NASDAQ$DNUT

Krispy Kreme Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Krispy Kreme reported second quarter 2023 results, reiterating full year guidance.

Krispy Kreme's second quarter 2023 results showed a net revenue increase of 9.0% year-over-year to $408.9 million, with organic revenue growing by 11.4%. GAAP net income was $0.1 million, and Adjusted EBITDA reached $48.8 million.

  • Net revenue increased by 9.0% with organic revenue growth of 11.4%.
  • Global Points of Access grew by 12.8% reaching 12,872 locations.
  • GAAP net income was $0.1 million, a significant increase from the net loss of $2.4 million in the previous year.
  • Adjusted EBITDA increased by 3.1% to $48.8 million, driven by the U.S. and Market Development segments.

Headline financials

Total Revenue

$409M

Previous: $375M+9.0%
EPS (adj)

$0.07

Previous: $0.08-12.5%
Global Points of Access

12.9K

Previous: 11.4K+12.8%
Capital Expenditures

-$54.3M

Previous: -$51.5M-5.5%
Free Cash Flow

-$54.1M

Previous: -$55.3M+2.2%
Net Income

$223K

Previous: -$3.85M+105.8%
Operating Income

$5.65M

Previous: $7.51M-24.8%
Gross Profit

-$3.07M

Previous: -$180K-1602.8%
Cash & Equivalents

$26.6M

Previous: $25.8M+3.3%
Total Assets

$3.17B

Previous: $3.1B+2.4%
Stock-Based Comp

$4.82M

Previous: $8.29M-41.8%

Revenue & EPS history

Krispy Kreme · Revenue · Quarterly

$409M

Q2 2023+9%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Krispy Kreme · $409M total across 3 segments · Q2 2023

  • U.S.
    $267M+9.3%
  • International
    $98.3M+4.8%
  • Market Development
    $43.1M+17.4%

Forward guidance

Krispy Kreme re-affirms its previous guidance for the full year 2023.

Tailwinds

  • Net Revenue of $1.65 billion to $1.68 billion, +8% to +10% vs 2022 (+9% to +11% in constant currency)
  • Organic Revenue growth of 9% to 11%
  • Adjusted EBITDA of $205 million to $215 million, +8% to +13% vs 2022 (+10% to +14% in constant currency)
  • Adjusted Net Income, Diluted, of $52 million to $58 million, +5% to +17% vs 2022 (+9% to +21% in constant currency)
  • Adjusted Diluted EPS of $0.31 to $0.34, +7% to +17% vs 2022 (+10% to +21% in constant currency)

Headwinds

  • Income Tax rate between 24.5% to 26.0%
  • Capital Expenditures between $105 million to $115 million, or approximately 6.6% of revenue
  • Interest Expense, net between $39 million to $43 million
  • The above guidance continues to assume a negative 1% impact to 2023 revenue and a negative $3 million impact to 2023 Adjusted EBITDA from FX headwinds, with the impact entirely in the first half of the year.
  • The Company expects to reduce its net leverage in 2023, as we make progress towards our 2026 goal of approximately 2.0x to 2.5x net leverage.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.8%

Avg return

Earnings day

+0.7%

Avg return

5 days after

-1.2%

Avg return

30 days after

50%

11 / 22 earnings

Positive

+27.4%

Q4 2025

Best reaction

-24.6%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.1%-9.1%-3.8%
Q4 2025+27.4%+18.1%+8.0%
Q3 2025+3.2%+15.6%+13.8%
Q1 2025-24.6%-25.9%-32.6%
Q4 2024-21.9%-32.0%-39.9%
Q3 2024-8.0%-8.9%-17.6%
Q2 2024+15.0%+11.2%+25.3%
Q1 2024+2.4%-6.3%-16.4%
Q4 2023-7.2%-6.2%-14.2%
Q3 2023-4.6%-0.4%-2.6%
Q2 2023-10.1%-7.8%-8.9%
Q1 2023+0.7%-0.3%+0.7%
Q4 2022+10.9%+7.1%+16.2%
Q3 2022+2.7%+7.5%-6.1%
Q2 2022-13.9%-18.1%-16.0%
Q1 2022+7.2%+18.3%+10.1%
Q4 2019-4.1%+3.6%-1.4%
Q4 2021+4.0%+8.7%+9.7%
Q3 2020+10.2%+10.6%+19.6%
Q3 2021-1.3%+6.6%+10.0%
Q2 2020+6.2%+19.2%+8.3%
Q2 2021-10.6%+3.1%+12.0%
Q1 2021
Q4 2020
Q1 2020
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011

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