Krispy Kreme has reported another quarter of organic sales growth as the company fully focused on its doughnut business.
The company’s net revenue for the third quarter fell 6.8 per cent to $380 million, but its organic revenue grew 3.5 per cent to $376.4 million.
GAAP net income was $37.6 million, linked to the sale of a majority ownership stake of Insomnia Cookies, compared to net loss $40.3 million in the prior year.
“Krispy Kreme delivered a seventeenth consecutive quarter of year-over-year organic sales growth driven by increased Delivered Fresh Daily and digital sales,” said CEO Josh Charlesworth.
The company said the results reflected the recent sale of a majority ownership stake of Insomnia Cookies. The business is now fully focused on its core strategy of producing, selling and distributing fresh doughnuts daily and executing on its profitable US growth strategy and capital light international model.
Delivered Fresh Daily sales and digital sales both grew 15 per cent, more than offsetting expected consumer softness in US retail and the UK.
For the full year, the company expects net revenue of $1.65-1.685 billion and organic revenue growth of 5-7 per cent.
“With our resources prioritized to the things that matter most, I believe that these changes will result in a bigger and better Krispy Kreme,” Charlesworth added.
