Krispy Kreme, the renowned American doughnut and coffeehouse chain, has reported a net loss of $6.7 million for the first quarter (Q1) of 2024, a significant downturn from the $1.6 million net income recorded in Q1 2023.
However, the company experienced a 5.7% growth in net revenues, reaching $442.7 million in the quarter, up from $419 million.
The US market’s contribution to total revenues stood at $296 million, marking a 5.2% increase from the $281.3 million reported in Q1 2023.
International revenues surged by 11.4% to $124.7 million, compared to $112 million from the previous year.
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In Q1 2024, the company’s operating income amounted to $11.9 million, reflecting a decrease of 20.3% from the $14.9 million reported in Q1 2023.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 6% year-on-year to $58.2 million.
CEO Josh Charlesworth of Krispy Kreme remarked, “Our first-quarter performance surpassed our expectations, propelled by heightened digital sales and robust consumer demand. This was particularly evident during Valentine’s Day, where specialty doughnuts were available in 33 countries worldwide, setting a new record.”
“Our initiative to enhance the global availability of fresh Krispy Kreme doughnuts is yielding remarkable outcomes. We are revolutionizing the production and distribution of doughnuts to ensure sustained, high-quality, and profitable growth. The expansion of our fresh daily delivery service is gaining momentum, reaching more grocery stores, convenience stores, and quick-service restaurants.”
“We are thrilled about our newly announced partnership with McDonald’s, which by the end of 2026 is anticipated to have more than 12,000 additional points of access in the US. Much of this countrywide deployment will be supported by our current capacity, and as we expand, we’ll add distribution through other significant clients.
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Krispy Kreme has also released its financial outlook for 2024. The company anticipates net revenue growth to range between 5% and 7%, with adjusted EBITDA growth estimated to be between 8% and 11%.
Adjusted diluted earnings per share (EPS) are projected to fall within the range of $0.27 to $0.31, while capital expenditures are expected to constitute 7% to 8% of net revenue.
