The US donut and coffee chain said the contribution of e-commerce to group revenue is higher now than during the pandemic, with further growth for the channel forecast over the next nine months
A Krispy Kreme Express store at London's Waterloo Station, UK | Photo credit: Krispy Kreme
Krispy Kreme has reported strong first quarter sales growth and highlighted a ‘long runway’ for e-commerce growth following record sales in its online channel.
The North Carolina-based donut and coffee chain achieved 12% year-on-year total revenue growth to reach $419m in the three months ended 2 April 2022.
Sales growth was led by a robust performance in the US, where net revenue grew 13% to $281.3m, and Krispy Kreme’s Market Development segment, which achieved 26% net revenue growth to $47.3m.
The channel includes international franchise businesses and company-owned locations in Japan.
E-commerce revenue in the US, Krispy Kreme’s largest market, increased 32% year-on-year and comprised 23% of sales in the period.
Krispy Kreme CEO Mike Tattersfield said e-commerce revenue is now a larger contributor to group sales than during the pandemic following the segment’s ‘best ever’ quarter. Krispy Kreme views ‘a long runway for further growth’ in its e-commerce channel, he added.
“I’m proud of our performance in the first quarter that continued to demonstrate the strength of our omni-channel model, which allows us to meet consumer demand with premium, fresh doughnuts in a capital efficient manner. Krispy Kreme continues to be well-positioned to deliver another year of strong growth driven by our capital efficient delivered fresh daily (DFD) model and our global expansion plans,” Tattersfield said.
Krispy Kreme opened 600 Global Points of Access, comprising all locations where fresh donuts and cookies can be purchased, during the quarter to reach 12,400 sites globally.
The donut and coffee chain, which achieved 10.5% sales growth in 2022 to reach $1.53bn, currently operates nearly 2,000 stores across the world.
Following its market entries in Jamaica and Chile in its first quarter, Krispy Kreme is set to open its first outlets in Switzerland, France and Costa Rica later this year.