GAAP Net Loss for the quarter was $2.4 million, a significant improvement compared to a loss of $15.0 million a year ago while GAAP diluted Loss Per Share for the quarter was $0.02 compared to a loss of $0.13 last year. Adjusted Diluted EPS was $0.08 for the quarter, compared to $0.13 last year due in part to share dilution from an increased share count following the IPO. Adjusted EBITDA in the second quarter was $47.4 million, which included an approximately $2.7 million negative impact from the strong U.S. dollar.

Organic growth was driven by the performance and expansion of Krispy Kreme's omni-channel model, and strong performances in Australia, Mexico, the Market Development segment, hubs with spokes in the U.S. and Insomnia Cookies. Global Points of Access, which reflect all locations where fresh doughnuts and cookies can be purchased, increased by 382 during the quarter, providing consumers access to Krispy Kreme in more than 11,400 locations around the world.

Commenting on the Company's performance, President and CEO Mike Tattersfield stated, "Our results in the second quarter continue to demonstrate the benefits of our omni-channel model and global expansion strategy with strong organic growth. In the second quarter consumers faced unique economic pressures, which is why we invested in our customers through Acts of Joy such as Beat the Pump dozen pricing that matched a gallon of gas and other promotions to drive brand love. After the end of the second quarter, we took successful pricing actions in the U.S. and U.K. markets and we have seen a significant deceleration in key commodity costs for 2023 in recent weeks."

Mike continued, "We are very well-positioned for growth over the next few years driven by the expansion of our omni-channel model as we significantly expand our points of access primarily through low capital DFD Doors and continue our transformation to the more profitable and capital efficient Hub and Spoke model in the U.S. Additionally, we have strong interest from global partners to bring Krispy Kreme to new geographies."

December Analyst Day
Krispy Kreme will host an Investor Day on December 15, 2022 in Charlotte, NC and virtually. The event will unveil the Company's plans and expectations for 2023-2025 including the next evolution of the Hub and Spoke model in the U.S., Branded Sweet Treats, Insomnia Cookie's international and domestic expansion plans and other exciting updates. More information to follow in the coming months.

Second Quarter and First Half 2022 Consolidated Results
Net revenue grew 7.5% in the second quarter to $375.2 million, or 10.0% excluding foreign currency translation, and organic revenue grew 8.9% in the quarter. Organic revenue growth was driven by strong performances in our Hubs with Spokes, both domestically and internationally, leveraging an 18.6% increase in points of access from a year ago. For the first half of 2022, net revenue grew 11.4% to $747.8 million, or 13.4% excluding foreign currency impacts, and organic revenue grew 11.8%.

GAAP Net Loss for the quarter was $2.4 million, compared to a GAAP Net Loss of $15.0 million in the second quarter of 2021. Adjusted EBITDA in the quarter declined 9.6% to $47.4 million, due to increased labor and commodity cost as well as including an approximately $2.7 million negative impact from the strength of the U.S. dollar. Still, compared to the same quarter in 2020, Adjusted EBITDA increased by 60.7%. Operating margins declined 60 basis points to 2.0%, while Adjusted EBITDA margin declined 240 basis points to 12.6% from the same quarter in 2021 driven by margin declines in our International and US & Canada segments. Adjusted Net Income for the quarter declined 28.4% to $14.6 million compared to the same quarter in 2021. GAAP Diluted Net Loss per share in the quarter was $0.02 compared to a net loss of $0.13 in the same quarter last year with Adjusted Diluted EPS decreasing to $0.08 from $0.13 in the second quarter of 2021.

GAAP Net Income for the first half of 2022 was $4.1 million, compared to a GAAP Net Loss of $15.4 million in the same period of 2021. Adjusted EBITDA in the first half of 2022 declined 2.6% to $96.3 million, including an approximately $3.7 million negative impact from the strength of the U.S. dollar with cost increases largely offsetting net revenue growth. Operating margins in the first half of 2022 declined 10 basis points to 3.3% while Adjusted EBITDA margin declined 180 basis points to 12.9% from the same period in 2021. Adjusted Net Income declined 19.3% to $30.7 million in the first half of 2022. GAAP Diluted EPS in the first half of 2022 was $0.00 compared to a net loss of $0.16 with Adjusted Diluted EPS decreasing to $0.16 from $0.25 in the same period of 2021.

Second Quarter and First Half 2022 Market Segment Results
U.S. and Canada: In the U.S. and Canada segment net revenue in the second quarter of 2022 grew 8.5% to $250.5 million, driven by the continued execution of our omni-channel strategy and strength in Hubs with Spokes and Insomnia Cookies. Organic revenue increased 6.0% driven by increased points of access and strong performance in DFD, with average weekly sales per DFD Door growing by 9.0% compared to the prior year. Hubs with Spokes had revenue growth 5% faster than those without Spokes. Points of access increased 112 in quarter to 6,053 which represents an 8.9% increase in points of access from a year ago.

U.S. and Canada Adjusted EBITDA decreased 8.0% to $26.0 million in the second quarter of 2022 compared to the second quarter of 2021 with margin declines of 180 basis points to 10.4%. This was driven by cost increases in labor and commodities and weakness in Hubs without Spokes, partially offset by improved margin performance from Branded Sweet Treats. Pricing actions were successfully taken at the beginning of the third quarter of 2022.

International: In the International segment, net revenue grew 5.2% to $93.9 million, with organic growth of 13.0%. Organic growth in the quarter was driven by the expansion of DFD and successful seasonal offerings. Growth was particularly strong in Mexico, Australia and New Zealand. Points of access increased by 222 to 3,425. Foreign currency translation had a negative 7.9% impact on our International net revenue growth during the quarter.

International Adjusted EBITDA declined 17.5% in the second quarter over the same period of the prior year to $19.5 million, due to a decline in our UK & Ireland market which was cycling unusually high margins in the quarter a year ago as the UK COVID-19 restrictions were lifted. Additionally, the UK and Ireland market was impacted by a challenged consumer environment with reduced general retail and grocery traffic and cost increases. Adjusted EBITDA for Mexico and Australia & New Zealand markets grew 12.0% in the second quarter compared to the same period in the prior year. The strengthening of the U.S. Dollar had an approximate negative $2.0 million impact on International Adjusted EBITDA in the second quarter of 2022 compared to the same period of the prior year. International Adjusted EBITDA margin was 20.8% in the second quarter, up 100 basis points from the first quarter of 2022 but down 570 basis points compared the same period last year. Pricing actions were successfully taken in the U.K. at the start of the third quarter of 2022.

International net revenue in the first half of 2022 grew 16.3% to $181.1 million. Organic revenue increased 22.6% driven by increased points of access and product innovation, especially in Mexico and Australia & New Zealand. Points of access increased 534 in the first half of 2022. International Adjusted EBITDA declined 5.7% to $36.8 million in the first half of 2022 compared to the same period in 2021 with margin declines of 480 basis points to 20.3%.

Market Development: In the Market Development segment, net revenue increased 6.5% to $30.9 million driven by a 37.9% increase in points of access to 1,931 compared to the prior year, partially offset by franchise acquisitions and a 7.0% adverse impact from foreign currency exchange. Organic revenue growth was 19.2% compared to the same period in 2021 driven by a strong performance in our franchise markets and in our equity-owned Japan market where the Company is implementing its omni-channel model with the expansion of Ecommerce and the launch of DFD.

Market Development net revenue in the first half of 2022 grew 2.1% to $63.1 million while organic revenue increased 14.0%. Points of access increased by 118 in the first half of 2022. Excluding the impact of closing 30 franchise shops in Russia, Points of Access increased by 148 in the first half of 2022. Market Development Adjusted EBITDA increased 5.0% to $21.8 million in the first half of 2022 compared to the same period in 2021 with margin increase of 100 basis points to 34.5%.

Franchisee Acquisition
Later this month, the Company will spend approximately $18.5 million to acquire seven shops (including one of which is under construction) in the U.S. Midwest from a franchise partner at an attractive multiple. These shops will be accretive to margins immediately and the Company estimates the potential for more than 100 low-capital DFD Doors in this market.

• Net Revenue of $1.49 billion to $1.52 billion
• Organic Revenue growth of 10% to 12%
• Adjusted EBITDA of $189 million to $195 million
• Adjusted Net Income to Krispy Kreme shareholders, diluted, of $49 million to $54 million
• Adjusted Diluted EPS of $0.29 to $0.32
• Approximately 170 million weighted average Diluted shares outstanding
• Adjusted Income Tax rate between 23% and 25%
• Capital Expenditures between $105 million to $110 million (approximately 7% of revenue), a reduction of $10 million from our prior expectations due to a shift to lower capital points of access spend and a benefit from foreign currency translation
• Net Leverage of approximately 3.6x, including the short-term impact from the U.S. Midwest franchise acquisition and FX headwinds, with a goal of 3.0x by the end of 2023

• Global Points of Access: Reflects all locations at which fresh doughnuts or cookies can be purchased. We define Global Points of Access to include all Hot Light Theater Shops, Fresh Shops, Carts, Food Trucks and Other, DFD Doors and Cookie Shops, at both Company-owned and franchise locations as of the end of the respective reporting period. We monitor Global Points of Access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments.
• Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any point of access. We define Hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the respective reporting period.
• Sales Per Hub: Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes at the end of the five most recent quarters.
• Fresh Revenues from Hubs with Spokes: Fresh Revenues include product sales generated from our Doughnut Shop business (including Ecommerce and delivery), as well as DFD sales, but excluding sales from our legacy wholesale business and our Branded Sweet Treat Line. It also excludes all Insomnia Cookies revenues as the measure is focused on the Krispy Kreme business. Fresh Revenues from Hubs with Spokes equals the Fresh Revenues derived from those Hubs currently producing product for other shops, Carts, Food Trucks and Other, and/or DFD Doors, but excluding Fresh Revenues derived from those Hubs not currently producing product for other shops, Carts, Food Trucks and Other, and/or DFD Doors.
• Total Net Leverage Ratio: Calculated using Net Debt (including both bank debt and financing leases as part of debt) divided by Adjusted EBITDA.
• Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment.

Krispy Kreme will host a public conference call at 8:30 AM Eastern Time today to discuss its results for the second quarter of 2022. Please be advised that the process for listening to and participating in Krispy Kreme's quarterly conference calls has changed. To listen to the live audio webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. Participants who wish to join by phone must visit the following link and pre-register:

https://register.vevent.com/register/BI0d6261025fb54849a63e56ef18587ff5

Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in over 30 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing Ecommerce and delivery business. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme, and www.Twitter.com/KrispyKreme.

This press release contains forward-looking statements that involve risks and uncertainties. The words "believe," "may," "could," "will," "should," "anticipate," "estimate," "expect," "outlook," "guidance," "working towards" or similar words, or the negative of these words, identify forward-looking statements. Such forward-looking statements are based on certain assumptions and estimates that we consider reasonable but are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial conditions, business, prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. The inclusion of this forward-looking information should not be regarded as 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. Factors that could cause actual results to differ from those expressed in forward-looking statements include, without limitation, the risks and uncertainties described under the headings "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in our Annual Report on Form 10-K for the year ended January 2, 2022, filed by us with the Securities and Exchange Commission ("SEC") and described in the other filings we make from time to time with the SEC. We believe that these factors include, but are not limited to, the impact of pandemics, changes in consumer preferences, the impact of inflation, and our ability to execute on our omni-channel business strategy. These forward-looking statements are made only as of the date of this document, and we do not undertake any obligation, other than as may be required by applicable law, to update or revise any forward-looking or cautionary statement to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.

This press release includes certain non-GAAP financial measures including organic revenue growth, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Fresh Revenue from Hubs with Spokes and Sales per Hub, which differ from results using U.S. Generally Accepted Accounting Principles ("GAAP"). These non-GAAP financial measures are not universally consistent calculations, 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. In order to facilitate a clear understanding of our consolidated historical operating results, you should examine our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC.