Krispy Kreme (Krispy Kreme) Interest Coverage

: 0.05 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Krispy Kreme's Operating Income for the three months ended in Dec. 2023 was $1 Mil. Krispy Kreme's Interest Expense for the three months ended in Dec. 2023 was $-13 Mil. Krispy Kreme's interest coverage for the quarter that ended in Dec. 2023 was 0.05. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Krispy Kreme's Interest Coverage or its related term are showing as below:

DNUT' s Interest Coverage Range Over the Past 10 Years
Min: 0.07 Med: 0.81 Max: 0.96
Current: 0.36

DNUT's Interest Coverage is ranked worse than
97.24% of 254 companies
in the Retail - Defensive industry
Industry Median: 9.045 vs DNUT: 0.36

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Krispy Kreme Interest Coverage Historical Data

The historical data trend for Krispy Kreme's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Krispy Kreme Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.76

0.07

0.96

0.85

0.26

Krispy Kreme Quarterly Data
	Dec18	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage														0.33	1.25	0.47	-	0.05

Competitive Comparison

For the Grocery Stores subindustry, Krispy Kreme's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Krispy Kreme Interest Coverage Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Krispy Kreme's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Krispy Kreme's Interest Coverage falls into.

Krispy Kreme Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Krispy Kreme's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Krispy Kreme's Interest Expense was $-50 Mil. Its Operating Income was $13 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,291 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	13.145	/	-50.341
	=	0.26

Krispy Kreme's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Krispy Kreme's Interest Expense was $-13 Mil. Its Operating Income was $1 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,291 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	0.716	/	-13.483
	=	0.05

The higher the ratio, the stronger the company's Financial Strength is.

Krispy Kreme (NAS:DNUT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Krispy Kreme Interest Coverage Related Terms

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

Krispy Kreme (Krispy Kreme) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

9YM:Germany

Address

2116 Hawkins Street, Charlotte, NC, USA, 28203

Website

https://www.krispykreme.com

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