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Krispy Kreme DOUGHNUTS Krispy Kreme Reports Robust Third Quarter 2021 Results , with Strong Momentum into Q4 November 9 , 2021 Company Reaffirms Full Year 2021 Guidance and Long - Term Outlook 2022 Expected to Exceed Long - Term Outlook CHARLOTTE , N.C .-- ( BUSINESS WIRE ) -- Nov . 9 , 2021-- Krispy Kreme , Inc. ( NASDAQ : DNUT ) ( " Krispy Kreme " or the " Company " ) today reported strong financial results for the third quarter ended October 3 , 2021 with net revenue growing 18 % year - over - year . Organic growth , excluding the now fully exited legacy wholesale business , was 14 % year - over - year and 22 % on a two - year basis . Including the exited business , organic growth was 6 % year - over - year , in line with company expectations after lapping a strong third quarter in 2020 . Growth was driven by the performance and expansion of Krispy Kreme's signature capital - efficient hub and spoke operating model . Global Points of Access , which reflect all locations where fresh doughnuts and cookies can be purchased , have grown 46 % year - over - year , providing customers access to Krispy Kreme in more than 10,000 locations around the world . International Sales per Hub have grown 31 % in the quarter year - over - year while U.S. and Canada Sales per Hub have grown 15 % . In addition , ecommerce represented 17 % of global retail sales in the third quarter . Adjusted diluted Earnings Per Share was $ 0.06 in line with our expectations while GAAP diluted Loss Per Share which included IPO and acquisition related expenses was ( $ 0.04 ) . Adjusted EBITDA grew 10 % in the quarter , driven by the strength and efficiency of the Company's fresh doughnut hub and spoke operating model . The economies of scale from adding over 3,000 Global Points of Access in the last 12 months , as well as a successful price increase in September , are already helping to offset wage and commodity inflation , with more of an impact of the price increase to come in the fourth quarter . Net debt decreased 40 % to $ 681 million from the end of the second quarter as a result of proceeds from the IPO and positive free cash flow generated during the third quarter . Current net leverage is now 3.7x . Including the impact of acquiring the Krispy Kreme Canada franchise operations in the fourth quarter , the company expects net leverage to be under 3.0x in the next 12 months . Commenting on the performance , CEO Mike Tattersfield stated , " Our third quarter results demonstrate the benefits of our omni - channel and global expansion strategy , which allow us to meet consumer demand with premium , fresh doughnuts , in a capital - efficient manner . We are seeing positive momentum continue into the seasonally strong fourth quarter , as consumers sought out our sweet treats throughout October for Halloween and are expected to do so through the holidays . In addition , our pricing power means that we are able to quickly adapt to this inflationary environment with the full impact of the pricing action we have already taken still to come in the fourth quarter . " Third Quarter Consolidated Results Krispy Kreme's third quarter results showcased strong growth compared to 2019 and 2020. Total company organic revenue grew 6.2 % in the quarter , and 14.3 % on a two - year stack basis against 2019. Organic revenue growth was driven by our International segment , which delivered results that were stronger than prior to the pandemic , as well as the expansion of our Delivered Fresh Daily ( " DFD " ) network in the U.S. and Canada business , which is highlighted by weekly average sales per door growing more than 50 % higher compared to the prior year . Total Company organic revenue growth , excluding the exit of our legacy wholesale business , grew 14.1 % and was up 22.2 % on a two - year stack basis with high growth from both the U.S. and Canada and International segments . Adjusted EBITDA grew 9.6 % to $ 41.4 million , with a 12.1 % Adjusted EBITDA margin , as a result of strength in our International segment and economies of scale gained as we continue to grow our DFD doors globally . Adjusted Net Income grew 7.1 % to $ 12.6 million in the quarter . We saw a GAAP net loss of $ 3.8 million , but net income would have been positive excluding IPO and acquisition related expenses in the quarter . GAAP diluted loss per share was ( $ 0.04 ) for the third quarter of 2021 , with Adjusted Diluted EPS decreasing to $ 0.06 from $ 0.08 in the third quarter of 2020 as a result of increased share count following the IPO . Weighted average shares outstanding for the third quarter of 2021 increased to 166 million , compared to 125 million in the third quarter of 2020 as a result of the IPO , with an additional 2 million of dilutive shares included when calculating Adjusted Diluted EPS , for a total of 168 million shares . Net debt decreased from $ 1,133 million in the second quarter to $ 681 million in the third quarter due to IPO proceeds and $ 11 million of positive free cash flow generated in the quarter . Third Quarter Market Segment Results U.S. and Canada : In the U.S. and Canada segment , GAAP net revenue grew 11.5 % to $ 225.8 million from $ 202.6 million the previous year , driven by the continued execution of our omni - channel strategy . Organic revenue declined 2.3 % as we lapped the pipeline fill of the Branded Sweet Treat launch in the third quarter of 2020 and the now fully discontinued legacy wholesale business . Excluding the impact of exiting the legacy wholesale business , U.S. and Canada organic growth was 8.9 % , with a two - year stack of 27.7 % when compared to 2019. Growth was driven by the expansion of both DFD points of access and higher DFD sales per door as well as ecommerce sales which accounted for 16.8 % of retail sales in the quarter . Over 150 DFD doors were added in the third quarter despite nationwide driver shortages with additional listings at leading national retailers in several key markets around the country including Chicago , Dallas and Los Angeles . A record 2,100 Krispy Kremers were hired in the quarter , despite the tight labor market . According to Nielsen , consumer demand for Krispy Kreme Branded Sweet Treats also remained very strong with a 33 % increase in scan sales in the third quarter compared to the second quarter of 2021. However , production shortages resulted in fulfillment shortfalls in the quarter impacting net revenue . Branded Sweet Treats production capacity has now increased with the commission of three new production lines .