Krispy kreme reports strong first quarter 2023 and reiterates full year guidance
Charlotte, n.c.--(business wire)--krispy kreme, inc. (nasdaq: dnut) (“krispy kreme” or the “company”) today reported strong financial results for the first quarter ended april 2, 2023. net revenue grew 12.5% year-over-year to $419.0 million and organic revenue grew 14.4% led by robust performances in the u.s. and market development segments. sales per hub in the u.s. increased 9% to $4.6 million, driven by an 12% increase in points of access and an 8% increase in u.s. sales per delivered fresh daily (“dfd”) door. gaap net income for the quarter was $1.6 million compared to net income of $6.5 million a year ago while gaap diluted eps for the quarter was $0.00 compared to diluted eps of $0.02 last year. adjusted diluted eps increased 12.5% to $0.09 for the quarter, compared to $0.08 last year in the same period. adjusted ebitda grew 12.3% in the quarter to $54.9 million led by a 60 basis point improvement in u.s. margins. global points of access, which reflect all locations where fresh doughnuts and cookies can be purchased, increased by nearly 600 during the quarter, providing consumers with access to krispy kreme and insomnia cookies through more than 12,400 locations around the world. commenting on the company’s performance, ceo mike tattersfield stated, “i’m proud of our performance in the first quarter that continued to demonstrate the strength of our omni-channel model, which allows us to meet consumer demand with premium, fresh doughnuts in a capital efficient manner. our global valentine’s day and st. patrick’s day campaigns and specialty offerings such as biscoff® doughnuts resonated with consumers, showcasing the opportunities for premiumization as well as the gifting and sharing power of our brand.” mike continued, “we also achieved our best ever quarter of ecommerce revenue, representing a higher mix of revenue than during the pandemic and we see a long runway for further growth in this channel. krispy kreme continues to be well-positioned to deliver another year of strong growth driven by our capital efficient dfd model and our global expansion plans.” financial highlights $ in millions, except per share data q1 2023 vs q1 2022 net revenue $419.0 +12.5% organic revenue (1) $422.5 +14.4% gaap net income $1.6 (74.5)% adjusted net income, diluted (1) $15.3 +15.5% gaap operating income $14.9 (13.5)% gaap operating income margin 3.6% -100 bps adjusted ebitda (1) $54.9 +12.3% adjusted ebitda margin (1) 13.1% 0 bps gaap diluted eps $0.00 $(0.02) adjusted diluted eps (1) $0.09 +$0.01 notes: (1) non-gaap figures – please refer to reconciliation of non-gaap financial measures. key operating metrics $ in millions, except access points q1 2023 vs q1 2022 global points of access 12,410 +12.5% sales per hub (u.s.) ttm $4.6 +9.0% sales per hub (international) ttm $9.8 +8.5% ecommerce as a percent of retail sales 19.6% +220 bps first quarter 2023 consolidated results krispy kreme’s first quarter 2023 results reflect strong growth compared to the prior year. net revenue grew 12.5% to $419.0 million and total company organic revenue grew 14.4% in the quarter. organic revenue growth was driven by strong growth from u.s. krispy kreme and insomnia cookies, as well as robust performances from our equity-owned japan market and international franchise in our market development segment. ecommerce revenue growth in the quarter was 23%. gaap net income for the quarter was $1.6 million, compared to a gaap net income of $6.5 million in 2022. gaap net income included a $13.4 million charge related to the previously disclosed exit of our small branded sweet treats business that was largely non-cash, partially offset by a $9.7 million gain on a sale-leaseback. inventory write-offs and employee severance associated with the exit of the branded sweet treats business had a 180 basis point negative impact on product and distribution costs in the first quarter of 2023. adjusted ebitda in the quarter grew 12.3% to $54.9 million despite an approximately $2 million negative impact from the stronger u.s. dollar. operating margins declined 100 basis points to 3.6%, while adjusted ebitda margins were flat at 13.1% from the same quarter in 2022, with an increase in adjusted ebitda margins from our u.s. and market development segments offset by a decrease in our international segment due to inflation. adjusted net income, diluted increased 15.5% to $15.3 million in the quarter. gaap diluted eps in the quarter was $0.00 compared to $0.02 in the same quarter last year, while adjusted diluted eps increased 12.5% to $0.09 from $0.08 in the first quarter of 2022. first quarter 2023 market segment results u.s.: in the u.s., segment net revenue grew 13.5% to $281.3 million, driven by the continued execution of our omni-channel strategy and growth of insomnia cookies. organic revenue increased 13.7% driven by increased points of access, higher ecommerce revenue, higher average weekly sales per dfd door as well as a strong performance in insomnia cookies, partially offset by a decrease in branded sweet treats revenue. average weekly dfd revenue per door hit a record in the quarter and was up 35% from the same period in 2021, as we continue to add new dfd partners and channels. ecommerce revenue in the u.s. increased 32% compared to the prior year to 22.6% of sales. excluding branded sweet treats, organic revenue in the u.s. increased by 16.1%. points of access increased by 359 in the quarter to 6,615, which represents an 11.5% increase from a year ago. u.s. adjusted ebitda increased 18.9% to $38.5 million with adjusted ebitda margin expansion of 60 basis points to 13.7% driven primarily by efficiencies from increased sales per hub, improvements from the network optimization of our hubs without spokes as well as price increases, partially offset by cost inflation. international: in the international segment, net revenue grew 3.5% to $90.3 million, with organic growth of 7.3%. organic growth in the quarter was driven by a 12% increase in points of access compared to the prior year. foreign currency translation had a negative 3.8% impact on net revenue growth during the quarter compared to a year ago. points of access increased by 117 in the quarter to total 3,588. international adjusted ebitda declined 21.3% over the prior year to $13.6 million, driven by cost inflation. adjusted ebitda margins declined 480 basis points to 15.0%. we have growing confidence in the u.k. market while australia is currently seeing delayed and accelerated inflationary costs that hit most of our other markets in 2022. market development: in the market development segment, net revenue increased 26.5% to $47.3 million driven by strong performances in our equity-owned japan and canada markets as well as our international franchise business. organic revenue growth was 35.5% compared to the same period in 2022. market development adjusted ebitda grew 35.9% to $17.0 million, with strong margin improvement in our equity-owned japan and canada markets from hub and spoke efficiencies and strength in international franchise revenue more than offsetting inflation and the strong u.s. dollar. adjusted ebitda margins for the segment increased 250 basis points to 35.9% despite a negative impact from mix shift. balance sheet & capital expenditures during the first quarter of 2023, the company invested $26.6 million in capital expenditures, or 6.3% of revenue, primarily to support growth of our hot light theaters, cookie shops, and dfd doors. as of april 2, 2023, the company had $29.7 million of cash and cash equivalents and net debt of $792.7 million. during the quarter, the company reduced its vendor financing programs including structured payables and supply chain financing by approximately $46.1 million. as previously disclosed, during the first quarter the company successfully completed the refinancing of existing term loan a and revolver facilities. the new $700 million term loan a and $300 million revolver extends maturities until march 2028 at the same terms to existing facilities and welcomes several new creditors into our facilities. there was no change in the company’s net debt as a result of this refinancing. 2023 financial outlook krispy kreme re-affirms its previous guidance for the full year 2023 as follows: net revenue of $1.65 billion to $1.68 billion, +8% to +10% vs 2022 (+9% to +11% in constant currency) organic revenue growth of 9% to 11% adjusted ebitda of $205 million to $215 million, +8% to +13% vs 2022 (+10% to +14% in constant currency) adjusted net income, diluted, of $52 million to $58 million, +5% to +17% vs 2022 (+9% to +21% in constant currency) adjusted diluted eps of $0.31 to $0.34, +7% to +17% vs 2022 (+10% to +21% in constant currency) income tax rate between 24.5% to 26.0% capital expenditures between $105 million to $115 million, or approximately 6.6% of revenue interest expense, net between $39 million to $43 million the above guidance continues to assume a negative 1% impact to 2023 revenue and a negative $3 million impact to 2023 adjusted ebitda from fx headwinds, with the impact entirely in the first half of the year. the company expects to reduce its net leverage in 2023, as we make progress towards our 2026 goal of approximately 2.0x to 2.5x net leverage. definitions the following definitions apply to terms used throughout this press release: global points of access: reflects all locations at which fresh doughnuts or cookies can be purchased. we define global points of access to include all hot light theater shops, fresh shops, carts and food trucks, dfd doors and cookie shops, at both company-owned and franchise locations as of the end of the respective reporting period. we monitor global points of access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments. hubs: reflects locations where fresh doughnuts are produced and processed for sale at any point of access. we define hubs to include self-sustaining hot light theater shops and doughnut factories, at both company-owned and franchise locations as of the end of the respective reporting period. sales per hub: sales per hub equals fresh revenues from hubs with spokes, divided by the average number of hubs with spokes at the end of the five most recent quarters. fresh revenues from hubs with spokes: fresh revenues include product sales generated from our doughnut shop business (including ecommerce and delivery), as well as dfd sales, but excluding sales from our legacy wholesale business and our branded sweet treat line. it also excludes all insomnia cookies revenues as the measure is focused on the krispy kreme business. fresh revenues from hubs with spokes equals the fresh revenues derived from those hubs currently producing product for other shops, carts and food trucks, and/or dfd doors, but excluding fresh revenues derived from those hubs not currently producing product for other shops, carts and food trucks, and/or dfd doors. total net leverage ratio: calculated using net debt (including both bank debt and financing leases as part of debt) divided by adjusted ebitda. free cash flow: defined as cash provided by operating activities less purchases of property and equipment. conference call krispy kreme will host a public conference call at 8:00 am eastern time today to discuss its results for the first quarter of 2023. the conference call can be accessed by dialing 1 (800) 599-5188 and entering the conference id 5487868. international participants can access the call via the corresponding number listed here and entering the conference id 5487868. to listen to the live audio webcast and q&a, visit the krispy kreme investor relations website at investors.krispykreme.com. a replay and transcript of the webcast will be available on the website within 24 hours after the call. krispy kreme’s earnings press release and related materials will also be available on the investor relations section of the company’s website. 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® 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 with more than 12,000 fresh points of access. 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 “believe,” “may,” “could,” “will,” “should,” “anticipate,” “estimate,” “expect,” “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 “cautionary note regarding forward-looking statements” and “risk factors” in our annual report on form 10-k for the year ended january 1, 2023, 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, the impact of inflation, 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 certain non-gaap financial measures including organic revenue growth, adjusted ebitda, adjusted net income, adjusted diluted eps, fresh revenue from hubs with spokes and sales per hub, which differ from results using u.s. generally accepted accounting principles (“gaap”). these 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, these 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. to the extent that the company provides guidance, it does so only on a non-gaap basis. the company does not provide reconciliations of such 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. krispy kreme, inc. condensed consolidated statements of operations (unaudited) (in thousands, except per share amounts) quarter ended april 2, 2023 (13 weeks) april 3, 2022 (13 weeks) net revenues product sales $ 410,674 $ 364,052 royalties and other revenues 8,276 8,480 total net revenues 418,950 372,532 product and distribution costs 117,833 96,111 operating expenses 191,408 168,726 selling, general and administrative expense 61,468 53,711 marketing expenses 9,853 10,159 pre-opening costs 764 1,329 other income, net (5,263 ) (2,633 ) depreciation and amortization expense 27,939 27,841 operating income 14,948 17,288 interest expense, net 11,988 7,351 other non-operating expense/(income), net 999 (321 ) income before income taxes 1,961 10,258 income tax expense 317 3,800 net income 1,644 6,458 net income attributable to noncontrolling interest 1,945 2,456 net (loss)/income attributable to krispy kreme, inc. $ (301 ) $ 4,002 net (loss)/income per share: common stock — basic $ 0.00 $ 0.02 common stock — diluted $ 0.00 $ 0.02 weighted average shares outstanding: basic 168,141 167,261 diluted 168,141 169,485 krispy kreme, inc. condensed consolidated balance sheets (in thousands, except per share amounts) as of (unaudited) april 2, 2023 january 1, 2023 assets current assets: cash and cash equivalents $ 29,675 $ 35,371 restricted cash 409 359 accounts receivable, net 52,053 51,089 inventories 36,389 46,239 taxes receivable 15,970 18,263 prepaid expense and other current assets 21,138 26,953 total current assets 155,634 178,274 property and equipment, net 475,510 472,358 goodwill 1,093,898 1,087,908 other intangible assets, net 963,549 966,088 operating lease right of use asset, net 433,352 417,381 other assets 22,904 26,528 total assets $ 3,144,847 $ 3,148,537 liabilities and shareholders’ equity current liabilities: current portion of long-term debt $ 40,216 $ 40,034 current operating lease liabilities 39,963 43,160 accounts payable 205,154 225,276 accrued liabilities 82,961 104,424 structured payables 77,742 103,575 total current liabilities 446,036 516,469 long-term debt, less current portion 776,975 739,052 noncurrent operating lease liabilities 432,008 412,759 deferred income taxes, net 142,304 143,124 other long-term obligations and deferred credits 40,374 38,258 total liabilities 1,837,697 1,849,662 commitments and contingencies shareholders’ equity: common stock, $0.01 par value; 300,000 shares authorized as of both april 2, 2023 and january 1, 2023; 168,176 and 168,137 shares issued and outstanding as of april 2, 2023 and january 1, 2023, respectively 1,682 1,681 additional paid-in capital 1,431,649 1,426,105 shareholder note receivable (4,830 ) (4,813 ) accumulated other comprehensive loss, net of income tax (918 ) (9,151 ) retained deficit (223,674 ) (217,490 ) total shareholders’ equity attributable to krispy kreme, inc. 1,203,909 1,196,332 noncontrolling interest 103,241 102,543 total shareholders’ equity 1,307,150 1,298,875 total liabilities and shareholders’ equity $ 3,144,847 $ 3,148,537 krispy kreme, inc. condensed consolidated statements of cash flows (unaudited) (in thousands) quarter ended april 2, 2023 (13 weeks) april 3, 2022 (13 weeks) cash flows from operating activities: net income $ 1,644 $ 6,458 adjustments to reconcile net income to net cash provided by operating activities: depreciation and amortization expense 27,939 27,841 deferred income taxes (219 ) (822 ) loss on extinguishment of debt 472 — impairment and lease termination charges 4,900 218 loss on disposal of property and equipment 33 24 gain on sale-leaseback (9,661 ) (2,374 ) share-based compensation 5,545 5,041 change in accounts and notes receivable allowances 334 (156 ) inventory write-off 7,115 251 settlement of interest rate swap derivatives 7,657 — other (204 ) (1,345 ) change in operating assets and liabilities, excluding foreign currency translation adjustments (35,190 ) (6,745 ) net cash provided by operating activities 10,365 28,391 cash flows used for investing activities: purchase of property and equipment (26,553 ) (29,460 ) proceeds from sale-leaseback 10,025 3,000 other investing activities 82 23 net cash used for investing activities (16,446 ) (26,437 ) cash flows from/(used for) financing activities: proceeds from the issuance of debt 891,698 28,000 repayment of long-term debt and lease obligations (852,144 ) (28,697 ) payment of financing costs (5,000 ) — proceeds from structured payables 44,757 74,180 payments on structured payables (70,480 ) (58,361 ) payment of contingent consideration related to a business combination — (900 ) capital contribution by shareholders — 240 payments of issuance costs in connection with ipo — (12,458 ) proceeds from sale of noncontrolling interest in subsidiary — 52 distribution to shareholders (5,884 ) (5,855 ) payments for repurchase and retirement of common stock — (1,466 ) distribution to noncontrolling interest (1,139 ) (1,362 ) net cash provided by/(used for) financing activities 1,808 (6,627 ) effect of exchange rate changes on cash, cash equivalents and restricted cash (1,373 ) (2,228 ) net decrease in cash, cash equivalents and restricted cash (5,646 ) (6,901 ) cash, cash equivalents and restricted cash at beginning of period 35,730 39,192 cash, cash equivalents and restricted cash at end of period $ 30,084 $ 32,291 krispy kreme, inc. reconciliation of non-gaap financial measures (unaudited) (in thousands, except per share amounts) quarter ended (in thousands) april 2, 2023 april 3, 2022 net income $ 1,644 $ 6,458 interest expense, net 11,988 7,351 income tax expense 317 3,800 depreciation and amortization expense 27,939 27,841 share-based compensation. 5,545 5,041 employer payroll taxes related to share-based compensation 25 55 other non-operating expense/(income), net (1) 999 (321 ) strategic initiatives (2) 13,469 — acquisition and integration expenses (3) 91 517 new market penetration expenses (4) 94 110 shop closure (income)/expenses, net (5) (679 ) 230 restructuring and severance expenses (6) 580 — gain on sale-leaseback (9,661 ) (2,374 ) other (7) 2,577 199 adjusted ebitda $ 54,928 $ 48,907 quarter ended (in thousands) april 2, 2023 april 3, 2022 segment adjusted ebitda: u.s $ 38,535 $ 32,407 international 13,567 17,244 market development 16,966 12,488 corporate (14,140 ) (13,232 ) total adjusted ebitda $ 54,928 $ 48,907 quarter ended (in thousands, except per share amounts) april 2, 2023 april 3, 2022 net income $ 1,644 $ 6,458 share-based compensation 5,545 5,041 employer payroll taxes related to share-based compensation 25 55 other non-operating expense/(income), net (1) 999 (321 ) strategic initiatives (2) 13,469 — acquisition and integration expenses(3) 91 517 new market penetration expenses (4) 94 110 shop closure (income)/expenses, net (5) (679 ) 230 restructuring and severance expenses (6) 580 — gain on sale-leaseback (9,661 ) (2,374 ) other(7) 2,577 199 amortization of acquisition related intangibles (8) 7,273 7,246 loss on extinguishment of 2019 facility (9) 472 — tax impact of adjustments (10) (4,656 ) (1,078 ) tax specific adjustments (11) (557 ) — net income attributable to noncontrolling interest (1,945 ) (2,456 ) adjustment to adjusted net income attributable to common shareholders — (374 ) adjusted net income attributable to common shareholders - basic $ 15,271 $ 13,253 additional income attributed to noncontrolling interest due to subsidiary potential common shares (10 ) (40 ) adjusted net income attributable to common shareholders - diluted $ 15,261 $ 13,213 basic weighted average common shares outstanding 168,141 167,261 dilutive effect of outstanding common stock options and rsus 1,850 2,224 diluted weighted average common shares outstanding 169,991 169,485 adjusted net income per share attributable to common shareholders: basic $ 0.09 $ 0.08 diluted $ 0.09 $ 0.08 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) krispy kreme, inc. segment reporting (unaudited) (in thousands except percentages or otherwise stated) quarter ended april 2, 2023 april 3, 2022 net revenues: u.s. $ 281,344 $ 247,919 international 90,288 87,201 market development 47,318 37,412 total net revenues $ 418,950 $ 372,532 q1 2023 organic revenue (in thousands, except percentages) u.s. international market development total company total net revenues in first quarter of fiscal 2023 $ 281,344 $ 90,288 $ 47,318 $ 418,950 total net revenues in first quarter of fiscal 2022 247,919 87,201 37,412 372,532 total net revenue growth 33,425 3,087 9,906 46,418 total net revenue growth % 13.5 % 3.5 % 26.5 % 12.5 % less: impact of shop optimization closures (3,187 ) — — (3,187 ) adjusted net revenues in first quarter of fiscal 2022 244,732 87,201 37,412 369,345 adjusted net revenue growth 36,612 3,087 9,906 49,605 impact of acquisitions (3,080 ) — 893 (2,187 ) impact of foreign currency translation — 3,308 2,471 5,779 organic revenue growth $ 33,532 $ 6,395 $ 13,270 $ 53,197 organic revenue growth % 13.7 % 7.3 % 35.5 % 14.4 % q1 2022 organic revenue (in thousands, except percentages) u.s. international market development total company total net revenues in first quarter of fiscal 2022 $ 247,919 $ 87,201 $ 37,412 $ 372,532 total net revenues in first quarter of fiscal 2021 222,470 66,506 32,833 321,809 total net revenues growth 25,449 20,695 4,579 50,723 total net revenues growth % 11.4 % 31.1 % 13.9 % 15.8 % impact of acquisitions (3,926 ) — (2,618 ) (6,544 ) impact of foreign currency translation — 2,935 1,161 4,096 organic revenue growth $ 21,523 $ 23,630 $ 3,122 $ 48,275 organic revenue growth % 9.7 % 35.5 % 9.5 % 15.0 % sales per hub trailing four quarters ended fiscal year ended (in thousands, unless otherwise stated) april 2, 2023 january 1, 2023 january 2, 2022 u.s.: revenues $ 1,043,675 $ 1,010,250 $ 923,129 non-fresh revenues (1) (34,112 ) (38,380 ) (37,311 ) fresh revenues from insomnia cookies and hubs without spokes (2) (414,432 ) (404,430 ) (414,899 ) sales from hubs with spokes 595,131 567,440 470,919 sales per hub (millions) 4.6 4.5 4.0 international: sales from hubs with spokes (3) $ 369,003 $ 365,916 $ 332,995 sales per hub (millions) (4) 9.8 9.8 8.4 (1) (2) (3) (4) krispy kreme, inc. global points of access (unaudited) global points of access (1) quarter ended fiscal year ended april 2, 2023 april 3, 2022 january 1, 2023 u.s.: (2) hot light theater shops 228 240 234 fresh shops 67 61 62 cookie shops 239 217 231 carts, food trucks, and other (3) — 2 — dfd doors (5) 6,081 5,411 (4) 5,729 total 6,615 5,931 6,256 international: hot light theater shops 34 32 37 fresh shops 395 376 388 carts, food trucks, and other (3) 16 1 14 dfd doors 3,143 2,794 (4) 3,032 total 3,588 3,203 3,471 market development: (4) hot light theater shops 115 113 115 fresh shops 898 810 873 carts, food trucks, and other (3) 28 31 27 dfd doors 1,166 939 1,095 total 2,207 1,893 2,110 total global points of access (as defined) 12,410 11,027 11,837 total hot light theater shops 377 385 386 total fresh shops 1,360 1,247 1,323 total cookie shops 239 217 231 total shops 1,976 1,849 1,940 total carts, food trucks, and other 44 34 41 total dfd doors 10,390 9,144 9,856 total global points of access (as defined) 12,410 11,027 11,837 (1) (2) (3) (4) (5) krispy kreme, inc. global hubs (unaudited) hubs quarter ended fiscal year ended april 2, 2023 april 3, 2022 january 1, 2023 u.s.: hot light theater shops (1) 221 237 228 doughnut factories 4 4 4 total 225 241 232 hubs with spokes 137 122 133 hubs without spokes 88 119 99 international: hot light theater shops (1) 28 26 28 doughnut factories 11 11 11 total 39 37 39 hubs with spokes 39 37 39 market development: hot light theater shops (1) 109 110 110 doughnut factories 27 27 27 total 136 137 137 total hubs 400 415 408 (1) krispy kreme, inc. net debt and leverage (unaudited) (in thousands, except leverage ratio) (in thousands, except leverage ratio) april 2, 2023 january 1, 2023 current portion of long-term debt $ 40,216 $ 40,034 long-term debt, less current portion 776,975 739,052 total long-term debt, including debt issuance costs 817,191 779,086 add back: debt issuance costs 5,158 2,247 total long-term debt, excluding debt issuance costs 822,349 781,333 less: cash and cash equivalents (29,675 ) (35,371 ) net debt $ 792,674 $ 745,962 adjusted ebitda - trailing four quarters 196,750 190,729 net leverage ratio 4.0 x 3.9 x
