Krispy Kreme’s third-quarter net revenue grew on the back of the doughnut chain’s expansion into international markets.
Net revenue increased 7.9 per cent to $407.4 million while organic revenue rose 9.6 per cent to $400.3 million.
“Our global expansion continued, and our doughnuts became available in two new markets, Switzerland and Kazakhstan, and Insomnia Cookies expanded internationally into Canada and the UK,” said Krispy Kreme CEO Mike Tattersfield.
Net revenue in the US and international markets climbed 5.4 per cent and 15.4 per cent, respectively.
However, the company’s attributable net loss widened to $40.5 million, mainly attributed to non-cash and income tax expense accrual.
For the full year, the company forecasts revenue of $1.65 billion to $1.68 billion, up 8 per cent to 10 per cent from the previous year, with the addition of two new markets in the fourth quarter. Organic revenue is estimated to grow by 9 per cent to 11 per cent.
“We expect to open in Ecuador and France in the fourth quarter taking our new market openings to seven in 2023. We are also excited about our continued partnership with McDonald’s, which we believe has validated the attractiveness of the quick-service restaurant channel,” said Tattersfield.
“While nothing has been finalized, we are in advanced discussions about expanding the partnership and are making investments in the US that reflect our confidence in further scaling our Delivered Fresh Daily network.”
