KKD Krispy Kreme Spring 2015 Krispy Kreme Investor Presentation v2

8/17/2019 KKD Krispy Kreme Spring 2015 Krispy Kreme Investor Presentation v2

1/19

SPRING 2015 INVESTOR PRESENTATION


2/19

FORWARD LOOKING STATEMENTS

Some of the information in this presentation represents forward-looking statements that are protected

under the Private Securities Litigation Reform Act of 1995. Such statements may reflect our

expectations or beliefs about the future, including, without limitation, expectations or beliefs

regarding our financial performance. We cannot assure you that we will achieve or realize these

expectations.

Like any such statements, they are subject to a number of factors, risks and uncertainties that could

cause actual results to differ materially from our expectations or beliefs. These factors include items

discussed in our SEC filings, including our annual report on Form 10-K for the year ended February

1, 2015. New factors emerge from time to time, and it is not possible for us to predict all such factors

or assess the impact of each such factor on Krispy Kreme.

If we do make forward-looking statements, we undertake no obligation to update those statements in

the future in light of subsequent events. Please note that all of our SEC filings, along with other

shareholder relevant information, can be found on the IR portion of our website atwww.krispykreme.com.

2


3/19

3

TO TOUCH ENHANCELIVES THROUGH THE

THAT IS KRISPY KREME


4/19

BUSINESS STRATEGY Overview

ENHANCINGCORE MENU

4

ACCELERATINGGLOBAL

GROWTH

MAXIMIZINGBRAND

AWARENESS

LEVERAGINGTECHNOLOGY


5/19

5

ACCELERATI

NG GLOBAL

GROWTH

ACCELERATINGGLOBAL

GROWTH


6/19

6

• Ongoing double-digit annual unit growth rate

• Projected 20-35 new shop openings in FY16

• Long-term growth potential

o 900-1,200 small freestanding factory shops with drive-thru

o Plus additional shops in urban and non-traditional locations

ACCELERATING

GLOBAL

GROWTH

DOMESTIC

E V A L U A T E

P U R S U E

I N F I L L


7/19

7

ACCELERATING

GLOBALGROWTH

INTERNATIONAL• Currently open in 24 countries

• Projected 6 new country openings in FY16

• Projected 95-110 net new shop openings

• Ongoing annual double-digit growth

E V A L U A T E

P U R S U E

I N F I L L


8/19

8

ACCELERATING

GLOBALGROWTH

Drive positive comps

• Balance promotional incentives and traffic

• Doughnut and beverage varieties

• Limited time offers (LTOs)

• Strategic promotions

• Creating use occasions

Same Store

SALES GROWTH


9/19

LEVERAGING

TECHNOLOGY

9

Business Analytics

POS

Mobile Guest Engagement• Hot Light™

• My Krispy Kreme Treats Loyalty


10/19

ENHANCING

CORE MENU

Short term

• Doughnut variety

• Premium offerings

• Emphasis on beverage• Engage millennials

Longer term• Customization

• Explore complementary platforms

10


11/19

ENHANCING

CORE MENU

10am-2pm

21%

BALANCED DAYPARTSTransactions

11

6am-10am

23%

2pm - 6pm

24%

6pm - 11pm

26%


12/19

CPG/WHOLESALE AND

12

• New longer shelf-life products

• Expanding wholesale footprint

MAXIMIZING

BRAND

AWARENESS

LICENSING• Coffee products

o Top-of-mind awareness and trial for coffee

o Increasing brand equity

o Long-term revenue

• Exploring other categories

FUNDRAISING• Fundraising doughnut sales raised more than $35 million last year for

local charities• Uniquely positioned to expand through additional programs, increased

awareness and technology.

• Aligns directly with our mission


13/19

FINANCIAL OVERVIEW

13


14/19

Systemwide Sales and Revenues Adjusted EPS

($’s in millions)

Historical Revenues and Adjusted EPS15

$808

$1,136

$362

$490

FY11 FY15

$0.12

$0.70

FY11 FY15


15/19

Cash Flow has tripled over the last 4 years($’s in millions)

$21

$63

$11

$31

FY11 FY15

Net cash flow from operations

Free cash flow

Over this timeframe, we have repurchased $88 million of stock

16


16/19

Balance Sheet also greatly improved

Debt includes lease obligations

($’s in millions)

17

$22

$51

$35

$10

FY11 FY15

Cash

Debt


17/19

17

Leveragi

ng

Going forward, our financial plansrevolve around ....

• Growing new company and franchise shops• Driving comparable sales growth

• Returning excess capital

• Maintaining a prudent balance sheet


18/19

CONCLUSIONENHANCINGCORE MENU

LEVERAGINGTECHNOLOGY

ACCELERATINGGLOBALGROWTH

MAXIMIZINGBRAND AWARENESS


19/19

TO TOUCH ENHANCELIVES THROUGH THE

THAT IS KRISPY KREME

KKD Krispy Kreme Spring 2015 Krispy Kreme Investor Presentation v2

Documents

Transcript of KKD Krispy Kreme Spring 2015 Krispy Kreme Investor Presentation v2