h3 Krispy Kreme Inc Reports Second Quarter 2024 Financial Resultsh3p Krispy Kreme Inc NASDAQDNUT has
Intellectia.AI Updated: 1970-01-01
Krispy Kreme, Inc. Reports Second Quarter 2024 Financial Results
Krispy Kreme, Inc. (NASDAQ:DNUT) has reported its financial results for the quarter ended June 30, 2024, showcasing strong revenue growth amidst innovative marketing and strategic operational enhancements.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate | Quarter-over-Quarter |
|---|---|---|---|---|---|
| Net Revenue | $438.8 million | $408.9 million | +7.3% | $435.49 million | +0.76% |
| Organic Revenue | $440.2 million | $408.4 million | +7.8% | N/A | +0.44% |
| GAAP Net Income | -$4.9 million | $0.1 million | N/A | N/A | N/A |
| Adjusted EBITDA | $54.7 million | $48.8 million | +12.1% | N/A | +11.66% |
| Adjusted Diluted EPS | $0.05 | $0.07 | -28.6% | $0.05 | 0% |
Krispy Kreme demonstrated strong top-line growth with net revenue increasing by 7.3% year-over-year, slightly surpassing Wall Street's consensus estimate of $435.49 million. However, the company reported a GAAP net loss of $4.9 million, a turn from the modest profit in Q2 2023, mainly driven by increased costs related to expansion and amortization. Adjusted EBITDA grew substantially, reflecting optimizations in the company's operational efficiencies despite higher depreciation costs.
Revenue Performance by Segments
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Growth | Organic Revenue Growth |
|---|---|---|---|---|
| U.S. | $288.4 million | $266.5 million | +8.2% | +8.4% |
| International | $124.9 million | $120.2 million | +3.9% | +5.0% |
| Market Development | $24.5 million | $21.1 million | +16.1% | +16.1% |
The U.S. segment led revenue growth with an 8.2% increase driven by a 24% rise in Delivered Fresh Daily sales and a 26% boost in digital sales. The International segment saw moderate growth influenced by record POA expansion despite softer U.K. sales. Market Development showed robust performance with a 16.1% rise, benefiting from higher equipment sales.
Key Operational Data
| Metric | Q2 2024 |
|---|---|
| Global Points of Access (POA) | 15,853 |
| Increase in POA | +2,981 (23.2%) |
| U.S. Sales per Hub | $5.0 million |
| DFD average sales per door | $657/week |
Krispy Kreme's global accessibility improved significantly, with a 23.2% increase in POA to 15,853 locations driven by strategic expansions in various regions including Germany, Brazil, Spain, and Morocco.
Comments from Company's Officers
"Krispy Kreme had another strong quarter as our fresh doughnuts are becoming even easier to purchase and more available globally," said CEO Josh Charlesworth. He emphasized the company's focus on core strategies following the sale of a majority stake in Insomnia Cookies, indicating strategic prioritization on fresh doughnut production and distribution.
Forward Guidance
For the full year 2024, Krispy Kreme updated its guidance to reflect the recent sale of a majority stake in Insomnia Cookies:
- 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 : Between 28% and 30%
- Capital Expenditures : 7% to 8% of net revenue
- Interest Expense, net : $55 million to $60 million
Stock Price Movement
Post the earnings release, Krispy Kreme's stock experienced a positive movement with an increase of +2.12%.
Krispy Kreme is positioning itself for sustained growth with strategic expansions and operational efficiencies while redirecting focus post-Insomnia Cookies sale.
