Krispy Kreme posts strong 2023 sales but losses widen amid international expansion

Signage for a new Krispy Kreme store in London, UK | Photo credit: Krispy Kreme

North Carolina-based Krispy Kreme is seeking to launch in up to five new markets this year following robust sales and outlet growth globally in 2023. 
 

The JAB Holding-backed donut and coffee chain opened first stores in Jamaica, Kazakhstan, Switzerland, Chile, Costa Rica, Ecuador and France last year and increased its global retail store footprint 12% to reach 2,167 stores. 

However, Krispy Kreme’s losses significantly widened from $8.8m in 2022 to $36.6m amid global outlet expansion and increased marketing activity. 

The brand, which recently announced plans to launch in Brazil via a retail partnership with convenience chain AmPm, is eyeing new markets in Europe following successful launches in Lausanne and Paris in its third and fourth quarters. 

Krispy Kreme increased its total global points of access – retail channels where its products can be purchased – to 14,147 sites across 39 countries in 2023. 

Reporting on the 12 months ended 31 December 2023, Krispy Kreme achieved 10% year-on-year revenue growth to $1.7bn. The US contributed $1.1bn in sales, with international markets generating $402m and the brand’s Market Development segment – which includes international franchise businesses and company-owned locations in Japan and Canada – posting $179m. 

“Our 2023 growth was driven by strong consumer demand in all sales channels and increased access to our fresh doughnuts around the world. Moving forward, we are modernising the making and moving of doughnuts to ensure high quality, profitable growth. We are largely supplying expansion from existing capacity whilst making selective investments in geographies which have limited access to Krispy Kreme,” said CEO Josh Charlesworth. 
 

Krispy Kreme is seeking net revenue growth of 5-7% and adjusted EBITDA growth of 8-11% in 2024.