Business Wire | Dec 20, 2021 07:45AM EST

Krispy Kreme, Inc. Announces Updated 2021 Guidance

Dec. 20, 2021

CHARLOTTE, N.C.--(BUSINESS WIRE)--Dec. 20, 2021--Krispy Kreme, Inc. (NASDAQ: DNUT) ("Krispy Kreme" or the "Company") today updated its guidance for full year 2021 because of strong momentum in the fourth quarter. As a result of better than previously expected growth, the Company is providing the following updated guidance for the full year of 2021:

Full Year 2021 Updated Guidance Prior Guidance

$ % ? vs $ % ? vs 2020 2020

Millions, except Low High Low High Low High Low High%sNet Revenue $1,370 $1,385 22% 23% $1,340 $1,380 19% 23%

Organic Revenue 12% 13% 10% 12%growthAdjusted EBITDA $182 $187 25% 29% $178 $185 22% 27%

Adjusted Net $65 $68 53% 61% $62 $68 46% 61%Income "Our global omni-channel business has continued to perform well as we benefit from the sharing and gifting occasions of the holiday season," stated Mike Tattersfield, Chief Executive Officer. "Our U.S. and international businesses have both contributed significantly to our growth this quarter. We have been able to successfully pass through price increases in the U.S. in September and November addressing inflation."

Krispy Kreme also reiterated the following long-term outlook:

Organic Revenue growth of 9% to 11% Adjusted EBITDA growth of 12% to 14% Adjusted Net Income growth of 18% to 22%

We anticipate exceeding these long-term targets in the full year 2022 as we will no longer be lapping the exit of our legacy wholesale business in the U.S.

About Krispy Kreme

Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed(r) doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in over 30 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing ecommerce and delivery business. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme, and www.Twitter.com/KrispyKreme.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. The words "will," "should," "anticipate," "estimate," "expect," "targets," "outlook," "guidance," or similar words, or the negative of these words, identify forward-looking statements. Such forward-looking statements are based on certain assumptions and estimates that we consider reasonable but are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial conditions, business, prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included herein. . Factors that could cause actual results to differ from those expressed in forward-looking statements include, without limitation, the risks and uncertainties described under the headings "Special Note Regarding Forward-Looking Statements" and "Risk Factors" in the Prospectus, dated June 30, 2021, filed by us with the Securities and Exchange Commission ("SEC") and described in the other filings we make from time to time with the SEC. We believe that these factors include, but are not limited to, the impact of pandemics, changes in consumer preferences, and our ability to execute on our omni-channel business strategy. These forward-looking statements are made only as of the date of this document, and we do not undertake any obligation, other than as may be required by applicable law, to update or revise any forward-looking or cautionary statement to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.

Non-GAAP Measures

This press release includes guidance regarding certain non-GAAP financial measures including organic revenue growth, Adjusted EBITDA, and Adjusted Net Income, which differ from results using U.S. Generally Accepted Accounting Principles ("GAAP"). Non-GAAP financial measures are not universally consistent calculations, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, non-GAAP financial measures are not measurements of financial performance under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, you should examine our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC.

The Company does not provide reconciliations of the forward-looking non-GAAP measures to GAAP due to the inability to predict the amount and timing of impacts outside of the Company's control on certain items, such as net income and other charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211219005074/en/

CONTACT: Investor Relations Rob Ballew, Head of Investor Relations rballew@krispykreme.com

CONTACT: Financial Media Edelman for Krispy Kreme, Inc. Allie McLarty & Ashley Firlan, KrispyKremeIR@edelman.com