The US donut and coffee business credits accelerated growth in the US and Canada as driving strong third quarter revenues while its international expansion strategy gains momentum
Krispy Kreme now operates 1,810 branded outlets internationally, a 6% increase on Q3 2021 | Photo credit: Clayton Malquist
Krispy Kreme has said the continued execution of its omni-channel strategy in North America has strongly contributed to its $377.5m third quarter revenues.
The donut and coffee chain’s overall 10% year-on-year revenue growth was boosted by a 12% trading increase in the US and Canada in the three months ended 2 October 2022.
Sales per location in the region increased 18% year-on-year to $4.5m while Krispy Kreme’s points of access in the US and Canada – retail channels where its products can be purchased globally –increased by 206 to 6,259 locations.
“We were pleased with our strong organic revenue growth in the third quarter, led by an acceleration in growth in the US and Canada and market development. Margins improved significantly in the final period of the quarter as we successfully implemented price increases in the US coupled with decreased promotional activity after Labor Day. Strong momentum continues into the fourth quarter enhanced by further recent pricing actions in the US and UK and a robust global Halloween performance,” said Mike Tattersfield, CEO, Krispy Kreme.
Additionally, international net revenues grew 5.4% to $91.9m, driven by strong performances in Mexico, Australia and New Zealand.
Net revenues in Krispy Kreme’s Market Development segment, which includes international franchise businesses and company-owned locations in Japan, grew 11% to $33m.
This year the company has signed franchise agreements to open in Switzerland, Costa Rica, Jordan, Jamaica and Chile as well as a joint venture in France with Columbus Café & Co.
Krispy Kreme now operates 1,810 branded outlets internationally, a 6% increase on the same period last year.
“Our international expansion strategy is progressing at a healthy pace. Just recently we opened in Jordan and announced a joint venture to enter France in 2023. We are excited to also announce a new development agreement to open in Jamaica next year, bringing our total development deals signed in 2022 to seven international countries, representing over 5,000 new potential points of access,” Tattersfield added.
Krispy Kreme forecasts full-year revenues to reach $1.5bn, representing organic revenue growth of between 10-12%.