Krispy Kreme Inc (DNUT) 2025 Q1 法說會逐字稿

Hello everyone and thanks for standing by. My name is Ian and I will be your conference operator today. At this time, I'd like to welcome everyone to the Krispy Kreme 1st quarter 2025 earnings call. I would now like to turn the call over to Alexander Eldridge, Krispy Kreme Investor Relations. Please go ahead.

大家好，感謝大家的支持。我叫伊恩，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Krispy Kreme 2025 年第一季財報電話會議。現在我想將電話轉給 Krispy Kreme 投資者關係部的 Alexander Eldridge。請繼續。

Thank you. Good morning, everyone. Welcome to Krispy Kreme's first quarter 2025 earnings call. Thank you for joining us today. We will be referencing our earnings press release and presentation during the call. These are available on our investor relations website at investors.KrispyKreme.com. Joining me on the call this morning are President and Chief Executive Officer Josh Charlesworth and Chief Financial Officer Jeremiah Asian.

謝謝。大家早安。歡迎參加 Krispy Kreme 2025 年第一季財報電話會議。感謝您今天加入我們。我們將在電話會議中引用我們的收益新聞稿和簡報。這些資訊可在我們的投資者關係網站 investors.KrispyKreme.com 上查閱。今天早上與我一起參加電話會議的還有總裁兼執行長 Josh Charlesworth 和財務長 Jeremiah Asian。

After prepared reports, there will be a question-and-answer session. Before we begin, I would like to remind you that during this call we will be making forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements of expectations, future events, or future financial performance. Forward-looking statements involve a number of risks, assumptions, and uncertainties, and we caution investors that many factors could cause actual results to differ materially from those contained in any forward-looking statements.

準備好的報告結束後，將有一個問答環節。在我們開始之前，我想提醒您，在本次電話會議中，我們將根據 1995 年《私人證券訴訟改革法》的安全港條款做出前瞻性陳述，包括預期、未來事件或未來財務業績的陳述。前瞻性陳述涉及許多風險、假設和不確定性，我們提醒投資者，許多因素可能導致實際結果與任何前瞻性陳述中的結果有重大差異。

These factors and other risks and uncertainties are described in detail in the company's Form 10K filed with the SEC and in other filings we make from time to time with the SEC. Forward-looking statements made today are only as of today. The company assumes no obligation to publicly update or revise any forward-looking statements, except as may be required by law. Additionally, we will be referring to non-gap financial measures. Please refer to our earnings press release and presentation on our website for additional information regarding these non-gap measures, including a reconciliation to the closest comparable GAAP measures. Jeremiah will take us through our financial performance in a moment, but first, here's Josh.

這些因素和其他風險和不確定性在公司向美國證券交易委員會提交的 10K 表格以及我們不時向美國證券交易委員會提交的其他文件中有詳細描述。今天所做的前瞻性陳述僅截至今天才有效。除非法律另有規定，否則公司不承擔公開更新或修改任何前瞻性聲明的義務。此外，我們也將參考非差距財務措施。請參閱我們網站上的收益新聞稿和介紹，以獲取有關這些非差距指標的更多信息，包括與最接近的可比較 GAAP 指標的對帳。傑裡邁亞 (Jeremiah) 稍後會向我們介紹我們的財務業績，但首先有請喬希 (Josh) 發言。

Thanks, Dre. Good morning, everyone and thank you for joining us. We remain dedicated to our strategy of transforming into a bigger and better Krispy Kreme. With global brand awareness far exceeding household penetration, we're focused on Krispy Kreme's biggest growth opportunities to reach our long-term goal of 100,000 points of access, namely profitable US expansion and capitally international franchise growth. However, in this challenging macro environment, we are prioritizing paying down debt and deleveraging our balance sheet, generating positive cash flow and pursuing only profitable growth based on sustainable revenue streams.

謝謝，德雷。大家早安，感謝大家的參與。我們將繼續致力於將 Krispy Kreme 轉型為更大更好的策略。由於全球品牌知名度遠遠超過家庭滲透率，我們專注於 Krispy Kreme 的最大成長機會，以實現 100,000 個接入點的長期目標，即在美國實現盈利性擴張和國際特許經營權增長。然而，在當前充滿挑戰的宏觀環境下，我們優先考慮償還債務、降低資產負債表槓桿率、產生正現金流並追求基於永續收入流的獲利成長。

With our newly restructured leadership team in place, we are well positioned to take swift and decisive action. I'll now review the key actions and progress we are making to drive consumer relevance, expand availability, increase hub and spoke efficiency, improve capital efficiency and inspire engagement. We are taking action to drive consumer relevance and better leverage the power of our iconic brand to deliver profitable growth. We are spotlighting our most beloved and most affordable original-based doughnut, our strongest point of differentiation. Our original-based doughnut appeals to value conscious consumers due to its lower price point and delivers a higher margin.

隨著我們新改組的領導團隊的到位，我們已準備好採取迅速果斷的行動。我現在將回顧我們為推動消費者相關性、擴大可用性、提高樞紐輻射效率、提高資本效率和激發參與而採取的關鍵行動和進展。我們正在採取行動來提高消費者的相關性，並更好地利用我們標誌性品牌的力量來實現獲利成長。我們重點介紹最受歡迎、最實惠的原創甜甜圈，這是我們最大的差異化優勢。我們的原創甜甜圈因其較低的價格和更高的利潤吸引了注重價值的消費者。

We're already seeing the benefits from this focus, especially as we innovate with our flavored glazes. At the beginning of April, we sold out of our fruity pebbles glaze every day, and more flavored glazes are coming through the year. After testing new original based marketing campaigns which drove both higher sales and a positive mix shift, we'll now be launching a new multimedia original-based marketing campaign on June 6th, National Doughnut Day, reminding consumers of that feeling they get from a fresh doughnut off the line.

我們已經看到了這種關注帶來的好處，特別是當我們對風味釉料進行創新時。四月初，我們每天都會售完水果口味鵝卵石釉，並且全年還會推出更多口味的釉。在測試了新的原創行銷活動後，這些活動不僅推動了銷售額的成長，還帶來了積極的組合轉變，現在，我們將在 6 月 6 日全國甜甜圈日推出一項新的多媒體原創行銷活動，讓消費者重溫新鮮出爐的甜甜圈給他們帶來的感覺。

I said last quarter we would offer fewer days on discount as we improve our discount strategy, which we began in Q1, supporting our cash flow and average transaction value, making us better. Our new approach limits discounts to times we can drive demand and create buzzworthy events. In the 1st quarter we did this successfully with our Hershey's Choco mania collection, and just yesterday we offered a free original glazed doughnut for real ID Day, relieving the stress from those long DMV lines. As we expand availability, we are taking important actions to become better. This means profitable growth based upon sustainable revenue streams with strategic scale DFD partners where we can deliver higher sales per door, utilize more efficient routes, and present better displays.

我上個季度說過，隨著我們改進從第一季開始的折扣策略，我們將減少折扣天數，以支持我們的現金流和平均交易價值，使我們變得更好。我們的新方法將折扣限制在可以推動需求和創造熱門活動的時間內。在第一季度，我們成功地透過好時巧克力狂熱系列實現了這一目標，就在昨天，我們在真實身份日免費提供了原味釉面甜甜圈，緩解了 DMV 長隊帶來的壓力。隨著可用性的擴大，我們正在採取重要行動變得更好。這意味著基於與策略規模 DFD 合作夥伴的可持續收入流實現盈利增長，我們可以實現每家門更高的銷售額、利用更高效的路線並提供更好的展示。

In the US, we are now present and growing in multiple DFD channels, each with different characteristics and average sales volumes. At one end of the range are club stores where we now sell unique larger packs at these high-volume shopping destinations averaging more than $1000 in fresh doughnut sales per week. We've already started with Costco and have also just begun a new multi-city pilot with Sam's Club. With our mass and grocery customers, we are adding secondary displays to improve display and visibility. These secondary cabinets offer an additional opportunity to showcase our unique fresh donor offering and drive incremental sales. During the quarter we added nearly 100 cabinets, bringing our total to more than 600 in this DFD channel. We're also aiming to increase sales at Walmart, Target, and Kroger with Krispy Kreme recently made available through their e-commerce channels. At the other end of the range are convenience stores and QSR doors where we deliver mostly unpackaged doughnuts, and they average about $400 sales per week.

在美國，我們目前已在多個 DFD 管道開展業務並不斷發展，每個管道都有不同的特點和平均銷售量。在這一系列的一端是俱樂部商店，我們現在在這些高容量購物目的地銷售獨特的大包裝，每週新鮮甜甜圈的銷售額平均超過 1000 美元。我們已經與 Costco 展開合作，並且剛剛與 Sam's Club 開始了新的多城市試點。對於大眾和雜貨客戶，我們正在添加輔助顯示器以改善顯示效果和視覺性。這些二級櫥櫃提供了額外的機會來展示我們獨特的新鮮捐贈產品並推動增量銷售。在本季度，我們增加了近 100 個機櫃，使該 DFD 管道的機櫃總數達到 600 多個。我們還計劃透過最近在沃爾瑪、塔吉特和克羅格的電子商務管道上銷售的 Krispy Kreme 來增加其銷售量。另一端是便利商​​店和 QSR 門市，我們主要向這些店運送未包裝的甜甜圈，平均每週的銷售額約為 400 美元。

Pursuing only profitable growth with sustainable revenue streams means that we're also choosing to close inefficient doors. These generally consist of lower volume doors with smaller scale regional grocery and convenience store partners. Turning to McDonald's six months after the national rollout began, we're now more than 2,400 restaurants. Our two companies have partnered closely together during this time to support execution, marketing, and training, delivering a great consumer experience, and we're pleased with many aspects of the program. However, we are seeing that after the initial marketing launch, demand drops below our expectations, requiring intervention to deliver sustainable, profitable growth, we are partnering with McDonald's to increase sales by stimulating higher demand and cutting costs by simplifying operations.

只追求具有可持續收入來源的獲利性成長意味著我們也選擇關閉低效率的大門。這些通常由規模較小的區域雜貨店和便利商店合作夥伴組成的低容量門市組成。談到麥當勞在全國範圍內推出這項服務六個月後的情況，我們現在擁有超過 2,400 家餐廳。在此期間，我們兩家公司密切合作，支持執行、行銷和培訓，提供出色的消費者體驗，我們對該計劃的許多方面感到滿意。然而，我們發現，在最初的行銷啟動後，需求低於我們的預期，需要介入才能實現可持續的獲利成長，我們正在與麥當勞合作，透過刺激更高的需求來增加銷售額，並透過簡化營運來削減成本。

At the same time, we are reassessing our deployment schedule together with McDonald's while we work to achieve a profitable business model for all parties. Given this, we do not expect to launch any additional restaurants in Q2. That said, we continue to believe in the long-term opportunity of profitable growth through our US nationwide expansion, including McDonald's. I'd now like to share that we are increasing Hubbansburg efficiency by better managing costs to drive profitable growth.

同時，我們正在與麥當勞一起重新評估我們的部署計劃，同時努力實現對各方都有利的商業模式。有鑑於此，我們預計第二季不會開設任何其他餐廳。儘管如此，我們仍然相信，透過包括麥當勞在內的美國全國擴張，我們能夠實現長期獲利成長。現在我想分享的是，我們正在透過更好地管理成本來提高 Hubbansburg 的效率，以推動獲利成長。

We have already begun outsourcing our fresh doughnut delivery, and we expect that 15% of the network will have been outsourced by the end of May. Service rates are excellent, costs are now predictable, and we're seeing savings over our in-house delivery model. We expect to launch with a 2nd carrier shortly and sign two additional contracts soon. Our goal is to fully outsource US logistics by the middle of next year.

我們已經開始將新鮮甜甜圈的配送外包，預計到 5 月底，15% 的網路將實現外包。服務費率非常優惠，成本現在可預測，而且我們看到比內部交付模式節省的成本。我們預計很快就會與第二艘航母一起下水，並很快簽署另外兩份合約。我們的目標是在明年年中實現美國物流完全外包。

This frees up time for our Krispy Kreme's to focus on what they do best, serve our consumers and make fresh doughnuts, simplifying both our DFD and in shop business. And our new Chief Operating Officer Nicholas Steele is off to a great start prioritizing lower costs and reducing waste by focusing on simplifying operations, reducing complexities, and improving driver service. She has already improved labor efficiency in the short time she's been in the role. When it comes to better capital efficiency, we are focused on deploying capital to pay down debt and fund profitable growth.

這讓我們的 Krispy Kreme 有時間專注於他們最擅長的領域，為我們的消費者提供服務並製作新鮮的甜甜圈，從而簡化我們的 DFD 和店內業務。我們的新任營運長尼古拉斯·史蒂爾 (Nicholas Steele) 取得了良好的開端，他透過專注於簡化營運、降低複雜性和改善駕駛員服務來優先降低成本和減少浪費。她上任不久就已提高了勞動效率。在提高資本效率方面，我們專注於部署資本來償還債務和資助獲利成長。

As we grow bigger through our US nationwide expansion, we'll allow production hubs to serve both in shop guests with our iconic hotline, signaling fresh doughnuts as well as profitable DFD customers. We are actively value engineering our footprint to lower costs as we grow. A great example is our new Minneapolis hub, which is under construction rather than building from the ground up, we're retrofitting an existing building in a high traffic trade area which is delivering a 20% savings in capital and real estate costs. The site already includes critical infrastructure like highway access, loading bays, and a driver, making it a smart, efficient choice for us.

隨著我們透過在美國全國擴張而發展壯大，我們將允許生產中心透過我們標誌性的熱線為店內客人提供服務，以傳達新鮮甜甜圈的信息，並為有利可圖的 DFD 客戶提供服務。我們正在積極地對我們的足跡進行價值工程，以便在我們發展的同時降低成本。一個很好的例子就是我們新的明尼阿波利斯樞紐，它正在建設中，而不是從頭開始建造，我們正在改造一個交通繁忙的貿易區的現有建築，這可以節省 20% 的資本和房地產成本。該站點已經包括高速公路通道、裝卸區和司機等關鍵基礎設施，這對我們來說是一個明智、高效的選擇。

Internationally we're advancing our capital li franchise strategy which we believe is the best way to drive global growth by partnering with strong local operators who bring scale and regional expertise. Just last week we opened in Brazil and in the first two days alone, Krispy Kreme's global appeal was on full display with $100,000 in sales surpassing even our France launch in 2023.

在國際上，我們正​​在推進我們的資本特許經營策略，我們相信，透過與擁有規模和區域專業知識的強大本地營運商合作，這是推動全球成長的最佳方式。就在上週，我們在巴西開業，僅在前兩天，Krispy Kreme 的全球吸引力就得到了充分展示，10 萬美元的銷售額甚至超過了我們 2023 年在法國開業的銷售額。

We are evaluating opportunities to re-franchise Australia, New Zealand, Japan, Mexico, and the UK and Ireland. Proceeds from these efforts will be used to deliver and strengthen our balance sheet. Our international franchise partners, whether in emerging markets like Brazil and France or more established ones like Korea and the Middle East, continue to deliver strong results, underscoring the value of local scale master franchise partners. The better execution required to grow bigger demands passion, dedication, and hard work from all Krispy creamers, and therefore we must inspire engagement across our organization.

我們正在評估重新特許經營澳洲、紐西蘭、日本、墨西哥、英國和愛爾蘭的機會。這些努力所得的收益將用於實現和加強我們的資產負債表。我們的國際特許經營合作夥伴，無論是在巴西和法國等新興市場，還是在韓國和中東等更成熟的市場，都繼續取得強勁的業績，凸顯了本地規模特許經營合作夥伴的價值。實現更大發展需要更好的執行力，這需要所有 Krispy 奶油製造商的熱情、奉獻和努力，因此我們必須激發整個組織的參與。

First, we have upgraded teams at all levels, including internal promotions of our strongest district managers and hired outside talent with deep QSR expertise. Second, we have invested in new technology to measure shop execution. Our shops can now better assess performance and make data-driven decisions to improve quality, service, and efficiency. Third, as we discussed a moment ago, we are simplifying our operations. This frees up time for our Krispy Kreme's to focus on the guests' experience and to better support them, we launched role-based training, new onboarding programs, and a goal setting and manager review process to support Krispy Kreme's growth within the company. This work has already helped us to improve turnover by over 30% year over year.

首先，我們升級了各級團隊，包括內部提拔最強的區域經理，並聘請具有深厚 QSR 專業知識的外部人才。其次，我們投資了新技術來衡量商店的執行情況。我們的商店現在可以更好地評估效能並做出數據驅動的決策，以提高品質、服務和效率。第三，正如我們剛才討論的那樣，我們正在簡化我們的營運。這讓我們的 Krispy Kreme 有時間專注於顧客的體驗，並更好地為他們提供支持，我們推出了基於角色的培訓、新的入職培訓計劃以及目標設定和經理審查流程，以支持 Krispy Kreme 在公司內部的發展。這項工作已經幫助我們將營業額比去年同期成長了30％以上。

To accelerate the benefits of all these improvements, we've also launched a new incentive program to support the team to deliver on a bigger and better Krispy Kreme. With that, I'll pass it over to Jeremiah.

為了加速實現所有這些改進的好處，我們還推出了一項新的激勵計劃，以支持團隊打造更大更好的 Krispy Kreme。說完這些，我就把它交給耶利米。

Thanks, Josh. As Josh mentioned, we must get better as we grow bigger. As such, we're taking immediate action to improve our financial flexibility, strengthen our balance sheet so that we can deliver positive cash flow, profitable growth and create shareholder value. We have a clear plan with actions already underway, and we'll discuss these in more detail after a review of our first quarter results.

謝謝，喬希。正如喬希所說，我們在發展壯大的同時，也必須變得更好。因此，我們立即採取行動，提高財務靈活性，加強資產負債表，以便實現正現金流、獲利成長並創造股東價值。我們有一個明確的計劃，並且已經在採取行動，在審查第一季業績後，我們將更詳細地討論這些計劃。

In Q1, net revenue was $375.2 million which falls within the guidance we provided last quarter and reflects continued growth for our omni-channel model offset by the sale of insomnia cookies. Organic revenue declined 1%, largely due to expected consumer softness in a challenging macro environment. Adjusted EBITDA was $24 million with the margin of 6.4%, driven by the sale of insomnia cookies, reduced organic revenue, costs associated with our US nationwide expansion, and residual cybersecurity impacts.

第一季的淨收入為 3.752 億美元，符合我們上季度提供的預期，並反映了我們的全通路模式的持續成長，但被失眠餅乾的銷售所抵消。有機收入下降了 1%，這主要是由於充滿挑戰的宏觀環境下預期的消費疲軟。調整後的 EBITDA 為 2,400 萬美元，利潤率為 6.4%，主要原因是失眠餅乾的銷售、有機收入的減少、與美國全國擴張相關的成本以及殘留的網路安全影響。

Turning to the US segment, growth in points of access and DFD revenue was more than offset by the aforementioned consumer softness and planned reduction of discount days, resulting in organic revenue decline of 2.6%. Adjusted EBITDA decline to $15.9 million due to softness in our retail segment, the sale of insomnia cookies, costs associated with our US nationwide expansion, and an estimated $5 million of operational inefficiencies related to the 2024 cybersecurity incident. Average revenue per door per week or APD was $587 down from the same period one year ago reflecting the shifting customer mix as we introduced McDonald's. Within our equity owned international markets, organic revenue grew 1.5% led by growth in Canada, where we see strong results with Costco. Points of access grew 6.3%, reflecting expansion in Australia with Coles and BP. We are also seeing international KSR as a promising opportunity and are expanding our test with Hungry Jack's in Australia.

轉向美國市場，接入點和 DFD 收入的增長被上述消費者疲軟和計劃減少的折扣日所抵消，導致有機收入下降 2.6%。調整後的 EBITDA 下降至 1590 萬美元，原因是我們零售部門的疲軟、失眠餅乾的銷售、與我們在美國全國範圍內擴張相關的成本，以及與 2024 年網路安全事件相關的估計 500 萬美元的營運效率低下。每週每家門市的平均收入或 APD 比去年同期下降了 587 美元，這反映了我們引入麥當勞後客戶結構的變化。在我們擁有的股權國際市場中，有機收入成長了 1.5%，這主要得益於加拿大的成長，其中我們看到 Costco 的業績表現強勁。接入點增長了 6.3%，反映了 Coles 和 BP 在澳洲的擴張。我們也將國際 KSR 視為一個有希望的機會，並正在與澳洲的 Hungry Jack's 擴大我們的測試。

Adjusted EBITDA declined $14.9 million with margin of 12.5% due to lower transaction volumes in a retail business, impacting operating leverage. Our new management team in the UK is revitalizing the brand's consumer relevance by bringing back family-centric offerings and an updated price back architecture. Our doughnuts were recently added to Tesco's meal deal, a great value offering that is delivering consumer buzz. In our most profitable entirely franchised segment, market development, organic revenue grew 2.7% by the expansion of our franchise business including growth in the Middle East and launch of delivered fresh daily through our joint venture in France.

由於零售業務交易量下降，影響了營運槓桿，調整後 EBITDA 下降 1,490 萬美元，利潤率為 12.5%。我們在英國的新管理團隊正在透過恢復以家庭為中心的產品和更新的價格回歸架構來重振品牌的消費者相關性。我們的甜甜圈最近被添加到 Tesco 的套餐中，這項超值優惠引起了消費者的熱議。在我們最賺錢的全特許經營領域，市場開發，有機收入增長了 2.7%，這得益於我們特許經營業務的擴張，包括中東地區的增長以及透過我們在法國的合資企業推出的每日新鮮配送服務。

Adjusted EBITDA declined 7.2%, driven by the impact of franchise acquisitions in 2024, now reflected in the US segment. Adjusted a margin improved to 58.1% driven by revenue mix and a greater contribution from international franchisees. Adjusted earnings per share were $0.5 cents in Q1, a decline from prior year driven by expected lower revenue in EBITDA. Cash flow was also impacted by lower earnings. We used $20.8 million in cash for operating activities as we caught up payment delays following the 2024 cybersecurity incident. We expect this to normalize throughout the year. Importantly, we expect to deliver positive operating cash flow in 2025 as we continue to reduce our capital intensity and improve working capital. As I mentioned earlier, we have a clear plan and are taking immediate steps to improve our balance sheet, which I'll discuss in detail now.

調整後的 EBITDA 下降了 7.2%，這主要是受 2024 年特許經營權收購的影響，目前已反映在美國業務中。調整後的利潤率提高至 58.1%，這得益於收入結構和國際特許經營商的貢獻增加。第一季調整後每股收益為 0.5 美分，較上年同期下降，原因是預計 EBITDA 營收將下降。現金流也受到收益下降的影響。由於我們彌補了 2024 年網路安全事件後的付款延遲，我們使用了 2080 萬美元現金用於經營活動。我們預計這種情況將在全年逐漸恢復正常。重要的是，隨著我們繼續降低資本密集度並改善營運資本，我們預計在 2025 年實現正營運現金流。正如我之前提到的，我們有一個明確的計劃，並正在立即採取措施改善我們的資產負債表，我現在將詳細討論。

We're focused on improving financial flexibility, generating positive cash flow, and deleveraging the balance sheet, deploying capital to fund profitable growth expanding margins through greater operational efficiency and SG and A improvements pursuing quality growth based on sustainable, profitable revenue streams. We're committed to deleveraging the balance sheet through working capital initiatives and inorganic opportunities, including re-franchising certain international markets, as Josh mentioned earlier. We have also made the decision to discontinue the quarterly dividends. This decision was made after careful consideration of our capital allocation strategy, and we expect this capital to now be used to pay down debt.

我們專注於提高財務靈活性、產生正現金流、降低資產負債表槓桿率、部署資本以資助盈利增長、透過提高營運效率擴大利潤率以及改善 SG 和 A，追求基於可持續、盈利收入流的高品質成長。正如喬希先前提到的，我們致力於透過營運資本計畫和無機機會來降低資產負債表的槓桿率，包括重新特許經營某些國際市場。我們也決定停止發放季度股利。這項決定是經過仔細考慮我們的資本配置策略後做出的，我們預計這筆資本現在將用於償還債務。

To improve financial flexibility, we've increased liquidity by amending our term loan in May to add $125 million in capacity, which we expect to use primarily to pay down the revolver. To drive return on invested capital, we are prioritizing the highest returning investments as we value engineer our footprint to lower cost as we grow.

為了提高財務靈活性，我們在 5 月修改了定期貸款，增加了 1.25 億美元的額度，以增加流動性，我們預計這筆貸款主要用於償還循環信貸。為了提高投資資本的回報率，我們優先考慮回報率最高的投資，因為我們對我們的足跡進行價值工程，以便在我們發展的同時降低成本。

To expand margins, we will see SG and A benefits of the restructuring completed in 2024 and are focusing on improving operational efficiency, while at the same time simplifying our portfolio and closing underperforming DFD doors in the US. We expect a negative revenue impact of $10 to $15 million in a year, but to immediately deliver marginal improvement. As Josh mentioned, pursuing quality growth means scaling with strategic national partners and also focusing on our core offerings. Given the scope of these actions amid macroeconomic softness and uncertainty around McDonald's, we are withdrawing our prior full year outlook and not updating it at this time. That said, I'll provide some insight into our 2nd quarter expectations reflecting the actions I've just outlined.

為了擴大利潤率，我們將在 2024 年完成重組的 SG 和 A 收益，並專注於提高營運效率，同時簡化我們的產品組合併關閉美國表現不佳的 DFD 業務。我們預計一年的收入將受到 1,000 萬至 1,500 萬美元的負面影響，但會立即帶來微小的改善。正如 Josh 所說，追求高品質的成長意味著與國家戰略合作夥伴擴大規模，並專注於我們的核心產品。鑑於宏觀經濟疲軟和麥當勞不確定性背景下這些行動的範圍，我們撤回了先前的全年展望，並且目前不會更新。話雖如此，我將提供一些關於我們第二季預期的見解，以反映我剛才概述的行動。

We expect to deliver revenue of $370 to $385 million and adjust to the EBITDA of $30 to $35 million. I am confident that this pivot to driving cash, deleveraging the balance sheet, and focusing on profitable growth is the right path forward, and we have the right team in place to ensure we are becoming a better business as we grow into a bigger business. With that, I'll turn it back to Joshua's closing remarks.

我們預計營收將達到 3.7 億至 3.85 億美元，EBITDA 將調整至 3,000 萬至 3,500 萬美元。我相信，以推動現金、降低資產負債表槓桿率和專注於盈利增長為重點的這一舉措是正確的前進道路，我們擁有合適的團隊來確保我們在發展壯大的過程中成為一家更好的企業。說完這些，我將回到約書亞的結束語。

Thanks Jeremiah. We're taking swift and decisive action to deleverage the balance sheet and achieve profitable growth. Through driving consumer relevance by spotlighting our core offerings, expanding availability by focusing on profitable growth based on sustainable revenue streams increasing hard and spoke efficiency by simplifying operations and outsourcing US logistics. Improving capital efficiency by evaluating international re-franchising and inspiring engagement by strengthening our performance-based culture. Thank you. We will now open it up for Q&A.

謝謝耶利米。我們正在採取迅速果斷的行動來降低資產負債表的槓桿率並實現獲利成長。透過聚焦我們的核心產品來提高消費者相關性，透過專注於基於永續收入流的獲利成長來擴大可用性，透過簡化營運和外包美國物流來提高硬體和軟體效率。透過評估國際再特許經營來提高資本效率，並透過加強基於績效的文化來激發參與。謝謝。我們現在開始問答環節。

We will now begin the question-and-answer session. If you would like to ask a question, please press star follow by the number one on your telephone keypad to answer the question queue. Once again, that is followed by the number 1. We'll pause for a moment to compile the Q&A roster.

我們現在開始問答環節。如果您想提問，請在電話鍵盤上按星號，然後按數字 1 來回答問題佇列。再一次，其後跟著數字 1。我們將暫停一會兒來彙編問答名單。

Our first question comes from the line of Raulatapalli with JP Morgan. Your line is opened.

我們的第一個問題來自摩根大通的 Raulatapalli。您的線路已開通。

Good morning, guys. Two questions. First, how are you thinking about the CapEx given you're going through this exercise currently and after all the changes for cattle relocation? And then second part on the McDonald's decision to pause, was it your decision or was it the company's, I'm just trying to understand the dynamics of the demand driven versus your capital exercise driven.

大家早安。兩個問題。首先，考慮到您目前正在進行這項工作，並且在牛群遷移發生所有變化之後，您如何考慮資本支出？然後第二部分關於麥當勞暫停的決定，這是你們的決定還是公司的決定，我只是想了解需求驅動與資本運作驅動的動態。

Yeah, thanks Rahul and good morning. I'll take the first question around CapEx. I think about capital priorities for us across the business, obviously number one being strengthening the balance sheet, so things like using cash to reduce our reliance on supply chain financing and paying down debt, the second being business reinvestment, which is the core kind of where you were at, or capital.

是的，謝謝拉胡爾，早安。我將回答有關資本支出的第一個問題。我認為我們整個業務的資本優先事項，顯然首要的是加強資產負債表，例如使用現金來減少對供應鏈融資的依賴和償還債務，其次是業務再投資，這是你所處的核心，或者說是資本。

We are not providing a full year update with respect to capital spending, but we are becoming even more disciplined, what I would say with respect to capital allocation. And investing in all things that that have the highest return from a capital perspective. We obviously also looking at the refacing of McDonald's launch to take an opportunity to kind of reduce and adjust spend as we go throughout the year.

我們沒有提供關於資本支出的全年更新，但就資本配置而言，我們正在變得更加自律。並投資從資本角度來看具有最高回報的一切。我們顯然也在考慮重新設計麥當勞的形象，以便藉此機會在全年減少和調整支出。

Hi Raul. Yeah, regarding your second question, overall, we're confident in the profitable expansion of the US by increasing availability and leveraging excess capacity in the system, but it's important that we ensure that we're positioned for profitable growth. As we expand, and that includes McDonald's, I remain confident in the long-term national opportunity, but we need to work together with them to identify levers to improve sales, simplify operations, and once we're positioned for profitable growth, we'll expand further.

你好，勞爾。是的，關於您的第二個問題，總的來說，我們對美國透過提高可用性和利用系統中的過剩產能來實現盈利擴張充滿信心，但重要的是我們要確保我們能夠實現盈利增長。隨著我們的擴張，包括麥當勞在內，我仍然對長期的全國性機會充滿信心，但我們需要與他們合作，找到提高銷售額、簡化營運的手段，一旦我們實現盈利增長，我們就會進一步擴張。

Thank you. Our next question comes from the line of Daniel Guglielmo with Capital One Securities. Your line is opened

謝謝。我們的下一個問題來自 Capital One Securities 的 Daniel Guglielmo。您的線路已開通

Hi everyone, thank you for taking my questions. I appreciate that you all are taking a more conservative capital approach, and you mentioned it in your prepared remarks, but how aggressive do you plan to be around pruning, underperforming or inefficient locations in the US, whether that be a hot light or DFT doors?

大家好，感謝你們回答我的問題。我很欣賞你們都採取了更為保守的資本方式，你們在準備好的發言中也提到了這一點，但你們計劃在美國多大程度上積極地修剪表現不佳或效率低下的地點，無論是熱燈還是 DFT 門？

And, we're super focused this year around driving profitable growth, which includes, you mentioned rationalizing our profitable doors, but also products within our portfolio. As we look forward in the US specifically, we could see we could see us exiting as much as 5 to 10% of doors in our US network, and that's how we're thinking about, managing the kind of footprint of doors in the US this year.

今年，我們高度重視推動獲利成長，其中包括您提到的合理化獲利管道，以及我們產品組合中的產品。特別展望美國市場，我們可以看到我們在美國網路中退出了多達 5% 到 10% 的門市，這就是我們今年在美國管理門市規模的方式。

Okay, that's really helpful. Thank you. And then on the re-franchising of certain international markets, can you just talk about how that process works high level and then is there a timeline or certain cash proceeds number that you all are working towards?

好的，這確實很有幫助。謝謝。然後，關於某些國際市場的重新特許經營，您能否談談該流程在高層次上是如何運作的，然後是否有一個時間表或您都在努力實現的特定現金收益數字？

Yeah, I mean, first start, we don't need to refranchise to fuel growth in the US, and we have ample liquidity, as you mentioned on the call coupon, we launched a process to refranchise certain equity owned international markets. I think it's important to note that these markets all have continued opportunity to grow and as we think about decapitalizing the business, we know that it's critical to find the right partner to grow the business over the long term in a capital efficient way. And we're going to take our time to find that partner, what I would say is we'll use any proceeds that we would that we would come across to pay down debt.

是的，我的意思是，首先，我們不需要重新特許經營來推動美國的成長，而且我們有充足的流動性，正如你在看漲期權息票中提到的那樣，我們啟動了一個流程來重新特許經營某些股權擁有的國際市場。我認為值得注意的是，這些市場都有持續的成長機會，當我們考慮對業務進行資本化時，我們知道找到合適的合作夥伴以資本高效的方式實現業務的長期發展至關重要。我們將花時間尋找合作夥伴，我想說的是，我們將使用我們遇到的任何收益來償還債務。

Okay, thank you.

好的，謝謝。

Our next question comes from comes from the line of Sarah Senatori with Bank of America. Your line is opened.

我們的下一個問題來自美國銀行的 Sarah Senatori。您的線路已開通。

Hi, good morning. Thanks for the question. This is Isaiah Austin on for Sarah Sanour. Just a question around the McDonald's pause. If there's any difference that you guys could speak to on, why you didn't see the falloff in demand just in test markets in Kentucky or with the early launch in Chicago, just, franchisees seem pretty bully. At that point, so I just want to see if there's any difference between that and the broader rollout. And also just a question about the profitability, issues, is that exclusively on Krispy Kreme, just giving you guys bear the cost and, buy back unsold donuts. So, it kind of seems like the economics for McDonald's are stable in this situation if there's any color you can give on those two things. Thank you.

嗨，早安。謝謝你的提問。這是 Isaiah Austin 為 Sarah Sanour 主持的節目。我只是想問一下有關麥當勞暫停的問題。如果你們能談談有什麼不同的話，為什麼你們沒有看到肯塔基州的測試市場或芝加哥早期推出時的需求下降，只是因為特許經營商似乎很霸道。在這一點上，我只是想看看這與更廣泛的推廣之間是否有任何區別。另外還有一個關於獲利能力的問題，那就是 Krispy Kreme 獨家經營，只是讓你們承擔成本，然後回購未售出的甜甜圈。因此，如果您能對這兩件事做出說明的話，那麼在這種情況下，麥當勞的經濟狀況似乎是穩定的。謝謝。

Yeah, we're pleased with many aspects of the McDonald's partnership. The execution across all the cities has been very good. Our team work well together, make sure we have awesome, fresh doughnuts readily available. I think it's also important to understand that we need it to be profitable on a sustainable basis over a long-term. So, really what we're doing, working with them is to make sure that the availability and the visibility of the doughnuts is consistently prominent and that our operations are as simplified and streamlined as they can be. So, really our focus through the 2,400 restaurants we're in today is making sure we're positioned for profitable growth before we expand further.

是的，我們對與麥當勞的合作的許多方面感到滿意。所有城市的執行情況都非常好。我們的團隊合作良好，確保我們隨時提供美味、新鮮的甜甜圈。我認為，理解這一點也很重要，我們需要它能夠長期可持續地獲利。因此，我們與他們合作的真正目的是確保甜甜圈的供應和知名度始終突出，並且我們的營運盡可能簡化和精簡。因此，我們目前在 2,400 家餐廳的重點實際上是確保我們在進一步擴張之前能夠實現盈利增長。

Our next question comes from the line of Andrew Wolf. Your line is opened.

我們的下一個問題來自安德魯·沃爾夫。您的線路已開通。

Thanks. I just wanted to ask about the $5 million you called out on the inefficiencies related to the cybersecurity was that? Expected was that the number was in your guidance or was that? More than expected. And secondly, is that ongoing? Is that still some of that impact in the current in the 2nd quarter guidance?

謝謝。我只是想問一下，您所說的因網路安全效率低下而損失的 500 萬美元是真的嗎？預計這個數字是否在您的指導範圍內？超出預期。其次，這是持續進行的嗎？這是否仍會對目前第二季的指引產生一些影響？

Yeah, thanks for thanks for asking, Andrew, and I can take that. It was contemplated in the guide that we provided in Q1, and it's related to our inability to manage labor and materials efficiently as we're still restoring back of house systems as we went through that. The backup house system piece is now behind us, and we're operating much more efficiently than we were in the 1st 5 to 6 weeks of the year. And should be behind it.

是的，謝謝你的詢問，安德魯，我可以接受。我們在第一季提供的指南中已經考慮到了這一點，這與我們無法有效管理勞動力和材料有關，因為我們仍在恢復後台系統。備用房屋系統部分現已完成，我們的營運效率比今年前 5 到 6 週高得多。並且應該在它後面。

Okay, and secondly, on the sales for hu being down 2%, obviously the distribution points being up quite a lot. There's different ways to unpack that, but is that more You kind of speak to it vis a vis what you're saying about McDonald's and maybe convenience stores, diluting the number or is it more just driven by, your average grocery store or Walmart or those folks being down, whatever percent, their doors, their sales per door, even though it's, a healthy business for you, being down based on the consumer environment.

好的，其次，HU 的銷售額下降了 2%，但顯然分銷點卻上升了很多。有不同的方法來解決這個問題，但是您更多地是從麥當勞和便利店的角度來談論這個問題，稀釋數量，還是更多地受到普通雜貨店或沃爾瑪或那些人的推動，無論百分比如何，他們的門店，他們的每家門店的銷售額，即使這對您來說是一項健康的業務，但由於消費環境而下降。

Yeah, I think revenue for the revenue for the quarter was largely in line with our expectations. I mean, recall the US segment in particular, net revenues impacted by the sale of insomnia cookies and I had a kind of a large decline year over year. But when you think about increased points of access and DFT revenue being up, it was more than offset by consumer softness in our retail channel and also a planned reduction in discount days as we look to be more efficient and drive more profitable growth on the business, which resulted in the organic revenue decline of 2.6%.

是的，我認為本季的營收基本上符合我們的預期。我的意思是，回想美國分部，淨收入受到失眠餅乾銷售的影響，比去年同期出現了大幅下降。但是，當您考慮到接入點的增加和 DFT 收入的上升時，它被我們零售通路的消費者疲軟以及計劃減少的折扣日所抵消，因為我們希望提高效率並推動業務的更多盈利增長，這導致有機收入下降 2.6%。

Our next question comes from the line of Bill Chappell with Trust securities. Your mind is opened.

我們的下一個問題來自信託證券公司的 Bill Chappell。你的心胸開闊了。

Thanks. Good morning. Following up on McDonald's, I guess I maybe just to clarify the earlier question, was it your decision to stop it, put this cause, McDonald's decision? Was it combined, and then with that in mind, trying to understand like, over the past few months, I think you've publicly said, hey, this is, it's a slow ramp we expected to it it's going at kind of expected. I'm trying to figure out, and as we get more national advertising, as we get more scale, it will continue to grow. Was it the sales were not working kind of as you expected and they fell off a cliff or was it the Economics fell off a cliff and said, okay, wait a minute, we're going to lose our shirt if we continue to expand at this level. Just trying to understand kind of where the change came from too.

謝謝。早安.關於麥當勞的後續問題，我想我可能只是想澄清一下之前的問題，這是你們決定停止這件事嗎，還是因為這個原因，是麥當勞的決定？是否合併了，然後考慮到這一點，試圖理解，在過去的幾個月裡，我想你已經公開說過，嘿，這是一個緩慢的增長，我們預計它會以預期的方式進行。我試圖弄清楚，隨著我們獲得更多的全國性廣告，隨著我們規模的擴大，它將繼續增長。是銷售情況不如預期而急劇下降，還是經濟狀況急劇下降，然後說，好吧，等一下，如果我們繼續以這種水平擴張，我們就會損失慘重。只是想了解這種改變從何而來。

I'll start by saying, as with all our customers, we make decisions with them and so obviously we partner with McDonald's to make decisions about rolling out distribution and so you know I very much reinforce that this is something we're working together with them on and appreciate their partnership regarding your last point around sales started strong with the local marketing and then they dropped below what we were expecting once that had passed.

首先我要說的是，就像對待所有客戶一樣，我們與他們一起做出決定，因此，我們顯然與麥當勞合作，共同決定推出分銷渠道，所以我非常強調，這是我們正在與他們合作的事情，並感謝他們就你最後一點的合作，即銷售在本地營銷的帶動下開始強勁，但之後就跌到了我們的預期以下。

We remain confident in the long-term opportunity when you have national distribution, but we really need to make sure that we're position for profitable growth before we expand any further, and so we're working with them on ways to Drive the sales and improve costs. I mean you heard just at the end of the quarter that we've begun outsourcing logistics, for example, to simplify our operations seemed very good early read on that. That's an example of ways we can work together to make sure we're position for profitable growth before we expand further.

當您擁有全國分銷時，我們仍然對長期機會充滿信心，但我們確實需要確保在進一步擴張之前我們能夠實現盈利增長，因此我們正在與他們合作，尋找推動銷售和改善成本的方法。我的意思是，您在本季度末就聽說我們已經開始外包物流，例如，為了簡化我們的運營，早期讀到這一點似乎非常好。這是我們可以透過合作確保我們在進一步擴張之前能夠實現獲利成長的一個例子。

Got it. I mean, I guess the question most people have today is why if you had a kind of 30 or 60 day pause or a slowdown on a 3-year program, you would make a pause. So, I think there there's some questions of why that happens so quickly, but I guess related. And I'm trying to understand kind of your CapEx spend because I thought the impression was you needed to spend $25 million a year to kind of build out distribution so you could have the national distribution or build out manufacturing you have the national distribution. Like are those projects now paused as well or are they, shovels in the ground that are being pulled back out? How does that work?

知道了。我的意思是，我想今天大多數人的問題是，如果你有一個 30 或 60 天的暫停或三年計劃的放緩，你為什麼要暫停。所以，我認為存在一些問題，為什麼這種情況發生得如此之快，但我想是相關的。我想了解你們的資本支出情況，因為我認為你們需要每年花費 2500 萬美元來建立分銷網絡，這樣你們才能擁有全國分銷網絡，或者建立製造網絡，從而擁有全國分銷網絡。這些項目現在是否也暫停了？或者，它們是否正在被拔出地面？這是如何運作的？

Well, regarding the speed of decision making, I very much believe that it's important to take decisive action, make decisions that ensure. The profitable growth of the business, so it's natural that we would work with McDonald's to make sure that we only expand further when we get that profitable growth. Regarding supporting the network, remember we are expanding with several scale customers right now. We announced today, for example, we even started a new program with Sam's Club following.

嗯，關於決策速度，我非常相信採取果斷行動、確保的決定非常重要。業務的獲利成長，因此我們自然會與麥當勞合作，以確保只有在實現獲利成長時我們才會進一步擴張。關於支援網絡，請記住我們目前正在與幾個規模客戶一起擴張。例如，我們今天宣布，我們甚至啟動了一項與山姆會員店合作的新計劃。

Starting with Costco late last year, and we continue to see success with a number of national scale customers that we need to support with a network that is now going national. I mentioned earlier on the call, for example, that our Minneapolis hub is currently under construction, and we still expect to open 5 to 7 new production hubs during the course of this year, mainly serving those underserved geographies where our customers, national ones like Target for example, in Minneapolis can be supported, but do remember we do have excess capacity in the network which we're also leveraging. Hence we can make very thoughtful capital allocation choices, be focused on capital efficiency, and overall make sure that we are positioned to deleverage the balance sheet as we drive this profitable growth.

從去年年底的 Costco 開始，我們不斷看到許多全國性客戶取得成功，我們需要透過現在全國各地開展的網路來支援這些客戶。例如，我之前在電話會議上提到，我們的明尼阿波利斯中心目前正在建設中，我們仍預計在今年開設 5 到 7 個新的生產中心，主要服務於那些服務不足的地區，在這些地區，我們可以為明尼阿波利斯的客戶（例如 Target 等全國性客戶）提供支持，但請記住，我們的網絡確實有過剩容量，我們也在利用這些容量。因此，我們可以做出非常周到的資本配置選擇，專注於資本效率，並確保我們整體在推動獲利成長的同時能夠降低資產負債表的槓桿率。

Okay, thank you.

好的，謝謝。

There are no further questions at this time. I would like to hand the call back over to Joshua Charlesworth for some closing remarks.

目前沒有其他問題。我想將電話轉回給 Joshua Charlesworth，請他做最後發言。

Well, thank you everybody for your interest in Krispy Kreme today. Thank you also to our hardworking Krispy Kreme's all over the world who remain dedicated to our strategy of transforming Krispy Kreme into a bigger and better business. We are taking action now to drive profitable growth and deleverage, Thank you.

好吧，謝謝大家今天對 Krispy Kreme 的關注。也要感謝世界各地辛勤工作的 Krispy Kreme 員工，他們始終致力於我們的策略，將 Krispy Kreme 打造為更大更好的企業。我們現在正在採取行動推動獲利成長和去槓桿，謝謝。

This concludes today's call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。