NASDAQ$DNUT

Krispy Kreme Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Krispy Kreme reported revenue and Adjusted EBITDA growth, while delivering Adjusted EBITDA margin expansion through its hub and spoke model.

Krispy Kreme's third quarter results showed a net revenue growth of 7.9% to $407.4 million and organic revenue growth of 9.6% to $400.3 million. Adjusted EBITDA grew 13.5% to $43.7 million with margins improving 50 basis points to 10.7%. The company reaffirms mid-to-high end of Revenue and Adjusted EBITDA guidance.

  • Net Revenue grew 7.9% to $407.4 million.
  • Organic Revenue grew 9.6% to $400.3 million.
  • Adjusted EBITDA grew 13.5% to $43.7 million.
  • Adjusted EBITDA margins improved 50 basis points to 10.7%.

Headline financials

Total Revenue

$407M

Previous: $378M+7.9%
EPS (adj)

$0.03

Previous: $0.03+0.0%
Adjusted EBITDA Margin

10.7%

Previous: 10.2%+4.9%
Global Points of Access

13.4K

Previous: 11.7K+14.4%
Capital Expenditures

-$88.6M

Previous: -$75M-18.1%
Free Cash Flow

-$129M

Previous: -$88.1M-46.6%
Net Income

-$40.5M

Previous: -$13.1M-209.9%
Operating Income

-$2.11M

Previous: -$1.03M-105.7%
Gross Profit

-$265K

Previous: -$353K+24.9%
Cash & Equivalents

$25.7M

Previous: $28.1M-8.5%
Total Assets

$3.19B

Previous: $3.1B+2.8%
Stock-Based Comp

$7.45M

Previous: $6.32M+18.0%

Revenue & EPS history

Krispy Kreme · Revenue · Quarterly

$407M

Q3 2023+7.9%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Krispy Kreme · $407M total across 3 segments · Q3 2023

  • U.S.
    $260M+5.4%
  • International
    $106M+15.4%
  • Market Development
    $41.1M+5.9%

Forward guidance

The Company is reiterating its outlook for the full year 2023, trending toward the middle to the higher end of the revenue and adjusted EBITDA ranges.

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

  • Capital Expenditures of approximately 7% to 8% of revenue; updated from 6.6% driven by investments to support the growth of the business and foreign exchange rates
  • Interest Expense, net between $47 million to $51 million; updated from $39 to $43 million driven by the reduction of vendor financing and higher prevailing interest rates
  • The Company continues to expect to reduce its net leverage in 2023, as we make progress towards our 2026 goal of approximately 2.0x to 2.5x net leverage
  • Guidance for the full year 2023 includes operations from Insomnia Cookies and, if a divestiture occurs, final results may reflect separation of Insomnia Cookies' operations.
  • Adjusted Income Tax rate between 24.5% to 26.0%

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 Q3 2023

Historical avgQ3 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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