Krispy Kreme ( NASDAQ: DNUT ) shares rose in premarket trading on Wednesday after the company cleared the bar set by the Street for Q4 earnings.
The North Carolina-based restaurant chain notched $0.11 in earnings per share for the quarter, beating expectations by $0.01, while a 9.2% jump in revenue year over year to $404.6M narrowly exceeded estimates as well. The company noted that price increases implemented on fresh doughnuts in October 2022 helped lift sales without any outsized adverse impact on consumer appetites. E-commerce efforts were also highlighted, with the segment’s sales rising 23% from 2021 to 2022.
“We are pleased with the strong end to 2022, with notable progress on expanding our omni-channel model, furthering our global growth strategy and executing successfully on the initial phase of our hub optimization efforts,” CEO Mike Tattersfield stated. “Looking to 2023, we are well-positioned to deliver another year of terrific growth with a great start led by premium offerings for celebrations. Our performance this year will be led by continued expansion of our capital efficient omni-channel model as we aim to grow our fresh points of access by 10% to 15% in 2023.”
He added that the chain plans to expand to 7 new countries in 2023, with particular excitement about plans to break ground in France.
Management sees net revenue for 2023 in a range of $1.65B to $1.68B, essentially in-line with the $1.66B consensus. An adjusted EBITDA forecast of between $205M and $215M also aligns with the $211M analyst expectation. Guidance for adjusted diluted EPS between $0.31 to $0.34, however, came up short of the $0.36 consensus.
Shares of Krispy Kreme ( DNUT ) gained 1.47% in premarket trading on Wednesday.
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Krispy Kreme posts sweeter than expected Q4 report