Krispy Kreme, Inc. reported its financial results for the quarter ended September 29, 2024, revealing a decline in total net revenues to $379.9 million, down from $407.4 million in the same quarter of the previous year, marking a decrease of approximately 6.8%. However, for the three quarters ended September 29, 2024, total net revenues increased to $1.26 billion, compared to $1.24 billion for the same period in 2023, reflecting a growth of 2.1%. The revenue decline in Q3 was primarily attributed to a $43.5 million reduction from the divestiture of Insomnia Cookies, partially offset by $5.2 million from newly acquired shops.
The company reported an operating loss of $16.0 million for the quarter, a significant decline from an operating income of $2.1 million in Q3 2023. Despite this, Krispy Kreme achieved a net income of $37.6 million for the quarter, a substantial recovery from a net loss of $40.3 million in the prior year. Net income attributable to Krispy Kreme, Inc. was $39.6 million, compared to a net loss of $40.5 million in Q3 2023. The earnings per share for the quarter were $0.23, reversing a loss of $0.24 per share in the same quarter last year.
The company’s strategic developments included the acquisition of nine Krispy Kreme shops in the U.S. and one in Canada for $31.4 million, completed in Q3 2024. Additionally, Krispy Kreme divested its controlling interest in Insomnia Cookies, reducing its ownership from 75% to 34.7%, which resulted in a gain of $87.1 million. The divestiture significantly impacted the company’s financials, including a decrease in operating lease liabilities and a reduction in total liabilities.
Krispy Kreme's operational performance showed mixed results across its segments. The U.S. segment reported a decline in net revenue of approximately 12.2%, while the International segment experienced growth of about 3.7%. The Market Development segment also saw a slight decline in net revenue but reported organic growth of 8.6%. The company added 244 new Global Points of Access, reaching a total of 15,811, driven by the expansion of its Delivered Fresh Daily (DFD) channels.
Overall, Krispy Kreme's financial performance for the quarter reflects a complex landscape of revenue challenges and strategic growth initiatives, including a focus on expanding its omni-channel presence and enhancing product offerings.
About Krispy Kreme, Inc.
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