Krispy Kreme Reports Q2 2023 Earnings and Expands Omnichannel Strategy

Krispy Kreme announced second-quarter results Thursday (Aug. 10) that showed a 9% hike in year-over-year (YoY) net revenue, bolstered by eCommerce and delivery strategies.

Net revenue for the quarter ending June 30 was $408.9 million, while organic revenue increased 11.4% YoY, led by the U.S., where all sales channels, including doughnut and cookie shops, Delivered Fresh Daily (DFD) and eCommerce contributed to 12.7% organic growth in the quarter.

Global Point Of Access (POA) also rose 12.8% in the quarter and reached 12,872 locations around the world, including locations in Japan, Canada as well as over 160 McDonald’s test shops in Louisville and Lexington, Kentucky, and surrounding areas.

Commenting on the second quarter results on the earnings call, Krispy Kreme President and CEO Mike Tattersfield noted on the earnings call Thursday the company’s “strongest and largest National Doughnut Day” to date is now celebrated in a dozen countries. He also highlighted the company’s expansion in new markets, including Chile, Jamaica and Costa Rica.

The doughnut maker’s omnichannel strategy saw strong growth in sales globally, especially in the U.S. fresh doughnut business. Krispy Kreme sees success with its rollout of digital ordering solutions and delivery app integrations. This includes integrating with Insomnia Cookies, and ramping up development efforts to expand to other markets. The company also reported strong performance in U.K. stores with double-digit retail sales growth.

In terms of pricing, the company noted its focus on being an affordable, indulgent treat in the markets it serves. It has also looked to boost brand value through a better product offering, which has enabled it to provide customers with a value second dozen.

Krispy Kreme retooled itself into a “doughnut logistics company” and now is delivering its doughnuts to retailers including Walmart, Target and Albertsons.

Tattersfield noted, “We continued to execute our strategies aggressively in the second quarter, as we accelerated our digital capabilities, expanded our global footprint and improved our operational execution. Most importantly, we remain committed to our long-term financial targets, and we are continuing to position Krispy Kreme for sustainable, profitable growth and increased value for our shareholders.”