Benzinga | Aug 18, 2021 06:08AM EDT

Krispy Kreme Reports Mixed Q2 Results, Provides Upbeat Guidance

* Krispy Kreme Inc (NASDAQ:DNUT) reported second-quarter FY21 sales growth of 42.6% year-on-year, to $349.19 million, beating the consensus of $333.36 million. Organic revenue grew 22.5% in the quarter.

* Revenue from the U.S. & Canada rose 25.3% Y/Y, and International revenues climbed 159%.

* Product sales rose 44.2% Y/Y, and Royalties and other revenues fell 4.8%.

* Operating expense increased 51.5% Y/Y to $157.9 million.

* The operating margin was 2.6%, and operating income for the quarter recovered to $9.1 million.

* The company held $37.46 million in cash and equivalents as of July 4, 2021.

* Adjusted EBITDA of $52.4 million increased 77.8% Y/Y.

* Adjusted EPS of $0.13 missed the consensus of $0.14.

* "The second quarter saw great continued momentum in the U.S. and Canada, enhanced by the strong ongoing recovery in International," said CEO Mike Tattersfield.

* Outlook: Krispy Kreme sees FY21 sales of $1.34 billion - $1.38 billion, with the consensus at $1.34 billion.

* The company expects FY21 adjusted EBITDA of $178 million - $185 million.

* Price Action: DNUT shares are trading lower by 0.07% at $14.03 in premarket on the last check Wednesday.