DNUT Latest Report

Financial Performance

As of December 29, 2024, Krispy Kreme's total operating revenue was RMB404,023,000, with a net profit of -RMB22,163,000, indicating challenges in profitability. Although the cumulative revenue in the first three quarters of 2024 grew by 2.12% year-on-year, the overall profitability was unsatisfactory, possibly reflecting the pressure of market competition and internal strategies.

Key Financial Data

1. The total operating revenue was RMB404,023,000, indicating the volatility of operating income in the face of market competition.

2. The net profit was -RMB22,163,000, indicating the company's profit loss, which needs attention to cost control and revenue growth strategies.

3. The cumulative revenue in the first three quarters of 2024 reached US$1.261 billion, up 2.12% year-on-year, showing a certain market recovery ability.

4. The company adjusted its marketing strategy, increasing 34,100 global touchpoints to enhance the market coverage of its brand.

5. To face fierce competition, the company strengthened product quality and technological innovation to cope with market challenges.

Peer Comparison

1. Industry-wide analysis: The fast-food and dessert industry performed well in 2024, with a 6.9% increase in revenue from fast-food restaurants, indicating overall market recovery, but Krispy Kreme's performance was relatively flat, requiring a re-examination of its market and product strategies.

2. Peer evaluation analysis: Compared with competitors like Dunkin', Krispy Kreme's operating revenue growth was relatively slow, possibly requiring further optimization of its market strategy and product portfolio to enhance market performance and operating revenue.

Conclusion

Krispy Kreme's financial performance in 2024 showed potential for revenue growth, but the net profit loss and fierce market competition posed challenges to its future profitability. While continuously optimizing marketing strategies and enhancing product quality, the company needs to pay attention to cost control and changes in market demand.

Opportunities

1. Through cooperation with McDonald's, Krispy Kreme has the opportunity to increase brand exposure and sales channels, further expanding its market share.

2. Strengthening its omnichannel strategy and enhancing customer experience may attract more consumers and promote revenue growth.

3. In the rapidly recovering fast-food industry, if it can innovate its product line to meet consumers' new needs, it will help enhance its competitiveness.

Risks

1. Continued market competition may lead to stagnant revenue growth, and if it fails to effectively attract customers, its profitability will further deteriorate.

2. The rise in raw material costs may affect the company's pricing ability, thus compressing its profit margin.

3. Uncertainty in the global economy and reduced consumer spending may put additional pressure on the company's operating revenue.