Krispy Kreme Reports Jump In Sales, Setting 2022 Targets
Investing.com – Krispy Kreme stock (NASDAQ: DNUT ) rose 2.5% Wednesday in premarket trading but then turned negative even after second-quarter sales comfortably topped 2019 levels and the company set goals that included debt reduction and consistent payout of dividends.
During the regular U.S. session, the stock was down 0.75%.
Net revenue grew 43% to $349 million while organic revenue rose 23% to $55 million. The same rose 16% from 2019 on a two-year-stack basis.
International sales drove the organic growth as economies reopened and people indulged. The company established its omni-channel strategy and thus reached more consumers.
The company said its focus on implementing hub-and-spoke model in U.S. and Canada is delivering results. Sales per hub, a metric it is using to using to measure the effectiveness of its model, rose in its two key geographies as well as in international markets.
The company is targeting organic revenue growth of 9% to 11% in 2022 and adjusted net income growth of 18% to 22%.
Krispy Kreme aims to keep its total net leverage under 3x in the next 12 months. It will pay a dividend of $0.035 per share for the quarter ending October 3. Thereafter, it said it will maintain a stable quarterly dividend until it reaches its long-term net leverage policy of 2x.
For the ongoing financial year, Krispy Kreme is targeting revenue growth of 19% to 23%, reaching for $1.34 billion to $1.38 billion. Organic revenue is seen rising 10% to 12%. Adjusted net income is seen between $62 million and $68 million.
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