Krispy Kreme, Inc.

Thank you for standing by. My name is Dennis. I'm your conference operator today. At this time, I would like to welcome everyone to the third quarter 2023 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the number one on your telephone keypad. To withdraw your question, press again. I would now like to turn the call over to Ms. Stephanie Dawkus, Vice President of Investor Relations. Ms. Dawkus, please go ahead.

Thank you. Good morning, everyone, and welcome to Krispy Kreme's third quarter 2023 earnings call. Thank you for joining us today. Our earnings release and associated earnings presentation are available on our investor relations website at investors.krispykreme.com. Joining me on the call this morning are Mike Tattersfield, President and Chief Executive Officer, Josh Charlesworth, Global President and Chief Operating Officer, and Jeremiah Ashutian, Chief Financial Officer. After prepared remarks, there will be a question and answer session. Before we begin, I would like to remind you that this call contains forward-looking statements made pursuant to the Sage Harbor provisions of the Private Securities and Litigation Reform Act of 1995, including statements of expectations, future events, or future financial performance. Forward-looking statements involve a number of inherent risks and uncertainties, and we caution investors that these risks could cause actual results to differ materially from those contained in any forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's Form 10-K filed with the SEC for the year ended January 1, 2023, and in the other filings we make from time to time with the SEC. Forward-looking statements made today are only as of today. The company assumes no obligation to publicly update or revise any forward-looking statements except as may be required by law. Additionally, Today's call will include certain non-GAAP financial measures. A reconciliation between non-GAAP financial measures and their closest comparable GAAP measures can be found in our third quarter 2023 earnings press release and form 8K filed today and is also available at investors.crispycream.com. With that, I'll now turn the call over to Mike.

Thank you, Stephanie. Good morning. And thank you, everyone, for joining us today. We have quite a bit of news this quarter at Krispy Kreme with our upcoming CEO succession and our exploration of strategic alternatives for insomnia cookies. To frame the call, I want to talk about our history. Afterwards, I'll pass the mic to Josh to dive into our strategy and Jeremiah to cover our financial results and outlook for the remainder of the year. Krispy Kreme has been a love sweet treat brand since Bernie Rudolph first started making donuts in 1937. Since joining the company in 2016, we've taken Krispy Kreme on a transformation to become focused as a donut company, always creating frickin' awesome donuts. Vernon's recipe and his hot fresh donuts is how he built the brand. We further developed the brand, unlocking the power of a truly omnichannel brand. And importantly, we now deliver 100% of our donuts fresh daily, up from 50% since 2016. Also since 2016, we've nearly tripled the number of access points where consumers can buy fresh donuts daily and increased the geographies where we operate by roughly 50% as we are now in 37 countries. We learned that we need to be where consumers want us and develop our points of access beyond the fresh and theater shops to include delivery of fresh daily to grocer, convenience, and we are now unlocking new channels such as clubs, and quick service restaurants. We have profitably reshaped our global ownership network via our hub and spoke model and also acquired Insomnia Cookies five years ago to help us strengthen our e-commerce and digital platform. Digital orders now represent approximately 20% of consolidated retail sales. Finally, we have continuously invested in innovation and focused the brand on gifting, sharing, and premiumization for our consumers worldwide. We know and believe there's nothing we can't do with a donut. And as always, at the core of our company is our purpose to touch and enhance the lives through the joy that is Krispy Kreme, which guides our culture and sets our direction to becoming the most love sweet treat brand in the world. As I reflect back, none of this would have been possible without our more than 23,000 global Krispy Kremers, our leaders and our culture to drive growth and results daily. This team has transformed our business from a legacy retail and wholesale operation to a fresh, nimble, unique, omnichannel business that has more than proven itself. I'm truly grateful and thankful to every Krispy Kreamer. Turning to Insomnia Cookies, I mentioned our announcement to explore strategic alternatives for the company to enhance both brands' growth trajectories and enable Krispy Kreme to focus on our core strategy of producing, selling, and distributing fresh donuts daily. We thank Insomnia for their tremendous partnership in building upon our e-commerce and digital capabilities, all while we help grow the Insomnia business here in the US to roughly 250 cookie bakeries, as well as we expand globally into the UK and Canada. Regarding the CEO transition, for some time now, I've been in conversations with the board regarding my succession plan. Given the progress we've made on our strategy, the phenomenal team and culture we have in place, it was the right time to promote Josh to CEO, effective January 1. I am also excited to transition to a senior advisor role in Krispy Kreme Ambassador, where I'll support Josh and continue to spread the joy that is Krispy Kreme. Josh has played a critical role in Krispy Kreme's growth for the last six years, has been a tremendous partner to me, and I love his passion for the brand and our Krispy Kremers. All of this gives me confidence in our future success. Josh, I couldn't be happier to transition this role to you and look forward to watching more of your accomplishments as CEO. Now towards Q3. Our results this quarter demonstrate the continued strength of our team, our business model, and the power of our brand. We delivered growth on both the top and bottom line, in line with our plans while delivering adjusted EBITDA margin expansion through our hub-and-spoke model. Our global expansion continued as we made our donuts available in two markets, Switzerland and Kazakhstan, and Ipsomia Cookies expanded internationally into Canada and the United Kingdom. With that said, I'll now turn it over to Josh for a review of our strategy and to discuss the momentum we've seen so far in the fourth quarter. Josh, congratulations once again. Turn on that hot light, amigo.