Back to top

Image: Bigstock

Interpreting Krispy Kreme (DNUT) International Revenue Trends

Read MoreHide Full Article

Did you analyze how Krispy Kreme (DNUT - Free Report) fared in its international operations for the quarter ending March 2024? Given the widespread global presence of this doughnut wholesaler and retailer, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

While analyzing DNUT's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company's total revenue for the quarter stood at $442.7 million, increasing 5.7% year over year. Now, let's delve into DNUT's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Exploring DNUT's International Revenue Patterns

Of the total revenue, $22.01 million came from Market Development during the last fiscal quarter, accounting for 5.0%. This represented a surprise of -58.94% as analysts had expected the region to contribute $53.61 million to the total revenue. In comparison, the region contributed $47.85 million, or 10.6%, and $47.32 million, or 11.3%, to total revenue in the previous and year-ago quarters, respectively.

International accounted for 28.2% of the company's total revenue during the quarter, translating to $124.75 million. Revenues from this region represented a surprise of +32.46%, with Wall Street analysts collectively expecting $94.18 million. When compared to the preceding quarter and the same quarter in the previous year, International contributed $107.05 million (23.7%) and $90.29 million (21.6%) to the total revenue, respectively.

Revenue Forecasts for the International Markets

Wall Street analysts expect Krispy Kreme to report $440.91 million in total revenue for the current fiscal quarter, indicating an increase of 7.8% from the year-ago quarter. Market Development and International are expected to contribute 11.2% ($49.41 million) and 24.1% ($106.44 million) to the total revenue, respectively.

For the entire year, the company's total revenue is forecasted to be $1.78 billion, which is an improvement of 5.8% from the previous year. The revenue contributions from different regions are expected as follows: Market Development will contribute 11.5% ($204.76 million) and International 24.1% ($429.43 million) to the total revenue.

Key Takeaways

Relying on international markets for revenues, Krispy Kreme faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

Currently, Krispy Kreme holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Exploring Recent Trends in Krispy Kreme's Stock Price

The stock has witnessed a decline of 12.1% over the past month versus the Zacks S&P 500 composite's an increase of 1.3%. In the same interval, the Zacks Consumer Staples sector, to which Krispy Kreme belongs, has registered an increase of 5%. Over the past three months, the company's shares saw an increase of 0.3%, while the S&P 500 increased by 4.3%. In comparison, the sector experienced an increase of 4.7% during this timeframe.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Krispy Kreme, Inc. (DNUT) - free report >>

Published in