 |
|
|
|
10,294 |
|
|
|
50,341 |
|
|
|
34,102 |
|
Income tax (benefit)/expense |
|
(21,468 |
) |
|
|
(5,056 |
) |
|
|
(4,347 |
) |
|
|
612 |
|
Depreciation and amortization expense |
|
36,752 |
|
|
|
26,479 |
|
|
|
125,894 |
|
|
|
110,261 |
|
Share-based compensation |
|
6,375 |
|
|
|
4,852 |
|
|
|
24,196 |
|
|
|
18,170 |
|
Employer payroll taxes related to share-based compensation |
|
85 |
|
|
|
220 |
|
|
|
395 |
|
|
|
312 |
|
Other non-operating expense, net (1) |
|
767 |
|
|
|
953 |
|
|
|
3,798 |
|
|
|
3,036 |
|
Strategic initiatives (2) |
|
5,216 |
|
|
|
2,635 |
|
|
|
29,057 |
|
|
|
2,841 |
|
Acquisition and integration expenses (3) |
|
32 |
|
|
|
944 |
|
|
|
511 |
|
|
|
2,333 |
|
New market penetration expenses (4) |
|
367 |
|
|
|
828 |
|
|
|
1,380 |
|
|
|
1,511 |
|
Shop closure expenses (5) |
|
16,979 |
|
|
|
11,606 |
|
|
|
17,335 |
|
|
|
19,465 |
|
Restructuring and severance expenses (6) |
|
2,251 |
|
|
|
4,321 |
|
|
|
5,050 |
|
|
|
7,125 |
|
Gain on sale-leaseback |
|
— |
|
|
|
(2,238 |
) |
|
|
(9,646 |
) |
|
|
(6,549 |
) |
Other (7) |
|
1,419 |
|
|
|
1,066 |
|
|
|
4,307 |
|
|
|
6,285 |
|
Adjusted EBITDA |
$ |
64,141 |
|
|
$ |
55,919 |
|
|
$ |
211,624 |
|
|
$ |
190,729 |
|
|
Quarter Ended |
|
Fiscal Years Ended |
||||||||||||
(in thousands) |
December 31,
|
|
January 1,
|
|
December 31,
|
|
January 1,
|
||||||||
Segment Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
U.S. |
$ |
42,101 |
|
|
$ |
35,269 |
|
|
$ |
130,979 |
|
|
$ |
112,283 |
|
International |
|
22,067 |
|
|
|
20,479 |
|
|
|
76,503 |
|
|
|
75,512 |
|
Market Development |
|
16,924 |
|
|
|
13,979 |
|
|
|
62,995 |
|
|
|
50,621 |
|
Corporate |
|
(16,951 |
) |
|
|
(13,808 |
) |
|
|
(58,853 |
) |
|
|
(47,687 |
) |
Total Adjusted EBITDA |
$ |
64,141 |
|
|
$ |
55,919 |
|
|
$ |
211,624 |
|
|
$ |
190,729 |
|
|
Quarter Ended |
|
Fiscal Years Ended |
||||||||||||
(in thousands, except per share amounts) |
December 31,
|
|
January 1,
|
|
December 31,
|
|
January 1,
|
||||||||
Net income/(loss) |
$ |
1,883 |
|
|
$ |
(985 |
) |
|
$ |
(36,647 |
) |
|
$ |
(8,775 |
) |
Share-based compensation |
|
6,375 |
|
|
|
4,852 |
|
|
|
24,196 |
|
|
|
18,170 |
|
Employer payroll taxes related to share-based compensation |
|
85 |
|
|
|
220 |
|
|
|
395 |
|
|
|
312 |
|
Other non-operating expense, net (1) |
|
767 |
|
|
|
953 |
|
|
|
3,798 |
|
|
|
3,036 |
|
Strategic initiatives (2) |
|
5,216 |
|
|
|
2,635 |
|
|
|
29,057 |
|
|
|
2,841 |
|
Acquisition and integration expenses (3) |
|
32 |
|
|
|
944 |
|
|
|
511 |
|
|
|
2,333 |
|
New market penetration expenses (4) |
|
367 |
|
|
|
828 |
|
|
|
1,380 |
|
|
|
1,511 |
|
Shop closure expenses (5) |
|
16,979 |
|
|
|
11,606 |
|
|
|
17,335 |
|
|
|
19,715 |
|
Restructuring and severance expenses (6) |
|
2,251 |
|
|
|
4,321 |
|
|
|
5,050 |
|
|
|
7,125 |
|
Gain on sale-leaseback |
|
— |
|
|
|
(2,238 |
) |
|
|
(9,646 |
) |
|
|
(6,549 |
) |
Other (7) |
|
1,419 |
|
|
|
1,066 |
|
|
|
4,307 |
|
|
|
6,285 |
|
Amortization of acquisition related intangibles (8) |
|
7,346 |
|
|
|
7,149 |
|
|
|
29,373 |
|
|
|
28,456 |
|
Loss on extinguishment of 2019 Facility (9) |
|
— |
|
|
|
— |
|
|
|
472 |
|
|
|
— |
|
Tax impact of adjustments (10) |
|
(29,303 |
) |
|
|
(8,720 |
) |
|
|
(20,729 |
) |
|
|
(14,609 |
) |
Tax specific adjustments (11) |
|
979 |
|
|
|
(2,248 |
) |
|
|
(1,364 |
) |
|
|
(2,876 |
) |
Net income attributable to noncontrolling interest |
|
727 |
|
|
|
(1,734 |
) |
|
|
(1,278 |
) |
|
|
(6,847 |
) |
Adjustment to adjusted net income attributable to common shareholders |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(374 |
) |
Adjusted net income attributable to common shareholders - Basic |
$ |
15,123 |
|
|
$ |
18,649 |
|
|
$ |
46,210 |
|
|
$ |
49,754 |
|
Additional income attributed to noncontrolling interest due to subsidiary potential common shares |
|
(13 |
) |
|
|
(37 |
) |
|
|
(28 |
) |
|
|
(143 |
) |
Adjusted net income attributable to common shareholders - Diluted |
$ |
15,110 |
|
|
$ |
18,612 |
|
|
$ |
46,182 |
|
|
$ |
49,611 |
|
Basic weighted average common shares outstanding |
|
168,609 |
|
|
|
167,826 |
|
|
|
168,289 |
|
|
|
167,471 |
|
Dilutive effect of outstanding common stock options, RSUs, and PSUs |
|
2,069 |
|
|
|
2,000 |
|
|
|
2,204 |
|
|
|
2,005 |
|
Diluted weighted average common shares outstanding |
|
170,678 |
|
|
|
169,826 |
|
|
|
170,493 |
|
|
|
169,476 |
|
Adjusted net income per share attributable to common shareholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.09 |
|
|
$ |
0.11 |
|
|
$ |
0.27 |
|
|
$ |
0.30 |
|
Diluted |
$ |
0.09 |
|
|
$ |
0.11 |
|
|
$ |
0.27 |
|
|
$ |
0.29 |
|
(1) |
Primarily foreign translation gains and losses in each period. |
|
(2) |
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 (approximately $17.9 million of the total). Fiscal 2022 consists mainly of equipment disposals, equipment relocation and installation, consulting and advisory fees, and other costs associated with our shift of Branded Sweet 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 for which the Company’s brands have not previously operated, including the Insomnia Cookies brand entering Canada and the U.K. |
|
(5) |
Fiscal 2023 includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment, primarily associated with strategic shop exits, primarily in the U.S. (approximately $16.0 million of the total). Fiscal 2022 includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment, primarily associated with strategic shop exits. Fiscal 2022 expenses are also inclusive of accelerated depreciation related to replacing a point of sale system. |
|
(6) |
Fiscal 2023 and fiscal 2022 consist primarily of costs associated with restructuring of the global executive team. |
|
(7) |
Fiscal 2023, fiscal 2022, and fiscal 2021 consist primarily of legal and other regulatory expenses incurred outside the ordinary course of business, including the net settlement of approximately $3.3 million negotiated with TSW Foods, LLC in fiscal 2022. |
|
(8) |
Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the 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 Company’s adjusted effective tax rate is 27.2%, 24.1%, and 22.4% for each of the fiscal years 2023, 2022, and 2021, respectively. Fiscal 2023 also includes 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. |
|
(11) |
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.
|
||||||||
|
Quarter Ended |
|||||||
|
December 31,
|
|
January 1,
|
|
January 2,
|
|||
Net revenues: |
|
|
|
|
|
|||
U.S. |
$ |
296,006 |
|
$ |
270,836 |
|
$ |
243,934 |
International |
|
107,051 |
|
|
92,928 |
|
|
89,990 |
Market Development |
|
47,848 |
|
|
40,835 |
|
|
36,673 |
Total net revenues |
$ |
450,905 |
|
$ |
404,599 |
|
$ |
370,597 |
Q4 2023 Organic Revenue - QTD
|
U.S. |
|
International |
|
Market Development |
|
Total Company |
||||||||
Total net revenues Q4 2023 (13 weeks) |
$ |
296,006 |
|
|
$ |
107,051 |
|
|
$ |
47,848 |
|
|
$ |
450,905 |
|
Total net revenues Q4 2022 (13 weeks) |
|
270,836 |
|
|
|
92,928 |
|
|
|
40,835 |
|
|
|
404,599 |
|
Total Net Revenue Growth |
|
25,170 |
|
|
|
14,123 |
|
|
|
7,013 |
|
|
|
46,306 |
|
Total Net Revenue Growth % |
|
9.3 |
% |
|
|
15.2 |
% |
|
|
17.2 |
% |
|
|
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 Q4 2022 |
|
260,241 |
|
|
|
92,928 |
|
|
|
40,835 |
|
|
|
394,004 |
|
Adjusted Net Revenue Growth |
|
35,765 |
|
|
|
14,123 |
|
|
|
7,013 |
|
|
|
56,901 |
|
Impact of foreign currency translation |
|
— |
|
|
|
(5,758 |
) |
|
|
837 |
|
|
|
(4,921 |
) |
Organic Revenue Growth |
$ |
35,765 |
|
|
$ |
8,365 |
|
|
$ |
7,850 |
|
|
$ |
51,980 |
|
Organic Revenue Growth % |
|
13.7 |
% |
|
|
9.0 |
% |
|
|
19.2 |
% |
|
|
13.2 |
% |
Q4 2022 Organic Revenue - QTD
|
U.S. |
|
International |
|
Market
|
|
Total Company |
||||||||
Total net revenues Q4 2022 (13 weeks) |
$ |
270,836 |
|
|
$ |
92,928 |
|
|
$ |
40,835 |
|
|
$ |
404,599 |
|
Total net revenues Q4 2021 (13 weeks) |
|
243,934 |
|
|
|
89,990 |
|
|
|
36,673 |
|
|
|
370,597 |
|
Total Net Revenue Growth |
|
26,902 |
|
|
|
2,938 |
|
|
|
4,162 |
|
|
|
34,002 |
|
Total Net Revenue Growth % |
|
11.0 |
% |
|
|
3.3 |
% |
|
|
11.3 |
% |
|
|
9.2 |
% |
Less: Impact of shop optimization program closures |
|
(1,374 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,374 |
) |
Adjusted net revenues Q4 2021 |
|
242,560 |
|
|
|
89,990 |
|
|
|
36,673 |
|
|
|
369,223 |
|
Adjusted Net Revenue Growth |
|
28,276 |
|
|
|
2,938 |
|
|
|
4,162 |
|
|
|
35,376 |
|
Impact of acquisitions |
|
(2,652 |
) |
|
|
— |
|
|
|
769 |
|
|
|
(1,883 |
) |
Impact of foreign currency translation |
|
— |
|
|
|
7,211 |
|
|
|
5,520 |
|
|
|
12,731 |
|
Organic Revenue Growth |
$ |
25,624 |
|
|
$ |
10,149 |
|
|
$ |
10,451 |
|
|
$ |
46,224 |
|
Organic Revenue Growth % |
|
10.6 |
% |
|
|
11.3 |
% |
|
|
28.5 |
% |
|
|
12.5 |
% |
|
Fiscal Years Ended |
|||||||
|
December 31,
|
|
January 1,
|
|
January 2,
|
|||
Net revenues: |
|
|
|
|||||
U.S. |
$ |
1,104,944 |
|
$ |
1,010,250 |
|
$ |
923,129 |
International |
|
401,801 |
|
|
365,916 |
|
|
332,995 |
Market Development |
|
179,359 |
|
|
153,732 |
|
|
128,267 |
Total net revenues |
$ |
1,686,104 |
|
$ |
1,529,898 |
|
$ |
1,384,391 |
Full Year 2023 Organic Revenue - YTD
|
U.S. |
|
International |
|
Market
|
|
Total Company |
||||||||
Total net revenues in fiscal 2023 (52 weeks) |
$ |
1,104,944 |
|
|
$ |
401,801 |
|
|
$ |
179,359 |
|
|
$ |
1,686,104 |
|
Total net revenues in fiscal 2022 (52 weeks) |
|
1,010,250 |
|
|
|
365,916 |
|
|
|
153,732 |
|
|
|
1,529,898 |
|
Total Net Revenue Growth |
|
94,694 |
|
|
|
35,885 |
|
|
|
25,627 |
|
|
|
156,206 |
|
Total Net Revenue Growth % |
|
9.4 |
% |
|
|
9.8 |
% |
|
|
16.7 |
% |
|
|
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 |
|
|
|
365,916 |
|
|
|
153,732 |
|
|
|
1,493,954 |
|
Adjusted Net Revenue Growth |
|
130,638 |
|
|
|
35,885 |
|
|
|
25,627 |
|
|
|
192,150 |
|
Impact of acquisitions |
|
(7,678 |
) |
|
|
— |
|
|
|
2,227 |
|
|
|
(5,451 |
) |
Impact of foreign currency translation |
|
— |
|
|
|
(10,351 |
) |
|
|
5,312 |
|
|
|
(5,039 |
) |
Organic Revenue Growth |
$ |
122,960 |
|
|
$ |
25,534 |
|
|
$ |
33,166 |
|
|
$ |
181,660 |
|
Organic Revenue Growth % |
|
12.6 |
% |
|
|
7.0 |
% |
|
|
21.6 |
% |
|
|
12.2 |
% |
Full Year 2022 Organic Revenue - YTD
|
U.S. |
|
International |
|
Market
|
|
Total Company |
||||||||
Total net revenues in fiscal 2022 (52 weeks) |
$ |
1,010,250 |
|
|
$ |
365,916 |
|
|
$ |
153,732 |
|
|
$ |
1,529,898 |
|
Total net revenues in fiscal 2021 (52 weeks) |
|
923,129 |
|
|
|
332,995 |
|
|
|
128,267 |
|
|
|
1,384,391 |
|
Total Net Revenue Growth |
|
87,121 |
|
|
|
32,921 |
|
|
|
25,465 |
|
|
|
145,507 |
|
Total Net Revenue Growth % |
|
9.4 |
% |
|
|
9.9 |
% |
|
|
19.9 |
% |
|
|
10.5 |
% |
Less: Impact of shop optimization program closures |
|
(1,374 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,374 |
) |
Adjusted net revenues fiscal 2021 |
|
921,755 |
|
|
|
332,995 |
|
|
|
128,267 |
|
|
|
1,383,017 |
|
Adjusted Net Revenue Growth |
|
88,495 |
|
|
|
32,921 |
|
|
|
25,465 |
|
|
|
146,881 |
|
Impact of acquisitions |
|
(7,608 |
) |
|
|
— |
|
|
|
(9,884 |
) |
|
|
(17,492 |
) |
Impact of foreign currency translation |
|
— |
|
|
|
26,052 |
|
|
|
11,290 |
|
|
|
37,342 |
|
Organic Revenue Growth |
$ |
80,887 |
|
|
$ |
58,973 |
|
|
$ |
26,871 |
|
|
$ |
166,731 |
|
Organic Revenue Growth % |
|
8.8 |
% |
|
|
17.7 |
% |
|
|
20.9 |
% |
|
|
12.1 |
% |
|
Fiscal Years Ended |
||||||||||
Sales per Hub (in thousands, unless otherwise stated) |
December 31,
|
|
January 1, 2023
|
|
January 2, 2022
|
||||||
U.S.: |
|
|
|
|
|
||||||
Revenues |
$ |
1,104,944 |
|
|
$ |
1,010,250 |
|
|
$ |
923,129 |
|
Non-Fresh Revenues (1) |
|
(9,416 |
) |
|
|
(38,380 |
) |
|
|
(37,311 |
) |
Fresh Revenues from Insomnia Cookies and Hubs without Spokes (2) |
|
(399,061 |
) |
|
|
(404,430 |
) |
|
|
(414,899 |
) |
Sales from Hubs with Spokes |
|
696,467 |
|
|
|
567,440 |
|
|
|
470,919 |
|
Sales per Hub (millions) |
|
4.9 |
|
|
|
4.5 |
|
|
|
4.0 |
|
|
|
|
|
|
|
||||||
International: |
|
|
|
|
|
||||||
Sales from Hubs with Spokes (3) |
$ |
401,801 |
|
|
$ |
365,916 |
|
|
$ |
332,995 |
|
Sales per Hub (millions) (4) |
|
10.0 |
|
|
|
10.1 |
|
|
|
8.7 |
|
| (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 (1) |
||||
|
Fiscal Years Ended |
||||
|
December 31, 2023 |
|
January 1, 2023 |
|
January 2, 2022 |
|
(unaudited) |
|
|
|
|
U.S.: (2) |
|
|
|
|
|
Hot Light Theater Shops |
229 |
|
234 |
|
237 |
Fresh Shops |
70 |
|
62 |
|
60 |
Cookie Bakeries |
265 |
|
231 |
|
210 |
Carts, Food Trucks, and Other (3) |
— |
|
— |
|
2 |
DFD Doors (5) |
6,808 |
|
5,729 |
|
5,204 |
Total |
7,372 |
|
6,256 |
|
5,713 |
International: |
|
|
|
|
|
Hot Light Theater Shops |
35 |
|
37 |
|
32 |
Fresh Shops |
413 |
|
388 |
|
370 |
Carts, Food Trucks, and Other (3) |
16 |
|
14 |
|
1 |
DFD Doors |
3,693 |
|
3,032 |
|
2,488 |
Total |
4,157 |
|
3,471 |
|
2,891 |
Market Development: (4) |
|
|
|
|
|
Hot Light Theater Shops. |
125 |
|
115 |
|
113 |
Fresh Shops |
1,038 |
|
873 |
|
788 |
Cookie Bakeries |
2 |
|
— |
|
— |
Carts, Food Trucks, and Other (3) |
30 |
|
27 |
|
31 |
DFD Doors |
1,423 |
|
1,095 |
|
891 |
Total |
2,618 |
|
2,110 |
|
1,823 |
Total Global Points of Access (as defined) |
14,147 |
|
11,837 |
|
10,427 |
Total Hot Light Theater Shops |
389 |
|
386 |
|
382 |
Total Fresh Shops |
1,521 |
|
1,323 |
|
1,218 |
Total Cookie Bakeries |
257 |
|
231 |
|
210 |
Total Shops |
2,167 |
|
1,940 |
|
1,810 |
Total Carts, Food Trucks, and Other |
46 |
|
41 |
|
34 |
Total DFD Doors |
11,924 |
|
9,856 |
|
8,583 |
Total Global Points of Access (as defined) |
14,147 |
|
11,837 |
|
10,427 |
| (1) | Excludes the recently exited Branded Sweet Treats distribution points. |
|
| (2) | Includes Points of Access that were acquired from franchisees in the U.S. These Points of Access were previously included in the Market Development segment prior to the respective acquisition dates. |
|
| (3) | Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of Access in this category are primarily found in international locations in airports, train stations, etc. |
|
| (4) | Includes locations in Japan and Canada, which are Company-owned. All remaining Points of Access in the Market Development segment relate to our franchise business. As of December 31, 2023, there were five Hot Light Theater Shops, 61 Fresh Shops, and 241 DFD Doors operating in Japan and four Hot Light Theater Shops, nine Fresh Shops, and 43 DFD Doors operating in Canada. As of January 1, 2023, there were five Hot Light Theater Shops, 54 Fresh Shops, and 166 DFD Doors operating in Japan and four Hot Light Theater Shops, six Fresh Shops, and 12 DFD Doors operating in Canada. |
|
| (5) | Includes over 160 McDonald’s test shops located in Louisville and Lexington, Kentucky and the surrounding area as of December 31, 2023. |
|
Krispy Kreme, Inc.
|
|||||
|
Hubs |
||||
|
Fiscal Years Ended |
||||
|
December 31, 2023 |
|
January 1, 2023 |
|
January 2, 2022 |
|
(unaudited) |
|
|
|
|
U.S.: |
|
|
|
|
|
Hot Light Theater Shops (1) |
220 |
|
228 |
|
234 |
Doughnut Factories |
4 |
|
4 |
|
4 |
Total |
224 |
|
232 |
|
238 |
Hubs with Spokes |
149 |
|
133 |
|
123 |
Hubs without Spokes |
75 |
|
99 |
|
115 |
International: |
|
|
|
|
|
Hot Light Theater Shops (1) |
30 |
|
28 |
|
25 |
Doughnut Factories |
11 |
|
11 |
|
11 |
Total |
41 |
|
39 |
|
36 |
Hubs with Spokes |
41 |
|
39 |
|
36 |
Market Development: |
|
|
|
|
|
Hot Light Theater Shops (1) |
118 |
|
110 |
|
110 |
Doughnut Factories |
26 |
|
27 |
|
27 |
Total |
144 |
|
137 |
|
137 |
Total Hubs |
409 |
|
408 |
|
411 |
| (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.
|
|||||||
|
As of |
||||||
|
December 31, 2023 |
|
January 1, 2023 |
||||
|
(unaudited) |
|
|
||||
Current portion of long-term debt |
$ |
54,631 |
|
|
$ |
40,034 |
|
Long-term debt, less current portion |
|
836,615 |
|
|
|
739,052 |
|
Total long-term debt, including debt issuance costs |
|
891,246 |
|
|
|
779,086 |
|
Add back: Debt issuance costs |
|
4,371 |
|
|
|
2,247 |
|
Total long-term debt, excluding debt issuance costs |
|
895,617 |
|
|
|
781,333 |
|
Less: Cash and cash equivalents |
|
(38,185 |
) |
|
|
(35,371 |
) |
Net debt |
$ |
857,432 |
|
|
$ |
745,962 |
|
Adjusted EBITDA - trailing four quarters |
|
211,624 |
|
|
|
190,729 |
|
Net leverage ratio |
4.1 |
x |
|
3.9 |
x |
||
