Krispy Kreme, Inc. · NASDAQ:DNUT
Krispy Kreme — Q1 2025 Earnings Presentation
27 slides from Krispy Kreme's earnings presentation, May 8, 2025
Slide 1: First Quarter 2025 Earnings Presentation
Krispy Kreme, Inc. FIRST QUARTER 2025 EARNINGS PRESENTATION MAY 8, 2025 Krispy Kreme | 1Q25 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: Transforming to a Bigger & Better Krispy Kreme
Biggest Growth Opportunities Transforming to a • PROFITABLE U.S. EXPANSION • INTERNATIONAL FRANCHISE Bigger & Better How We Get Krispy Kreme There Goal of 100,000 • DE-LEVERAGING THE Points Of BALANCE SHEET Access • SUSTAINABLE, PROFITABLE GROWTH Krispy Kreme | 1Q25 Earnings 3
Slide 4: 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 SIMPLIFY EVALUATE STRENGTHEN CORE NATIONAL OPERATIONS, REFRANCHISING PERFORMANCE- OFFERINGS DISTRIBUTION
Slide 5: Drive Consumer Relevance
Drive Consumer Relevance Spotlighting the Original Glazed doughnut, our most popular & affordable Strong sales with flavored glazes Limiting discounts to buzzworthy events Krispy Kreme | 1Q25 Earnings 5
Slide 6: Expand Availability
Expand Availability PROFITABLE U.S. DFD GROWTH ~$1,100 AVERAGE REVENUE PER DOOR PER WEEK (“APD”) ~$400 Internati onal Expansio Club Mass Grocery C-Store n QSR 1Q25 Doors: >10 1Q25 Doors: >1,700 1Q25 Doors: >3,900 1Q25 Doors: >2,000 1Q25 Doors: >2,400 Channel-average APD based on data as of FY24 Kris
Slide 7: Increase Hub & Spoke Efficiency
Increase Hub & Spoke Efficiency ADDRESSING COSTS & PROFITABILTY • Outsourcing U.S. logistics Drive-thru Speed • Improving staffing and production Monitor demand planning, lowering costs and waste • New COO, Nicola Steele, focused on: 1• Simplifying operations 2• Delivering efficiencies 3• Improving
Slide 8: Improve Capital Efficiency
Improve Capital Efficiency FUNDING ONLY THE HIGHEST RETURN INVESTMENTS 1• Advancing capital-light international franchise growth Krispy Kreme Subway Station 2• Evaluating refranchising certain São Paulo, Brazil Seoul, South Korea international markets Hungry Jack’s Krispy Kreme | 1Q25 Earnings Newca
Slide 9: Inspire Engagement
Inspire Engagement PERFORMANCE-BASED CULTURE 1• Upgrading talent 2• Investing in shop digitization 3• Enhancing Krispy Kremer support 4• Implementing new incentive structure to drive alignment Krispy Kreme | 1Q25 Earnings 9
Slide 10: Financial Update
Financial Update Krispy Kreme | 1Q25 Earnings 10
Slide 11: 1Q Financial Results
1Q Financial Results 1 ORGANIC REVENUE2 ADJUSTED EBITDA2 ADJUSTED EBITDA MARGIN2 (1.0)% (58.8)% (670) bps $378 $375 13.1% $58 6.4% $24 1Q24 1Q25 1) Includes estimated impacts of 2024 Cybersecurity Incident of $5MM to Adjusted EBITDA. 1Q24 Adj. EBITDA includes contribution from Insomnia Cookies. 2) N
Slide 12: U.S. Segment
U.S. Segment1 DFD DOORS 10,186 1Q23 1Q24 1Q25 7,198 POINTS OF ACCESS 6,615 7,775 10,491 6,081 SALES PER HUB ($MM) 2 $4.6 $4.9 $4.8 NET REVENUE ($MM) $281.3 $295.9 $236.5 ORGANIC GROWTH %2 13.7% 7.4% (2.6)% AVERAGE REVENUE PER DOOR PER WEEK $643 $640 $587 ADJ EBITDA ($MM) 2 $38.5 $42.6 $15.9 ADJ EBIT
Slide 13: International Segment
International Segment1 DFD DOORS 4,202 4,469 1Q23 1Q24 1Q25 3,319 POINTS OF ACCESS 3,836 4,753 5,052 SALES PER HUB ($MM) 2 $9.6 $9.9 $9.8 NET REVENUE ($MM) $112.0 $124.8 $119.6 ORGANIC GROWTH %2 12.7% 9.8% 1.5% AVERAGE REVENUE PER DOOR PER WEEK $712 $620 $578 ADJ EBITDA ($MM) 2 $19.0 $20.5 $14.9 ADJ
Slide 14: Market Development Segment
Market Development Segment 1 1Q23 1Q24 1Q25 POINTS OF ACCESS POINTS OF ACCESS 1,959 2,286 2,439 2,439 2,286 1,959 NET REVENUE ($MM) $25.6 $22.0 $19.0 ORGANIC GROWTH %2 31.8% (14.1)% 2.7% ADJ EBITDA ($MM) 2 $11.6 $11.9 $11.0 ADJ EBITDA MARGIN2 45.1% 54.1% 58.1% 1Q23 1Q24 1Q25 1) Reflects move of Cana
Slide 15: Earnings per Share
Earnings per Share1 1Q 24 1Q 25 ADJUSTED EBITDA2 $58.2 $24.0 DEPRECIATION & (26.2) (26.2) AMORTIZATION INTEREST & TAX (18.8) (6.7) NONCONTROLLING (1.9) 0.1 INTEREST WEIGHTED AVERAGE 171.2 170.3 SHARES OUTSTANDING ADJUSTED EPS2 $0.07 $(0.05) 1) All metrics are $MM except Adjusted EPS ($s) and Weighte
Slide 16: Cash Flow
Cash Flow1 FY 2024 1Q25 CASH, CASH EQUIVALENTS & NET LEVERAGE RATIO2 RESTRICTED CASH AT BEGINNING $38.6 $29.3 OF THE FISCAL YEAR 6.1x NET CASH PROVIDED BY 45.8 (20.8) OPERATIONS 4.2x NET CASH (USED FOR)/PROVIDED 19.3 (25.8) BY INVESTING NET CASH PROVIDED BY/(USED (73.9) 36.8 FOR) FINANCING EFFECT OF
Slide 17: Plan to Improve our Financial Position
Plan to Improve our Financial Position 1• Discontinuing dividend to improve financial flexibility and de-leverage the balance sheet 2• Deploying capital to only the highest Transforming to a returning investments Bigger & Better 3• Expanding margins through greater operational efficiency and SG&A Kr
Slide 18: Guidance
Guidance1 2Q 2025 OUTLOOK NET REVENUE $375 – $385 ADJUSTED EBITDA2 $30– $35 1) Dollar metrics in $MMs 2) Non-GAAP figure. See slide 2 of this presentation for more Krispy Kreme | 1Q25 Earnings information on forward-looking statements and non-GAAP 18 measures.
Slide 19: 2025 Actions to De-leverage and Achieve Profitable Growth
2025 Actions to De-leverage and Achieve Profitable Growth Drive Consumer Expand Increase Hub & Improve Capital Inspire Relevance Availability Spoke Efficiency Efficiency Engagement SPOTLIGHT OUR FOCUS ON SIMPLIFY EVALUATE STRENGTHEN CORE NATIONAL OPERATIONS, REFRANCHISING PERFORMANCE- OFFERINGS DIST
Slide 20: Q&A
Q&A Krispy Kreme | 1Q25 Earnings 20
Slide 21: Appendix
Appendix
Slide 22: Krispy Kreme | 1Q25 Earnings
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Slide 23: Krispy Kreme | 1Q25 Earnings
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Slide 24: 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 25: Krispy Kreme | 1Q25 Earnings
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Slide 26: Krispy Kreme | 1Q25 Earnings
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Slide 27: Krispy Kreme | 1Q25 Earnings
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