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- **Turnaround Progress**: Q3 EBITDA up 17% YoY to $40.6M, with U.S. EBITDA growth 51% YoY and first international YoY EBITDA increase in 4 quarters.
- **Strategic Door Expansion**: 1,000 new high-volume doors added year-to-date, driving 18% increase in average weekly sales to $617.
- **Digital Growth**: U.S. digital sales +17% YoY, 20% of retail mix, with successful campaigns like Halloween and Harry Potter.
- **Cost Efficiency**: $12M-$15M annualized SG&A savings, 54% of U.S. delivery outsourced, and net leverage down to 7.3x.
- **International Momentum**: Mexico, Japan, and Brazil leading growth, with Brazil's first shop and UAE KFC collaboration.
- **Q4 Outlook**: Sequential EBITDA improvement expected, with continued focus on profitable U.S. expansion and refranchising.

**【Management Opening Remarks】**
- Krispy Kreme issued its Q3 2025 earnings release, available alongside a presentation on the Investor Relations website.
- Forward-looking statements and non-GAAP financial measures were noted, with cautionary language regarding risks and uncertainties.

**【CEO Summary Section】**
- **Turnaround Plan Focus**: Refranchising, capital-light growth, margin expansion, and U.S. profitable growth.
- **Refranchising Progress**: Restructuring the WKS joint venture to a minority stake, reducing CapEx by 50% YoY, and targeting international expansion (e.g., Spain, Brazil).
- **U.S. Growth**: Added 1,000 high-volume doors with partners like Walmart, Target, and Costco, driving 18% increase in average weekly sales to $617.
- **Digital Momentum**: Q3 U.S. digital sales up 17% YoY, accounting for 20% of retail sales, with successful campaigns like Harry Potter and Halloween collections.
- **Menu Innovation**: Refreshed core menu with trending flavors (e.g., OREO Cookies & Kreme) and limited-time offerings tied to cultural events.

**【CFO Financial Commentary】**
- **Q3 Financial Highlights**: Adjusted EBITDA $40.6M (+17% YoY), net revenue $375.3M (-1.2% YoY due to Insomnia Cookies sale), free cash flow $15.5M.
- **U.S. Segment**: Organic revenue growth 2.2% despite 600 door closures; adjusted EBITDA $21M (+51% YoY), driven by cost savings and insurance recoveries.
- **International Segment**: Organic revenue growth 6.2% (Canada, Japan, Mexico); adjusted EBITDA $23.2M (+1.7% YoY), first YoY growth in 4 quarters.
- **Leverage Reduction**: Net leverage 7.3x (down 0.2x QoQ), with $200M+ liquidity supporting turnaround initiatives.
- **Cost Savings**: $12M-$15M annualized SG&A reductions, including $3M from logistics outsourcing.

**【Q&A Key Highlights】**
- **International Growth**: Mexico, Japan, and Brazil showing strong momentum; Brazil's first shop and UAE KFC collaboration highlight capital-light expansion.
- **U.S. Demand**: Q3 EBITDA improvement despite door closures; Q4 expected sequential EBITDA growth driven by strategic door additions.
- **Logistics Outsourcing**: 54% of U.S. network outsourced, with full transition by 2026; reduces risk and enables operational efficiency.
- **Menu Strategy**: Consumer-driven refresh balances variety and profitability, with digital channels amplifying limited-time offers.
- **Competitive Positioning**: Focus on high-traffic partnerships (e.g., Walmart, Target) and brand relevance in gifting occasions.


Krispy Kreme, Inc. (DNUT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

DNUT

DNUT fundamentals

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