Krispy Kreme has reported a 6.8 per cent decline in net revenue in Q3 2024 compared to the same time last year.
The company posted net revenue of US$379.9 million in Q3 2024, compared to $407.4 million in the same quarter last year.
In a statement, the coffee and doughnut chain said its third-quarter results reflect the sale of a majority ownership stake of Insomnia Cookies in July 2024. The business is now fully focused on its core strategy of producing, sellin,g and distributing fresh doughnuts daily and executing on its profitable United States (US) growth strategy and capital light international model.
“Krispy Kreme delivered a 17th consecutive quarter of year-over-year organic sales growth driven by increased Delivered Fresh Daily and digital sales,” says CEO Josh Charlesworth.
“Consumers ask us every day, ‘When can you bring Krispy Kreme to my town?’ hence our strategy of making our fresh doughnuts more available around the world. The successful start of our nationwide US rollout at McDonald’s, which began in Chicago in October and continues next week across Ohio and Indiana, is a major milestone on this journey, and we now expect to be delighting Krispy Kreme’s fans with our melt-in-your-mouth doughnuts fresh daily in nearly 2000 McDonald’s restaurants by the end of 2024.”
In the US segment, net revenue declined $31.8 million, or 12.2 per cent, driven by the $43.5 million impact associated with the sale of a majority ownership stake of Insomnia Cookies. Organic revenue growth of $5.5 million, or 2.5 per cent, was driven by a 14 per cent increase in Points of Access and a 21 per cent increase in digital channel revenues.
In the international segment, net revenue grew $4.6 million, or 3.7 per cent, with organic revenue growth of $5.3 million or 4.2 per cent, driven by Canada, Japan, and Australia, which the company said offset underperformance in the United Kingdom.
