Krispy Kreme increases sales and narrows losses in 2021

Krispy Kreme now operates 1,810 branded outlets around the world | Photo credit: The Creative Exchange 

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Reporting its full-year results ended 2 January 2022, Krispy Kreme said year-on-year net revenues grew 23.4% to $1.4bn. However, the company still reported a loss of $14.8m over the period – albeit an improvement on the $24.8m loss posted for 2020 – but reported net income of $4.3m in its final quarter.
 
The JAB Holdings-backed business said the strong sales growth was driven by the performance and expansion of its ‘hub and spoke’ operating model, which increased the availability of Krispy Kreme products by 25% to more than 10,400 points of sales around the world. The chain also now operates 1,810 branded outlets internationally, an increase of 112 over the year.
 
International sales per hub grew 42% year-over-year, while US and Canada Sales per hub grew 14%, the donut and coffee business said with strong growth across the UK, Mexico, Australia and New Zealand.
 
“Our fourth quarter and full year results demonstrate the benefits of our omni-channel model and global expansion strategy, which allow us to meet consumer demand with premium, fresh doughnuts,” said Krispy Kreme CEO, Mike Tattersfield.
 
“Looking ahead, we are well-positioned to deliver another year of double-digit revenue growth in 2022. Our performance will be led by the expansion of our omni-channel model, as we continue to significantly expand our points of access,” Tattersfield added.
 
Krispy Kreme’s rising sales come in a year when the chain launched a $2.7bn IPO, marking its return to the stock marker five years after it was taken private by JAB Holdings as of a $1.35bn deal.
 
In December 2021, JAB said it intended to be an ‘anchor shareholder’ in Krispy Kreme ‘for many years to come' after increasing its stake in the company to 45%.