Krispy Kreme has reported results for the quarter ended 1 October 2023 (Q3), with international adjusted EBITA margin expansion in part driven by pricing and cost control initiatives in the UK.
The bakery chain also reported Insomnia Cookies’ expansion into the UK as a driver of growth, with global points of access increasing by 14.4% to 13,394 across the Krispy Kreme business.
Net revenue in the international segment grew 15.4%, while international organic revenue grew 8.2% with organic growth across all markets driven by pricing and growth in points of access. Total net revenue across the business was $407.4m in Q3 2023.
International adjusted EBITDA grew 17.3% to $21.4m for the chain, with adjusted EBITDA margin expansion of 30 basis points to 20.2%, as cost control initiatives in the UK proved effective.
Last month, Krispy Kreme reported it is exploring strategic alternatives for Insomnia Cookies, which made its UK launch with a double opening in Manchester in August.
CEO Mike Tattersfield commented: “Our third quarter results showed the strength of our team, business model, and the power of our brand. We delivered revenue and Adjusted EBITDA growth, while delivering Adjusted EBITDA margin expansion through our hub and spoke model. Our global expansion continued, and our doughnuts became available in two new markets, Switzerland and Kazakhstan, and Insomnia Cookies expanded internationally into Canada and the United Kingdom. Overall, Global Points of Access growth accelerated, increasing by 1,691 or 14.4% year-over-year to 13,394,” stated CEO Mike Tattersfield. “We delivered the joy that is Krispy Kreme through powerful specialty doughnut offerings including the popular M&Ms collection, which was available in 17 countries, our extremely successful limited time offering with Pumpkin Spice, and an innovative new partnership with Hailey Bieber to promote her Krispy Kreme inspired strawberry glazed peptide lip treatment.”
