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Krispy Kreme, Inc. has submitted its 10-Q filing for the quarterly period ended September 29, 2024.
The filing reports that Krispy Kreme's total net revenue for the quarter was $379.9 million, a decrease of 6.8% from $407.4 million in the same quarter last year. This decline is primarily attributed to the divestiture of Insomnia Cookies.
The company recorded a gain of $87.1 million from the divestiture of Insomnia Cookies, which reduced its ownership from 75% to 34.7%.
Operating expenses for the quarter were $192 million, representing 50.6% of total revenue, compared to 48% in the previous year, driven by increased costs associated with the divestiture and strategic initiatives.
Net income for the quarter was $37.6 million, compared to a net loss of $40.3 million in the same quarter of the previous year.
Krispy Kreme's U.S. segment reported a 12.2% decline in net revenue to $228.4 million, while the International segment saw a 3.7% increase to $130.7 million.
The company added 244 new Global Points of Access, bringing the total to 15,811, with significant expansion in the Delivered Fresh Daily (DFD) network.
Krispy Kreme entered into an agreement with McDonald's USA (MCD+0.04%) for the national rollout of Krispy Kreme doughnuts at McDonald's restaurants, with the rollout commencing in October 2024.
The company reported cash and cash equivalents of $25.4 million as of September 29, 2024, with net cash provided by operating activities totaling $18.8 million for the first three quarters of fiscal 2024.
Krispy Kreme's long-term debt obligations as of September 29, 2024, totaled $852.2 million, with a leverage ratio of 3.51 to 1.00 under its 2023 secured credit facility.
The report also discusses Krispy Kreme's ongoing strategic initiatives, including the expansion of its omni-channel strategy and the growth of its international presence.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Krispy Kreme Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.