KRISPY KREME Reports Third Quarter FY2023 Earnings Results
December 7, 2023
🌥️Earnings Overview
Krispy Kreme ($NASDAQ:DNUT) reported their financial results for the third quarter of fiscal year 2023 as of September 30 2023. Total revenue totaled USD 407.4 million, a 7.9% increase from the same period in the prior year. Net income was reported as USD -40.5 million, compared to a net loss of -13.1 million the year before.
Share Price
The stock opened at $12.5 and closed at $12.6, which was a decrease of 6.5% from the last closing price of 13.4. The company released a statement which showed that revenue was slightly down from the previous quarter due to decreases in customer traffic, however, net profit was still up overall. The company is hoping to make up for the decrease in earnings through their new flavor launch and marketing plan for the upcoming holiday season.
They are also investing in new technology to improve delivery options and online ordering systems. Despite the drop in stock earnings, KRISPY KREME remains confident that they can turn things around moving forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Krispy Kreme. More…
| Total Revenues | Net Income | Net Margin |
| 1.64k | -43.63 | -2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Krispy Kreme. More…
| Operations | Investing | Financing |
| 113.12 | -112.13 | -3.55 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Krispy Kreme. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.19k | 1.94k | 6.83 |
Key Ratios Snapshot
Some of the financial key ratios for Krispy Kreme are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.8% | -13.9% | 1.2% |
| FCF Margin | ROE | ROA |
| -0.7% | 1.0% | 0.4% |
Analysis
GoodWhale conducted an analysis of KRISPY KREME‘s wellbeing and found that it is classified as a ‘cheetah’ type of company, which has achieved high revenue or earnings growth but is considered to be less stable due to lower profitability. KRISPY KREME has an intermediate health score of 5/10 with regard to its cashflows and debt, likely enough to sustain future operations in times of economic crisis. KRISPY KREME is strong in growth, medium in dividend, profitability and weak in asset. As such, investors who seek high growth and are willing to accept the risk associated with lower profitability may be interested in investing in KRISPY KREME. Furthermore, the company’s intermediate health score could indicate that it is a reliable choice for those who want to invest in a company that has a good chance of sustaining operations in uncertain times. More…
Peers
In the competitive world of donut making, there are a few key players that stand out. Krispy Kreme Inc, Loblaw Companies Ltd, Woolworths Group Ltd, and Atacadao SA are all major companies in the industry. They all have their own unique recipes, strengths, and weaknesses. However, Krispy Kreme seems to be the clear leader in terms of market share and profitability.
– Loblaw Companies Ltd ($TSX:L)
Loblaw Companies Ltd. is a Canadian food and pharmacy retailer headquartered in Brampton, Ontario. The company has more than 2,000 stores across Canada and employs more than 190,000 people. The company’s grocery store banners include Loblaws, Real Canadian Superstore, Fortinos, No Frills, and Shoppers Drug Mart. Loblaw is the largest food retailer in Canada and the largest pharmacy chain in the country. The company also has a large financial services division that includes President’s Choice Financial and PC Insurance.
– Woolworths Group Ltd ($ASX:WOW)
Woolworths Group Ltd is a retail company with operations in Australia and New Zealand. The company has a market capitalization of 40.58 billion as of 2022 and a return on equity of 23.27%. Woolworths Group Ltd is engaged in the retail sale of food, liquor, petrol, general merchandise, and home improvement products. The company also provides financial services, including credit cards, personal loans, and insurance products.
– Atacadao SA ($OTCPK:ATAAY)
Atacadao SA is a Brazilian company that operates as a wholesale distributor of food, non-food items, and personal care products. The company has a market cap of 7.48B as of 2022 and a Return on Equity of 19.02%. Atacadao SA operates through two segments: Food Distribution and Non-food Distribution. The Food Distribution segment offers meat, poultry, fish, fruits, vegetables, sugar, coffee, grains, and dairy products. The Non-food Distribution segment includes general merchandise, home appliances, electronics, and personal care products.
Summary
Krispy Kreme reported their earnings results for the third quarter of FY2023 with total revenue increasing by 7.9% year-over-year to USD 407.4 million, while net income recorded at a net loss of -40.5 million, compared to the prior year’s -13.1 million. On the same day, the stock price moved down. For investors, this is an indication that the company may have difficulty meeting its financial goals in the short term. However, it is also important to consider other metrics such as total sales and customer satisfaction to determine whether Krispy Kreme will be a profitable investment in the long term.
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