Krispy Kreme Inc Reports Q2 2024 Financial Results
Intellectia.AI1970-01-01
Krispy Kreme, Inc. Reports Q2 2024 Financial Results
Krispy Kreme, Inc. (NASDAQ: DNUT) reported its financial results for the quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Year-over-Year Growth | Consensus Estimate |
|---|---|---|---|---|
| Net Revenue | $438.8 million | $408.9 million | +7.3% | $435.49 million (Beat) |
| Organic Revenue | $440.2 million | (Implicit) | +7.8% | N/A |
| GAAP Net Loss | -$4.9 million | $0.1 million | - | N/A |
| Adjusted EBITDA | $54.7 million | $48.8 million | +12.1% | N/A |
| Adjusted EBITDA Margin (%) | 12.5% | 11.9% | +60 bps | N/A |
| Adjusted Net Income, Diluted | $9.1 million | $11.4 million | -20.1% | N/A |
| Adjusted Diluted EPS | $0.05 | $0.07 | -28.6% | $0.05 (Meet) |
Krispy Kreme recorded a solid quarter with a 7.3% year-over-year increase in net revenue, surpassing the consensus estimate. The company achieved significant growth in organic revenue and Adjusted EBITDA, despite a GAAP net loss and a decline in Adjusted Net Income, Diluted.
Segment Revenue Performance
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | Year-over-Year Growth | Organic Revenue Growth | Adjusted EBITDA | Adjusted EBITDA Margin |
|---|---|---|---|---|---|---|
| U.S. | $289.5 million | $267.6 million | +8.2% | +8.4% | $32.7 million | 11.3% (+80 bps) |
| International | $124.7 million | $120.0 million | +3.9% | +5.0% | $21.7 million | 17.3% (-320 bps) |
| Market Development | $25.3 million | $21.8 million | +16.1% | +16.1% | $12.9 million | 53.1% (+280 bps) |
In the U.S. segment, strong performance was driven by innovative specialty doughnut collections, yielding an 8.2% increase in net revenue. The international segment saw moderate growth boosted by marketing activations, though this was offset by softer transaction volumes in the UK. Meanwhile, the Market Development segment experienced robust growth fueled by greater equipment sales.
Operational Data
| Metric | Q2 2024 | Q2 2023 | Growth |
|---|---|---|---|
| Global Points of Access (POA) | 15,853 | 12,872 | +23.2% |
| Delivered Fresh Daily Sales Growth | 24% | Not provided | Not provided |
| Digital Sales Growth | 26% | Not provided | Not provided |
Key operational highlights include a 23.2% increase in Global Points of Access to 15,853, along with significant growth in Delivered Fresh Daily and digital sales.
Management Comments
CEO Josh Charlesworth highlighted the quarter's success, attributing it to the increasing availability and accessibility of Krispy Kreme's fresh doughnuts globally. The company also emphasized its continued expansion in new markets and the strategic sale of a majority stake in Insomnia Cookies to focus more effectively on its core operations.
Forward Guidance
Krispy Kreme updated its 2024 financial guidance as follows: - Net Revenue: $1,650 to $1,685 million - Organic Revenue Growth: +5% to +7% - Adjusted EBITDA: $215 to $220 million - Adjusted Diluted EPS: $0.24 to $0.28 - Income Tax Rate: 28% to 30% - Capital Expenditures: 7% to 8% of net revenue - Interest Expense, net: $55 million to $60 million
The company expects net leverage to trend towards 3.5x by year end.
Stock Price Movement
Following the earnings release, Krispy Kreme's stock price rose by 0.93%.
Overall, Krispy Kreme demonstrated solid revenue growth and operational improvements, despite a GAAP net loss and slight dips in some metrics, positioning itself well for future expansion and profitability.
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