Krispy Kreme's stock experienced a drop in premarket trading on Monday following the announcement of a new Chief Executive Officer (CEO). The company has appointed Josh Charlesworth, its current Chief Operating Officer (COO), to take over the position starting on January 1. Charlesworth will succeed Michael Tattersfield, who has been in the role since 2017.
Josh Charlesworth has been with Krispy Kreme since 2017 and has held various leadership positions, including Chief Financial Officer and Global President.
Krispy Kreme, which initially went public in 2000, became a privately-held company in 2016 when it was acquired by German investment firm JAB Holding for over $1.3 billion. However, in 2021, it once again went public, with JAB Holding still maintaining a significant stake in the company. Under the leadership of Tattersfield, the company's revenue has seen significant growth, projected to reach $1.6 billion in 2023 compared to $550 million in 2016.
"I am delighted to pass on the CEO role to Josh," said Mr. Tattersfield. "Transforming the Krispy Kreme brand and fostering its culture has been a remarkable accomplishment in my career, and I remain deeply thankful for our incredible Krispy Kremers who never cease to inspire me."
Tattersfield will continue to serve on the board of directors and retains a "significant investment" in the company.
Krispy Kreme reconfirmed its financial guidance for fiscal year 2023. The company's guidance predicts revenue ranging from $1.65 billion to $1.68 billion. Adjusted EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) is expected to range from $205 million to $215 million.
The company stated that it is on track to reach the middle to higher end of the revenue and adjusted EBITDA ranges.
In premarket trading on Monday, Krispy Kreme's stock experienced a 0.4% decline, reaching $12.74. Year to date, the company's shares have gained 24% as of Friday's market close.
