Krispy Kreme CEO says the doughnut chain is exercising 'discipline' in its growth plans

  • Krispy Kreme is focused on growing sales in a disciplined manner, CEO Michael Tattersfield told CNBC's Jim Cramer on Tuesday.
  • That includes an emphasis on a multi-channel approach with standalone doughnut shops, cabinet locations in convenience stores and ecommerce, he said.
  • "It's a very transformative play from where the business was," he added.

Krispy Kreme CEO Michael Tattersfield told CNBC's Jim Cramer on Tuesday that the doughnut chain is optimistic in its growth strategy, but is emphasizing discipline along the way.

Tattersfield's comments in a "Mad Money" interview came shortly after the company reported mixed second-quarter results, with per-share earnings of 13 cents missing analyst forecasts by 1 cent while revenue of $349 million topped estimates of $333 million, according to Refinitiv. The stock was up about 2.5% in extended trading.

Quarterly revenue was up 42.6% compared with the same period in 2020, which was still in the early days of the coronavirus pandemic, and up 49.8% compared with pre-Covid levels in 2019. Krispy Kreme also issued full-year 2021 guidance, saying it anticipates organic revenue growth of 10% to 12%.

"There's a lot to grow. If you think about it, we're just in 30 countries. It works, our model, from that theater shop and the points of access and making sure you can get the fresh doughnuts to where customers are," Tattersfield said. "We've proven it in multi-continent, and now it's really about the discipline of growing not just in the U.S. … but also really open up new countries."

Krispy Kreme returned to the public markets July 1, after being taken private by JAB Holding in 2016. During the company's first publicly traded, there were some concerns in the early 2000s that it expanded its store footprint too fast.

Tattersfield said Krispy Kreme is focused an continuing its evolution into a multi-channel sales model that relies less on a bountiful standalone store footprint and simply delivering freshly made doughnuts across a different types of outlets.

The "primary growth driver" is in "wholesale and convenience chains, so we get cabinets in there, and as well as unlocking ecommerce. It's a very transformative play from where the business was," he said.

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