Krispy Kreme Q2: 9% Revenue Growth, Inline EPS, Reaffirmed FY23 Outlook & More

Krispy Kreme Inc DNUT reported second-quarter FY23 sales growth of 9% year-on-year to $408.88 million, missing the analyst consensus of $410.83 million.

Organic revenue growth of 11.4% was driven by a strong performance in all three business segments.

Revenue in the U.S. segment climbed 9.3% Y/Y to $267.4 million, the International segment grew 4.8% to $98.3 million, and Market Development increased 17.4% to $43.1 million.

E-commerce constituted 18.8% of retail sales.

Operating income for the quarter plunged 24.8% to $5.6 million with an operating margin of 1.4%.

Adjusted EBITDA increased 3.1% Y/Y to $48.8 million, and the EBITDA margin contracted 70 basis points to 11.9%.

Adjusted EPS of $0.07 was in-line with the consensus.

The company held $26.97 million in cash and equivalents as of July 2, 2023.

Outlook, re-affirmed: Krispy Kreme sees FY23 sales of $1.65 billion – $1.68 billion, against the consensus of $1.69 billion.

The company expects FY23 adjusted EPS of $0.31 - $0.34 versus the Street view of $0.33.

Krispy Kreme sees organic revenue growth of 9% - 11% and Adjusted EBITDA of $205 million - $215 million.

Price Action: DNUT shares closed higher by 0.14% at $14.40 on Wednesday.