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New York Post
09-05-2025
- Business
- New York Post
Krispy Kreme pauses doughnut rollout with McDonald's after surprising lack of demand
Krispy Kreme on Thursday said it is pausing a planned rollout of selling doughnuts in McDonald's locations nationwide. The doughnut chain said it is 'reassessing the deployment schedule together with McDonald's while it works to achieve a profitable business model for all parties.' Krispy Kreme sells doughnuts in more than 2,400 McDonald's restaurants as of the end of March, and the chain does not expect to add more restaurants in the second quarter of 2025. 'I remain confident in the long-term national opportunity, but we need to work together with them to identify levers to improve sales, simplify operations,' Krispy Kreme CEO Josh Charlesworth said during an earnings call. 'And once we're positioned for profitable growth, we'll expand further.' Charlesworth said that demand dropped below expectations after the initial launch, 'requiring intervention.' The two companies announced the partnership in March 2024, and intended to sell the doughnuts at all McDonald's locations in the US by the end of 2026. The two companies announced the partnership in March 2024, and intended to sell the doughnuts at all McDonald's locations in the US by the end of 2026. McDonald's 'Significantly, by making Krispy Kreme accessible to fans nationwide through this partnership, we expect to more than double our points of access by the end of 2026,' Charlesworth said last year as part of the announcement. 'The partnership accelerates the development of our existing Delivered Fresh Daily channel, creating operating leverage through distribution density and production utilization.' Krispy Kreme also pulled its full-year outlook due to 'macroeconomic softness and the uncertainty around the McDonald's deployment schedule.' Fast-food restaurants have seen sluggish sales due to economic uncertainty weighing on consumers. McDonald's US same-store sales fell 3.6% in the first quarter, the biggest drop since the COVID-19 pandemic in 2020. Fast-food restaurants have seen sluggish sales due to economic uncertainty weighing on consumers. gargantiopa – The results echoed warnings from restaurant chains Domino's Pizza, Chipotle Mexican Grill and Starbucks that Americans were spending less to dine out as inflation and a bleak economic outlook dent consumer confidence. FOX Business' Aislinn Murphy contributed to this report.
Business Wire
08-05-2025
- Business
- Business Wire
Krispy Kreme Reports First Quarter 2025 Financial Results
CHARLOTTE, N.C.--(BUSINESS WIRE)--Krispy Kreme, Inc. (NASDAQ: DNUT) ('Krispy Kreme', 'KKI', or the 'Company') today reported financial results for the quarter ended March 30, 2025. First Quarter Highlights (vs Q1 2024) Net revenue of $375.2 million Organic revenue declined 1.0% to $374.7 million GAAP net loss of $33.4 million Adjusted EBITDA of $24.0 million GAAP cash used for operating activities of $20.8 million Global Points of Access ('POA') increased 3,168, or 21.4%, to 17,982 In the first quarter, Krispy Kreme spotlighted its most popular and most affordable Original Glazed doughnut to increasingly value-conscious consumers while also delivering buzzworthy Valentine's and St. Patrick's Day offerings. The Company continued to grow Delivered Fresh Daily and prepared for the early second quarter launch of outsourced U.S. logistics. 'Our ability to become a bigger Krispy Kreme requires that we become better, and we are taking swift and decisive action to pay down debt, de-leverage the balance sheet and drive sustainable, profitable growth,' said Krispy Kreme CEO, Josh Charlesworth. 'While we expect the macro environment to remain challenging, we are focused on positive cash flow, higher returns on capital, and our two biggest opportunities: profitable U.S. expansion and capital-light international franchise growth.' Notes: (1) Non-GAAP figures - please refer to "Non-GAAP Measures" and 'Reconciliation of Non-GAAP Financial Measures.' First Quarter 2025 Consolidated Results (vs Q1 2024) Krispy Kreme's first quarter results reflect continued investment ahead of growth in the Company's U.S. nationwide expansion and wider adoption of the capital-light international franchise model. Net revenue was $375.2 million in the first quarter of 2025, a decline of 15.3% or $67.5 million, primarily due to the $64.3 million reduction associated with the divestiture of a majority stake in Insomnia Cookies in the third quarter of fiscal 2024. In line with expectations, organic revenue declined $3.6 million, or approximately 1.0%, as growth in Global Points of Access and Delivered Fresh Daily ('DFD') revenues were more than offset by expected consumer softness leading to a decline in doughnut shop transaction volume. GAAP Net Loss was $33.4 million, compared to prior year net loss of $6.7 million. GAAP diluted loss per share was $0.20, compared to a loss of $0.05 in the same quarter last year. Adjusted EBITDA declined to $24.0 million, with Adjusted EBITDA Margin declining to 6.4% as the Company invests ahead of growth and navigates a challenged global consumer backdrop linked to macroeconomic, weather, and inflationary factors. Adjusted Net Loss, diluted was $8.8 million in the quarter. Adjusted Diluted loss per share was $0.05 in the quarter. First Quarter 2025 Segment Results (vs Q1 2024) U.S.: In the U.S. segment, net revenue declined $59.4 million, or 20.1%, primarily due to the $64.3 million reduction associated with the sale of a majority stake in Insomnia Cookies. Organic revenue declined $6.1 million, or 2.6%, as Points of Access growth of 34.9% was more than offset by expected consumer softness. Average revenue per door per week ('APD') declined to $587, reflecting shifting customer mix, with Sales Per Hub of $4.8 million. U.S. Adjusted EBITDA decreased $26.7 million, or 62.7%, with margin declining 770 basis points to 6.7%, primarily driven by a decline in operating leverage, costs associated with our U.S. nationwide expansion, and an estimated $5.0 million in operational inefficiencies related to the 2024 Cybersecurity Incident. International: In the International segment, net revenue declined $5.1 million, or approximately 4.1%, primarily due to foreign currency translation impacts of $8.4 million. International organic revenue grew $1.9 million, or approximately 1.5%, driven primarily by growth in Canada. Points of Access growth of 6.3% was partially offset by closures in Japan and Mexico to optimize the DFD network. International segment Adjusted EBITDA declined $5.6 million, or 27.5%, with a margin decline of 400 basis points to 12.5% due to lower transaction volumes impacting operating leverage. Our new management team in the U.K. has embarked on a strategy to revitalize the brand's consumer relevance by bringing back family-centric offerings and an updated price pack architecture. Market Development: In the Market Development segment, net revenue declined $3.0 million, or approximately 13.7%, reflecting a $3.6 million impact of franchise acquisitions and lower equipment sales, offset by growth in new and existing markets. Market Development organic revenue increased $0.6 million, or 2.7%, driven by the successful expansion of our international franchise businesses including in the Middle East and the launch of DFD in France. Market Development Adjusted EBITDA decreased $0.9 million, or 7.2%, while margin improved 400 basis points to 58.1% driven by revenue mix and greater contribution from international franchisees. Balance Sheet and Capital Expenditures During the first quarter of 2025, the Company invested $25.9 million, or 6.9% of net revenue, in capital expenditures, primarily in the U.S. to support bringing doughnuts closer to our consumers via nationwide expansion. Subsequent to the end of the quarter, the Company amended its existing credit agreement to establish incremental term loan commitments in an aggregate principal amount of $125.0 million dollars. The Company expects to use the incremental capacity primarily to pay down its revolving credit facility. The amendment carries identical terms as the existing credit agreement regarding maturity date and interest rates. Capital Allocation and Dividend Policy As previously announced, the Company continues to evaluate opportunities to refranchise certain international markets including Australia and New Zealand, Japan, Mexico, and the U.K. and Ireland. Following a review of the Company's capital allocation strategy and investments available to fuel our growth, the Company has made the decision to no longer pay quarterly cash dividends to holders of the Company's common stock. This decision provides greater financial flexibility, enabling debt paydown and a focus on profitable, high return growth. Financial Outlook As of March 30, 2025, Krispy Kreme doughnuts are now available in more than 2,400 McDonald's restaurants. The Company is reassessing the deployment schedule together with McDonald's while it works to achieve a profitable business model for all parties and does not expect to launch in any additional restaurants in the second quarter of 2025. Krispy Kreme continues to believe in the long-term opportunity of profitable growth through the U.S. nationwide expansion including McDonald's. Given macroeconomic softness and the uncertainty around the McDonald's deployment schedule, the Company is withdrawing its prior full year outlook and not updating it at this time. Regarding the second quarter of 2025, the Company expects to deliver: Net Revenue of $370 to $385 million Adjusted EBITDA (1) of $30 to $35 million Notes: (1) Non-GAAP figures. The Company does not reconcile forward-looking non-GAAP measures. See "Non-GAAP Measures." Definitions The following definitions apply to terms used throughout this press release: Global Points of Access: Reflects all locations at which fresh doughnuts can be purchased. We define global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors (which includes DFD branded cabinets and merchandising units within high traffic grocery and convenience stores, quick service or fast casual restaurants ('QSR'), club memberships, and drug stores) and Cookie Bakeries (through the date of the Insomnia Cookies divestiture), and other points at which fresh doughnuts can be purchased at both Company-owned and franchise locations as of the end of the applicable reporting period. We monitor Global Points of Access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type. Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any point of access. We define Hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the applicable reporting period. Hubs with Spokes: Reflects Hubs currently producing product for other Fresh Shops, Carts and Food Trucks, or DFD Doors, and excludes Hubs not currently producing product for other shops, Carts and Food Trucks, or DFD Doors. Sales Per Hub: Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes at the end of each of the five most recent quarters. Fresh Revenues from Hubs with Spokes: Fresh Revenues is a measure focused on the Krispy Kreme doughnut business and includes product sales generated from our Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors, and digital channels and excludes sales from Cookie Bakeries and Branded Sweet Treats (through the date of the Insomnia cookies divestiture and Branded Sweet Treats exit, respectively). Fresh Revenues from Hubs with Spokes equals the Fresh Revenues derived from Hubs with Spokes. Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment. Conference Call Krispy Kreme will host a public conference call and webcast at 8:30 AM Eastern Time today to discuss its results for the first quarter of 2025. To register for the conference call, please use this link. After registering, confirmation will be sent through email, including dial-in details and unique conference call codes for entry. To listen to the live webcast and Q&A, visit the Krispy Kreme investor relations website at A replay of the webcast will be available on the website within 24 hours after the call. This earnings press release and related materials will also be available on the investor relations section of the Company's website. About Krispy Kreme Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in more than 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business with more than 17,900 fresh points of access. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at or on one of its many social media channels, including and Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as 'plan,' 'believe,' 'may,' 'continue,' 'guidance,' 'could,' 'will,' 'should,' 'would,' 'anticipate,' 'estimate,' 'expect,' 'intend,' 'objective,' 'seek,' 'strive' or, in each case, the negatives of these words, comparable terminology, or similar references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included in this press release. We consider the assumptions and estimates on which our forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross-contamination; impacts from the 2024 Cybersecurity Incident or any other material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents; any harm to our reputation or brand image; changes in consumer preferences or demographic trends; changes in the cost of raw materials and other commodities, including due to import and export requirements (including tariffs), inflation, or foreign exchange rates; our ability to execute on our omni-channel business strategy; regulatory investigations, enforcement actions, or material litigation; and other risks and uncertainties described under the heading 'Risk Factors' in our Annual Report on Form 10-K for the year ended December 29, 2024, filed by us with the Securities and Exchange Commission (the 'SEC') and in other filings we make from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law. Non-GAAP Measures This press release includes certain financial information that is not presented in conformity with accounting principles generally accepted in the U.S. ('GAAP'). These non-GAAP financial measures include organic revenue growth/(decline), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted Net Income, Diluted, Adjusted EPS, Free Cash Flow, Net Debt, Fresh Revenue from Hubs with Spokes and Sales per Hub. These non-GAAP financial measures are not standardized, and it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance under GAAP or a substitute for results reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC and not to rely on any single financial measure. The Company does not provide reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure because it is unable to predict with reasonable certainty or without unreasonable effort non-recurring items, such as those reflected in our reconciliation of historic numbers. The variability of these items is unpredictable and may have a significant impact. See 'Reconciliation of Non-GAAP Financial Measures' below for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure. Krispy Kreme, Inc. Condensed Consolidated Balance Sheets (in thousands, except per share data) As of (Unaudited) 2025 December 29, 2024 ASSETS Current assets: Cash and cash equivalents $ 18,722 $ 28,962 Restricted cash 445 353 Accounts receivable, net 69,315 67,722 Inventories 31,524 28,133 Taxes receivable 16,927 16,155 Prepaid expense and other current assets 21,053 31,615 Total current assets 157,986 172,940 Property and equipment, net 539,014 511,139 Goodwill 1,052,636 1,047,581 Other intangible assets, net 813,869 819,934 Operating lease right of use asset, net 416,065 409,869 Investments in unconsolidated entities 90,774 91,070 Other assets 18,979 19,497 Total assets $ 3,089,323 $ 3,072,030 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 54,629 $ 56,356 Current operating lease liabilities 50,895 46,620 Accounts payable 117,181 123,316 Accrued liabilities 115,025 124,212 Structured payables 111,726 135,668 Total current liabilities 449,456 486,172 Long-term debt, less current portion 934,967 844,547 Noncurrent operating lease liabilities 410,219 405,366 Deferred income taxes, net 118,992 130,745 Other long-term obligations and deferred credits 44,272 40,768 Total liabilities 1,957,906 1,907,598 Commitments and contingencies Shareholders' equity: Common stock, $0.01 par value; 300,000 shares authorized as of both March 30, 2025 and December 29, 2024; 170,300 and 170,060 shares issued and outstanding as of March 30, 2025 and December 29, 2024, respectively 1,703 1,701 Additional paid-in capital 1,468,883 1,466,508 Shareholder note receivable (1,782 ) (1,906 ) Accumulated other comprehensive loss, net of income tax (28,282 ) (32,128 ) Retained deficit (338,891 ) (299,638 ) Total shareholders' equity attributable to Krispy Kreme, Inc. 1,101,631 1,134,537 Noncontrolling interest 29,786 29,895 Total shareholders' equity 1,131,417 1,164,432 Total liabilities and shareholders' equity $ 3,089,323 $ 3,072,030 Expand Krispy Kreme, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) Quarter Ended March 30, 2025 (13 weeks) March 31, 2024 (13 weeks) CASH FLOWS USED FOR OPERATING ACTIVITIES: Net loss $ (33,405 ) $ (6,663 ) Adjustments to reconcile net loss to net cash used for operating activities: Depreciation and amortization expense 33,901 33,586 Deferred and other income taxes (10,668 ) 214 Impairment and lease termination charges 162 247 Loss/(gain) on disposal of property and equipment 189 (49 ) Share-based compensation 2,603 6,986 Change in accounts and notes receivable allowances 202 113 Inventory write-off 848 411 Amortization related to settlement of interest rate swap derivatives — (2,955 ) Other 1,225 788 Change in operating assets and liabilities, excluding foreign currency translation adjustments (15,891 ) (50,383 ) Net cash used for operating activities (20,834 ) (17,705 ) CASH FLOWS USED FOR INVESTING ACTIVITIES: Purchase of property and equipment (25,897 ) (29,064 ) Other investing activities 86 19 Net cash used for investing activities (25,811 ) (29,045 ) CASH FLOWS PROVIDED BY FINANCING ACTIVITIES: Proceeds from the issuance of debt 182,500 179,500 Repayment of long-term debt and lease obligations (115,622 ) (132,343 ) Proceeds from structured payables 118,908 101,287 Payments on structured payables (142,868 ) (97,416 ) Capital contribution by shareholders, net of loans issued — 232 Distribution to shareholders (5,961 ) (5,902 ) Payments for repurchase and retirement of common stock (123 ) (804 ) Distribution to noncontrolling interest (36 ) (977 ) Net cash provided by financing activities 36,798 43,577 Effect of exchange rate changes on cash, cash equivalents and restricted cash (301 ) (1,829 ) Net decrease in cash, cash equivalents and restricted cash (10,148 ) (5,002 ) Cash, cash equivalents and restricted cash at beginning of period 29,315 38,614 Cash, cash equivalents and restricted cash at end of period $ 19,167 $ 33,612 Net cash used for operating activities $ (20,834 ) $ (17,705 ) Less: Purchase of property and equipment (25,897 ) (29,064 ) Free cash flow $ (46,731 ) $ (46,769 ) Expand Krispy Kreme, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) (in thousands, except per share amounts) We define 'Adjusted EBITDA' as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBITDA is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. 'Adjusted EBITDA margin' reflects Adjusted EBITDA as a percentage of net revenues. We define 'Adjusted EBIT' as earnings before interest expense, net and income tax expense, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBIT is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. We define 'Adjusted Net Income, Diluted' as net loss attributable to common shareholders, adjusted for share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent, or non-core income and expense items. 'Adjusted EPS' is Adjusted Net Income, Diluted converted to a per share amount. Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income, Diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP measures supplementally. Quarter Ended (in thousands) March 30, 2025 March 31, 2024 Net loss $ (33,405 ) $ (6,663 ) Interest expense, net 16,196 13,736 Income tax (benefit)/expense (2,667 ) 4,262 Share-based compensation 2,603 6,986 Employer payroll taxes related to share-based compensation 166 43 Other non-operating (income)/expense, net (1) (393 ) 573 Strategic initiatives (2) 2,353 4,821 Acquisition and integration expenses (3) 71 248 New market penetration expenses (4) 75 466 Store closure expenses, net (5) 272 139 Restructuring and severance expenses (6) 108 6 Other (7) 4,700 (15 ) Amortization of acquisition related intangibles (8) 7,661 7,420 Adjusted EBIT $ (2,260 ) $ 32,022 Depreciation expense and amortization of right of use assets 26,240 26,166 Adjusted EBITDA $ 23,980 $ 58,188 Expand Quarter Ended (in thousands) March 30, 2025 March 31, 2024 Segment Adjusted EBITDA: U.S $ 15,911 $ 42,616 International 14,897 20,536 Market Development 11,047 11,900 Corporate (17,875 ) (16,864 ) Total Adjusted EBITDA $ 23,980 $ 58,188 Expand Quarter Ended (in thousands, except per share amounts) March 30, 2025 March 31, 2024 Net loss $ (33,405 ) $ (6,663 ) Share-based compensation 2,603 6,986 Employer payroll taxes related to share-based compensation 166 43 Other non-operating (income)/expense, net (1) (393 ) 573 Strategic initiatives (2) 2,353 4,821 Acquisition and integration expenses (3) 71 248 New market penetration expenses (4) 75 466 Store closure expenses, net (5) 272 139 Restructuring and severance expenses (6) 108 6 Other (7) 4,700 (15 ) Amortization of acquisition related intangibles (8) 7,661 7,420 Tax impact of adjustments (9) 6,830 (224 ) Tax specific adjustments (10) — (589 ) Net loss/(income) attributable to noncontrolling interest 121 (1,871 ) Adjusted net (loss)/income attributable to common shareholders - Basic $ (8,838 ) $ 11,340 Additional income attributed to noncontrolling interest due to subsidiary potential common shares (2 ) (19 ) Adjusted net (loss)/income attributable to common shareholders - Diluted $ (8,840 ) $ 11,321 Basic weighted average common shares outstanding 170,291 168,685 Dilutive effect of outstanding common stock options, RSUs, and PSUs — 2,488 Diluted weighted average common shares outstanding 170,291 171,173 Adjusted net (loss)/income per share attributable to common shareholders: Basic $ (0.05 ) $ 0.07 Diluted $ (0.05 ) $ 0.07 Expand (1) Primarily foreign translation gains and losses in each period. The quarter ended March 30, 2025 also consists of equity method income from Insomnia Cookies following the divestiture of a controlling interest in Insomnia Cookies during fiscal 2024. (2) The quarter ended March 30, 2025 consists primarily of costs associated with preparing for and executing the U.S. national expansion (including McDonald's), and the evaluation of potential opportunities to refranchise certain equity markets. The quarter ended March 31, 2024 consists primarily of costs associated with global transformation, exploring strategic alternatives for the Insomnia Cookies business, and preparing for the U.S. national expansion (including McDonald's). (3) Consists of acquisition and integration-related costs in connection with the Company's business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period. (4) Consists of start-up costs associated with entry into new countries for which the Company's brands have not previously operated, including Brazil and Spain. (5) Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment. (6) The quarter ended March 30, 2025 consists primarily of costs associated with restructuring of the U.S. and U.K. executive teams. (7) The quarter ended March 30, 2025 consists primarily of $4.4 million in costs related to remediation of the 2024 Cybersecurity Incident, including fees for cybersecurity experts and other advisors. (8) Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statements of Operations. (9) Tax impact of adjustments calculated applying the applicable statutory rates. The quarters ended March 30, 2025 and March 31, 2024 also include the impact of disallowed executive compensation expense. (10) The quarter ended March 31, 2024 consists of the recognition of a previously unrecognized tax benefit unrelated to ongoing operations and a discrete tax benefit unrelated to ongoing operations. Expand Organic revenue growth measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define 'organic revenue growth' as the growth in revenues, excluding (i) acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs, (iv) the impact of the divestiture of Insomnia Cookies, and (v) revenues generated during the 53 rd week for those fiscal years that have a 53 rd week based on our fiscal calendar. Q1 2024 Organic Revenue - QTD (in thousands, except percentages) U.S. International Market Development Total Company Total net revenues in first quarter of fiscal 2024 $ 295,935 $ 124,750 $ 22,013 $ 442,698 Total net revenues in first quarter of fiscal 2023 281,344 111,988 25,618 418,950 Total Net Revenues Growth/(Decline) 14,591 12,762 (3,605 ) 23,748 Total Net Revenues Growth/(Decline) % 5.2 % 11.4 % -14.1 % 5.7 % Less: Impact of shop optimization program closures (316 ) — — (316 ) Less: Impact of Branded Sweet Treats exit (5,367 ) — — (5,367 ) Adjusted net revenues in first quarter of fiscal 2023 275,661 111,988 25,618 413,267 Adjusted net revenue growth/(decline) 20,274 12,762 (3,605 ) 29,431 Impact of foreign currency translation — (1,836 ) — (1,836 ) Organic Revenue Growth/(Decline) $ 20,274 $ 10,926 $ (3,605 ) $ 27,595 Organic Revenue Growth/(Decline) % 7.4 % 9.8 % -14.1 % 6.7 % Expand Fresh Revenues from Hubs with Spokes and Sales per Hub are defined above. (1) Includes the exited Branded Sweet Treats business revenues as well as licensing royalties from customers for use of the Krispy Kreme brand. (2) Includes Insomnia Cookies revenues (through the date of the divestiture) and Fresh Revenues generated by Hubs without Spokes. (4) Expand Krispy Kreme, Inc. Global Points of Access (Unaudited) Global Points of Access March 30, 2025 March 31, 2024 December 29, 2024 U.S.: Hot Light Theater Shops 238 229 237 Fresh Shops 67 71 70 Cookie Bakeries (1) — 277 — DFD Doors (2) 10,186 7,198 9,644 Total 10,491 7,775 9,951 International: Hot Light Theater Shops 48 45 49 Fresh Shops 518 490 519 Carts, Food Trucks, and Other (3) 17 16 17 DFD Doors 4,469 4,202 4,583 Total 5,052 4,753 5,168 Market Development: Hot Light Theater Shops 108 117 108 Fresh Shops 1,104 1,010 1,095 Carts, Food Trucks, and Other (3) 30 30 30 DFD Doors 1,197 1,129 1,205 Total 2,439 2,286 2,438 Total Global Points of Access (as defined) 17,982 14,814 17,557 Total Hot Light Theater Shops 394 391 394 Total Fresh Shops 1,689 1,571 1,684 Total Cookie Bakeries (1) — 277 — Total Shops 2,083 2,239 2,078 Total Carts, Food Trucks, and Other 47 46 47 Total DFD Doors 15,852 12,529 15,432 Total Global Points of Access (as defined) 17,982 14,814 17,557 Expand (1) Reflects the divestiture of Insomnia Cookies during fiscal 2024. (2) Includes more than 2,400 McDonald's QSR shops as of March 30, 2025. (3) Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of Access in this category are primarily found in international locations in airports and train stations. Expand Krispy Kreme, Inc. Global Hubs (Unaudited) Hubs Quarter Ended Fiscal Year Ended March 30, 2025 March 31, 2024 December 29, 2024 U.S.: Hot Light Theater Shops (1) 234 221 232 Doughnut Factories 6 4 6 Total 240 225 238 Hubs with Spokes 162 154 158 Hubs without Spokes 78 71 80 International: Hot Light Theater Shops (1) 39 36 40 Doughnut Factories 14 14 14 Total 53 50 54 Hubs with Spokes 53 50 54 Market Development: Hot Light Theater Shops (1) 106 113 106 Doughnut Factories 27 26 27 Total 133 139 133 Total Hubs 426 414 425 Expand (1) Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a Spoke location that produces some doughnuts for itself and also receives doughnuts from another producing location. Expand Krispy Kreme, Inc. Net Debt and Leverage (Unaudited) (in thousands, except leverage ratio) As of (Unaudited) March 30, 2025 December 29, 2024 Current portion of long-term debt $ 54,629 $ 56,356 Long-term debt, less current portion 934,967 844,547 Total long-term debt, including debt issuance costs 989,596 900,903 Add back: Debt issuance costs 3,060 3,322 Total long-term debt, excluding debt issuance costs 992,656 904,225 Less: Cash and cash equivalents (18,722 ) (28,962 ) Net debt $ 973,934 $ 875,263 Adjusted EBITDA - trailing four quarters 159,320 193,528 Net leverage ratio 6.1 x 4.5 x Expand
