Krispy Kreme is a well-known doughnut and coffee chain, with a strong presence in both the United States and international markets. In its most recent annual report, the company reported impressive financial results, highlighting the continued success of its expansion efforts and strong consumer demand for its products.
One of the key highlights of the report was the company's revenue growth. Krispy Kreme's total revenue for the year was $1.1 billion, representing an impressive 8% increase over the previous year. This growth was driven by a combination of same-store sales increases and the opening of new stores. In particular, the company saw strong demand for its doughnuts and coffee in the United States, as well as in its international markets.
In addition to its strong top-line growth, Krispy Kreme also reported solid performance in terms of profitability. The company's net income for the year was $60.8 million, representing a 9% increase over the previous year. This improvement was largely due to the company's ability to control costs and optimize its operations.
One of the key drivers of Krispy Kreme's success has been its expansion efforts. During the year, the company opened 44 new stores, bringing its total number of locations to over 1,400 worldwide. This expansion was driven by the company's focus on expanding into new markets and leveraging its strong brand recognition to attract customers.
Overall, Krispy Kreme's annual report highlights the continued strength of the company's business model and its ability to drive growth and profitability. With a strong focus on expanding its store base, optimizing its operations, and delivering high-quality products to customers, Krispy Kreme is well-positioned for continued success in the future.
Krispy Kreme, Inc. (NASDAQ:DNUT) Q3 2022 Earnings Call Transcript
Segment Reporting Unaudited in thousands except percentages Quarter Ended Three Quarters Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Net revenues: U. Subsequent to fiscal 2003, the award was paid. The increase in the effective rate is primarily the result of increased state income taxes, due to expansion into higher taxing states as well as increases in statutory rates in several jurisdictions. Payment terms on these items are 54 days from the date of installation of the doughnut-making equipment. I would now like to turn the call over to Mr. So I just wanted to get a sense of how we should think about that leverage level to end the year and how you get to that 3.
Our objective is to further enhance our expansion through the opening of factory stores in small markets, with small markets being defined as those markets having fewer than 100,000 households. Generally, these leases have initial terms of three to twenty years and contain provisions for renewal options of five to ten years. The Company continuously monitors its funding requirements for general working capital purposes and other financing and investing activities. The dollar growth in depreciation and amortization expenses is due to increased capital asset additions, including additions related to the new mix and distribution facility, which became operational in fiscal 2003, and additions related to new stores, including new stores opened by our consolidated joint ventures. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. The Company completed its impairment test of goodwill, reacquired franchise rights and indefinite-lived other intangible assets in fiscal 2003 and fiscal 2004 and found no instances of impairment.
Krispy Kreme was built upon generations of word-of-mouth marketing. We also engage with numerous local philanthropic organizations in the communities that we serve around the world. In addition, as a result of the Company's acquisition in the third quarter of fiscal 2003 of a controlling interest in Glazed Investments, this expense also includes the minority partners' share of the results of operations of Glazed Investments for periods subsequent to the effective date of the acquisition. A guide to the discussion for each period is presented below. For example, some ventures have multiple stores in operation while others have none. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. We invest in most international joint ventures through a non-U.
So no major change, we want to be able to make sure that we provide value to our consumer, but also provide those premium celebration offerings to them. Adjusted EBITDA in the quarter declined 6. If we are unable to adapt to changes in consumer preferences and trends, or if regulatory changes are implemented that impact any of our markets, our operating results could be negatively impacted. All costs associated with advertising and promoting products are expensed in the period incurred. To estimate cash flows, management projects the net cash flows anticipated from continuing operation of the store until its closing, as well as cash flows anticipated from disposal of the related assets, if any. Recipes represent primarily the value assigned to the recipes acquired in the Montana Mills acquisition see Note 20 -- Acquisitions.
Over time, we plan to refranchise many of our stores in markets outside our traditional base in the southeastern United States. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15 d of the Act. We chose these markets as our initial focus of small shop development because they are markets in which we have an existing base of Krispy Kreme factory shops from which to build. Under the terms of the Merger Agreement, the Company issued approximately 1,224,400 shares of common stock in exchange for all outstanding shares of Montana Mills' common stock. We expect accounts receivable from franchisees will continue to grow over time as we open new stores and sell to an increasing base of franchise stores.
Soon afterward, people began stopping by to ask if they could buy hot doughnuts right there on the spot. Rudolph was 21 years of age. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. Under their franchise agreements, area developers generally have the exclusive right to sell Krispy Kreme branded products within a one-mile radius of their stores and in wholesale accounts that they have serviced in the last 12 months. As of February 1, 2004, nine DCS stores were open, six of which are owned by the Company.
So a number of things we can drive at. We are in a fortunate position. The Company believes increased prices of agricultural products and energy are more likely to significantly affect its business than are economic conditions generally, because the Company believes its products are affordable indulgences that appeal to consumers in all economic environments. I think the smallest pack is six, it might even be 12 at my local store. Generally, investments in 20- to 50-percent owned affiliates for which the Company has the ability to exercise significant influence over operating and financial policies are accounted for by the equity method of accounting, whereby the investment is carried at the cost of acquisition, plus the Company's equity in undistributed earnings or losses since acquisition, less any distributions received by the Company.
Recipes were determined to have a definite life and are amortized on a straight-line basis over an estimated useful life of 10 years. For certain of these joint ventures, the Company holds variable interests, such as providing guarantees of the joint venture's debt or leases. Many markets and shops introduced new espresso beverages in fiscal 2013, and promotional activities include beverage and doughnut combos when appropriate. We believe acquiring an ownership interest in franchise markets helps align interests between the Company and the franchisee and should provide returns for shareholders as the operators of these franchise markets achieve scale in their operations and become profitable. DIRECT GENERAL AND ADMINISTRATIVE EXPENSES ARE INCLUDED IN OPERATING EXPENSES.