Slide 1: Krispy Kreme, Inc. Fourth Quarter 2023 Earnings Presentation
KRISPY KREME, INC. FOURTH QUARTER 2023 EARNINGS PRESENTATION FEBRUARY 13, 2024 Krispy Kreme | 4Q23 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: Krispy Kreme | 4Q23 Earnings
Krispy Kreme | 4Q23 Earnings 3
Slide 4: Key Messages
KEY MESSAGES Continued strong omni-channel organic revenue growth +13.2% 4Q23 organic revenue growth Hub and Spoke model expansion delivered +40bps productivity growth and increased profitability Adj EBITDA Margin1 Scaling network efficiently, a bigger and better Krispy Kreme >75K Target global POA
Slide 5: Strong Organic Revenue Growth
STRONG ORGANIC REVENUE GROWTH Krispy Kreme | 4Q23 Earnings 5
Slide 6: Strong Consumer Demand from Existing Points of Access in All Channels
Disciplined Pursuit to STRONG CONSUMER DEMAND FROM EXISTING POINTS OF ACCESS IN ALL CHANNELS 40 HIGH IMPACT BRAND ACTIVATIONS • Tie-ins with beloved media properties • Buzzworthy marketing across all BILLION channels • Specialty doughnuts linked to holiday EARNED MEDIA gifting and sharing occasions
Slide 7: Increased Availability of Fresh Doughnuts Worldwide
INCREASED AVAILABILITY OF FRESH DOUGHNUTS WORLDWIDE NEW AND EXISTING NEW PARTNERS COUNTRIES >2,300 +7 POINTS OF ACCESS COUNTRIES WITH OPERATIONS +20% +22% Krispy Kreme | 4Q23 Earnings Calculations represent FY22 and FY23 YoY change 7
Slide 8: Hub & Spoke Productivity
HUB & SPOKE PRODUCTIVITY Krispy Kreme | 4Q23 Earnings 8
Slide 9: Driving Margin Through Hub and Spoke Productivity
DRIVING MARGIN THROUGH HUB AND SPOKE PRODUCTIVITY >2,300 POINTS OF ACCESS +3 Hot Light Theaters +198 Fresh Shops +2,068 DFD doors +1 PRODUCTION HUB +25 Hubs with Spokes -24 Hubs without Spokes Krispy Kreme | 4Q23 Earnings 9 Metrics represent FY22 and FY23 YoY change; POA Graphics exclude Cookie Bake
Slide 10: A Bigger and Better Krispy Kreme
A BIGGER AND BETTER KRISPY KREME Krispy Kreme | 4Q23 Earnings 10
Slide 11: Expanding Fresh Doughnut Availability
EXPANDING FRESH DOUGHNUT AVAILABILITY Markets U.S. Segment International Segment Market Development Segment # Grocery, Convenience Store, ~450K >1,000K >1,000K QSR and Other1 >15,000 >30,000 >30,000 Fresh Points 7,107 4,157 2,616 of Access Today Long Term Goal Today Long Term Goal Today Long Term Go
Slide 12: Modernizing the Making and Moving of Doughnuts
MODERNIZING THE MAKING AND MOVING OF DOUGHNUTS QUALITY PRODUCT AUTOMATE DOUGHNUT CONTINUOUSLY EVERY TIME, IN EVERY MAKING AND IMPROVE DOUGHNUT CHANNEL DECORATING DELIVERY Krispy Kreme | 4Q23 Earnings 12
Slide 13: Financial Update
FINANCIAL UPDATE Krispy Kreme | 4Q23 Earnings 13
Slide 14: Revenue Growth & Margin Improvement
REVENUE GROWTH & MARGIN IMPROVEMENT ORGANIC REVENUE ADJ EBITDA ADJ EBITDA MARGIN +12.2% +11.0% +40bps $1,676 14.2% $1,494 +10bps $212 13.8% $191 +13.2% +14.7% 12.5% 12.6% $394 $446 $56 $64 4Q22 4Q23 FY22 FY23 Krispy Kreme | 4Q23 Earnings Metrics in $M except Adjusted EBITDA margin 14
Slide 15: Organic Revenue Growth Across All Segments
ORGANIC REVENUE GROWTH ACROSS ALL SEGMENTS MARKET CONSOLIDATED U.S. INTERNATIONAL DEVELOPMENT SEGMENT SEGMENT SEGMENT 28.5% 21.6% 12.5% 13.2% 12.2% 19.2% 13.7% 12.6% 10.6% 11.3% 9.0% 7.0% 4Q22 4Q23 FY23 Krispy Kreme | 4Q23 Earnings 15
Slide 16: U.S. Segment
U.S. SEGMENT DFD DOORS 6,808 4Q21 4Q22 4Q23 5,729 5,204 POINTS OF ACCESS 5,713 6,256 7,372 SALES PER HUB ($M) $4.0 $4.5 $4.9 NET REVENUE ($M) $243.9 $270.8 $296.0 AVERAGE REVENUE PER DOOR ORGANIC GROWTH % 9.0% 10.6% 13.7% PER WEEK $665 $615 ADJ EBITDA ($M) $30.0 $35.3 $42.1 $561 ADJ EBITDA MARGIN 12
Slide 17: Hub and Spoke Productivity Gains Highest in U.S.
HUB AND SPOKE PRODUCTIVITY GAINS HIGHEST IN U.S. +POA +$/HUB + ADJ EBITDA MARGIN POINTS OF U.S. SALES PER ADJ EBITDA ACCESS HUB ($M) MARGIN +17.8% 7,372 +8.9% +120bps $4.9 14.2% 6,256 $4.5 13.0% Krispy Kreme | 4Q23 Earnings Metrics compare 4Q22 to 4Q23 17
Slide 18: International Segment
INTERNATIONAL SEGMENT DFD DOORS 3,693 4Q21 4Q22 4Q23 3,032 2,488 POINTS OF ACCESS 2,891 3,471 4,157 SALES PER HUB ($M) $8.7 $10.1 $10.0 NET REVENUE ($M) $90.0 $92.9 $107.1 AVERAGE REVENUE PER DOOR ORGANIC GROWTH % 30.8% 11.3% 9.0% PER WEEK 923 703 682 ADJ EBITDA ($M) $20.7 $20.5 $22.1 ADJ EBITDA MAR
Slide 19: Market Development Segment
MARKET DEVELOPMENT SEGMENT 4Q21 4Q22 4Q23 DFD DOORS POINTS OF ACCESS 1,823 2,110 2,618 1,423 1,095 NET REVENUE ($M) $36.7 $40.8 $47.8 891 ORGANIC GROWTH % 8.8% 28.5% 19.2% ADJ EBITDA ($M) $12.9 $14.0 $16.9 ADJ EBITDA MARGIN 35.1% 34.2% 35.4% 4Q21 4Q22 4Q23 Krispy Kreme | 4Q23 Earnings 19
Slide 20: Earnings Per Share YoY Drivers
EARNINGS PER SHARE YOY DRIVERS FY22 FY23 ADJ EBITDA $190.7 $211.6 DEPRECIATION & AMORTIZATION (81.8) (96.5) INTEREST & TAX (52.2) (67.6) NONCONTROLLING INTEREST (6.8) (1.3) WEIGHTED AVERAGE SHARES 169.5 170.5 OUTSTANDING ADJ DILUTED EPS $0.29 $0.27 Krispy Kreme | 4Q23 Earnings 20 All metrics are $M,
Slide 21: Cash Flows Impacted by Strategic Reduction in Use of Vendor Finance Programs
CASH FLOWS IMPACTED BY STRATEGIC REDUCTION IN USE OF VENDOR FINANCE PROGRAMS WHILE LEVERAGE REMAINS NEARLY FLAT FY22 FY23 Leverage Ratio Cash, cash equivalents and restricted $39.1 $35.7 cash at beginning of the fiscal year 4.21x 4.18x 4.03x 4.05x Net cash from operations 139.8 45.5 3.91x Net cash u
Slide 22: 2024 Full Year Outlook
2024 FULL YEAR OUTLOOK 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 – $65M On October 3, 2023, the Company announced it is exploring strate
Slide 23: 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 | 4Q23 Earnings 23
Slide 24: Q&A
Q&A Krispy Kreme | 4Q23 Earnings 24