Krispy Kreme just beats Q2 revenue estimates, announces turnaround plan
Overview
Krispy Kreme Q2 rev declines 13.5% but beats analyst expectations, per LSEG data
Adjusted EPS for Q2 misses consensus, reflecting operational challenges, per LSEG data
Co announces turnaround plan to drive sustainable, profitable growth
Turnaround to also focus on refranchising and driving return on invested capital
Outlook
Krispy Kreme expects to recoup profitability in the third quarter
Company aims for profitable U.S. expansion and capital-light international growth
Krispy Kreme focuses on profitable, high-volume retail distribution points
Company plans to reduce leverage through refranchising international markets
Result Drivers
MCDONALD'S PARTNERSHIP END - Termination of McDonald's USA partnership impacted revenue and operating leverage
INSOMNIA COOKIES SALE - Sale of majority stake in Insomnia Cookies contributed to revenue decline
CONSUMER SOFTNESS - Reduced discounting and consumer softness led to decline in doughnut shop transaction volume
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $379.80 mln | $378.10 mln (6 Analysts) |
Q2 Adjusted EPS | Miss | -$0.15 | -$0.03 (7 Analysts) |
Q2 EPS |
| -$2.55 |
|
Q2 Adjusted Net Income | Miss | -$25.30 mln | -$6.55 mln (5 Analysts) |
Q2 Net Income |
| -$441.10 mln |
|
Q2 Adjusted EBITDA | Miss | $20.10 mln | $32.20 mln (6 Analysts) |
Q2 Adjusted EBITDA Margin |
| 5.3% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy."
Wall Street's median 12-month price target for Krispy Kreme Inc is $5.27, about 35.1% above its August 6 closing price of $3.42
Press Release: ID:nBw6QRghQa
