American doughnut and coffeehouse chain Krispy Kreme has reported a net loss of $6.7m for the first quarter (Q1) of 2024 compared to a net income of $1.6m in Q1 2023.

The company’s net revenues, however, grew 5.7% to $442.7m from $419m in the quarter

The US market contributed $296m to the total revenues, up 5.2% from $281.3m reported in Q1 2023.

International revenues increased 11.4% to $124.7m as against $112m a year previously.

The company’s operating income for Q1 2024 was $11.9m, down 20.3% from $14.9m in Q1 2023.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 6% year-on-year to $58.2m.

Krispy Kreme CEO Josh Charlesworth said: “First-quarter results exceeded our expectations, driven by increased digital sales and strong consumer demand, highlighted by a record-setting Valentine’s Day with speciality doughnuts available in 33 countries around the world.”

“Our strategy of making fresh Krispy Kreme doughnuts more available globally is providing impressive results. We are modernising how we make and move doughnuts to ensure high-quality, profitable growth. Our delivered fresh daily expansion is accelerating into more grocers, convenience stores and quick service restaurants.

“We’re excited about our recently announced agreement with McDonald’s, which is expected to [have] more than 12,000 new points of access in the US by the end of 2026. We’ll support much of this nationwide rollout using existing capacity, while adding distribution with other major customers as we grow.”

Krispy Kreme also issued its financial guidance for 2024. The company forecasts net revenue growth to be between 5% and 7%, with adjusted EBITDA growth projected at 8% to 11%.

Adjusted diluted earnings per share (EPS) are expected to range from $0.27 to $0.31, and capital expenditures are anticipated to represent 7% to 8% of net revenue.