Krispy Kreme ( NASDAQ: DNUT ) is confident that the fourth quarter will remain sweet for investors.
The sweet treat chain posted a mixed Q3 result, with EPS narrowly missing expectations and revenue rising above analyst estimates. The company noted that the strong revenue came despite the fact that foreign currency translation resulted in a negative 3.3% impact on net revenue growth during the quarter as the company continued its international expansion.
“We were pleased with our strong organic revenue growth in the third quarter, led by an acceleration in growth in the U.S. and Canada and Market Development,” CEO Mike Tattersfield stated. “Margins improved significantly in the final period of the quarter as we successfully implemented price increases in the U.S. coupled with decreased promotional activity after Labor Day. Strong momentum continues into the fourth quarter enhanced by further recent pricing actions in the U.S. and U.K. and a robust global Halloween performance.”
As such, management maintained full year guidance that includes the expectation of $1.49B to $1.52B in revenue and adjusted diluted EPS of $0.29 to $0.32. Both figures are in-line with consensus expectations.
Elsewhere, management expects to reduce net leverage of approximately 3.6x to about 3.0x by the end of 2023.
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Krispy Kreme sees ‘strong momentum’ into year-end despite mixed Q3 result