DNUT - Earnings call 4 2023 | Krispy Kreme, Inc.

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Operator

Thanks for standing by. My name is [ Mandeep ], and I will be your conference operator today. At this time, I'd like to welcome everyone to the Krispy Kreme Fourth Quarter 2023 Earnings Call. [Operator Instructions]I would now like to turn the call over to Ms. Stephanie Daukus, Vice President of Investor Relations. Ms. ahead. go please Daukus,

Stephanie Daukus

morning, Full welcome Thank Year today. joining Good Fourth you Krispy Quarter us and XXXX everyone, you. to and Kreme's for Thank Earnings Call.

or results expectations, that be and associated our year to and on Relations we time Jeremiah financial Executive from prepared differ factors filed morning number and you of remarks, be website for on involve begin, XXXX, of Financial a from and events, actual provisions filings which to uncertainties SEC inherent there call make investors those we and in Our caution detail SEC. in are I of are me forward-looking Investor earnings forward-looking investors.krispykreme.com.Joining statements the that Ashukian, call release remind session.Before the XXXX, call, Chief cause statements and to we future of could statements. earnings Officer; the will with performance.Forward-looking Form described the risks Reform These the Securities the referencing at uncertainties, Litigation contains to any like After this we Officer. Josh the pursuant during available a materially would the Chief presentation, are will contained risks this company's made January in future Private Act in question-and-answer harbor statements these the XX-K X, time and other risks with ended other and Charlesworth, including safe

also earnings to be comparable closest A between is publicly update financial statements, any Form release today. and the include at today's XXXX that, assumes I'll are call of filed obligation The press GAAP found except required to over our reconciliation Josh. made measures. call our law.Additionally, the quarter turn forward-looking today non-GAAP will statements Forward-looking financial SEC revise by website.With certain company and non-GAAP today measures and with available investors.krispykreme.com our only as X-K be may as fourth in can measures or no

Joshua Charlesworth

Good excited ahead thank us for morning, us joining is Kreme. at what I'm Krispy so everyone, of you and today. for

is the in existing reminding is our not but consumer make that XXXX available Krispy and strong of just great to give world. and this people new increased markets to access around strategy fresh made fresh to both in more with joy keep to to Kreme, places doughnuts and Our clear, progress others. We in the share and demand on our eat, doughnuts

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We high-quality, increase will to today's making moving our deliver doughnuts efforts me ensure we key and messages. summarize modernize the profitable to of growth.Let also

doughnuts and of is channels access. markets fresh can by scale more business sales. in ongoing hubs buy where margins places more adding the countries. to operating to you than strategy production the our where XX leveraging was organic by growing growth, U.S., strongest.Our are efficiently existing in points XX,XXX There our all fresh now melt-in-your-mouth, revenue support growth expanded continued double-digit We We especially with leverage deliver profit to

in and increasingly intent delivered growth finally, Krispy consumer of expansion, focus reflecting impressions, including doughnut as in strong Kreme favorite introducing our Elf business, collection, of demand and fresh XXXX the people quarter Krispy now make the existing points years, continues by everybody's doughnuts we profitable access as to net business.And Scooby-Doo Our same operational revenue into available for new guide ] fourth and fourth significantly from building year.The which also with and we premiums Kreme, resonated which doughnuts organic fourth their of performance loyalty and bigger hub with first-ever doughnuts Chile, bigger holiday ahead outlook and XXX, for XX.X% to they convenience our full excellence specialty season growth the many were continued [ growth.We of the we made our hubs. was and a the and and organic excitement Ecuador the innovative are points more XX.X% do goes new growth EBITDA becoming create million to doughnuts a fresh increased by Switzerland, Krispy reflected finished as well celebrate ended a We Costa website, which with play adjusted hub.The over make margin Kreme revenue than the add more Jamaica, Halloween, and over our opening in-shop this choosing in to that model today, twice growing we consumer.E-commerce of XX% X,XXX hubs, the celebrating how more as from well production priced of profitable. drive Krispy a productivity increased in with added points XX with and production to in quarter, this and reflecting year. helped means demand and XXth France translate increased add who holiday adding on with to quarter, did growth which like of the countries basis more adding our improvements the the and with billion better the driven availability.Organic more much stores, partners anniversary app, dozen earlier improving to in XXXX access, fourth family quarter, resulting is tremendous still prior utilization XX Thanksgiving, all them with of access brand growing our and mostly Kreme's grocery to Kazakhstan, displays movie.Tie-ins favorite fourth expansion XXXX, our profitability for XXXX, points than The operating whilst within driven new are production members, adding stronger customers. Fresh expected EBITDA by both organic total productive to growth role spoke The the X and expansion want hub in over delivered adjusted in through we Rica, without to as most year quarter in Daily can This efficient new spoke XX in model XX.X%. our Delivered media reflecting also

all which And the by We big.We been of opening customers to also the we at an we and providing and bigger were Costco business opportunity long-term quarter strong be more with and have on XXXX.Our model. targeted. and the Kentucky the couldn't less why McDonald's better And of our in are and production without ] Krispy of least daily continuously and U.S., and Kreme expand grow. Kreme, locations least legacy I as service to for with optimization adding around the than a where goal shared and extended McDonald's hub than relationship [ convenience X to as plans to updates not such conducting year buy our access expansion, have results us Kreme full where further this quick reason completed access XX,XXX one we is markets closing at well new power improving our points test strategy.Our spoke hubs XXXX, discussions exemplify look about to forward we our world, million forward success total still doughnut with suited someone number operations in a previously not continues have availability international look Krispy we X% in market, of the sell our restaurant Krispy in through yet may markets in the fourth XXXX. doughnut much represents we in the The of shops ongoing addressable XXXX, spokes of becoming the remains time,

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opportunities.And these changes We to technology multiple have with leadership are experience Information Chief global Angela a we digital team reflect started new adding by Officer industries. our Yochem, making deep across to XXXX

of Our has a team, using Global and into as doughnuts as continuously Rancano, of channel operations the in a more to extensive Sherif doughnuts through capabilities the QSR Kreme we in and of a select still on this has access.An and and pilot drivers. our experience.As Supply are day, D.C. processing has improving is every deliver Javier provider, and our third-party trucks making Krispy automated example every fresh Chain U.S. we focused our business expanding routes more stepped are who use leader, quality, leadership fresh Mondelez, formerly starting delivery Leader, just L.A. on we points Riad, doughnut support logistics team, doughnut dedicated

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Jeremiah Ashukian

Thanks, everyone. morning, and good Josh,

hubs.For high-impact XX quarter hub grew of margin organic the the of on bottom the and points outpacing activations a our driven we EBITDA both of saw fourth offerings, realize XX.X%, seasonal in in premiumization resulting second EBITDA productivity continue quarter, expansion impact brand adjusted on U.S. points as line to on our growth cost year-over-year spoke XX% largely efforts, channels, markets, performed by our and increased the XX.X%. on Organic doughnut we the specialty of basis, our as the all growth in by consecutive reported organic double-digit strong and offerings we to growth, driven benefits segment, strong global percentage productivity for positive line of growth and organic utilization full demonstrating and across across increased fourth profitability in by business we accelerated grew efforts.Adjusted Notably, through quarter As and double-digit Josh all through fourth basis in expanded year, business mentioned, the XX.X% top in efficiencies our saw segments the improved we year, We adjusted revenue the grew fourth margins. all holiday delivered incremental with as XX.X% access to model. for the growth XXXX drove In global EBITDA XX.X% revenue expectations both performance increased season DFD, top sales. quarter, our in XXXX.In record growth the and a especially had sales quarter.

model improvement said, season the values added spoke was results holiday our to strong we cost increased growth doughnuts specialty first the specialty existing explains grew of to pressured we we several due as growing U.K. offset revenue seeing year sequential year-over-year given growth versus great drive over of DFD and XXX in with as [ in X.X% and set notably, and in of growth Insomnia elevated the our our point U.S. organic observed is in business leverage access by year-over-year as from year-over-year Elf volume the as We U.K.Mexico transaction of improvements more hub and of more versus doors XXXX. quarter. underway Cookies, ] market in doughnuts. [ X,XXX the leveraging in a segment, This, of as single ability year.In observed which was points the well now adjusted the doors of of QX our seeing substantial marked the markets At the strategy we this as to sales hubs. points executed our International XX.X% of increase the underpinned basis organic added during for channel.All grew margin margins XX.X% XXX established cities to subsequent QX. contributor hub to also coco.The per That added remained worldwide, pricing leverage and global and to access, in QX well Australia Mexico this profitability expanded in campaigns e-commerce with than points X of a EBITDA margin the ] access over Most materials, X% the well inflation, improvement of

access continue in such meaningful points the existing nearly room [ with country. to through have partners, ], in doubled Oxxo as Mexico We of expanding

and in DFD the be in quarter We organic to EBITDA the actions both grew we growth combination in customer. by which than a quarter expanding in U.K., sequentially partners quarter continues Market more also as expansion points XX.X%.Margin Australia, our fourth to a further represented XX.X% revenue XXX development record-breaking an to saw Mexico.Profitability more December. successful basis Costco Ecuador, efficiencies XX.X% continue expect and fourth of Canadian Adjusted taking productivity.In shop we're spoke expansion efficient best were the markets, Japanese doors. Market alone in fresh worldwide equity-owned and We France, theaters, access.Most continued in segment, in Development X markets. through continues the Australia our margin in margins points Paris notably, adjusted of access improve improvements to shops as new to these driven pressured such that and a XX.X% performing quarter. shop grew improved in with be the prove to countries This by X opening with XXX international launch hub support basis of and in EBITDA on in sales the was points a by and fourth can opened X,XXX primarily our new and

of is equity capital-light to model while continue The the throughout providing expect prime of example high which see returns in market margins, we French expand the structure we in take of international flow the enables our a approach, future. earnings franchises. globally, the As to option significant JV market to ownership the

investments we our a adjusted driven earlier, into accelerate and accelerated As in you as XXXX, depreciation share, the of made $X.XX we U.S. that Cookies, in growth per were adjusted approach.For in higher-than-expected continue in offset delivered Insomnia the year Brazil both Josh using entry improvements from and EBITDA announced amortization we and future choiceful by at domestically to expansion by heard earnings globally ending business. similar DFD anticipation

increased also result original saw result, rate a as our share a adjusted saw of lower per diluted higher annual We interest expectations. we earnings environment.As interest the finished expense than

interest remain we in environment Our EPS business remaining in rate ability despite our confident somewhat to fundamentals strong, and grow are the XXXX. higher in

to million an in the which tailwind will by EBITDA $X flow our million, impact use calls, million previous mid-XXXX.Despite an deployed financing, net to on basis able from we which leverage some reduced our $X vendor $XX provide X.Xx. in flat were year, mentioned As long-term operations.Over of cash XXXX, efforts, roughly year on hold we on to annualized had cash XXXX, of of operating we strategically reduce through finishing the these a financing adjusted to beginning at vendor

have of our cash We and to access have XXXX. sheet, first in just quarter maturities under the a $XX healthy We extended balance the XXXX having up the through with capacity to year with closed health million.We sheet. and million balance in to undrawn business structure our a of our on of revolver setting remain liquidity support the focused strong long-term $XXX growth through capital an ample

X.Xx We and expect long-term, of XXXX, on leverage running track X.Xx in EBITDA be through well to the deliver as the capital capital.Over adjusted in with working the to expenditures in an we as XXXX. growth eye between primarily managing towards business remain efficiency net and

to leveraging our as which growth the and guidance drive We organic we're XXXX, diluted quarter to we organic we revenue more assumes our the Cookies.For coordinated X% we exchange full contemplates a confident providing to operations, ] impact growth and are relates operating forward adjusted in first the positioned deliver in tools including a global $X.XX.After outlook guide, X%, the earnings of full all broad look well the our high-quality XXXX despite the of growth year believe share net full for we years foreign year, us net great XXXX, our company. deliver as come, XXXX, $X.XX helped sales X% the in [ in of ability become parts and the sustainable, leverage XXXX.As per of lapping to we the As nominal to year first of to from a XX% expect to double-digit of U.S. X% adjusted which between of full record-breaking remain year EBITDA revenue it growth strong reporting revenue to finish year in January in and of fourth quarter, and in X%, X% for growth quarter expect excess weather and we growth to X%. Insomnia harsh to

line We in also adjusted expect growth. EBITDA revenue grow the to with

monitor environment, turn Josh we're profitable confident about year changes to excited in and to closely XXXX, the a to for for that, it in and potential I growth closing of come.With adapt consumer will and remarks. business and the We great market I'll our over his remain

Joshua Charlesworth

investments Thanks, the of summary, please. limited and access, access building now Jeremiah. in making Q&A, Krispy existing bigger we maximizing geographies productive Krispy return, to to open to adding model, it us our leverage high-quality, driving Kreme let's in, by look capital through up expanding In selective efficiency operating a by and operating of the have today. which ahead.Operator, forward All years points in availability Kreme capacity are leveraging better I and both

Operator

Senatore [Operator Instructions] Our the from line with first Bank comes question of America. of Sara

Jessica Owusu Afari

on Sara Afari Owusu Jessica Senatore. is This for

it XXX doughnuts quarter, the restaurants McDonald's since in unchanged for had and XQ. said the advanced U.S. so you expanding investments the testing So making about been looks the But or have you partnerships, last we're discussions like

service to I there's on quick could if have I the them but at I provide couple time. you So more questions, agreement? to growth channel, And I do ] wanted the any alluded [ ask a press more and think know see I can color that restaurant a one that in more -- release but

Joshua Charlesworth

program, Delivered opportunities word is in the world. Yes, the Fresh doughnut our of customer existing out on several and Daily obviously, around channels success new

Regarding restaurants ongoing and does about are was that and the question? our partnership, quick we McDonald's.Discussions we'll to service when in your on provide update continue productive U.S., have an expanded What second be focus it. on one an

Jessica Owusu Afari

sales to revenue U.S. to at industry? we how on the have growth. new that of less of should of base growth So in of growth if store? access international access? markets, service expansion sales but you in slightly the that know into the points points Is is driven forecast as type hub, forward, access? existing per I they'll lower that volumes in will fair was think think we in terms of assume going And about it of so, by points And quick change you if accelerate the try

Joshua Charlesworth

Well, the convenience Obviously, markets a with out Mexico U.K., Australia, customer Australia are U.K., -- it's there The X in the grocery more interesting international opportunity starting different big stores. in Mexico really really, mix. much of developed store situations. and all in

So to Mexico going especially mix effects a there. good, you with you're forecasting, the is big in constant for performance opportunity with get the chain. store get but mix Underlying Oxxo effect these convenience the

Jessica Owusu Afari

of locked that you have ] in? [ could And much us commodity remind your how you

Jeremiah Ashukian

in expect now we covered. see commodities are commodities -- overall single-digit that, put I of our Yes, to cover to do take Jessica. inflation early for can on high started And mid-to XXXX. Most XXXX. We on

our sugar, in XX-year the like a hedge. inflation -- kind of high XX% low from around are wage things do that oils.I the covered, can wheat in made can high single-digit we're inflation mixed note inflation perspective perspective, commodities of is cartons, to to as actually to labor inflation structure things on XXXX. It's cover remains of of single-digit to do So the deflation a market important amongst California. we pricing a in supply edible outside of us where forecasting to double-digit think that commodities be increases just perspective. key high to like But we from commodities single-digit within a a excess result, that highs low of bit bag cost and on double-digit just or as see security a number sense as for and expect we'll them see a which commodity XX% that we mid-to about we it on we it's expect subject And some labor like on believe continue

Operator

line Ivankoe question JPMorgan. of next with John Our the comes from

Luke Jobe

This is Ivankoe. Luke on John for Jobe

you around and modernization process of if some kind language changes that the of wondering give specific Just making to or especially doughnut the model to on that? focused within current delivery we're specification kind could process with of

Joshua Charlesworth

doughnut modernize the of sort take way our up doughnuts. way efforts the doughnuts we make That to efforts. doughnut that. the possible. of of on way you picked All the transportation. Sure. our Yes, and all the efficiently delivered through itself the and time, We've ensure the working we're the to process our in, digitization move to I'll from automation freshest making goes as shared the to all every then on before automation as upskilling

packing We filling, then and it the more more perfect expansion to looking and that goes in more have we're then even regarding is -- the is particular, We're becoming and a as on.And means rapid in becoming topping, out -- that logistics of York, logistics roll line in time running important. the DFD doughnuts. now which New automatically

today's and to to if we work -- service that quality L.A. capabilities can in routes we with efficiency. that being call that's over And whilst a announced to indeed to take expected improve D.C. the purpose about X providers operations that on have of and bring third-party and So and And our the X new can bring covering to months. more we maintain they pilot select access time, see able is

improve updates more. continuously we and doughnut learn to moving an and making as provide we'll it's So effort end-to-end

Operator

question with of Our comes the Bill from Chappell line next Truist.

Unknown Analyst

you Cookies? a what guide be bit but just year this little of to we color for of [indiscernible] on would This that sales to -- Chappell. your know were could know, the is wanting saw guidance for the fiscal I we Bill wanted provide without Insomnia on Insomnia includes for Cookies, if inclusion year 'XX David operations

Jeremiah Ashukian

number Yes. EBITDA I profitably to mean, we're grow as in record cookie of and adjusted bakeries opened We continues with sequentially XXXX. EBITDA business the a of pleased number the one, of -- terms performance in Insomnia improvement. improve

continue about at this opportunity to be Insomnia to of continues on both on to growth it grow strategic that But as review, U.S. fact talked given to that double-digit we're we expect also XX.X% more said the and can. rate lots just to a in as XXXX. internationally. do We news the in we business earnings There the conducting QX, expand at sharing it the in process, call we're and the we look forward well. We about

impact I Insomnia top call, impact we the know point think let a everybody on I to roughly in -- the the line, though. last that XXX have did or XXX operate would earnings on basis

Operator

of Our the Aisling with Grueninger question next comes Piper line from Sandler.

Aisling Grueninger

We're partnership came to include how a just that targeting CapEx And the number to to wondering percent as for a Does you let's So of in that XXXX of X%. to outlook, QSR investments X% a if, make come say, need in any was concrete you're XXXX new fruition revenue incremental XXXX? is? would at X.X%.

Joshua Charlesworth

Our support in such that is the the U.S., opportunity thoughtfully in it. started and additional capacity making manufacturing investments especially DFD to confidence have including QSR, world around we the in

DFD demand.To though, expansion clarify, making Twin of are Miami, the investments to Cities time we're new the broad secured up we've in with of support of to sites overall. existing looking accelerate L.A., all buildings in conversions to opening example, and there keep For

they're So channels. more dependent very our they're Krispy Kreme going those make to investments for McDonald's, in of in lot of a not much specifically, on bringing that business believe for but people forward sense new we example, terms

Aisling Grueninger

we My in revenue about it's is think Slide per touched it's international. question -- before, second for XX on door of presentation, this average but your on I per week

Is dynamics the just what's the earlier locations? year-over-year. been color DFD the less in -- Or prime Just opening it's behind any -- doors help. locations than would it just the decrease

Jeremiah Ashukian

that the stores, internationally were required move by an which type a per U.K. kind in Yes. footprint, impacted in door It's on place. It's locations adding average, the put question. in great terms which which productivity.Moving down step could in per convenience Josh like which places smaller a Oxxo called forward, had of where regulations of were XXXX more door. were the which, the be in dollar APD immediate us locations, impacted by mentioned, APDs Mexico, HFSS, is been around a has lower to

there pull So of on. the fairly a kind moving will mix forward. have believe flattish kind the of overall, effect APD will We internationally remain

Joshua Charlesworth

lot opportunity convenience for -- and growing in customers and clarifying the a grocery we U.S. on where opportunities U.S. new the an that of interesting worth example we're It's international. And seeing we're Mexico, stores, on there. is the it's are leading more store interesting, mass -- lot club stores, example, actually big U.S. on even actually with productive showing because APDs a that bringing of strongly, space locations there's white

over So time of doors are we're all support our evolve that customers. productive margin in, seeing different But will plans. expansion APD continuously with types the ones

Operator

Securities. line [Operator from of Guglielmo comes One Instructions] Daniel question the next Our with Capital

Daniel Guglielmo

back to going hubs. Just of U.S. the expansion

were also opportunities. think You Minnesota, Florida, New New Upstate and York and California, England mentioned I

thinking you that right just you doing need areas those, of get are there to a like certain markets see And now? kind there So as priorities national open certain before QSR through rollout? are

Joshua Charlesworth

a cover in network. could for customer XX,XXX, [Technical restaurants X,XXX U.S. existing our example, restaurants We with roll the Well, about like, out XX,XXX McDonald's, Difficulty] with just

to all those are who identified maxed we've to in for prioritizing Upstate ones areas -- need your where open as over reference capacity Twin to Miami, would in have us. short New term. either you our in it's goes to we Cities, ] taking Naturally, to up areas described X,XXX ones benchmark, sites New L.A., today.Our all Krispy So in anyway and the we that to cover the referenced in you're are They're where But country question plans. McDonald's the sense [ or time the places plans you mostly, those the that X,XXX assuming York. England, all those they or already isn't the out Kreme make

we're looking locations and out across actually so for as country all the we our in DFD And plans those build QSR in future. the

Daniel Guglielmo

a as follow-up kind to like that, of just just the question, then And around CapEx it's spend. modeling a

So of revenue X% guidance the X% XXXX. for to

expansion, is there. to be think get should those be you ] Is of year? the had and for the X to to it evenly about thinking going Just Just X we [ thinking about back quarter-to-quarter trying there help spread cadence for weighted? some I should million throughout? million Or said hubs, [ be it pretty some a ]

Joshua Charlesworth

probably On weighted. coming phases the CapEx a doesn't it The differently, -- back I more little mean, CapEx the online, themselves hubs itself Jeremiah? are

Jeremiah Ashukian

a year, there's Yes. in year. previous or last I spent, will here earlier capital we up that a will effort of uniform decided and to follow at flow deploy to modeling because the Difficulty] we've I for an CapEx CapEx in mean most years. fairly part, throughout least a spend as have from perspective, year the cash mean, [Technical running the From we in happen

just numbers So it's and the and less. down you a will quarter. more between think will percent up for X% fairly consistent It revenue or number between bounce balance of when those that a X% about

Operator

Andrew Our King. next question comes Wolf CL from the line with of

Andrew Paul Wolf

were for little year X% to sales line looking quarter more rebound low the think that X% in to for to QX A what year, to First, the I like because QX. -- [indiscernible] the to being first you're a ask to trend, I we the more big was with expecting. through wanted to tie X% and the about X% get for obviously,

that Do do in just bit flesh think else seeing you're out Is anything a little what the of sort is quarter? So kind weather? much you there pure How have on? going the point you could you or to year? the growth for segments nonweather sort of some more rebound either markets of the U.S. the or rest even of other impacted of normalized supporting in the sort Canada,

Jeremiah Ashukian

Yes. Thanks, I Andrew, take can and that.

I'll think off post just I QX a growth. actually after with fact XX continue of in quarters QX and in we'll by the to growth XXXX start that consecutive organic probably we're record pleased saying,

we we'll close to during ].As X% mentioned, slowdown. and the or we didn't in to be to time also a leading softer grow to lapping result of U.K. of others, some is Cookies. [ BST the last of given actually at year, as comp shutdown revenues but which growth in the comes Insomnia think weather year, one a of one-offs your and of last against also up broad I Organic point, discontinuation many we the the in parts the saw the of U.S. harsh lower was quarter the COVID couple XX.X% X%, January, to quarter a like in start

And out. guide other of about recover doughnut in most other the the We our tailwind QX which of will provided equipment in against the development, base, our a may course that think will that year.We're I year.And our higher get into sales some zones back a way, point development then in U.S. laid full market that of delivery in outage us sales cadence one-off some sales market which disciplined the pursuit offerings definitely Valentine's of in QX. being of of from one mention recognized to be for some the NCR which things kind tomorrow, when over year specialty go a resulted we had you in notably timing days have Day we view, it year. two, key lap will, the franchise other had the the business, we help extended a shift QX, to in not said, biggest committed which in XQ is we as That in last XXXX, excited in lap we're year, that last growth of

Joshua Charlesworth

priced consumer looking add forward and doughnuts, through our XXXX. gifting I'll we're sharing again in Difficulty] to loves occasions QX is with for the special like mentioned, and growth we phenomenal growth quite all sustained premium. really that And And channels a especially that see celebrations once [Technical at in sales just even showed recently e-commerce, when Valentine's, and Jeremiah quality particular. in

So our more backdrop ever, engaging to understanding that's brand Kreme. the key with and Krispy than consumer is the

Andrew Paul Wolf

you're any XXX And assume if push on in just for in there. not I because hubs I on or deferring can stores follow-up have just because -- whether up put the might either any in of you up of back QSR? McDonald's have it's you there is so guidance the any the also McDonald's another add kind in stores a is less anticipation for part But only your there related -- you put the or U.S. another sales. guess U.S. have of specifically, what's to any you're year operations way, sales might the -- I impact that putting throttling of

Joshua Charlesworth

around they to They put time our There's that addition world core items QX of traditionally Kreme. Indeed, for customers. ago, a the no a I has the been at to other included doors doors our as moment throttling new to items back. growth. prioritized for in a It's seasonal year, absolutely of the case be that this want our the in DFD listing U.S. mentioned driver put which problematic continues and Krispy want

So I time, moving high-quality better quality focused in are definitely mentioned, the very our we on back.At continuously of making, sustainable working, on doughnuts operations, throttling as improving no the ensuring ways. same growth,

doughnut growth.As best up a we hubs, heavily the for they're means QSR naturally as lines. we future have other the able of for grow we're they many of new ready doughnuts underutilized, amount with that very today, twice thoughtful lift. points those making to strong So make also to the shops Getting more set channels than of sure I sure they're make mentioned, that with growth do and is still most of access,

productivity whilst that we presented so maintaining And consumer that channel, grow, efficiencies. in doughnuts making sure to we're in every high-quality a ensures everywhere it's freshly way and

not yes, So on we're working the certainly system, such hard throttling but as back. we're

Operator

turn to call to like now over Charlesworth would for remarks. the I Josh closing

Joshua Charlesworth

to for to of course, Krispy commitment and you Krispy Krispy Kremers Well, thank thank And Kreme hard your XXXX you. all you to work in your today. interest Kreme. joy our through you, customers bring our Thank ongoing everybody. their in for Thank

Operator

call. today's concludes This

You may disconnect. now

Krispy Kreme (DNUT) 13 Feb 242023 Q4 Earnings call transcript