KinderCare Learning Reports -22.2% Stock Drop

By Tamara Parker • Saturday, March 22 15:22 • Permanent Link

KinderCare Learning Companies, Inc. has recently released its 10-K report, detailing its financial performance and operations for the fiscal year ended December 28, 2024. The company provides early childhood education and care services in the United States, operating community-based early childhood education centers under the KCLC brand, community-based early child care and education schools under the Creme School brand, and before-and after-school programs under the Champions brand. As of December 28, 2024, KinderCare operated 1,574 early childhood education centers with a center capacity for 210,135 children and 1,025 before-and after-school sites located in 40 states and the District of Columbia.

The management's discussion and analysis of financial condition and results of operations highlighted several key factors that are expected to impact KinderCare's results in the future. These include plans to increase revenues through improved occupancy and consistent price increases, expand the company's footprint through greenfield development and strategic acquisitions, develop and nurture other revenue streams, and advocate for governmental funding to support the early childhood education industry.

KinderCare also provided key performance metrics for the fiscal year ended December 28, 2024. The average weekly early childhood education (ECE) full-time enrollment increased by 442, or 0.3%, compared to fiscal 2023. Additionally, ECE same-center occupancy increased by 90 basis points for fiscal 2024 compared to fiscal 2023, while ECE same-center revenue increased by $105.2 million, or 4.5%, for fiscal 2024 as compared to fiscal 2023.

The report also detailed the components of KinderCare's results of operations, including revenue sources primarily from tuition charged for providing early childhood education and care services, and the breakdown of costs, expenses, and income, including interest expense, income tax expense, and other income and expenses.

Following these announcements, the company's shares moved -22.2%, and are now trading at a price of $13.76. For more information, read the company's full 10-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.