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Krispy Kreme (FRA:9YM) Operating Margin % : -4.21% (As of Sep. 2024)


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What is Krispy Kreme Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Krispy Kreme's Operating Income for the three months ended in Sep. 2024 was €-14 Mil. Krispy Kreme's Revenue for the three months ended in Sep. 2024 was €342 Mil. Therefore, Krispy Kreme's Operating Margin % for the quarter that ended in Sep. 2024 was -4.21%.

Warning Sign:

Krispy Kreme Inc operating margin has been in a 5-year decline. The average rate of decline per year is -25.2%.

The historical rank and industry rank for Krispy Kreme's Operating Margin % or its related term are showing as below:

FRA:9YM' s Operating Margin % Range Over the Past 10 Years
Min: -0.15   Med: 2.43   Max: 5.17
Current: -0.15


FRA:9YM's Operating Margin % is ranked worse than
82.28% of 316 companies
in the Retail - Defensive industry
Industry Median: 3.22 vs FRA:9YM: -0.15

Krispy Kreme's 5-Year Average Operating Margin % Growth Rate was -25.20% per year.

Krispy Kreme's Operating Income for the three months ended in Sep. 2024 was €-14 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was €-2 Mil.

Warning Sign:

Krispy Kreme Inc has recorded a loss in operating income at least once over the past 3 years.


Krispy Kreme Operating Margin % Historical Data

The historical data trend for Krispy Kreme's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Krispy Kreme Operating Margin % Chart

Krispy Kreme Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial 4.74 0.38 2.97 1.89 0.78

Krispy Kreme Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.52 -1.18 2.69 1.56 -4.21

Competitive Comparison of Krispy Kreme's Operating Margin %

For the Grocery Stores subindustry, Krispy Kreme's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Krispy Kreme's Operating Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Krispy Kreme's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Krispy Kreme's Operating Margin % falls into.



Krispy Kreme Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Krispy Kreme's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=12.054 / 1546.157
=0.78 %

Krispy Kreme's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=-14.42 / 342.26
=-4.21 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Krispy Kreme  (FRA:9YM) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Krispy Kreme Operating Margin % Related Terms

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Krispy Kreme Business Description

Traded in Other Exchanges
Address
2116 Hawkins Street, Charlotte, NC, USA, 28203
Krispy Kreme Inc is a sweet treat brands company. The company's Original Glazed doughnut is recognized for its hot-off-the-line, melt-in- your-mouth experience. It operates through its network of fresh Doughnut Shops, partnerships with retailers, and a growing ecommerce and delivery business. The company conducts its business through the following three reported segments namely U.S., includes all operations in the U.S. and Canada, Insomnia Cookies shops, and the Branded Sweet Treat Line; International includes operations in the U.K., Ireland, Australia, New Zealand, and Mexico; and Market Development includes franchise operations across the globe, as well as operations in Japan. It derives maximum revenue from U.S. Segment.

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