Krispy Kreme Stock Gains After Q4 Results; Reiterates Long-Term Outlook

  • Krispy Kreme Inc DNUT reported fourth-quarter FY21 sales growth of 13.8% year-on-year, to $370.6 million, beating the consensus of $363.66 million.
  • Total company organic revenue grew 13.9% versus last year and 15.9% on a two-year stack basis against Q4 2019.
  • The company's Q4 growth was driven by the performance and expansion of its hub and spoke operating model and strong performances across all three business segments.
  • Revenue in the U.S. and Canada segment climbed 10.5% Y/Y to $249.2 million, the International segment grew 25.7% to $90 million, and the Market Development rose 9.9% to $31.4 million.
  • The operating margin expanded 430 basis points Y/Y to 4.4%, and operating income for the quarter was $16.5 million.
  • The adjusted EBITDA increased 14.4% Y/Y to $47.7 million and the EBITDA margin expanded 10 basis points to 12.9%.
  • Adjusted EPS of $0.08 missed the consensus of $0.10.
  • The company held $38.6 million in cash and equivalents as of January 2, 2022.
  • Outlook: Krispy Kreme sees FY22 sales of $1.53 billion – $1.56 billion, against the consensus of $1.55 billion. It sees organic revenue growth of 10% - 12%.
  • The company expects FY22 adjusted EPS of $0.38 - $0.41 versus the Street view of $0.46.
  • Krispy Kreme also reiterated the long-term outlook of organic revenue growth of 9% - 11%, Adjusted EBITDA growth of 12% - 14%, and Adjusted net income growth of 18% - 22%.
  • Price Action: DNUT shares are trading higher by 8.54% at $14.91 on the last check Tuesday.
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