What happened
Solid top- and bottom-line growth was the money ingredient that made Krispy Kreme's (DNUT -1.07%) stock so palatable this week. As a result, over the five trading days, the veteran donut purveyor's share price rose by more than 7%, according to data compiled by S&P Global Market Intelligence.
So what
Krispy Kreme opened the box of its fourth-quarter and full-year 2022 figures on Wednesday, providing investors a pick-me-up from the Hump Day Blues. The company's net revenue grew by more than 9% year over year to nearly $405 million in the quarter. Non-GAAP (adjusted) net income rose a far more impressive 39% to just shy of $19 million, or $0.11 per share.
On average, the analysts tracking Krispy Kreme stock were modeling less than $395 million on the top line and $0.10 for per-share, adjusted net income.
For several years now, Krispy Kreme has operated on a hub-and-spoke business strategy, with its donut shops shipping branded product to local outlets like supermarkets and convenience stores. It's also become more assertive in international markets.
In its earnings release, the company quoted CEO Mike Tattersfield as saying that the end of 2022 saw "notable progress on expanding our omni-channel model, furthering our global growth strategy and executing successfully on the initial phase of our hub optimization efforts."
Now what
Putting its money where its donut-eating mouth is, Krispy Kreme proffered encouraging guidance for the entirety of 2023. It's forecasting net revenue of $1.65 billion to $1.68 billion for the year and adjusted, per-share net income of $0.31 to $0.34. This would represent year-over-year growth of at least 8% and 7%, respectively.
