Krispy Kreme , Inc. (NASDAQ:DNUT), currently trading at $8.94 and near its 52-week low, has finalized a Transition Agreement with Matthew Spanjers, the outgoing Chief Growth Officer and President, International.
Spanjers, who announced his resignation on November 13, 2024, will continue to serve the company until March 31, 2025, to ensure a smooth transition.
According to InvestingPro data, this leadership change comes as the company maintains a market capitalization of $1.52 billion and expects net income growth this year.
The agreement, set on January 10, ensures that Spanjers will receive a severance payment of $800,000 and additional benefits including COBRA coverage valued at $40,717 and outplacement services costing the company $17,500. Furthermore, a portion of Spanjers' restricted equity awards will vest pro rata, based on the time worked during the vesting periods.
In return, Spanjers has agreed to a set of restrictive covenants post-employment, which includes non-disparagement and confidentiality clauses, as well as non-solicitation of the company's customers and employees. These terms are part of the general release and waiver of claims he has provided to Krispy Kreme.
The Transition Agreement is a part of the recent changes to Krispy Kreme's Global Leadership Team, aiming to maintain the company's strategic direction and growth, with annual revenues reaching $1.71 billion in the last twelve months. The details of this agreement are disclosed in the company's 8-K filing with the Securities and Exchange Commission and are based on a press release statement.
In other recent news, Krispy Kreme has experienced a series of significant developments. Truist Securities has maintained its Buy rating on Krispy Kreme, projecting steady growth in sales for FY25 and FY26. The firm's financial model for the doughnut company has been updated, reflecting a reclassification of sales from Canada and Japan. As a result, FY24 sales and EBITDA are now estimated at approximately $1.677 billion and $205.8 million, respectively.
The company's Chief Growth Officer and President, International, Matthew Spanjers, is set to resign around December 31, 2024, as reported in a recent SEC filing. In terms of financial performance, Krispy Kreme reported a net revenue of $380 million for Q3 2024, marking its 17th consecutive quarter of growth. However, due to the sale of a majority stake in Insomnia Cookies, the company's adjusted EBITDA declined by 20.7%.
The company also announced the successful launch of its doughnuts in McDonald's (NYSE:MCD) Chicago locations, with plans to expand this partnership to nearly 2,000 locations by the end of the year. These are the recent developments in Krispy Kreme's operations, which highlight the company's focus on growth opportunities and operational efficiency.
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