Krispy Kreme, Inc. (DNUT) Bundle
A Brief History of Krispy Kreme
Company Overview
Krispy Kreme, Inc. (NASDAQ: DNUT) is a prominent doughnut and coffee chain founded in 1937. The company has established itself as a leader in the global doughnut market, with a focus on innovative flavors and a commitment to quality. As of 2024, Krispy Kreme operates over 15,800 locations worldwide, showcasing its expansive reach.
Financial Performance
For the third quarter ended September 29, 2024, Krispy Kreme reported net revenues of $379.9 million, a decrease of 6.8% compared to $407.4 million in the same quarter of the previous year. The company's net income attributed to Krispy Kreme, Inc. was $39.6 million, a significant turnaround from a net loss of $40.5 million in the prior year.
Quarterly Segment Performance
| Segment | Q3 2024 Revenues (in thousands) | Q3 2023 Revenues (in thousands) | Change (%) |
|---|---|---|---|
| U.S. | $228,376 | $260,177 | -12.2% |
| International | $130,697 | $126,077 | +3.7% |
| Market Development | $20,794 | $21,113 | -1.5% |
| Total | $379,867 | $407,367 | -6.8% |
Adjusted EBITDA
Krispy Kreme's Adjusted EBITDA for Q3 2024 was $34.7 million, reflecting a decline of 20.7% from $43.7 million in Q3 2023. The U.S. segment Adjusted EBITDA decreased by 37.5% to $13.9 million, while the International segment saw a decrease of 8.7% to $22.8 million.
Debt and Cash Flow Management
The company reported net interest expense of $16.3 million for the quarter, an increase of 27.1% year-over-year, which reflects its ongoing efforts to manage debt levels effectively. Cash and cash equivalents stood at $25.4 million as of September 29, 2024.
Stock Performance and Market Capitalization
As of 2024, Krispy Kreme's stock price reflects a market capitalization of approximately $1.7 billion. The shares have experienced volatility due to market conditions and operational performance, but the company remains a significant player in the food service industry.
Future Outlook
Krispy Kreme is focused on expanding its omni-channel strategy, which includes enhancing its digital ordering capabilities and increasing points of access globally. The company aims to mitigate the impact of inflation through strategic pricing initiatives while continuing to innovate its product offerings.
Recent Strategic Changes
In 2024, Krispy Kreme divested its Insomnia Cookies business, which significantly impacted its financial results, particularly in terms of revenue and operational restructuring. This move aligns with the company's strategy to streamline operations and focus on core competencies in the doughnut market.
Shareholder Returns
Krispy Kreme has declared dividends of $0.035 per share for the third quarter of fiscal 2024, reflecting its commitment to returning value to shareholders despite recent financial challenges.
Conclusion
As Krispy Kreme continues to navigate the complex food service landscape, its focus on innovation, operational efficiency, and strategic growth will be critical in maintaining its market position and driving future profitability.
A Who Owns Krispy Kreme, Inc. (DNUT)
Major Shareholders
As of 2024, the ownership structure of Krispy Kreme, Inc. consists of various institutional and individual shareholders. The following table outlines the major shareholders of Krispy Kreme, Inc., including their respective ownership percentages.
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| JAB Holding Company | Institutional | 88,200,000 | 51.8% |
| The Vanguard Group, Inc. | Institutional | 12,700,000 | 7.5% |
| BlackRock, Inc. | Institutional | 10,500,000 | 6.2% |
| State Street Corporation | Institutional | 8,900,000 | 5.3% |
| Other Institutional Investors | Various | 41,700,000 | 24.2% |
| Insider Holdings | Individual | 1,000,000 | 0.6% |
Institutional Ownership
As of the latest reports, institutional investors hold approximately 90% of the total shares of Krispy Kreme, Inc. The following table provides a detailed breakdown of the institutional ownership.
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| JAB Holding Company | 88,200,000 | 51.8% |
| The Vanguard Group, Inc. | 12,700,000 | 7.5% |
| BlackRock, Inc. | 10,500,000 | 6.2% |
| State Street Corporation | 8,900,000 | 5.3% |
| Other Institutional Investors | 41,700,000 | 24.2% |
Recent Financial Performance
Krispy Kreme reported a net revenue of $1,261,374,000 for the first three quarters of fiscal 2024, which reflects a growth of approximately 2.1% compared to the previous fiscal year. The net income attributable to Krispy Kreme, Inc. was $25,538,000.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $379,867,000 | $407,367,000 | -6.8% |
| Net Income | $39,563,000 | ($40,457,000) | 197.8% |
| Adjusted EBITDA | $34,699,000 | $43,741,000 | -20.7% |
Dividends and Shareholder Returns
Krispy Kreme declared a cash dividend of $0.035 per share in the third quarter of fiscal 2024. The total dividends declared for the first three quarters amounted to approximately $5,919,000.
| Dividend Metric | Amount |
|---|---|
| Dividend Per Share | $0.035 |
| Total Dividends Declared | $5,919,000 |
Conclusion on Ownership Structure
The ownership of Krispy Kreme is primarily dominated by institutional investors, with JAB Holding Company being the largest shareholder. The company's financial performance reflects a focus on growth, despite some fluctuations in revenue and net income. The declared dividends indicate a commitment to returning value to shareholders.
Krispy Kreme, Inc. (DNUT) Mission Statement
Overview of Mission Statement
Krispy Kreme, Inc. aims to be the world's most loved and trusted sweet treat brand, known for its delicious doughnuts and coffee. The mission emphasizes quality, freshness, and customer experience.
Financial Performance Indicators
As of the third quarter of fiscal 2024, Krispy Kreme reported various financial metrics that reflect its operational efficiency and market presence.
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Revenues | $379,867,000 | $407,367,000 | -6.8% |
| Net Income/(Loss) | $39,563,000 | ($40,457,000) | 197.8% |
| Adjusted EBITDA | $34,699,000 | $43,741,000 | -20.7% |
| Organic Revenue Growth | $12,592,000 | N/A | N/A |
Segment Revenue Breakdown
The following table outlines net revenues by segment for the third quarter of fiscal 2024.
| Segment | Net Revenues (Q3 2024) | Net Revenues (Q3 2023) | % Change |
|---|---|---|---|
| U.S. | $228,376,000 | $260,177,000 | -12.2% |
| International | $130,697,000 | $126,077,000 | 3.7% |
| Market Development | $20,794,000 | $21,113,000 | -1.5% |
Operational Highlights
In the first three quarters of fiscal 2024, Krispy Kreme achieved total net revenues of $1,261,374,000, reflecting a growth of 2.1% compared to $1,235,199,000 in the same period of fiscal 2023.
Share Performance and Market Capitalization
As of September 29, 2024, Krispy Kreme's common stock was trading at approximately $0.23 per share, with a total market capitalization of approximately $1.6 billion.
Strategic Initiatives
- Expansion through 2,417 additional Global Points of Access.
- Focus on an omni-channel strategy to enhance customer reach and experience.
- Implementation of pricing strategies to mitigate cost inflation, resulting in an average pricing increase of approximately 6%.
Investment in Growth
Krispy Kreme plans to support its expansion strategies through capital expenditures which are projected to increase as a percentage of revenues in fiscal 2025 and 2026, primarily to enhance the U.S. business expansion.
Conclusion
The mission statement of Krispy Kreme, Inc. reflects its commitment to quality and customer satisfaction, backed by strong financial performance and strategic initiatives aimed at sustainable growth.
How Krispy Kreme, Inc. (DNUT) Works
Company Overview
Krispy Kreme, Inc. (Ticker: DNUT) operates as a global retailer and wholesaler of doughnuts, cookies, and other baked goods. The company has a widespread network of stores, primarily in the United States and internationally, focusing on an omni-channel strategy to enhance customer access.
Financial Performance
As of the third quarter of fiscal 2024, Krispy Kreme reported the following financial results:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Net Revenues | $379,867 | $407,367 | -6.8% |
| Net Income (Loss) Attributable to Krispy Kreme, Inc. | $39,563 | $(40,457) | 197.8% |
| Adjusted Net (Loss) Income, Diluted | $(2,498) | $4,406 | -156.7% |
| Adjusted EBITDA | $34,699 | $43,741 | -20.7% |
Revenue Segmentation
The company's revenues are segmented into three main categories: U.S., International, and Market Development. Below is a breakdown of net revenues for the first three quarters of fiscal 2024:
| Segment | Net Revenues (in thousands) | Growth % |
|---|---|---|
| U.S. | $813,615 | 0.6% |
| International | $380,716 | 6.2% |
| Market Development | $67,043 | -0.8% |
| Total | $1,261,374 | 2.1% |
Operational Highlights
In Q3 2024, Krispy Kreme added a total of 244 new Global Points of Access, reaching a total of 15,811 locations worldwide. The company focuses on expanding its Direct Store Delivery (DSD) network, contributing to a significant increase in sales per hub:
| Metric | Value |
|---|---|
| Total Points of Access Growth | 2,417 |
| Sales per Hub (last 4 quarters) | $4.9 million |
Cost Structure
Krispy Kreme has seen changes in its cost structure, particularly in product and distribution costs, which decreased by $19.6 million or 5.9% compared to the previous year:
| Cost Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Product and Distribution Costs | $310,000 | $329,600 |
| Operating Expenses | $71,110 | $68,305 |
| Depreciation and Amortization | $31,376 | $32,007 |
Debt and Financing
Krispy Kreme's long-term debt as of September 29, 2024, is as follows:
| Debt Type | Amount (in thousands) |
|---|---|
| Term Loan | $656,250 |
| Revolving Credit Facility | $142,500 |
| Finance Lease Obligations | $54,549 |
| Total Long-term Debt | $852,215 |
Dividends
Krispy Kreme declared a dividend of $0.035 per share in Q3 2024, impacting cash flow and shareholder returns:
| Dividend Declaration | Amount (in thousands) |
|---|---|
| Dividends Declared | $5,960 |
Conclusion of Financial Metrics
The financial landscape of Krispy Kreme, Inc. as of 2024 reflects a complex interplay of growth strategies, operational adjustments, and market conditions. The company's ongoing efforts to enhance its omni-channel presence and optimize cost structures are key to navigating the current economic climate.
How Krispy Kreme, Inc. (DNUT) Makes Money
Revenue Streams
Krispy Kreme generates revenue through multiple channels, predominantly through its sales of doughnuts and beverages. The company operates in several segments: U.S. Retail, International, and Market Development.
| Segment | Q3 2024 Net Revenue (in thousands) | Q3 2023 Net Revenue (in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| U.S. Retail | $228,376 | $260,177 | -12.2% |
| International | $130,697 | $126,077 | 3.7% |
| Market Development | $20,794 | $21,113 | -1.5% |
| Total | $379,867 | $407,367 | -6.8% |
Product Sales
Product sales account for approximately 97.8% of total revenues, with doughnuts being the primary product offered. The company has seen fluctuations in product sales due to changes in consumer demand and competitive pressures.
Key Financial Metrics
For the three quarters ended September 29, 2024, Krispy Kreme reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $1,261,374 | $1,235,199 | 2.1% |
| Net Income (Loss) | $25,978 | $(38,530) | 167.4% |
| Adjusted EBITDA | $147,613 | $147,483 | 0.1% |
International Expansion
Krispy Kreme continues to expand its international footprint, contributing to revenue growth. The international segment reported a revenue increase of $4.6 million from Q3 2023 to Q3 2024, primarily driven by growth in Points of Access and pricing adjustments.
Operational Efficiency
Cost management is crucial for Krispy Kreme. The company reported a decrease in product and distribution costs, falling from 26.7% of revenue in fiscal 2023 to 24.6% in fiscal 2024. This improvement resulted from effective pricing actions and the exit from lower-margin businesses.
Digital Sales Growth
Digital channels have become increasingly significant for Krispy Kreme, with branded digital channel revenues growing by approximately 26% in the U.S. segment. This growth reflects the company's strategic focus on enhancing its online and delivery capabilities.
Market Development and Franchise Operations
The Market Development segment focuses on expanding the franchise model, which has shown robust growth. Organic revenue growth in this segment was approximately 2.3% from Q3 2023 to Q3 2024.
Key Challenges
The divestiture of Insomnia Cookies had a significant impact, resulting in a $43.5 million revenue reduction in the U.S. segment. Despite this challenge, the company has managed to maintain overall revenue stability through other operational improvements.
Conclusion on Financial Performance
The recent financial performance of Krispy Kreme indicates a complex landscape of growth opportunities and challenges. The company's strategic initiatives, including digital expansion and international growth, are essential for sustaining revenue in a competitive market.
For the third quarter of fiscal 2024, Krispy Kreme's net income attributable to the company was $39,563, a significant recovery from the loss of $40,457 in the same quarter of the previous year.
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Resources:
- Krispy Kreme, Inc. (DNUT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Krispy Kreme, Inc. (DNUT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Krispy Kreme, Inc. (DNUT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.