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Krispy Kreme | 1Q25 Earnings 1 Krispy Kreme, Inc. FIRST QUARTER 2025 EARNINGS PRESENTATION MAY 8, 2025
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Krispy Kreme | 1Q25 Earnings 2 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 identified by the use of forward-looking terminology, including terms such as “plan,” “believe,” “may,” “continue,” “guidance,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “expect,” “intend,” “aim,” “outlook,” “objective,” “goal,” “seek,” “strive,” “target,” “working towards” or, in each case, the negatives of these words, comparable terminology, or similar references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included herein. We consider the assumptions and estimates on which our forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements, including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross- contamination; impacts from the 2024 Cybersecurity Incident or any other material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents; any harm to our reputation or brand image; changes in consumer preferences or demographic trends; changes in cost of raw materials and other commodities, including due to import and export requirements (including tariffs), inflation or foreign exchange rates; our ability to execute on our omni-channel business strategy; regulatory investigations, enforcement actions or material litigation; and other risks and uncertainties described under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) and in other filings we make from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law. Non-GAAP Measures This presentation includes certain financial information that is not presented in conformity with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures may include organic revenue growth/(decline), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Diluted, Adjusted EPS, Net Debt, Fresh Revenue from Hubs with Spokes and Sales per Hub. These non-GAAP financial measures are not standardized, and it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance under GAAP or a substitute for results reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC and not to rely on any single financial measure. For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure and additional information regarding these measures, see the appendix to this presentation. All metrics are as of March 30 ,2025, unless stated otherwise . The Company does not provide reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure because it is unable to predict with reasonable certainty or without unreasonable effort non-recurring items, such as those reflected in our reconciliation of historic numbers. The variability of these items is unpredictable and may have a significant impact.
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Krispy Kreme | 1Q25 Earnings 3 Transforming to a Bigger & Better Krispy Kreme Biggest Growth Opportunities How We Get There • PROFITABLE U.S. EXPANSION • INTERNATIONAL FRANCHISE • DE-LEVERAGING THE BALANCE SHEET • SUSTAINABLE, PROFITABLE GROWTH Goal of 100,000 Points Of Access
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Krispy Kreme | 1Q25 Earnings 4 SPOTLIGHT OUR CORE OFFERINGS Drive Consumer Relevance FOCUS ON NATIONAL DISTRIBUTION PARTNERS Expand Availability Increase Hub & Spoke Efficiency Improve Capital Efficiency STRENGTHEN PERFORMANCE- BASED CULTURE Inspire Engagement SIMPLIFY OPERATIONS, OUTSOURCED U.S. LOGISTICS EVALUATE REFRANCHISING CERTAIN INTERNATIONAL MARKETS 2025 Actions Prioritized Against Strategic Goals
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Krispy Kreme | 1Q25 Earnings 5 Drive Consumer Relevance Spotlighting the Original Glazed doughnut, our most popular & affordable Limiting discounts to buzzworthy events Strong sales with flavored glazes
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Krispy Kreme | 1Q25 Earnings 6 Expand Availability Internati onal Expansio n PROFITABLE U.S. DFD GROWTH ~$1,100 ~$400 Club Mass Grocery C-Store QSR AVERAGE REVENUE PER DOOR PER WEEK (“APD”) Channel-average APD based on data as of FY24 1Q25 Doors: >10 1Q25 Doors: >1,700 1Q25 Doors: >3,900 1Q25 Doors: >2,000 1Q25 Doors: >2,400
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Krispy Kreme | 1Q25 Earnings 7 ADDRESSING COSTS & PROFITABILTY • Outsourcing U.S. logistics • Improving staffing and production demand planning, lowering costs and waste • New COO, Nicola Steele, focused on: • Simplifying operations • Delivering efficiencies • Improving drive-thru Increase Hub & Spoke Efficiency 1 2 3 Drive-thru Speed Monitor
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Krispy Kreme | 1Q25 Earnings 8 Subway Station Seoul, South Korea FUNDING ONLY THE HIGHEST RETURN INVESTMENTS • Advancing capital-light international franchise growth • Evaluating refranchising certain international markets Improve Capital Efficiency 1 2 Krispy Kreme São Paulo, Brazil Hungry Jack’s Newcastle, Australia 8
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Krispy Kreme | 1Q25 Earnings 9 PERFORMANCE-BASED CULTURE • Upgrading talent • Investing in shop digitization • Enhancing Krispy Kremer support • Implementing new incentive structure to drive alignment Inspire Engagement 1 2 3 4
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Krispy Kreme | 1Q25 Earnings 10 Financial Update
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Krispy Kreme | 1Q25 Earnings 11 $58 $24 ADJUSTED EBITDA 2 1Q Financial Results1 (58.8)% 13.1% 6.4% ADJUSTED EBITDA MARGIN 2 $378 $375 ORGANIC REVENUE 2 (1.0)% 1Q24 1Q25 (670) bps 1) Includes estimated impacts of 2024 Cybersecurity Incident of $5MM to Adjusted EBITDA. 1Q24 Adj. EBITDA includes contribution from Insomnia Cookies. 2) Non-GAAP figures. See the appendix to this presentation for more information and a reconciliation to the most directly comparable GAAP measure. Adjusted EBITDA Margin reflects Adjusted EBITDA as a percentage of net revenues.
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Krispy Kreme | 1Q25 Earnings 12 U.S. Segment 1 1Q23 1Q24 1Q25 POINTS OF ACCESS 6,615 7,775 10,491 SALES PER HUB ($MM) 2 $4.6 $4.9 $4.8 NET REVENUE ($MM) $281.3 $295.9 $236.5 ORGANIC GROWTH %2 13.7% 7.4% (2.6)% ADJ EBITDA ($MM) 2 $38.5 $42.6 $15.9 ADJ EBITDA MARGIN2 13.7% 14.4% 6.7% 6,081 7,198 10,186 DFD DOORS $643 $640 $587 AVERAGE REVENUE PER DOOR PER WEEK 1Q23 1Q24 1Q25 1) Includes estimated impacts of 2024 Cybersecurity Incident of $5MM to Adjusted EBITDA. 1Q24 Adj. EBITDA includes contribution from Insomnia Cookies. 2) Non-GAAP figures. See the appendix to this presentation for more information and a reconciliation to the most directly comparable GAAP measure. Adjusted EBITDA Margin reflects Adjusted EBITDA as a percentage of net revenues.
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Krispy Kreme | 1Q25 Earnings 13 International Segment 1 1Q23 1Q24 1Q25 POINTS OF ACCESS 3,836 4,753 5,052 SALES PER HUB ($MM) 2 $9.6 $9.9 $9.8 NET REVENUE ($MM) $112.0 $124.8 $119.6 ORGANIC GROWTH %2 12.7% 9.8% 1.5% ADJ EBITDA ($MM) 2 $19.0 $20.5 $14.9 ADJ EBITDA MARGIN2 17.0% 16.5% 12.5% 3,319 4,202 4,469 DFD DOORS $712 $620 $578 AVERAGE REVENUE PER DOOR PER WEEK 1Q23 1Q24 1Q25 1) Reflects move of Canada and Japan to International segment from Market Development in 1Q24 2) Non-GAAP figures. See the appendix to this presentation for more information and a reconciliation to the most directly comparable GAAP measure. Adjusted EBITDA Margin reflects Adjusted EBITDA as a percentage of net revenues.
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Krispy Kreme | 1Q25 Earnings 14 Market Development Segment 1 1Q23 1Q24 1Q25 POINTS OF ACCESS 1,959 2,286 2,439 NET REVENUE ($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% 1,959 2,286 2,439 POINTS OF ACCESS 1Q23 1Q24 1Q25 1) Reflects move of Canada and Japan to International segment from Market Development in 1Q24 2) Non-GAAP figures. See the appendix to this presentation for more information and a reconciliation to the most directly comparable GAAP measure. Adjusted EBITDA Margin reflects Adjusted EBITDA as a percentage of net revenues.
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Krispy Kreme | 1Q25 Earnings 15 Earnings per Share 1 1Q 24 1Q 25 ADJUSTED EBITDA2 $58.2 $24.0 DEPRECIATION & AMORTIZATION (26.2) (26.2) INTEREST & TAX (18.8) (6.7) NONCONTROLLING INTEREST (1.9) 0.1 WEIGHTED AVERAGE SHARES OUTSTANDING 171.2 170.3 ADJUSTED EPS 2 $0.07 $(0.05) 1) All metrics are $MM except Adjusted EPS ($s) and Weighted Average Shares Outstanding (MM) 2) Non-GAAP figures. See the appendix to this presentation for a reconciliation to the most directly comparable GAAP measure.
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Krispy Kreme | 1Q25 Earnings 16 Cash Flow 1 4.2x 6.1x 1Q24 1Q25 NET LEVERAGE RATIO2 FY 2024 1Q25 CASH, CASH EQUIVALENTS & RESTRICTED CASH AT BEGINNING OF THE FISCAL YEAR $38.6 $29.3 NET CASH PROVIDED BY OPERATIONS 45.8 (20.8) NET CASH (USED FOR)/PROVIDED BY INVESTING 19.3 (25.8) NET CASH PROVIDED BY/(USED FOR) FINANCING (73.9) 36.8 EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS & RESTRICTED CASH (0.5) (0.3) CASH, CASH EQUIVALENTS & RESTRICTED CASH $29.3 $19.2 1) Reflects move of Canada and Japan to International segment from Market Development in 1Q24 2) Non-GAAP figures. See the appendix to this presentation for more information and a reconciliation to the most directly comparable GAAP measure.
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Krispy Kreme | 1Q25 Earnings 17 Transforming to a Bigger & Better Krispy Kreme Plan to Improve our Financial Position • Discontinuing dividend to improve financial flexibility and de-leverage the balance sheet • Deploying capital to only the highest returning investments • Expanding margins through greater operational efficiency and SG&A improvements • Pursuing quality profitable growth based upon sustainable revenue streams 1 2 3 4
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Krispy Kreme | 1Q25 Earnings 18 Guidance 1 1) Dollar metrics in $MMs 2) Non-GAAP figure. See slide 2 of this presentation for more information on forward-looking statements and non-GAAP measures. 18 2Q 2025 OUTLOOK NET REVENUE $375 – $385 ADJUSTED EBITDA2 $30– $35
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Krispy Kreme | 1Q25 Earnings 19 SPOTLIGHT OUR CORE OFFERINGS Drive Consumer Relevance FOCUS ON NATIONAL DISTRIBUTION PARTNERS Expand Availability Increase Hub & Spoke Efficiency Improve Capital Efficiency STRENGTHEN PERFORMANCE- BASED CULTURE Inspire Engagement SIMPLIFY OPERATIONS, OUTSOURCED U.S. LOGISTICS EVALUATE REFRANCHISING CERTAIN INTERNATIONAL MARKETS 2025 Actions to De-leverage and Achieve Profitable Growth
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Krispy Kreme | 1Q25 Earnings 20 Q&A
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Appendix
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Krispy Kreme | 1Q25 Earnings 24 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 revenue growth” as the growth in revenues, excluding (i) acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs, (iv) the impact of the divestiture of a controlling interest in Insomnia Cookies, and (v) revenues generated during the 53rd week for those fiscal years that have a 53rd week based on our fiscal calendar defined in Note 1, Description of Business and Summary of Significant Accounting Policies to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q. See “Results of Operations” for our organic growth calculations for the periods presented.
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