GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Krispy Kreme Inc (NAS:DNUT) » Definitions » Operating Income

Krispy Kreme (Krispy Kreme) Operating Income : $18 Mil (TTM As of Dec. 2023)


View and export this data going back to 2021. Start your Free Trial

What is Krispy Kreme Operating Income?

Krispy Kreme's Operating Income for the three months ended in Dec. 2023 was $1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $18 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Krispy Kreme's Operating Income for the three months ended in Dec. 2023 was $1 Mil. Krispy Kreme's Revenue for the three months ended in Dec. 2023 was $451 Mil. Therefore, Krispy Kreme's Operating Margin % for the quarter that ended in Dec. 2023 was 0.16%.

Warning Sign:

Krispy Kreme Inc operating margin has been in a 5-year decline. The average rate of decline per year is -25.2%.

Krispy Kreme's 5-Year average Growth Rate for Operating Margin % was -25.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Krispy Kreme's annualized ROC % for the quarter that ended in Dec. 2023 was -0.01%. Krispy Kreme's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -2.49%.


Krispy Kreme Operating Income Historical Data

The historical data trend for Krispy Kreme's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Krispy Kreme Operating Income Chart

Krispy Kreme Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial 45.46 4.28 41.10 28.98 13.15

Krispy Kreme Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.41 14.95 5.65 -3.22 0.72

Krispy Kreme Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $18 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Krispy Kreme  (NAS:DNUT) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Krispy Kreme's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=2.864 * ( 1 - 109.61% )/( (3120.041 + 3172.007)/ 2 )
=-0.2752304/3146.024
=-0.01 %

where

Invested Capital(Q: Sep. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3187.203 - 432.14 - ( 25.711 - max(0, 525.04 - 160.062+25.711))
=3120.041

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3240.592 - 420.597 - ( 38.185 - max(0, 525.593 - 173.581+38.185))
=3172.007

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Krispy Kreme's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-24.408/( ( (966.097 + max(-315.675, 0)) + (995.184 + max(-314.231, 0)) )/ 2 )
=-24.408/( ( 966.097 + 995.184 )/ 2 )
=-24.408/980.6405
=-2.49 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(49.854 + 35.063 + 31.548) - (432.14 + 0 + 0)
=-315.675

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(45.858 + 34.716 + 25.792) - (420.597 + 0 + 0)
=-314.231

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Krispy Kreme's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=0.716/450.905
=0.16 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Krispy Kreme Operating Income Related Terms

Thank you for viewing the detailed overview of Krispy Kreme's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Krispy Kreme (Krispy Kreme) Business Description

Traded in Other Exchanges
Address
2116 Hawkins Street, Charlotte, NC, USA, 28203
Krispy Kreme Inc is a sweet treat brands company. The company's Original Glazed doughnut is recognized for its hot-off-the-line, melt-in- your-mouth experience. It operates in 30 countries through its network of fresh Doughnut Shops, partnerships with retailers, and a growing ecommerce and delivery business. The company conducts its business through the following three reported segments namely U.S. and Canada, includes all operations in the U.S. and Canada, Insomnia Cookies shops, and the Branded Sweet Treat Line; International includes operations in the U.K., Ireland, Australia, New Zealand, and Mexico; and Market Development includes franchise operations across the globe, as well as operations in Japan.
Executives
Raphael Duvivier officer: Chief Development Officer 2116 HAWKINS STREET, CHARLOTTE NC 28203
Kelly P Mcbride officer: Chief Accounting Officer 2116 HAWKINS STREET, CHARLOTTE NC 28203
Jeremiah Ashukian officer: EVP & Chief Financial Officer 2116 HAWKINS STREET, CHARLOTTE NC 28203
Philip Telfer director 356 STATE STREET, EAST ALBURY C3 NSW 2640
Michael J. Tattersfield director, officer: President and CEO 2285 CLARK DRIVE, VANCOUVER A1 V5N 3G9
Gerhard W. Pleuhs director C/O KRAFT FOODS INC., THREE LAKES DRIVE, NORTHFIELD IL 60093
Marissa Andrada director C/O KATE SPADE & COMPANY 2 PARK AVENUE, NEW YORK NY 10016
Jab Indulgence B.v. 10 percent owner 14TH FLOOR, 20 EASTBOURNE TERRACE, LONDON X0 W2 6LG
Olivier Goudet director, other: Chairman of the Board 350 FIFTH AVENUE, NEW YORK NY 10118
Jab Holdings B.v. 10 percent owner PIET HEINKADE 55, AMSTERDAM P7 NL 1019 GM
Debbie Sharell Roberts director 204 W. 59TH STREET, BURR RIDGE IL 60527
Patricia Capel director C/O KRISPY KREME, INC., 2116 HAWKINS STREET, CHARLOTTE NC 28203
Josh Charlesworth officer: COO and CFO C/O KRISPY KREME, INC., 2116 HAWKINS STREET, CHARLOTTE NC 28203
David J. Deno director 111 4TH AVENUE NORTH #503, MINNEAPOLIS MN 55402
Andrew G Skehan officer: North America President 5555 GLENRIDGE CONNECTOR, NE, SUITE 300, ATLANTA GA 30342