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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