Krispy Kreme revenues hit $407.4m in Q3

Krispy Kreme reported net revenues of $407.4m (£333m) in Q3 2023, a 7.9% increase compared with Q3 2022. 

Total company organic revenues grew 9.6% in the quarter, led by the US, which delivered 10.2% organic growth in the quarter driven by growth across all sales channels, including delivered fresh daily (DFD) doors, doughnut shops and cookie bakeries, and ecommerce.

The company also confirmed GAAP net loss for the quarter was $40.3m (£32.9m), compared to a GAAP net loss of $11.8m (£9.6m) in 2022, due to the forecasted effective tax rate and attributable non-cash income tax expense. 

Adjusted EBITDA in the quarter grew in excess of revenue at 13.5% to $43.7m (£35.7m), driven by improved profitability across each of the reportable segments. 

In the US segment, net revenue increased  $13.3m (£10.8m) to $260m (£212m), or approximately 5.4%, and organic revenue increased to $23.9m (£19.5m). US adjusted EBITDA increased 8.8% to $22.3m (£18.2m). 

In the International segment, net revenue grew $14.2m (£11.6m) to $106m (£86m), or approximately 15.4%, while organic revenue grew to $7.5m (£6.1m), or approximately 8.2%. International adjusted EBITDA grew 17.3% to $21.4m (£17.5m). 

For the full year, the company now expects net revenues of $1.68bn (£1.3bn) and an adjusted EBITDA of $215m (£176m). 

CEO Mike Tattersfield said: “Our third quarter results showed the strength of our team, business model, and the power of our brand. We delivered revenue and Adjusted EBITDA growth, while delivering Adjusted EBITDA margin expansion through our hub and spoke model. Our global expansion continued, and our doughnuts became available in two new markets, Switzerland and Kazakhstan, and Insomnia Cookies expanded internationally into Canada and the United Kingdom.

“We expect to open in Ecuador and France in the fourth quarter taking our new market openings to seven in 2023. We are also excited about our continued partnership with McDonald’s, which we believe has validated the attractiveness of the quick-service restaurant channel. While nothing has been finalised, we are in advanced discussions about expanding the partnership and are making investments in the U.S. that reflect our confidence in further scaling our Delivered Fresh Daily network.”