Krispy Kreme, Inc. · NASDAQ:DNUT
Krispy Kreme — Q4 2024 Earnings Presentation
28 slides from Krispy Kreme's earnings presentation, Feb 25, 2025
Slide 1: Fourth Quarter 2024 Earnings Presentation
Krispy Kreme, Inc. FOURTH QUARTER 2024 EARNINGS PRESENTATION FEBRUARY 25, 2025 Krispy Kreme | 4Q24 Earnings 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Certain statements made in this presentation and the conference call that this presentation accompanies are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be id
Slide 3: 2024 Highlights
2024 Highlights 18th +21% CONSECUTIVE U.S. DFD QUARTER OF ORGANIC SALES GROWTH1 REVENUE GROWTH 40 +5% ORGANIC COUNTRIES REVENUE GROWTH 1 1) Non-GAAP figure. See the appendix to this presentation for a reconciliation to the most Krispy Kreme | 4Q24 Earnings directly comparable GAAP measure. 3
Slide 4: Transforming to a Bigger & Better Krispy Kreme
Transforming to a Bigger & Better Krispy Kreme • Divested majority stake in Insomnia 2024 • Added national distribution partners • Restructured management teams U.S. DFD International franchise • Spotlight our core offerings • Focus on national distribution partners • Expect to outsource U.S. logist
Slide 5: 2025 Actions Prioritized Against Strategic Goals
2025 Actions Prioritized Against Strategic Goals Drive Consumer Expand Increase Hub & Improve Capital Inspire Relevance Availability Spoke Efficiency Efficiency Engagement SPOTLIGHT OUR FOCUS ON EXPECT TO EVALUATE STRENGTHEN CORE NATIONAL OUTSOURCE REFRANCHISING PERFORMANCE- OFFERINGS DISTRIBUTION U
Slide 6: Drive Consumer Relevance
Drive Consumer Relevance Spotlight >50% Buzzworthy, OF SALES1 on Iconic Innovative Original Specialty Glazed Doughnuts Doughnut >100B MEDIA IMPRESSIONS1 Krispy Kreme | 4Q24 Earnings 1) In FY24 6
Slide 7: Expand Availability
Expand Availability +24% +14% FY24 INTERNATIONAL FY24 GLOBAL POINTS COMPANY-OWNED POINTS OF ACCESS GROWTH OF ACCESS GROWTH >2.8K NEW U.S. DOORS Krispy Kreme | 4Q24 Earnings All metrics are FY24 v s FY23 7
Slide 8: Increase Hub & Spoke Efficiency
Increase Hub & Spoke Efficiency OUTSOURCE U.S. LOGISTICS • Focus on what we do best: Making fresh doughnuts • Expect to soon award contracts to national and regional carriers • Anticipate excellent service levels >50% OF DELIVERIES EXPECTED TO BE OUTSOURCED BY YEAREND Krispy Kreme | 4Q24 Earnings 8
Slide 9: Improve Capital Efficiency
Improve Capital Efficiency CAPITAL-LIGHT FRANCHISE Paris, France EXPANSION • Targeting capital-light growth in major markets • Opening 2-4 new international franchise markets • Evaluating refranchising certain international markets +8% >23K FY24 MARKET DEVELOPMENT TARGETED GLOBAL POINTS OF POINTS OF
Slide 10: Inspire Engagement
Inspire Engagement PERFORMANCE-BASED CULTURE • Field incentive compensation • New operations leadership • Simplified employee and manager roles Krispy Kreme | 4Q24 Earnings 10
Slide 11: Financial Update
Financial Update Krispy Kreme | 4Q24 Earnings 11
Slide 12: 4Q Financial Results
4Q Financial Results 1 ORGANIC REVENUE 2 ADJUSTED EBITDA2 ADJUSTED EBITDA MARGIN 2 +1.8% (28.4)% (280) bps 14.2% $394 $401 $64 11.4% $46 In 4Q24, we estimate that we lost revenue within our U.S. segment in an amount of $11 million related to the 2024 Cybersecurity Incident with a corresponding estim
Slide 13: U.S. Segment
U.S. Segment1 DFD DOORS 9,644 4Q22 4Q23 4Q24 6,808 POINTS OF ACCESS 6,256 7,374 9,951 5,729 SALES PER HUB ($MM) 2 $4.5 $4.9 $4.9 NET REVENUE ($MM) $270.8 $296.0 $245.1 ORGANIC GROWTH %2 AVERAGE REVENUE PER DOOR 10.6% 13.7% (1.2)% PER WEEK $615 $665 $631 ADJ EBITDA ($MM) 2 $35.3 $42.1 $23.6 ADJ EBITD
Slide 14: International Segment
International Segment 1 DFD DOORS 4,583 4Q22 4Q23 4Q24 3,977 3,210 POINTS OF ACCESS 3,718 4,520 5,168 SALES PER HUB ($MM) 2 $9.6 $9.9 $10.1 NET REVENUE ($MM) $113.0 $131.0 $138.4 ORGANIC GROWTH %2 14.6% 11.5% 7.8% AVERAGE REVENUE PER DOOR PER WEEK $698 $678 $642 ADJ EBITDA ($MM) 2 $24.7 $27.9 $25.7
Slide 15: Market Development Segment
Market Development Segment 1 4Q22 4Q23 4Q24 POINTS OF ACCESS POINTS OF ACCESS 1,863 2,253 2,438 2,438 2,253 1,863 NET REVENUE ($MM) $20.7 $23.9 $20.5 ORGANIC GROWTH %2 26.7% 15.3% (0.7)% ADJ EBITDA ($MM) 2 $9.7 $11.1 $11.9 ADJ EBITDA MARGIN2 46.9% 46.4% 57.8% 4Q22 4Q23 4Q24 1) Reflects move of Canad
Slide 16: Earnings per Share
Earnings per Share 1 FY 23 FY 24 ADJUSTED EBITDA2 $211.6 $193.5 DEPRECIATION & (96.5) (103.3) AMORTIZATION INTEREST & TAX (67.6) (70.3) NONCONTROLLING (1.3) (0.7) INTEREST WEIGHTED AVERAGE 170.5 171.5 SHARES OUTSTANDING ADJUSTED EPS2 $0.27 $0.11 1) All metrics are $MM except Adjusted EPS ($s) and We
Slide 17: Positive Operating Cash Flows
Positive Operating Cash Flows1 FY 2023 FY 2024 CASH, CASH EQUIVALENTS & NET LEVERAGE RATIO2 RESTRICTED CASH AT BEGINNING $35.7 $38.6 4.5x OF THE FISCAL YEAR 4.1x NET CASH PROVIDED BY 45.5 45.8 OPERATIONS NET CASH (USED FOR)/PROVIDED (112.6) 19.3 BY INVESTING NET CASH PROVIDED BY/(USED 71.9 (73.9) FO
Slide 18: 2025 Guidance
2025 Guidance1 OUTLOOK NET REVENUE $1,550 – $1,650 ORGANIC REVENUE 5 – 7% GROWTH2 ADJUSTED EBITDA2 $180– $200 ADJUSTED EPS2 $0.04 – $0.08 ASSUMPTIONS INCOME TAX RATE 32 – 36% CAPITAL EXPENDITURES 6 – 7% INTEREST EXPENSE $65 – $75 1) Dollar metrics in $MMs Krispy Kreme | 4Q24 Earnings 2) Non-GAAP fig
Slide 19: Transforming to a Bigger & Better Krispy Kreme
Transforming to a Bigger & Better Krispy Kreme SPOTLIGHT ON CORE OFFERINGS FOCUS ON NATIONAL DISTRIBUTION PARTNERS U.S. DFD EXPECT TO OUTSOURCE U.S. International LOGISTICS franchise EVALUATE REFRANCHISING CERTAIN INTERNATIONAL MARKETS STRENGTHEN PERFORMANCE- BASED CULTURE Krispy Kreme | 4Q24 Earnin
Slide 20: Q&A
Q&A Krispy Kreme | 4Q24 Earnings 20
Slide 21: Appendix
Appendix 21
Slide 22: Krispy Kreme | 4Q24 Earnings
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Slide 23: Krispy Kreme | 4Q24 Earnings
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Slide 24: Krispy Kreme | 4Q24 Earnings
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Slide 25: Organic Revenue Growth
Organic Revenue Growth Organic revenue growth measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define “organic revenu
Slide 26: Krispy Kreme | 4Q24 Earnings
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Slide 27: Krispy Kreme | 4Q24 Earnings
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Slide 28: Krispy Kreme | 4Q24 Earnings
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