Krispy Kreme, Inc. · NASDAQ:DNUT
Krispy Kreme — Q1 2024 Earnings Presentation
24 slides from Krispy Kreme's earnings presentation, May 9, 2024
Slide 1: Krispy Kreme First Quarter 2024 Earnings Presentation
KRISPY KREME, INC. FIRST QUARTER 2024 EARNINGS PRESENTATION MAY 9, 2024 Krispy Kreme | 1Q24 Earnings 1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements that involve risks and uncertainties. The words “believe,” “may,” “focus,” “expand,” “continuing,” “guidance,” “could,” “will,” “should,” “anticipate,” “estimate,” “e
Slide 3: Strong Results, Strategy Is Working
STRONG RESULTS, STRATEGY IS WORKING Krispy Kreme | 1Q24 Earnings 3
Slide 4: Paris, France
Paris, France Krispy Kreme | 1Q24 Earnings 4
Slide 5: Key Messages
KEY MESSAGES STRONG CONSUMER DEMAND, GROWING DIGITAL +6.7% 1Q24 Organic SALES Revenue Growth1 19.4% INCREASING GLOBAL POINTS OF ACCESS 1Q24 Points of Access Growth1 +15,000 ACCELERATING PROFITABLE U.S. EXPANSION Additional U.S. Points of Access2 8 to 11% REAFFIRMING 2024 GUIDANCE FY>150% Adj. EBITDA
Slide 6: Strong Consumer Demand, Growing Digital Sales
STRONG CONSUMER DEMAND, GROWING DIGITAL SALES 17.6B MEDIA IMPRESSIONS1 +26% DIGITAL SALES2 1) In fiscal 1Q24 Krispy Kreme | 1Q24 Earnings 6 2) Retail sales dollar growth 1Q24 vs. 1Q23
Slide 7: 100K Points of Access Goal
100K POINTS OF ACCESS GOAL Krispy Kreme | 1Q24 Earnings 7
Slide 8: Increasing Global Points of Access
INCREASING GLOBAL POINTS OF ACCESS EXISTING GLOBAL POINTS OF ACCESS CUSTOMERS 33,000 33% CAGR NEW CUSTOMERS 19% 14,147 CAGR 8,316 NEW MARKETS 1 2020 2023 2026 1) 2026 Points of Access count represents management estimates Krispy Kreme | 1Q24 Earnings 8
Slide 9: Profitable U.S. Expansion
PROFITABLE U.S. EXPANSION Krispy Kreme | 1Q24 Earnings 9
Slide 10: Accelerating Profitable U.S. Expansion: McDonald's Rollout
ACCELERATING PROFITABLE U.S. EXPANSION NATIONWIDE MCDONALD’S ROLLOUT TO >12,000 RESTAURANTS EXPECTED BY END OF 2026 • DELIVERED FRESH DAILY • THREE OF OUR MOST POPULAR DOUGHNUTS • COAST-TO-COAST EXPANSION Krispy Kreme | 1Q24 Earnings 10
Slide 11: Accelerating Profitable U.S. Expansion
ACCELERATING PROFITABLE U.S. EXPANSION U.S. POINTS OF ACCESS U.S. HUBS WITH SPOKES 1Q24 ADDITIONAL 1 1 DOORS 1) 2026 numbers represent management estimates Krispy Kreme | 1Q24 Earnings 11
Slide 12: Accelerating Profitable U.S. Expansion: Philadelphia and Minneapolis
ACCELERATING PROFITABLE U.S. EXPANSION POINTS OF ACCESS PER PHILADELPHIA – UNDERUTILIZED MARKET HUB WITH SPOKE FROM1 TO2 >100 POINTS OF ACCESS 63 300 HUBS WITH SPOKES 1 3 REVENUE2 ($MM) $7 $15 47 ADJ. EBITDA MARGIN3 7% 14% MINNEAPOLIS – NEW MARKET FROM1 TO2 POINTS OF ACCESS 0 400 2 HUBS WITH SPOKES
Slide 13: Accelerating Profitable U.S. Expansion: Illustrative Financial Impact
ACCELERATING PROFITABLE U.S. EXPANSION ILLUSTRATIVE FINANCIAL IMPACT LOW HIGH INCREMENTAL POA BY 2026 +14,000 +15,000 AVERAGE REVENUE PER DOOR PER $550 $650 WEEK ANNUALIZED INCREMENTAL REVENUE +$340 +$430 ($MM) ANNUALIZED INCREMENTAL ADJ. +$70 +$100 EBITDA ($MM) 1) Long-term management estimates Kri
Slide 14: Financial Update
FINANCIAL UPDATE Krispy Kreme | 1Q24 Earnings 14
Slide 15: Financial Results Beat Expectations
FINANCIAL RESULTS BEAT EXPECTATIONS ORGANIC REVENUE ADJ EBITDA ADJ EBITDA MARGIN +6.7% +5.9% $441 $58 13.1% 13.1% $413 $55 1Q23 1Q24 All metrics are $MM except Adjusted EBITDA margin Krispy Kreme | 1Q24 Earnings 15
Slide 16: U.S. Segment
U.S. SEGMENT DFD DOORS 7,198 1Q22 1Q23 1Q24 6,081 5,411 POINTS OF ACCESS 5,931 6,615 7,775 SALES PER HUB ($MM) $4.3 $4.6 $4.9 NET REVENUE ($MM) $247.9 $281.3 $295.9 ORGANIC GROWTH % 9.7% 13.7% 7.4% AVERAGE REVENUE PER DOOR PER WEEK $643 $640 ADJ EBITDA ($MM) $32.4 $38.5 $42.6 $594 ADJ EBITDA MARGIN
Slide 17: International Segment
INTERNATIONAL SEGMENT 1 DFD DOORS 1Q22 1Q23 1Q24 4,202 3,319 POINTS OF ACCESS 3,402 3,836 4,753 2,929 SALES PER HUB ($MM) $9.1 $9.8 $10.2 NET REVENUE ($MM) $104.5 $112.0 $124.8 ORGANIC GROWTH % 31.6% 12.7% 9.8% AVERAGE REVENUE PER DOOR PER WEEK $867 $712 ADJ EBITDA ($MM) $20.0 $19.0 $20.5 $620 ADJ E
Slide 18: Market Development Segment
MARKET DEVELOPMENT SEGMENT 1 1Q22 1Q23 1Q24 POINTS OF ACCESS 2,286 POINTS OF ACCESS 1,694 1,959 2,286 1,959 1,694 NET REVENUE ($MM) $20.1 $25.6 $22.0 ORGANIC GROWTH % 9.3% 31.8% -14.1% ADJ EBITDA ($MM) $9.7 $11.6 $11.9 ADJ EBITDA MARGIN 48.4% 45.1% 54.1% 1Q22 1Q23 1Q24 1) Reflects move of Canada and
Slide 19: Earnings Per Share YoY Drivers
EARNINGS PER SHARE YOY DRIVERS 1Q23 1Q24 ADJ EBITDA $54.9 $58.2 DEPRECIATION & AMORTIZATION (20.7) (26.2) INTEREST & TAX (17.0) (18.8) NONCONTROLLING INTEREST (1.9) (1.9) WEIGHTED AVERAGE SHARES 170.0 171.3 OUTSTANDING ADJ DILUTED EPS $0.09 $0.07 All metrics are $MM, except Adjusted Diluted EPS ($s)
Slide 20: Cash Flows Impacted by Reduction of Vendor Finance Programs
CASH FLOWS IMPACTED BY REDUCTION OF VENDOR FINANCE PROGRAMS FY 2023 YTD 2024 CASH, CASH EQUIVALENTS & LEVERAGE RATIO RESTRICTED CASH AT BEGINNING OF $35.7 $38.6 THE FISCAL YEAR 4.2x 4.2x 4.1x 4.2x 3.9x 4.0x NET CASH FROM/(USED FOR) 45.5 (17.7) OPERATIONS NET CASH USED FOR INVESTING (112.6) (29.0) NE
Slide 21: 2024 Full Year Guidance
2024 FULL YEAR GUIDANCE OUTLOOK NET REVENUE GROWTH 5 – 7% ORGANIC REVENUE GROWTH 6 – 8% ADJ EBITDA GROWTH 8 – 11% ADJ DILUTED EPS $0.27 – $0.31 ASSUMPTIONS INCOME TAX RATE 26 – 28% CAPITAL EXPENDITURES 7 – 8% INTEREST EXPENSE $55 – $65MM On October 3, 2023, the Company announced it is exploring stra
Slide 22: Focus on High Quality, Profitable Growth
FOCUS ON HIGH QUALITY, PROFITABLE Disciplined Pursuit to GROWTH EXPAND AVAILABILITY DRIVE OPERATING LEVERAGE MAXIMIZE CAPITAL RETURNS Krispy Kreme | 1Q24 Earnings 22
Slide 23: Q&A
Q&A Krispy Kreme | 1Q24 Earnings 23
Slide 24: Appendix
APPENDIX Krispy Kreme | 1Q24 Earnings 24