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Krispy Kreme (DNUT) International Revenue Performance Explored
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Have you assessed how the international operations of Krispy Kreme (DNUT - Free Report) performed in the quarter ended June 2024? For this doughnut wholesaler and retailer, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
In our recent assessment of DNUT's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter stood at $438.81 million, increasing 7.3% 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.
A Dive into DNUT's International Revenue Trends
During the quarter, Market Development contributed $24.24 million in revenue, making up 5.5% of the total revenue. When compared to the consensus estimate of $34.09 million, this meant a surprise of -28.9%. Looking back, Market Development contributed $22.01 million, or 5%, in the previous quarter, and $43.13 million, or 10.6%, in the same quarter of the previous year.
International accounted for 28.6% of the company's total revenue during the quarter, translating to $125.27 million. Revenues from this region represented a surprise of +8.07%, with Wall Street analysts collectively expecting $115.92 million. When compared to the preceding quarter and the same quarter in the previous year, International contributed $124.75 million (28.2%) and $98.33 million (24.1%) to the total revenue, respectively.
Revenue Forecasts for the International Markets
Wall Street analysts expect Krispy Kreme to report $427.69 million in total revenue for the current fiscal quarter, indicating an increase of 5% from the year-ago quarter. Market Development and International are expected to contribute 8.2% ($35.13 million) and 28.5% ($121.69 million) to the total revenue, respectively.
For the full year, the company is projected to achieve a total revenue of $1.8 billion, which signifies a rise of 6.6% from the last year. The share of this revenue from various regions is expected to be: Market Development at 7.6% ($136.88 million) and International at 26.6% ($477.33 million).
Closing Remarks
Krispy Kreme's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
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Krispy Kreme (DNUT) International Revenue Performance Explored
Have you assessed how the international operations of Krispy Kreme (DNUT - Free Report) performed in the quarter ended June 2024? For this doughnut wholesaler and retailer, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
In our recent assessment of DNUT's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter stood at $438.81 million, increasing 7.3% 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.
A Dive into DNUT's International Revenue Trends
During the quarter, Market Development contributed $24.24 million in revenue, making up 5.5% of the total revenue. When compared to the consensus estimate of $34.09 million, this meant a surprise of -28.9%. Looking back, Market Development contributed $22.01 million, or 5%, in the previous quarter, and $43.13 million, or 10.6%, in the same quarter of the previous year.
International accounted for 28.6% of the company's total revenue during the quarter, translating to $125.27 million. Revenues from this region represented a surprise of +8.07%, with Wall Street analysts collectively expecting $115.92 million. When compared to the preceding quarter and the same quarter in the previous year, International contributed $124.75 million (28.2%) and $98.33 million (24.1%) to the total revenue, respectively.
Revenue Forecasts for the International Markets
Wall Street analysts expect Krispy Kreme to report $427.69 million in total revenue for the current fiscal quarter, indicating an increase of 5% from the year-ago quarter. Market Development and International are expected to contribute 8.2% ($35.13 million) and 28.5% ($121.69 million) to the total revenue, respectively.For the full year, the company is projected to achieve a total revenue of $1.8 billion, which signifies a rise of 6.6% from the last year. The share of this revenue from various regions is expected to be: Market Development at 7.6% ($136.88 million) and International at 26.6% ($477.33 million).
Closing Remarks
Krispy Kreme's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Krispy Kreme currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Review of Krispy Kreme's Recent Stock Market Performance