Singapore markets closed
  • Straits Times Index

    3,394.21
    +17.02 (+0.50%)
     
  • Nikkei

    27,382.56
    +19.81 (+0.07%)
     
  • Hang Seng

    22,688.90
    +122.12 (+0.54%)
     
  • FTSE 100

    7,765.15
    +4.04 (+0.05%)
     
  • BTC-USD

    23,016.44
    -147.35 (-0.64%)
     
  • CMC Crypto 200

    526.66
    +9.65 (+1.87%)
     
  • S&P 500

    4,070.56
    +10.13 (+0.25%)
     
  • Dow

    33,978.08
    +28.67 (+0.08%)
     
  • Nasdaq

    11,621.71
    +109.30 (+0.95%)
     
  • Gold

    1,927.60
    -2.40 (-0.12%)
     
  • Crude Oil

    79.38
    -1.63 (-2.01%)
     
  • 10-Yr Bond

    3.5180
    +0.0250 (+0.72%)
     
  • FTSE Bursa Malaysia

    1,497.55
    -0.84 (-0.06%)
     
  • Jakarta Composite Index

    6,898.98
    +34.16 (+0.50%)
     
  • PSE Index

    7,052.16
    +9.46 (+0.13%)
     

Krispy Kreme Reports Third Quarter 2022 Results

Third quarter net revenue grew 10.1% compared to Q3 2021
Organic revenue growth accelerated to 12.0%
Added 294 Points of Access in Q3 and 1,276 year to date, exceeding our full year target
Reiterating 2022 Guidance with strong momentum to start Q4

CHARLOTTE, N.C., November 15, 2022--(BUSINESS WIRE)--Krispy Kreme, Inc. (NASDAQ: DNUT) ("Krispy Kreme" or the "Company") today reported financial results for the third quarter ended October 2, 2022 with net revenue growing 10.1% year-over-year to $377.5 million, or 13.4% in constant currency, while organic revenue grew 12.0%. Foreign currency translation resulted in a negative 3.3% impact on net revenue growth during the third quarter due to the strength of the U.S. dollar. Sales per Hub in the U.S. and Canada increased by 18.4% year-over-year to $4.5 million while International Sales per Hub grew 16.3% to $10.0 million.

Organic growth was driven by the solid performance and expansion of Krispy Kreme’s omni-channel model, with a 17% increase in Global Points of Access and strong organic revenue growth in all three business segments in our seasonally low quarter. Global Points of Access, which reflect all locations where fresh doughnuts and cookies can be purchased, increased by 294 during the quarter, providing consumers access to Krispy Kreme in more than 11,700 locations around the world.

GAAP Net Loss for the quarter was $11.8 million with Adjusted Net Income of $5.9 million. GAAP Loss per Share for the quarter was ($0.08) while Adjusted Diluted EPS was $0.03 for the quarter. Adjusted EBITDA in the third quarter was $38.5 million, which included approximately $3.1 million negative impact from the strong U.S. dollar.

Commenting on the Company’s performance, President and CEO Mike Tattersfield stated, "We were pleased with our strong organic revenue growth in the third quarter, led by an acceleration in growth in the U.S. and Canada and Market Development. Margins improved significantly in the final period of the quarter as we successfully implemented price increases in the U.S. coupled with decreased promotional activity after Labor Day. Strong momentum continues into the fourth quarter enhanced by further recent pricing actions in the U.S. and U.K. and a robust global Halloween performance."

Mike continued, "Our international expansion strategy is progressing at a healthy pace. Just recently we opened in Jordan and announced a joint venture to enter into France in 2023. We are excited to also announce a new development agreement to open in Jamaica next year, bringing our total development deals signed in 2022 to 7 international countries, representing over 5,000 new potential points of access."

Financial Highlights

$ in millions, except per share data

Q3 2022

vs Q3 2021

Q1-Q3 2022

vs Q1-Q3 2021

Net Revenue

$377.5

+10.1%

$1,125.3

+11.0%

Organic Revenue(1)

$384.1

+12.0%

$1,134.3

+11.9%

GAAP Net (Loss)/Income

($11.8)

($8.1)

($7.8)

$11.3

Adjusted Net Income(1)

$5.9

($6.8)

$36.6

($14.1)

Operating (Loss)/Income

($1.0)

($2.9)

$23.8

($0.9)

Operating (Loss)/Income Margin

(0.3%)

-80 bps

2.1%

-30 bps

Adjusted EBITDA(1)

$38.5

($2.9)

$134.8

($5.4)

Adjusted EBITDA Margin(1)

10.2%

-190 bps

12.0%

-180 bps

GAAP Diluted Income/(Loss) Per Share

($0.08)

($0.04)

($0.08)

+$0.12

Adjusted Diluted EPS(1)

$0.03

($0.03)

$0.18

($0.11)

Net Debt

$753.3

+10.7%

Notes:

(1) Non-GAAP figures – please refer to Reconciliation of Non-GAAP Financial Measures.

Key Operating Metrics

$ in millions, except access points

Q3 2022

vs Q3 2021

vs Q2 2022

Global Points of Access

11,703

+16.6%

+2.6%

Sales per Hub (U.S. and Canada) TTM

$4.5

+18.4%

+2.3%

Sales per Hub (International) TTM

$10.0

+16.3%

+2.0%

Ecommerce as a Percent of Retail Sales

18.5%

+170 bps

+100 bps

Third quarter 2022 Consolidated Results

Net revenue grew 10.1% in the third quarter to $377.5 million, or 13.4% in constant currency, and organic revenue grew 12.0% in the quarter. Organic revenue growth was driven by strong performances in our Hubs with Spokes, both domestically and internationally, leveraging a 16.6% increase in points of access from a year ago, and robust Ecommerce revenue growth.

GAAP Net Loss for the quarter was $11.8 million, compared to a GAAP Net Loss of $3.8 million in the third quarter of 2021. Adjusted EBITDA in the quarter declined 6.9% to $38.5 million, due to an approximately $3.1 million negative impact from the strength of the U.S. dollar, higher promotional activity from the Beat the Pump promotion in the US through Labor Day and increased labor and commodity costs. Operating margins declined 80 basis points to -0.3%, while Adjusted EBITDA margin declined 190 basis points to 10.2% from the same quarter in 2021 driven by margin declines in our International segment and FX headwinds. However, Adjusted EBITDA margins improved significantly as the quarter progressed and were higher in the final period of the third quarter compared to a year ago.

Adjusted Net Income for the quarter declined 53.5% to $5.9 million compared to the same quarter in 2021. GAAP Diluted Net Loss per share in the quarter was ($0.08) compared to a net loss of ($0.04) in the same quarter last year with Adjusted Diluted EPS decreasing to $0.03 from $0.06 in the third quarter of 2021.

Diluted weighted average shares outstanding for the third quarter of 2022 were 169.3 million, compared to 168.1 million in the third quarter of 2021.

Third Quarter Market Segment Results

U.S. and Canada: In the U.S. and Canada segment net revenue in the third quarter of 2022 grew 11.9% to $252.6 million, driven by the continued execution of our omni-channel strategy, including our Pumpkin Spice limited time offering across all channels including Branded Sweet Treats, Hubs with Spokes strength and Insomnia Cookies. Organic revenue increased 8.9% driven by increased points of access and successful price increases in retail locations in July and Delivered Fresh Daily ("DFD") doors in September. Points of Access increased by 206 in quarter to 6,259 and represents a 9.4% increase in Points of Access from a year ago.

U.S. and Canada Adjusted EBITDA increased 10.0% to $21.9 million in the third quarter of 2022 compared to the third quarter of 2021 with a slight Adjusted EBITDA margin decline of 10 basis points to 8.7%. Hub and Spoke efficiency and a strong performance from Insomnia offset inflationary pressures, higher promotional activity in the first two periods of the third quarter and margin erosion at Hubs without Spokes. Adjusted EBITDA margins improved significantly as the quarter progressed, including strong margin expansion in September over the prior year, as promotional activity returned to normal levels and sales remained robust. This momentum has continued in the fourth quarter. Also during the third quarter, we closed 8 underperforming Hubs without Spokes that were previously announced.

International: In the International segment, net revenue grew 5.4% to $91.9 million, with organic growth of 15.5%. Organic growth in the quarter was driven by strong growth in Mexico, Australia and New Zealand. Points of Access increased by 14 to 3,439, or 548 year to date. Foreign currency translation had a negative 10.1% impact on our International net revenue growth during the quarter.

International Adjusted EBITDA declined 15.7% to $18.3 million in the third quarter over the same period of the prior year, due to a $2.4 million impact from the higher U.S. dollar as well as a continued challenging environment in the U.K. Adjusted EBITDA for Mexico and Australia & New Zealand markets grew 18.1% in the third quarter compared to the same period in the prior year. International Adjusted EBITDA margin was 19.9% in the third quarter, down 490 basis points compared the same period last year due to reduced margins in the U.K. from lower organic revenue growth and elevated inflation.

Market Development: In the Market Development segment, net revenue increased 10.9% to $33.0 million driven by a 32.7% increase in Points of Access compared to the prior year to 2,005, partially offset by franchise acquisitions and an 8.6% adverse impact from foreign currency exchange. Organic revenue growth accelerated to 26.0% compared to the same period in 2021 driven by a strong performance in our franchise markets, including South Korea and India, and our equity-owned Japan market where the Company is implementing its omni-channel model with the expansion of Ecommerce and the launch of DFD. Points of Access in the quarter increased by 74 and 192 year to date.

Market Development Adjusted EBITDA grew 14.6% to $10.4 million in the third quarter of 2022, with strong organic revenue growth partially offset by domestic franchise acquisitions and a foreign currency impact of negative $0.7 million. Adjusted EBITDA margins increased 100 basis points to 31.4% in the quarter.

The Company has signed development agreements in 2022 with franchise partners to open in Switzerland, Costa Rica, Jordan, Jamaica and Chile as well as a joint venture in France and a new partner in Turkey.

Balance Sheet & Capital Expenditures

During the third quarter of 2022, the company invested $23.5 million in capital expenditures, or 6.2% of revenue. For the first three quarters of 2022, the Company invested $75.0 million in capital expenditures, or 6.7% of revenue.

As of July 3, 2022, the Company had $28.1 million of cash and cash equivalents, $750.5 million of bank debt and $30.9 million of other debt-like items, for a total net debt of $753.3 million.

2022 Financial Outlook

Krispy Kreme re-iterates its guidance for the full year 2022 as follows:

  • Net Revenue of $1.49 billion to $1.52 billion

  • Organic Revenue growth of 10% to 12%

  • Adjusted EBITDA of $189 million to $195 million

  • Adjusted Net Income to Krispy Kreme shareholders, diluted, of $49 million to $54 million

  • Adjusted Diluted EPS of $0.29 to $0.32

  • Approximately 170 million weighted average Diluted shares outstanding

  • Adjusted Income Tax rate between 23% and 25%

  • Capital Expenditures between $105 million to $110 million (approximately 7% of revenue)

  • Net Leverage of approximately 3.6x, including the short-term impact from the U.S. Midwest franchise acquisition and FX headwinds, with a goal of 3.0x by the end of 2023

The Company’s guidance includes an Adjusted EBITDA impact of approximately negative $10 to $12 million from foreign currency translation and input costs as a result of the strengthening of the U.S. dollar or approximately negative $0.05 per Diluted share. At current exchange rates, we expect to come in near the high end of the estimated impact range for 2022.

December Investor Day

Krispy Kreme previously announced it will host an Investor Day on December 15, 2022 at its headquarters in Charlotte, NC and virtually via webcast. The Company will provide further detail on our strategic vision and long-term growth goals and introduce our initial 2023-2026 outlook. To register for the event, please refer to the Events section of the Krispy Kreme’s Investor Relations website.

Conference Call

Krispy Kreme will host a public conference call at 8:30 AM Eastern Time today to discuss its results for the third quarter of 2022. The conference call can be accessed by dialing 1 (800) 599-5188 and entering the conference ID 5487868. International participants can access the call via the corresponding number listed here and entering the conference ID 5487868. To listen to the live audio webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay and transcript of the webcast will be available on the website within 24 hours after the call. Krispy Kreme’s earnings press release and related materials will also be available on the investor relations section of the Company’s website.

Definitions

The following definitions apply to terms used throughout this press release:

  • Global Points of Access: Reflects all locations at which fresh doughnuts or cookies can be purchased. We define Global Points of Access to include all Hot Light Theater Shops, Fresh Shops, Carts, Food Trucks and Other, DFD Doors and Cookie Shops, at both Company-owned and franchise locations as of the end of the respective reporting period. We monitor Global Points of Access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments.

  • Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any point of access. We define Hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the respective reporting period.

  • Sales Per Hub: Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes at the end of the five most recent quarters.

  • Fresh Revenues from Hubs with Spokes: Fresh Revenues include product sales generated from our Doughnut Shop business (including Ecommerce and delivery), as well as DFD sales, but excluding sales from our legacy wholesale business and our Branded Sweet Treat Line. It also excludes all Insomnia Cookies revenues as the measure is focused on the Krispy Kreme business. Fresh Revenues from Hubs with Spokes equals the Fresh Revenues derived from those Hubs currently producing product for other shops, Carts, Food Trucks and Other, and/or DFD Doors, but excluding Fresh Revenues derived from those Hubs not currently producing product for other shops, Carts, Food Trucks and Other, and/or DFD Doors.

  • Total Net Leverage Ratio: Calculated using Net Debt (including both bank debt and financing leases as part of debt) divided by Adjusted EBITDA.

  • Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment.

About Krispy Kreme

Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in over 30 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing Ecommerce and delivery business with more than 11,000 fresh points of access. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme, and www.Twitter.com/KrispyKreme.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. The words "believe," "may," "could," "will," "should," "anticipate," "estimate," "expect," "outlook," "guidance," "working towards" or similar words, or the negative of these words, identify forward-looking statements. Such forward-looking statements are based on certain assumptions and estimates that we consider reasonable but are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial conditions, business, prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included herein. Factors that could cause actual results to differ from those expressed in forward-looking statements include, without limitation, the risks and uncertainties described under the headings "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in our Annual Report on Form 10-K for the year ended January 2, 2022, filed by us with the Securities and Exchange Commission ("SEC") and described in the other filings we make from time to time with the SEC. We believe that these factors include, but are not limited to, the impact of pandemics, changes in consumer preferences, the impact of inflation, and our ability to execute on our omni-channel business strategy. These forward-looking statements are made only as of the date of this document, and we do not undertake any obligation, other than as may be required by applicable law, to update or revise any forward-looking or cautionary statement to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.

Non-GAAP Measures

This press release includes certain non-GAAP financial measures including organic revenue growth, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Fresh Revenue from Hubs with Spokes and Sales per Hub, which differ from results using U.S. Generally Accepted Accounting Principles ("GAAP"). These non-GAAP financial measures are not universally consistent calculations, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, you should examine our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC.

The Company does not provide reconciliations of such forward-looking non-GAAP measures to GAAP due to the inability to predict the amount and timing of impacts outside of the Company’s control on certain items, such as net income and other charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

Krispy Kreme, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share amounts)

Quarter Ended

Three Quarters Ended

October 2, 2022
(13 weeks)

October 3, 2021
(13 weeks)

October 2, 2022
(39 weeks)

October 3, 2021
(39 weeks)

Net revenues

Product sales

$

370,216

$

334,324

$

1,102,045

$

989,132

Royalties and other revenues

7,306

8,475

23,254

24,662

Total net revenues

377,522

342,799

1,125,299

1,013,794

Product and distribution costs

102,870

92,152

299,539

257,166

Operating expenses

177,592

157,315

520,260

462,733

Selling, general and administrative expense

54,801

52,950

160,266

163,417

Marketing expenses

10,995

12,062

32,369

31,621

Pre-opening costs

1,200

1,192

3,514

4,335

Other expenses/(income), net

2,964

(359

)

1,800

(4,365

)

Depreciation and amortization expense

28,127

25,663

83,782

74,258

Operating (loss)/income

(1,027

)

1,824

23,769

24,629

Interest expense, net

8,871

7,186

23,808

25,228

Interest expense — related party

10,387

Other non-operating expense/(income), net

1,648

732

2,083

(126

)

Loss before income taxes

(11,546

)

(6,094

)

(2,122

)

(10,860

)

Income tax expense/(benefit)

294

(2,342

)

5,668

8,266

Net loss

(11,840

)

(3,752

)

(7,790

)

(19,126

)

Net income attributable to noncontrolling interest

1,216

1,907

5,113

6,736

Net loss attributable to Krispy Kreme, Inc.

$

(13,056

)

$

(5,659

)

$

(12,903

)

$

(25,862

)

Net loss per share:

Common stock — Basic

$

(0.08

)

$

(0.04

)

$

(0.08

)

$

(0.20

)

Common stock — Diluted

$

(0.08

)

$

(0.04

)

$

(0.08

)

$

(0.20

)

Weighted average shares outstanding:

Basic

167,431

166,034

167,353

141,124

Diluted

167,431

166,034

167,353

141,124

Krispy Kreme, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share amounts)

As of

(Unaudited)
October 2, 2022

January 2, 2022

ASSETS

Current assets:

Cash and cash equivalents

$

28,096

$

38,562

Restricted cash

403

630

Accounts receivable, net

46,941

47,491

Inventories

49,406

34,851

Taxes receivable

16,537

14,662

Prepaid expense and other current assets

33,126

20,701

Total current assets

174,509

156,897

Property and equipment, net

450,954

438,918

Goodwill

1,074,241

1,105,322

Other intangible assets, net

966,358

992,520

Operating lease right of use asset, net

410,001

435,168

Other assets

25,788

16,429

Total assets

$

3,101,851

$

3,145,254

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Current portion of long-term debt

$

40,243

$

36,583

Current operating lease liabilities

45,551

50,359

Accounts payable

188,059

182,104

Accrued liabilities

111,818

140,750

Structured payables

123,331

116,361

Total current liabilities

509,002

526,157

Long-term debt, less current portion

738,504

680,307

Noncurrent operating lease liabilities

400,594

415,208

Deferred income taxes, net

140,244

145,418

Other long-term obligations and deferred credits

39,784

42,509

Total liabilities

1,828,128

1,809,599

Commitments and contingencies

Shareholders’ equity:

Common stock, $0.01 par value; 300,000 shares authorized as of both October 2, 2022 and January 2, 2022; 167,437 and 167,251 shares issued and outstanding as of October 2, 2022 and January 2, 2022, respectively

1,674

1,673

Additional paid-in capital

1,422,850

1,415,185

Shareholder note receivable

(4,812

)

(4,382

)

Accumulated other comprehensive loss, net of income tax

(37,380

)

(2,478

)

Retained deficit

(208,886

)

(178,409

)

Total shareholders’ equity attributable to Krispy Kreme, Inc.

1,173,446

1,231,589

Noncontrolling interest

100,277

104,066

Total shareholders’ equity

1,273,723

1,335,655

Total liabilities and shareholders’ equity

$

3,101,851

$

3,145,254

Krispy Kreme, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

Three Quarters Ended

October 2, 2022
(39 weeks)

October 3, 2021
(39 weeks)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

$

(7,790

)

$

(19,126

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization expense

83,782

74,258

Deferred income taxes

(10,259

)

9,168

Loss on extinguishment of debt

1,700

Impairment and lease termination charges

7,255

854

(Gain)/loss on disposal of property and equipment

(244

)

157

Gain on sale-leaseback

(4,311

)

Share-based compensation

13,318

16,973

Change in accounts and notes receivable allowances

378

133

Inventory write-off

388

2,983

Other

804

(315

)

Change in operating assets and liabilities, excluding business acquisitions and foreign currency translation adjustments

(12,591

)

12,003

Net cash provided by operating activities

70,730

98,788

CASH FLOWS USED FOR INVESTING ACTIVITIES:

Purchase of property and equipment

(75,002

)

(83,485

)

Proceeds from disposals of assets

856

202

Proceeds from sale-leaseback

5,700

Acquisition of shops and franchise rights from franchisees, net of cash acquired

(17,335

)

(33,888

)

Purchase of equity method investment

(989

)

Other investing activities

(931

)

455

Net cash used for investing activities

(87,701

)

(116,716

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from the issuance of debt

121,500

670,000

Repayment of long-term debt and lease obligations

(70,180

)

(1,115,910

)

Payment of financing costs

(1,700

)

Proceeds from structured payables

219,459

194,927

Payments on structured payables

(211,778

)

(223,063

)

Payment of contingent consideration related to a business combination

(900

)

Capital contribution by shareholders, net of loans issued

(288

)

120,532

Proceeds from IPO, net of underwriting discounts (excluding unpaid issuance costs)

527,329

Payments of issuance costs in connection with IPO

(12,458

)

Proceeds from sale of noncontrolling interest in subsidiary

410

53,337

Distribution to shareholders

(17,570

)

(42,334

)

Payments for repurchase and retirement of common stock

(2,425

)

(138,501

)

Distribution to noncontrolling interest

(11,525

)

(17,257

)

Net cash provided by financing activities

14,245

27,360

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(7,967

)

(1,827

)

Net (decrease)/increase in cash, cash equivalents and restricted cash

(10,693

)

7,605

Cash, cash equivalents and restricted cash at beginning of period

39,192

37,483

Cash, cash equivalents and restricted cash at end of period

$

28,499

$

45,088

Krispy Kreme, Inc.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

(in thousands, except per share amounts)

Quarter Ended

Three Quarters Ended

October 2, 2022

October 3, 2021

October 2, 2022

October 3, 2021

Net loss

$

(11,840

)

$

(3,752

)

$

(7,790

)

$

(19,126

)

Interest expense, net

8,871

7,186

23,808

25,228

Interest expense — related party(1)

10,387

Income tax expense/(benefit)

294

(2,342

)

5,668

8,266

Depreciation and amortization expense

28,127

25,663

83,782

74,258

Share-based compensation

2,825

6,315

13,318

16,973

Employer payroll taxes related to share-based compensation

2

1,171

92

2,012

Other non-operating expense/(income), net(2)

1,648

732

2,083

(126

)

Acquisition and integration expenses(3)

790

1,288

1,389

3,663

Shop closure expenses(4)

5,735

7,859

Restructuring and severance expenses(5)

2,328

57

2,804

1,393

IPO-related expenses(6)

4,018

14,221

Gain on sale-leaseback

(1,937

)

(4,311

)

Other(7)

1,699

1,081

6,108

3,064

Adjusted EBITDA

$

38,542

$

41,417

$

134,810

$

140,213

Quarter Ended

Three Quarters Ended

October 2, 2022

October 3, 2021

October 2, 2022

October 3, 2021

Segment Adjusted EBITDA:

U.S. and Canada

$

21,896

$

19,912

$

81,521

$

75,760

International

18,254

21,655

55,033

60,676

Market Development

10,353

9,033

32,135

29,782

Corporate

(11,961

)

(9,183

)

(33,879

)

(26,005

)

Total Adjusted EBITDA

$

38,542

...