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Krispy Kreme Reports First Quarter 2026 Financial Results Demonstrating Significant Progress on TurnaroundMay 7, 2026 6:45 AM
Business Wire Reduces net leverage, expands adjusted EBITDA margin, and delivers positive free cash flow Krispy Kreme, Inc. (NASDAQ: DNUT) (“Krispy Kreme”, “KKI”, or the “Company”) today reported financial results for the quarter ended March 29, 2026. First Quarter 2026 Highlights (vs Q1 2025) Net revenue of $367.0 million declined 2.2%, reflecting the strategic closure of underperforming doors completed in the third quarter of 2025 Systemwide sales of $485.3 million increased 0.7% in constant currency excluding sales attributable to the now-ended McDonald’s USA partnership GAAP net loss of $22.7 million improved $10.7 million Adjusted EBITDA of $33.1 million increased 38.0% Cash provided by operating activities of $20.2 million increased $41.0 million, free cash flow of $11.4 million increased $58.1 million “The first quarter highlighted significant progress across every pillar of our turnaround plan. We reduced net leverage, increased adjusted EBITDA margin by 260 basis points, and delivered positive free cash flow. We also closed two refranchising transactions, expanded access to our fresh doughnuts in the U.S. quarter-over-quarter, and accelerated the outsourcing of U.S. logistics, which is now complete. Strong consumer demand during recent holidays such as Valentine’s Day and St. Patrick’s Day also demonstrated that we remain a top choice for gifting, sharing, and celebrating,” said Krispy Kreme CEO Josh Charlesworth. “We expect this momentum to continue through 2026, driven by profitable growth in the U.S. with key strategic partners, higher digital sales, and international expansion. For the full year, we are issuing guidance for net revenue and adjusted EBITDA, updating our net leverage reduction target, and reaffirming our outlook for systemwide sales growth.” Turnaround Plan The Company’s comprehensive turnaround plan, announced in August 2025, is designed to deleverage the balance sheet and deliver sustainable, profitable growth. The four components of the plan, along with progress on each, are as follows: Refranchising: Improve financial flexibility through refranchising international markets and the joint venture in the Western U.S. Refranchised the Company’s operations in Japan in March 2026. Refranchised the joint venture in the Western U.S. in March 2026. Improving Return on Invested Capital: Reduce capital intensity by using existing assets and focusing on franchise development. Capital expenditures decreased 66% in the first quarter of 2026 compared to the year-ago period. Opened 26 shops during the first quarter of 2026, nearly all of which are franchised. Entered into a franchise agreement to expand into the Netherlands in late 2026. Expanding Margins: Expand margins through greater operational efficiency, including outsourcing U.S. logistics. Consolidated adjusted EBITDA margin increased from 6.4% to 9% year-over-year, including a 480 basis point increase in the U.S. segment. Completed outsourcing of U.S. logistics in April 2026. Driving Sustainable, Profitable Growth: Pursue U.S. growth based upon sustainable and profitable revenue streams. Added 276 doors in the U.S. with strategic partners during the first quarter of 2026 on top of the 200 doors added in the fourth quarter of 2025. Average U.S. revenue per door per week (“APD”) increased year-over-year 16.7% to $685. Financial Highlights Quarter Ended $ in millions, except per share data March 29, 2026 March 30, 2025 Change GAAP: Net revenue $ 367.0 $ 375.2 (2.2 )% Net loss $ (22.7 ) $ (33.4 ) 32.1 % Net loss attributable to KKI $ (22.8 ) $ (33.3 ) 31.5 % Diluted loss per share (1) $ (0.16 ) $ (0.22 ) $ 0.06 Non-GAAP (2): Organic revenue growth (2.6 )% (1.0 )% (160) bps Adjusted net loss, diluted $ (7.8 ) $ (8.8 ) 12.0 % Adjusted EBITDA $ 33.1 $ 24.0 38.0 % Adjusted EBITDA margin 9.0 % 6.4 % 260 bps Adjusted EPS $ (0.05 ) $ (0.05 ) $ — (1) Reflects a change from the amount previously reported for the quarter ended March 30, 2025, from $(0.20) to $(0.22). See Note 2 to the Company’s Annual Report on Form 10-K for the year ended December 28, 2025. (2) Non-GAAP figures. See “Key Performance Indicators and Non-GAAP Measures” and “Reconciliation of Non-GAAP Financial Measures.” Key Operating Metrics Quarter Ended $ in millions March 29, 2026 March 30, 2025 Change Global points of access 15,125 17,982 (15.9 )% Sales per hub (U.S.) trailing four quarters $ 5.1 $ 4.8 6.3 % Sales per hub (International) trailing four quarters $ 9.9 $ 9.8 1.0 % Digital sales as a percent of retail sales 18.9 % 16.9 % 200 bps First Quarter 2026 Consolidated Results (vs Q1 2025) Krispy Kreme’s results reflect continued progress in improving U.S. profitability and wider adoption of the capital-light international franchise model. Net revenue was $367.0 million in the first quarter of 2026, a decline of 2.2% or $8.2 million. Organic revenue decreased by 2.6%, primarily driven by a global points of access decline of 2,857, or 15.9%, reflecting the strategic closure of underperforming doors, including approximately 2,400 doors attributable to the now-ended McDonald’s USA partnership, that was completed in the third quarter of 2025. Systemwide sales were $485.3 million in the first quarter of 2026, a decline of 1.0% in constant currency. Excluding the impact of sales from the McDonald’s USA doors in the year-ago period, systemwide sales increased 0.7%. GAAP net loss improved to $22.7 million, compared to the prior year first quarter net loss of $33.4 million. GAAP loss per share, diluted improved to $0.16, compared to loss per share, diluted of $0.22 in the prior year first quarter. Adjusted EBITDA increased 38.0% to $33.1 million. Adjusted EBITDA margin increased to 9.0% from 6.4%, positively impacted by productivity initiatives, SG&A savings, and the removal of costs relating to McDonald’s USA. Adjusted net loss, diluted, was $7.8 million, up from a loss of $8.8 million in the prior year first quarter, and adjusted EPS was $(0.05), consistent with the prior year first quarter. Diluted weighted average common shares outstanding were 172.0 million, compared to 170.3 million for the prior year first quarter. First Quarter 2026 Segment Results (vs Q1 2025 unless otherwise stated) U.S.: In the U.S. segment, net revenue declined by 6.3% to $221.6 million, primarily due to strategic door closures, which also led to an organic revenue decline of 4.0% year-over-year. APD increased year-over-year 16.7% year-over-year and 3.8% quarter-over-quarter to $685, driven by the addition of higher volume doors with strategic partners along with the exit of lower volume, unprofitable doors. U.S. adjusted EBITDA increased by 60.6% to $25.5 million. Adjusted EBITDA margin increased 480 basis points year-over-year to 11.5%. These results demonstrated meaningful improvement as a result of the turnaround plan initiatives. International: In the International segment, net revenue increased by 4.7% to $125.3 million with a foreign currency translation benefit of $10.5 million, partially offset by the refranchising of Japan. Organic revenue increased by 0.4%, primarily due to growth in Canada and Mexico. International segment adjusted EBITDA decreased by 2.9% to $14.5 million driven by the refranchising of Japan. Adjusted EBITDA margin decreased by 90 basis points to 11.6% due to lower adjusted EBITDA in Australia and Canada. Market Development: In the Market Development segment, net revenue increased by 6.4% to $20.2 million, including the impact of refranchising. Organic revenue declined by 4.3%, as growth in royalty revenue was more than offset by the timing of equipment sales in the quarter. Market Development adjusted EBITDA increased by 5.3% to $11.6 million. Adjusted EBITDA margin decreased 60 basis points to 57.5%, driven by changes in the regional mix of product sales. Balance Sheet and Capital Expenditures During the first quarter of 2026, the Company invested $8.8 million, or 2.4% of net revenue, in capital expenditures, primarily in the U.S. to support infrastructure repairs and maintenance. Overall, the Company has reduced investment in building new hubs in favor of leveraging existing excess capacity for growth where available. As of the end of the first quarter of 2026, the Company’s net leverage ratio was 5.5x, reflecting a 1.2x reduction compared to the fourth quarter of 2025. The Company had total available liquidity of $303 million as of March 29, 2026, which includes $74 million of cash and cash equivalents as well as undrawn capacity of $229 million under its credit facilities. The Company was in compliance with all financial covenants as of March 29, 2026. Refranchising On March 2, 2026, the Company closed its previously disclosed agreement for Unison Capital, Inc. to purchase its operations in Japan. Cash proceeds from this transaction were approximately $70 million and were used for debt pay down after transaction-related fees and expenses. The Company expects one to two additional international refranchising deals in 2026 as it prioritizes identifying the right partners to maximize value and position itself for long-term profitable growth. In the U.S., as previously disclosed, the Company reduced its ownership position in its Western U.S. joint venture (“WKS KK”) with its long-standing partner WKS Restaurant Group, to a 20% minority stake. The transaction resulted in the WKS KK franchisee owning more than 70 shops across the Western U.S. and servicing approximately 1,000 fresh delivery locations with strategic partners. The franchisee agreed to develop additional shops and plans to expand Krispy Kreme’s fresh delivery footprint over the next several years. The total amount payable to the Company in connection with the transaction is approximately $90 million, including $53 million in cash received at closing on March 23, 2026. Following transaction-related fees and expenses, the cash proceeds were used to reduce net debt, with the remaining consideration structured as a note payable over time. For fiscal 2025, approximately 25% of the Company’s systemwide sales came from franchise-operated locations. Through refranchising efforts, Krispy Kreme expects nearly 50% of systemwide sales to be generated by franchisees beginning fiscal 2027. 2026 Financial Outlook The Company is providing the following annual financial guidance, which includes the impact of the refranchising transactions described above but not any future transactions: Net revenue of $1.25 billion to $1.35 billion (new) Systemwide sales up 2% to 4% year-over-year in constant currency Open at least 100 shops, nearly all of which are expected to be franchised Adjusted EBITDA(1) of $140 million to $150 million (new) Capital expenditures of $50 million to $60 million Free cash flow(1) of more than $15 million (updated) Net leverage ratio(1) below 5.5x (updated) (1) Non-GAAP figures. The Company does not reconcile forward-looking non-GAAP measures. See “Key Performance Indicators and Non-GAAP Measures.” Definitions The following definitions apply to terms used throughout this press release: Systemwide Sales: Reflects global sales of all Krispy Kreme products, whether operated by the Company or franchisees, excluding mix, equipment, and royalty revenue. Sales from franchisees are reported to the Company by such franchisees and are not included in Company revenues. Growth in systemwide sales represents the change in one period from the same period in the prior year on a constant currency basis. The Company believes systemwide sales information is important because it is indicative of the health of the Company’s brand and aids in understanding the Company’s financial performance. Global Points of Access: Reflects all locations at which fresh doughnuts can be purchased. We define Global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, and fresh delivery doors (which includes Krispy Kreme branded cabinets and merchandising units within high traffic grocery and convenience stores, quick service or fast casual restaurants, club memberships, and drug stores), and other points at which fresh doughnuts can be purchased at both Company-owned and franchise locations as of the end of the applicable reporting period. We monitor global points of access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type. Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any global point of access. We define hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the applicable reporting period. Hubs with Spokes: Reflects hubs currently producing fresh doughnuts for other Fresh Shops, Carts and Food Trucks, or fresh delivery doors, and excludes hubs not currently producing fresh doughnuts for other shops, Carts and Food Trucks, or fresh delivery doors. Sales Per Hub: Sales per hub equals fresh revenues from hubs with spokes, divided by the average number of hubs with spokes at the end of each of the five most recent quarters. Fresh Revenues from Hubs with Spokes: Fresh revenues is a measure focused on the Krispy Kreme doughnut business and includes product sales generated from our Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, fresh delivery doors, and digital channels and excludes sales from Cookie Bakeries and Branded Sweet Treats (through the date of the Insomnia Cookies Holdings, LLC (“Insomnia Cookies”) deconsolidation and Branded Sweet Treats exit, respectively). Fresh revenues from hubs with spokes equals the fresh revenues derived from hubs with spokes. Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment. Conference Call Krispy Kreme will host a public conference call and webcast at 8:30 AM Eastern Time today to discuss its results for the first quarter 2026. A slide presentation will be available prior to the start time on the investor relations section of the Company’s website at investors.krispykreme.com. To listen to the live webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay of the webcast will be available on the website within 24 hours after the call. This earnings press release and related materials will also be available on the investor relations section of the Company’s website. About Krispy Kreme Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in more than 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme and www.X.com/KrispyKreme. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by use of forward-looking terminology, including terms such as “plan,” “believe,” “may,” “continue,” “guidance,” “outlook,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “pursue,” “strive,” “look forward,” or the negative of these words, comparable terminology, or other references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included in this press release. We consider the assumptions and estimates on which forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross-contamination; impacts from any material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents; our ability to execute our business strategy, including our turnaround plan and growth through international development with strategic partners and profitable expansion of our fresh delivery and digital channels; our ability to realize the anticipated benefits from past or potential future strategic transactions (including refranchising); failure by our franchisees, subfranchisees, or third-party service providers to operate effectively and in compliance with our standards and applicable law; any harm to our reputation or brand image; negative impacts on our business due to changes in consumer spending habits, consumer preferences, or demographic trends; our ability to open new and maintain existing shops and points of access both domestically and internationally; disruptions to our and our franchisees’ supply chain, including the loss of or failure to perform by single-source or limited suppliers, vendors, distributors, or manufacturers; our significant indebtedness and our ability to meet the financial and other covenants under our credit facilities; changes in the cost of raw materials and fuel or other commodities, including due to import and export requirements (including tariffs), inflation, fluctuations in foreign exchange rates, or heightened geopolitical tensions (including the recent Iran conflict); our ability to recruit and retain key personnel; failure to develop or maintain effective internal control over financial reporting or disclosure controls and procedures; adverse regulatory actions or publicity concerning food or occupational safety, food quality, health, and other issues or regulatory investigations, enforcement actions, or material litigation; and other risks and uncertainties described under the heading “Risk Factors” and elsewhere in our Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission (the “SEC”) and in other filings the Company makes from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law. Key Performance Indicators and Non-GAAP Measures This press release includes certain financial information that is not presented in conformity with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP and operating measures include organic revenue growth/(decline), adjusted EBITDA, adjusted EBITDA margin, adjusted net loss, diluted, adjusted EPS, free cash flow, net debt, fresh revenue from hubs with spokes, sales per hub and systemwide sales. We believe these non-GAAP and operating measures are useful in evaluating our operating performance. Management believes these measures are important indicators of operations because they exclude items that may not be indicative of our core operating results and provide a better baseline for analyzing trends in our underlying business, and they are consistent with how business performance is planned, reported and assessed internally by management and the Company’s Board of Directors. We monitor the key business metrics and non-GAAP metrics set forth herein to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. These non-GAAP and operating measures are not standardized, and it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, the non-GAAP financial measures are not measurements of financial performance under GAAP or a substitute for results reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC and not to rely on any single financial measure. The Company does not provide reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure because it is unable to predict with reasonable certainty or without unreasonable effort non-recurring items, such as those reflected in our reconciliation of historic numbers. The variability of these items is unpredictable and may have a significant impact on the forward-looking non-GAAP financial measures presented. See “Reconciliation of Non-GAAP Financial Measures” below for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure. Krispy Kreme, Inc. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share amounts) Quarter Ended March 29,
2026 (13 weeks) March 30,
2025 (13 weeks) Net revenues Product sales $ 357,438 $ 366,479 Royalties and other revenues 9,596 8,705 Total net revenues 367,034 375,184 Product and distribution costs 88,330 90,736 Operating expenses 188,106 198,843 Selling, general and administrative expense 58,033 59,405 Marketing expenses 10,119 10,239 Pre-opening costs 194 929 Other asset impairments 1,888 162 Gain on refranchising, net (8,885 ) — Other expenses, net 759 1,238 Depreciation and amortization expense 32,115 33,901 Operating loss (3,625 ) (20,269 ) Interest expense, net 15,624 16,196 Other non-operating income, net (159 ) (393 ) Loss before income taxes (19,090 ) (36,072 ) Income tax expense/(benefit) 3,583 (2,667 ) Net loss (22,673 ) (33,405 ) Net income/(loss) attributable to noncontrolling interest 111 (121 ) Net loss attributable to Krispy Kreme, Inc. $ (22,784 ) $ (33,284 ) Net loss per share: Common stock — Basic $ (0.16 ) $ (0.22 ) Common stock — Diluted $ (0.16 ) $ (0.22 ) Weighted average shares outstanding: Basic 172,019 170,291 Diluted 172,019 170,291 Krispy Kreme, Inc. Condensed Consolidated Balance Sheets (in thousands, except per share amounts) As of (Unaudited) March 29,
2026 December 28,
2025 ASSETS Current assets: Cash and cash equivalents $ 74,218 $ 42,390 Restricted cash 490 501 Accounts receivable, net 53,462 61,611 Inventories 27,218 26,877 Taxes receivable 10,983 10,854 Current assets held for sale 1,886 13,294 Prepaid expense and other current assets 18,606 18,927 Total current assets 186,863 174,454 Property and equipment, net 383,289 460,935 Goodwill, net 669,271 712,264 Other intangible assets, net 733,102 797,749 Operating lease right of use assets, net 337,452 395,523 Investments in unconsolidated entities 22,084 7,413 Noncurrent assets held for sale — 31,056 Other assets 54,494 13,565 Total assets $ 2,386,555 $ 2,592,959 LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 58,716 $ 65,977 Current operating lease liabilities 44,739 51,213 Accounts payable 130,713 134,384 Accrued liabilities 120,637 99,805 Current liabilities held for sale — 13,535 Structured payables 91,169 92,366 Total current liabilities 445,974 457,280 Long-term debt, less current portion 829,653 911,852 Noncurrent operating lease liabilities 341,276 395,895 Deferred income taxes, net 97,203 96,236 Noncurrent liabilities held for sale — 11,816 Other long-term obligations and deferred credits 39,186 42,919 Total liabilities 1,753,292 1,915,998 Commitments and contingencies Mezzanine equity: Redeemable noncontrolling interest — 24,181 Total mezzanine equity — 24,181 Shareholders’ equity: Common stock, $0.01 par value; 300,000 shares authorized as of both March 29, 2026 and December 28, 2025; 172,280 and 171,555 shares issued and outstanding as of March 29, 2026 and December 28, 2025, respectively 1,721 1,716 Additional paid-in capital 1,471,361 1,473,644 Shareholder note receivable (1,306 ) (1,791 ) Accumulated other comprehensive income/(loss), net of income tax 4,180 (2,059 ) Retained deficit (844,170 ) (821,387 ) Total shareholders’ equity attributable to Krispy Kreme, Inc. 631,786 650,123 Noncontrolling interest 1,477 2,657 Total shareholders’ equity 633,263 652,780 Total liabilities, mezzanine equity, and shareholders’ equity $ 2,386,555 $ 2,592,959 Krispy Kreme, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) Quarter Ended March 29, 2026
(13 weeks) March 30, 2025
(13 weeks) CASH FLOWS PROVIDED BY/(USED FOR) OPERATING ACTIVITIES: Net loss $ (22,673 ) $ (33,405 ) Adjustments to reconcile net loss to net cash provided by/(used for) operating activities: Depreciation and amortization expense 32,115 33,901 Deferred and other income taxes (709 ) (10,668 ) Other asset impairments and lease termination charges 1,889 162 Loss on disposal of property and equipment 458 189 Gain on refranchising, net (8,885 ) — Share-based compensation 4,639 2,603 Change in accounts and notes receivable allowances 434 202 Inventory write-off (14 ) 848 Other 533 1,225 Change in operating assets and liabilities, excluding business acquisitions and divestitures, and foreign currency translation adjustments 12,379 (15,891 ) Net cash provided by/(used for) operating activities 20,166 (20,834 ) CASH FLOWS PROVIDED BY/(USED FOR) INVESTING ACTIVITIES: Purchase of property and equipment (8,784 ) (25,897 ) Proceeds from disposals of assets 24 — Net proceeds from refranchising transactions 111,411 — Purchase of minority interests (2,600 ) — Other investing activities — 86 Net cash provided by/(used for) investing activities 100,051 (25,811 ) CASH FLOWS (USED FOR)/PROVIDED BY FINANCING ACTIVITIES: Proceeds from the issuance of debt 72,750 182,500 Repayment of long-term debt and lease obligations (159,679 ) (115,622 ) Payment of financing costs — — Proceeds from structured payables 57,398 118,908 Payments on structured payables (58,650 ) (142,868 ) Capital contribution by shareholders, net of loans issued 130 — Distribution to shareholders — (5,961 ) Payments for repurchase and retirement of common stock (402 ) (123 ) Distribution to noncontrolling interest 350 (36 ) Net cash (used for)/provided by financing activities (88,103 ) 36,798 Effect of exchange rate changes on cash, cash equivalents and restricted cash (297 ) (301 ) Net increase/(decrease) in cash, cash equivalents and restricted cash 31,817 (10,148 ) Cash, cash equivalents and restricted cash at beginning of period 42,891 29,315 Cash, cash equivalents and restricted cash at end of period $ 74,708 $ 19,167 Net cash provided by/(used for) operating activities $ 20,166 $ (20,834 ) Less: Purchase of property and equipment (8,784 ) (25,897 ) Free cash flow $ 11,382 $ (46,731 ) Krispy Kreme, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(in thousands, except per share amounts) We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBITDA, both on a consolidated and at the segment level, is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. “Adjusted EBITDA margin” reflects adjusted EBITDA as a percentage of net revenues. We define “Adjusted Net Loss, Diluted” as net loss attributable to common shareholders, adjusted for interest expense, share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent, or non-core income and expense items. “Adjusted EPS” is adjusted net loss, diluted converted to a per share amount. Adjusted EBITDA, adjusted EBITDA margin, adjusted net loss, diluted, and adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP measures supplementally. Quarter Ended (in thousands) March 29, 2026 March 30, 2025 Net loss $ (22,673 ) $ (33,405 ) Interest expense, net 15,624 16,196 Income tax expense/(benefit) 3,583 (2,667 ) Share-based compensation 4,639 2,603 Employer payroll taxes related to share-based compensation 17 166 Other non-operating income, net (1) (159 ) (393 ) Strategic initiatives (2) 7,200 2,353 Acquisition and integration expenses (3) — 71 New market penetration expenses (4) — 75 Shop closure expenses, net (5) 32 272 Restructuring and severance expenses (6) 394 108 Gain on refranchising (7) (8,885 ) — Other (8) 1,209 4,700 Amortization of acquisition related intangibles (9) 7,808 7,661 Depreciation expense and amortization of right of use assets 24,307 26,240 Consolidated Adjusted EBITDA $ 33,096 $ 23,980 Quarter Ended (in thousands) March 29, 2026 March 30, 2025 Segment Adjusted EBITDA: U.S. $ 25,549 $ 15,911 International 14,472 14,897 Market Development 11,634 11,047 Corporate (18,559 ) (17,875 ) Consolidated Adjusted EBITDA $ 33,096 $ 23,980 Quarter Ended (in thousands, except per share amounts) March 29, 2026 March 30, 2025 Net loss $ (22,673 ) $ (33,405 ) Share-based compensation 4,639 2,603 Employer payroll taxes related to share-based compensation 17 166 Other non-operating income, net (1) (159 ) (393 ) Strategic initiatives (2) 7,200 2,353 Acquisition and integration expenses (3) — 71 New market penetration expenses (4) — 75 Shop closure expenses, net (5) 32 272 Restructuring and severance expenses (6) 394 108 Gain on refranchising (7) (8,885 ) — Other (8) 1,209 4,700 Amortization of acquisition related intangibles (9) 7,808 7,661 Tax impact of adjustments (10) 3,424 6,830 Tax specific adjustments (11) (675 ) — Net (income)/loss attributable to noncontrolling interest (111 ) 121 Adjusted net loss attributable to common shareholders - Basic $ (7,780 ) $ (8,838 ) Additional income attributed to noncontrolling interest due to subsidiary potential common shares — 2 Adjusted net loss attributable to common shareholders - Diluted $ (7,780 ) $ (8,836 ) Basic weighted average common shares outstanding 172,019 170,291 Dilutive effect of outstanding common stock options, RSUs, and PSUs — — Diluted weighted average common shares outstanding 172,019 170,291 Adjusted net loss per share attributable to common shareholders: Basic $ (0.05 ) $ (0.05 ) Diluted $ (0.05 ) $ (0.05 ) (1) Primarily foreign translation gains and losses in each period. The quarter ended March 30, 2025 also consists of equity method income from Insomnia Cookies following the divestiture of a controlling interest in Insomnia Cookies during fiscal 2024. (2) The quarter ended March 29, 2026 consists primarily of $4.2 million of costs associated with the evaluation and execution of refranchising certain equity markets as well as $2.9 million in costs associated with the transition to third party logistics in the U.S., of that amount $1.6 million is related to non-cash impairments. The quarter ended March 30, 2025 consists primarily of $2.4 million of costs associated with preparing for and executing the U.S. national expansion (including McDonald’s). (3) Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period. (4) Consists of start-up costs associated with entry into new countries in which the Company’s brands had not previously operated, including Brazil and Spain. (5) Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment. (6) The quarter ended March 29, 2026 and the quarter ended March 30, 2025 consist primarily of costs associated with restructuring of the U.S. and U.K. businesses. (7) Includes gains and losses on the deconsolidation of assets and liabilities associated with the refranchising of Krispy Kreme shops. (8) The quarter ended March 29, 2026 consists primarily of $0.8 million of legal fees related to shareholder derivative litigation. The quarter ended March 30, 2025 consists primarily of $4.4 million in costs related to remediation of the 2024 cybersecurity incident, including fees for cybersecurity experts and other advisors. (9) Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statements of Operations. (10) Tax impact of adjustments calculated applying the applicable statutory rates. The quarters ended March 29, 2026 and March 30, 2025 also include the impact of disallowed executive compensation expense. (11) Consists of the recognition of previously unrecognized tax benefits unrelated to ongoing operations. Krispy Kreme, Inc. Segment Reporting (Unaudited) (in thousands, except percentages or otherwise stated) Quarter Ended March 29, 2026 March 30, 2025 Net revenues: U.S. $ 221,550 $ 236,544 International 125,258 119,635 Market Development 20,226 19,005 Total net revenues $ 367,034 $ 375,184 Organic revenue growth/(decline) measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define “organic revenue growth/(decline)” as the growth/(decline) in revenues, excluding (i) the impact of revenues of acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs, (iv) the impact of the divestiture of shops through refranchising, and (v) the impact of revenues generated during the 53rd week for those fiscal years that have a 53rd week based on our fiscal calendar. Q1 2026 Organic Revenue (in thousands, except percentages) U.S. International Market Development Total Company Total net revenues in first quarter of fiscal 2026 $ 221,550 $ 125,258 $ 20,226 $ 367,034 Total net revenues in first quarter of fiscal 2025 236,544 119,635 19,005 375,184 Total net revenues (decline)/growth (14,994 ) 5,623 1,221 (8,150 ) Total net revenues (decline)/growth % -6.3 % 4.7 % 6.4 % -2.2 % Less: Impact of refranchising (5,860 ) (5,349 ) 2,127 (9,082 ) Adjusted net revenues in first quarter of fiscal 2025 230,684 114,286 21,132 366,102 Adjusted net revenue (decline)/growth (9,134 ) 10,972 (906 ) 932 Adjusted net revenue (decline)/growth % (4.0 )% 9.6 % (4.3 )% 0.3 % Impact of foreign currency translation — (10,501 ) — (10,501 ) Organic revenue (decline)/growth $ (9,134 ) $ 471 $ (906 ) $ (9,569 ) Organic revenue (decline)/growth % -4.0 % 0.4 % -4.3 % -2.6 % Fresh revenues from hubs with spokes and sales per hub are defined above. Trailing Four Quarters Ended Fiscal Year Ended (in thousands, unless otherwise stated) March 29,
2026 December 28,
2025 December 29,
2024 U.S.: Revenues $ 898,056 $ 913,050 $ 1,058,736 Non-fresh revenues (1) (2,577 ) (2,454 ) (3,161 ) Fresh revenues from Insomnia Cookies and hubs without spokes (2) (139,896 ) (154,151 ) (307,665 ) Fresh revenues from hubs with spokes 755,583 756,445 747,910 Sales per hub (millions) 5.1 4.7 4.9 International: Fresh revenues from hubs with spokes (3) $ 540,711 $ 535,088 $ 519,102 Sales per hub (millions) (4) 9.9 9.7 9.9 (1) Includes licensing royalties from customers for use of the Krispy Kreme brand. (2) Includes Insomnia Cookies revenues (through the date of deconsolidation) and fresh revenues generated by hubs without spokes. (3) Total International net revenues is equal to fresh revenues from hubs with spokes for that business segment. (4) International sales per hub comparative data has been restated in constant currency based on current exchange rates. Krispy Kreme, Inc. Global Points of Access (Unaudited) Global Points of Access Quarter Ended Fiscal Year Ended March 29, 2026 March 30, 2025 December 28, 2025 U.S.: (1) Hot Light Theater Shops 176 238 235 Fresh Shops 46 67 68 Fresh Delivery Doors(2) 5,949 10,186 7,160 Total 6,171 10,491 7,463 International: (1) Hot Light Theater Shops 47 48 52 Fresh Shops 448 518 527 Carts, Food Trucks, and Other(3) 17 17 18 Fresh Delivery Doors 3,630 4,469 4,225 Total 4,142 5,052 4,822 Market Development: (1) Hot Light Theater Shops 177 108 113 Fresh Shops 1,246 1,104 1,130 Carts, Food Trucks, and Other(3) 30 30 29 Fresh Delivery Doors 3,359 1,197 1,637 Total 4,812 2,439 2,909 Total Global Points of Access (as defined) 15,125 17,982 15,194 Total Hot Light Theater Shops 400 394 400 Total Fresh Shops 1,740 1,689 1,725 Total Shops 2,140 2,083 2,125 Total Carts, Food Trucks, and Other 47 47 47 Total Fresh Delivery Doors (2) 12,938 15,852 13,022 Total Global Points of Access (as defined) 15,125 17,982 15,194 (1) During the first quarter of fiscal 2026, certain points of access moved from the U.S. and International segments to Market Development. (2) During fiscal 2025 we exited approximately 2,400 McDonald’s USA fresh delivery doors related to termination of the Business Relationship Agreement with McDonald’s USA. (3) Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of access in this category are primarily found in international locations in airports and train stations. Krispy Kreme, Inc. Global Hubs (Unaudited) Hubs Quarter Ended Fiscal Year Ended March 29, 2026 March 30, 2025 December 28, 2025 U.S.: (1) Hot Light Theater Shops (2) 160 234 223 Doughnut Factories 6 6 6 Total 166 240 229 Hubs with Spokes 106 162 159 Hubs without Spokes 60 78 70 International: (1) Hot Light Theater Shops (2) 41 39 43 Doughnut Factories 11 14 14 Total 52 53 57 Hubs with Spokes 52 53 57 Market Development: (1) Hot Light Theater Shops (2) 171 106 111 Doughnut Factories 29 27 26 Total 200 133 137 Total Hubs (3) 418 426 423 (1) During the first quarter of fiscal 2026, certain hubs moved from the U.S. and International segments to Market Development. (2) Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a spoke location that produces some doughnuts for itself and also receives doughnuts from another producing location. (3) The decrease in total Hubs is driven by Hub optimization in the U.S. Krispy Kreme, Inc. Net Debt and Leverage (Unaudited) (in thousands, except leverage ratio) As of (Unaudited) March 29,
2026 December 28,
2025 Current portion of long-term debt $ 58,716 $ 65,977 Long-term debt, less current portion 829,653 911,852 Total long-term debt, including debt issuance costs 888,369 977,829 Add back: Debt issuance costs 2,569 2,904 Total long-term debt, excluding debt issuance costs 890,938 980,733 Less: Cash and cash equivalents (74,218 ) (42,390 ) Net debt $ 816,720 $ 938,343 Adjusted EBITDA - trailing four quarters 149,369 140,253 Net leverage ratio 5.5 x 6.7 x Category: Financial News
Source: Krispy Kreme View source version on businesswire.com: https://www.businesswire.com/news/home/20260507816117/en/ Investor Relations and Media
ICR for Krispy Kreme, Inc.
krispykreme@icrinc.com Original: Krispy Kreme Reports First Quarter 2026 Financial Results Demonstrating Significant Progress on Turnaround
US Market News
4 months ago
Krispy Kreme Reports Fourth Quarter and Full Year 2025 Financial Results Demonstrating Meaningful Progress on TurnaroundFebruary 26, 2026 6:45 AM
Business Wire
Strengthens balance sheet while increasing adjusted EBITDA and margin in the fourth quarter of 2025
Krispy Kreme, Inc. (NASDAQ: DNUT) (“Krispy Kreme”, “KKI”, or the “Company”) today reported financial results for the fourth quarter and full year ended December 28, 2025.
Fourth Quarter Highlights (vs Q4 2024)
Net revenue of $392.4 million
Organic revenue decreased 3.9%, reflecting the strategic closure of underperforming doors
GAAP net loss of $29.1 million
Adjusted EBITDA of $55.6 million
Cash provided by operating activities of $45.0 million, free cash flow of $27.9 million
Full Year Highlights (vs FY 2024)
Net revenue of $1,522.6 million
Systemwide Sales of $1.96 billion, up 0.7% in constant currency
Organic revenue decreased 1.3%
GAAP net loss of $523.8 million
Adjusted EBITDA of $140.3 million
Cash provided by operating activities of $33.9 million, free cash flow of $(64.0) million
Global Points of Access decreased 2,363, or 13.5% to 15,194 reflecting the strategic closure of underperforming doors
“During the fourth quarter, we demonstrated meaningful progress on our turnaround, unlocking strong consumer demand for Krispy Kreme’s iconic, fresh doughnuts through our two biggest opportunities: profitable U.S. expansion and capital-light international franchise growth. Although our decision to exit underperforming U.S. doors resulted in a modest decline in net revenue, we expanded adjusted EBITDA margin 280 basis points year-over-year. In addition, we reduced our financial leverage quarter-over-quarter, delivered positive free cash flow, and secured a strategic refranchising agreement for our operations in Japan.”
“We are pleased to have ended 2025 with positive momentum, driven by quality growth in the U.S. with key strategic partners, higher digital sales, and international expansion. In 2026, we look forward to building on this momentum through systemwide sales growth, additional refranchising activity, disciplined capital expenditures, lower net leverage, and positive free cash flow generation,” said Krispy Kreme CEO Josh Charlesworth.
Turnaround Plan
The Company’s comprehensive turnaround plan is designed to deleverage the balance sheet and deliver sustainable, profitable growth through a focus on the following four components:
Refranchising: Improve financial flexibility through refranchising international markets and restructuring the joint venture in the Western U.S.
Improving Return on Invested Capital: Reduce capital intensity by using existing assets and focusing on franchise development.
Expanding Margins: Expand margins through greater operational efficiency, including outsourcing U.S. logistics.
Driving Sustainable, Profitable Growth: Pursue U.S. growth based upon sustainable and profitable revenue streams.
Financial Highlights
Quarters Ended
Fiscal Years Ended
$ in millions, except per share data
December 28,
2025
December 29,
2024
Change
December 28,
2025
December 29,
2024
Change
GAAP:
Net revenue
$
392.4
$
404.0
(2.9
)%
$
1,522.6
$
1,665.4
(8.6
)%
Operating loss
$
(7.3
)
$
(11.5
)
36.8
%
$
(469.3
)
$
(8.7
)
nm
Operating loss margin
(1.9
)%
(2.8
)%
90 bps
(30.8
)%
(0.5
)%
nm
Net (loss)/income
$
(29.1
)
$
(22.2
)
(31.4
)%
$
(523.8
)
$
3.8
nm
Net (loss)/income attributable to KKI
$
(27.8
)
$
(22.4
)
(23.8
)%
$
(515.8
)
$
3.1
nm
Diluted (loss)/income per share
$
(0.17
)
$
(0.13
)
$
(0.04
)
$
(3.02
)
$
0.02
$
(3.04
)
Non-GAAP (1):
Organic revenue
$
387.4
$
403.0
(3.9
)%
$
1,505.8
$
1,525.8
(1.3
)%
Adjusted net income/(loss), diluted
$
15.0
$
1.2
nm
$
(17.7
)
$
19.2
nm
Adjusted EBITDA
$
55.6
$
45.9
21.0
%
$
140.3
$
193.5
(27.5
)%
Adjusted EBITDA margin
14.2
%
11.4
%
280 bps
9.2
%
11.6
%
-240 bps
Adjusted EPS
$
0.09
$
0.01
$
0.08
$
(0.10
)
$
0.11
$
(0.21
)
(1)
Non-GAAP figures – please refer to “Key Performance Indicators and Non-GAAP Measures” and “Reconciliation of Non-GAAP Financial Measures.”
Key Operating Metrics
Fiscal Years Ended
$ in millions
December 28, 2025
December 29, 2024
Change
Global Points of Access
15,194
17,557
(13.5
)%
Sales per Hub (U.S.) trailing four quarters
$
4.7
$
4.9
(4.1
)%
Sales per Hub (International) trailing four quarters
$
9.7
$
9.9
(2.0
)%
Digital Sales as a Percent of Retail Sales
18.2
%
14.4
%
380 bps
Fourth Quarter 2025 Consolidated Results (vs Q4 2024)
Krispy Kreme’s results reflect continued progress in improving U.S. profitability and wider adoption of the capital-light international franchise model. Net revenue was $392.4 million in the fourth quarter of 2025, a decline of 2.9% or $11.6 million.
Organic revenue decreased by 3.9%, primarily driven by a Global Points of Access decline of 2,363, or 13.5%, reflecting the strategic closure of underperforming doors which was completed earlier in the year.
GAAP net loss was $29.1 million, compared to the prior year fourth quarter net loss of $22.2 million. GAAP loss per share, diluted was $0.17, compared to loss per share, diluted of $0.13 in the prior year fourth quarter.
Adjusted EBITDA increased 21.0% to $55.6 million. Adjusted EBITDA margin increased to 14.2% from 11.4%, positively impacted by productivity initiatives, SG&A savings, and the removal of costs from the now-ended McDonald’s USA partnership, and business interruption insurance recoveries of $4.8 million related to losses incurred in the fourth quarter of 2024 and the first quarter of 2025 due to the Company’s 2024 cybersecurity incident.
Adjusted net income, diluted, was $15.0 million, up from $1.2 million compared to the prior year fourth quarter, and adjusted earnings per share, diluted were $0.09 compared to $0.01 in the prior year fourth quarter.
Full Year 2025 Consolidated Results (vs FY 2024)
Krispy Kreme’s full year results reflect the sale of a majority ownership stake of Insomnia Cookies, as net revenue declined 8.6% to $1.5 billion in 2025, compared to $1.7 billion in the prior year.
Organic revenue decreased by 1.3%, primarily driven by a Global Points of Access decline of 2,363, or 13.5%, reflecting the strategic closure of underperforming doors which was completed earlier in the year.
GAAP net loss was $523.8 million, compared to net income of $3.8 million. GAAP loss per share, diluted was $3.02 compared to earnings per share, diluted of $0.02.
Adjusted EBITDA declined 27.5% to $140.3 million, primarily linked to the sale of a majority ownership stake of Insomnia Cookies and termination of the Business Relationship Agreement with McDonald’s USA. As previously disclosed, in the third quarter of 2025, Krispy Kreme and McDonald’s USA jointly decided to terminate their Business Relationship Agreement, effective July 2, 2025. Adjusted net loss, diluted declined to $17.7 million from adjusted net income of $19.2 million in the prior year. Adjusted loss per share, diluted declined to $0.10 from adjusted earnings per share, diluted of $0.11 in the prior year.
Diluted weighted average common shares outstanding for the full year 2025 were 170.9 million, compared to 171.5 million for the full year 2024.
Fourth Quarter 2025 Segment Results (vs Q4 2024 unless otherwise stated)
U.S.: In the U.S. segment, net revenue declined by $14.9 million to $230.2 million, or 6.1%, primarily due to strategic door closures, which led to an organic revenue decline of 5.8%. Average revenue per door per week (“APD”) increased year-over-year 4.5% and quarter-over-quarter 7.0% to $660, primarily driven by the exit of lower volume, unprofitable doors.
U.S. Adjusted EBITDA increased by $9.2 million to $32.8 million, or 39.1%, partially aided by the timing of cybersecurity-related insurance recoveries of $4.8 million. Excluding cybersecurity insurance recoveries, U.S. Adjusted EBITDA increased by $4.4 million compared to the prior year fourth quarter and increased $7.0 million compared to the third quarter of 2025. The year-over-year and sequential improvements in Adjusted EBITDA demonstrated meaningful improvement resulting from the turnaround plan initiatives.
International: In the International segment, net revenue grew by $4.1 million, or 2.9%, with a foreign currency translation benefit of $4.5 million. International organic revenue declined by 0.3%. Points of Access declined by 6.7% due to strategic door closures in Japan and Mexico to optimize the Company’s fresh delivery network.
International segment Adjusted EBITDA increased by $1.1 million, or 4.1%, to $26.8 million driven by revenue growth in Japan and Mexico. The margin increase of 20 basis points to 18.8% was due to improvements in Japan and Mexico.
Market Development: In the Market Development segment, net revenue declined by $0.8 million to $19.7 million, or 4.0%. Market Development organic revenue declined by 4.9%, as growth in royalty revenue from international markets including the Middle East, India, and South Korea and contributions from newer markets such as Brazil and Spain, was more than offset by lower equipment sales in the quarter.
Market Development Adjusted EBITDA increased by $0.2 million, or 2.1% to $12.1 million with a margin of 61.5%, up 370 basis points, mainly due to changes in revenue mix.
Balance Sheet and Capital Expenditures
During full year 2025, the Company invested $97.9 million, or 6.4% of net revenue, in capital expenditures, primarily in the U.S. to support previously committed initiatives aimed at bringing doughnuts closer to consumers through nationwide expansion. This includes a Hot Light Theater Shop and production hub in Minneapolis, MN that opened in November 2025. Overall, the Company has reduced investment in building new hubs in favor of leveraging existing excess capacity for growth where available.
As of the end of fiscal 2025, the Company’s net leverage ratio was 6.7x, reflecting a 0.6x reduction compared to the third quarter of 2025. The Company has total available liquidity of $207.4 million, which includes $42.4 million of cash and cash equivalents as well as undrawn committed capacity of $165.0 million under its credit facilities. The Company was in compliance with all financial covenants as of December 28, 2025.
Refranchising
In December 2025, the Company announced that it reached an agreement for Unison Capital, Inc. to purchase its operations in Japan. The transaction is projected to close in the first quarter of 2026, with cash proceeds estimated at approximately $65 million. The Company intends to refranchise certain other international markets.
The Company also plans to restructure its long-standing Western U.S. joint venture with WKS Restaurant Group (“WKS”), which represents approximately 15% of U.S. revenue. The Company expects to reduce its ownership to a minority position while adding current company-owned shops to the joint venture.
These efforts are expected to provide the Company with greater financial flexibility and enable debt paydown.
For fiscal 2025, approximately 75% of the Company’s systemwide sales came from company-operated locations. Through refranchising efforts, Krispy Kreme expects nearly 50% of systemwide sales to be generated by franchisees beginning fiscal 2027.
2026 Financial Outlook
The Company is providing the following annual financial guidance and intends to provide further detail as its refranchising plans progress.
Systemwide Sales up 2% to 4% in constant currency from $1.96 billion in 2025
Open at least 100 shops globally, having ended 2025 with 2,125 shops
Capital expenditures of $50 million to $60 million
Positive free cash flow
Net leverage ratio at or below 5.5x
Definitions
The following definitions apply to terms used throughout this press release:
Systemwide Sales: Reflects global sales of all Krispy Kreme products, whether operated by the Company or franchisees, excluding mix, equipment, and royalty revenue. Sales from franchisees are reported to the Company by such franchisees and are not included in Company revenues. Growth in Systemwide Sales represents the change in one period from the same period in the prior year on a constant currency basis. The Company believes Systemwide Sales information is important because it is indicative of the health of the Company’s brand and aids in understanding the Company’s financial performance.
Global Points of Access: Reflects all locations at which fresh doughnuts can be purchased. We define Global Points of Access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, fresh delivery doors (which includes Krispy Kreme branded cabinets and merchandising units within high traffic grocery and convenience stores, quick service or fast casual restaurants (“QSR”), club memberships, and drug stores) and Cookie Bakeries (through the date of the Insomnia Cookies deconsolidation in fiscal 2024), and other points at which fresh doughnuts can be purchased at both Company-owned and franchise locations as of the end of the applicable reporting period. We monitor Global Points of Access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type.
Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any point of access. We define Hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the applicable reporting period.
Hubs with Spokes: Reflects Hubs currently producing product for other Fresh Shops, Carts and Food Trucks, or fresh delivery doors, and excludes Hubs not currently producing product for other shops, Carts and Food Trucks, or fresh delivery doors.
Sales Per Hub: Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes at the end of each of the five most recent quarters.
Fresh Revenues from Hubs with Spokes: Fresh Revenues is a measure focused on the Krispy Kreme doughnut business and includes product sales generated from our Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, fresh delivery doors, and digital channels and excludes sales from Cookie Bakeries and Branded Sweet Treats (through the date of the Insomnia cookies deconsolidation and Branded Sweet Treats exit, respectively). Fresh Revenues from Hubs with Spokes equals the Fresh Revenues derived from Hubs with Spokes.
Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment.
Conference Call
Krispy Kreme will host a public conference call and webcast at 8:30 AM Eastern Time today to discuss its results for the fourth quarter and full year 2025. A slide presentation will be available prior to the start time on the investor relations section of the Company’s website at investors.krispykreme.com.
To register for the conference call, please use this LINK. After registering, confirmation will be sent through email, including dial-in details and unique conference call codes for entry. To listen to the live webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay of the webcast will be available on the website within 24 hours after the call. This earnings press release and related materials will also be available on the investor relations section of the Company’s website.
About Krispy Kreme
Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in more than 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme and www.X.com/KrispyKreme.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by use of forward-looking terminology, including terms such as “plan,” “believe,” “may,” “continue,” “guidance,” “outlook,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “pursue,” “strive,” “look forward,” or the negatives of these words, comparable terminology, or other references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included in this press release. We consider the assumptions and estimates on which forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross-contamination; impacts from any material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents; our ability to execute our business strategy, including our turnaround plan and growth through international development with strategic partners and profitable expansion of our fresh delivery and digital channels; our ability to realize the anticipated benefits from past or potential future strategic transactions (including refranchising); failure by our franchisees, subfranchisees, or third-party service providers to operate effectively and in compliance with our standards and applicable law; any harm to our reputation or brand image; negative impacts on our business due to changes in consumer spending habits, consumer preferences, or demographic trends; our ability to open new and maintain existing shops and points of access both domestically and internationally; disruptions to our and our franchisees’ supply chain, including the loss of or failure to perform by single-source or limited suppliers, vendors, distributors, or manufacturers; our significant indebtedness and our ability to meet the financial and other covenants under our credit facilities; changes in the cost of raw materials and other commodities, including due to import and export requirements (including tariffs), inflation, or foreign exchange rates; our ability to recruit and retain key personnel; adverse regulatory actions or publicity concerning food or occupational safety, food quality, health, and other issues or regulatory investigations, enforcement actions, or material litigation; and other risks and uncertainties described under the heading “Risk Factors” and elsewhere in our Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission (the “SEC”) and in other filings the Company makes from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law.
Key Performance Indicators and Non-GAAP Measures
This press release includes certain financial information that is not presented in conformity with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP and operating measures include organic revenue (decline)/growth, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted Net Income/(Loss), Diluted, Adjusted EPS, Free Cash Flow, Net Debt, Fresh Revenue from Hubs with Spokes, Sales per Hub and Systemwide Sales. We believe these non-GAAP and operating measures are useful in evaluating our operating performance. Management believes these measures are important indicators of operations because they exclude items that may not be indicative of our core operating results and provide a better baseline for analyzing trends in our underlying business, and they are consistent with how business performance is planned, reported and assessed internally by management and the Company’s Board of Directors. We monitor the key business metrics and non-GAAP metrics set forth herein to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. These non-GAAP and operating measures are not standardized, and it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, the non-GAAP financial measures are not measurements of financial performance under GAAP or a substitute for results reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC and not to rely on any single financial measure.
See “Reconciliation of Non-GAAP Financial Measures” below for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure.
Krispy Kreme, Inc.
Consolidated Statements of Operations
(in thousands, except per share amounts)
Fiscal Years Ended
December 28,
2025 (52 weeks)
December 29,
2024 (52 weeks)
December 31,
2023 (52 weeks)
(unaudited)
Net revenues
Product sales
$
1,486,120
$
1,627,778
$
1,651,166
Royalties and other revenues
36,496
37,619
34,938
Total net revenues
1,522,616
1,665,397
1,686,104
Product and distribution costs
372,567
409,177
443,243
Operating expenses
799,024
809,916
776,589
Selling, general and administrative expense
226,270
274,303
266,863
Marketing expenses
45,073
47,695
45,872
Goodwill and other asset impairments
432,422
4,464
24,909
Pre-opening costs
3,576
3,411
4,120
Other income, net
(24,120
)
(8,431
)
(14,531
)
Depreciation and amortization expense
137,074
133,597
125,894
Operating (loss)/income
(469,270
)
(8,735
)
13,145
Interest expense, net
65,795
60,066
50,341
Loss/(gain) on divestiture of Insomnia Cookies
11,501
(90,455
)
—
Other non-operating (income)/expense, net
(1,967
)
1,885
3,798
(Loss)/income before income taxes
(544,599
)
19,769
(40,994
)
Income tax (benefit)/expense
(20,820
)
15,954
(4,347
)
Net (loss)/income
(523,779
)
3,815
(36,647
)
Net (loss)/income attributable to noncontrolling interest
(8,012
)
720
1,278
Net (loss)/income attributable to Krispy Kreme, Inc.
$
(515,767
)
$
3,095
$
(37,925
)
Net (loss)/income per share:
Common stock - Basic
$
(3.02
)
$
0.02
$
(0.23
)
Common stock - Diluted
$
(3.02
)
$
0.02
$
(0.23
)
Weighted average shares outstanding:
Basic
170,923
169,341
168,289
Diluted
170,923
171,500
168,289
Quarter Ended
December 28,
2025 (13 weeks)
December 29,
2024 (13 weeks)
(unaudited)
Net revenues
Product sales
$
382,563
$
394,193
Royalties and other revenues
9,804
9,830
Total net revenues
392,367
404,023
Product and distribution costs
92,990
98,476
Operating expenses
193,530
200,190
Selling, general and administrative expense
54,552
67,153
Marketing expenses
10,853
12,484
Pre-opening costs
510
720
Goodwill and other asset impairments
20,523
4,096
Other income, net
(7,266
)
(1,633
)
Depreciation and amortization expense
33,945
34,035
Operating loss
(7,270
)
(11,498
)
Interest expense, net
16,545
15,598
Other non-operating expense, net
194
770
Loss before income taxes
(24,009
)
(24,539
)
Income tax expense/(benefit)
5,116
(2,376
)
Net loss
(29,125
)
(22,163
)
Net (loss)/income attributable to noncontrolling interest
(1,346
)
280
Net loss attributable to Krispy Kreme, Inc.
$
(27,779
)
$
(22,443
)
Net loss per share:
Common stock - Basic
$
(0.17
)
$
(0.13
)
Common stock - Diluted
$
(0.17
)
$
(0.13
)
Weighted average shares outstanding:
Basic
171,436
169,989
Diluted
171,436
169,989
Krispy Kreme, Inc.
Consolidated Balance Sheets
(in thousands, except per share data)
As of
December 28, 2025
December 29, 2024
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
42,390
$
28,962
Restricted cash
501
353
Accounts receivable, net
61,611
67,722
Inventories
26,877
28,133
Taxes receivable
10,854
16,155
Current assets held for sale
13,294
—
Prepaid expense and other current assets
18,927
31,615
Total current assets
174,454
172,940
Property and equipment, net
460,935
511,139
Goodwill, net
712,264
1,047,581
Other intangible assets, net
797,749
819,934
Operating lease right of use asset, net
395,523
409,869
Investments in unconsolidated entities
7,413
91,070
Noncurrent assets held for sale
31,056
—
Other assets
13,565
19,497
Total assets
$
2,592,959
$
3,072,030
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt
$
65,977
$
56,356
Current operating lease liabilities
51,213
46,620
Accounts payable
134,384
123,316
Accrued liabilities
99,805
124,212
Current liabilities held for sale
13,535
—
Structured payables
92,366
135,668
Total current liabilities
457,280
486,172
Long-term debt, less current portion
911,852
844,547
Noncurrent operating lease liabilities
395,895
405,366
Deferred income taxes, net
96,236
130,745
Noncurrent liabilities held for sale
11,816
—
Other long-term obligations and deferred credits
42,919
40,768
Total liabilities
1,915,998
1,907,598
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.01 par value; 300,000 shares authorized as of both December 28, 2025 and December 29, 2024; 171,555 and 170,060 shares issued and outstanding as of December 28, 2025 and December 29, 2024, respectively
1,716
1,701
Additional paid-in capital
1,477,933
1,466,508
Shareholder note receivable
(1,791
)
(1,906
)
Accumulated other comprehensive loss, net of income tax
(2,059
)
(32,128
)
Retained deficit
(821,386
)
(299,638
)
Total shareholders’ equity attributable to Krispy Kreme, Inc.
654,413
1,134,537
Noncontrolling interest
22,548
29,895
Total shareholders’ equity
676,961
1,164,432
Total liabilities and shareholders’ equity
$
2,592,959
$
3,072,030
Krispy Kreme, Inc.
Consolidated Statements of Cash Flows
(in thousands)
Fiscal Years Ended
December 28,
2025 (52 weeks)
December 29,
2024 (52 weeks)
December 31,
2023 (52 weeks)
(unaudited)
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Net (loss)/income
$
(523,779
)
$
3,815
$
(36,647
)
Adjustments to reconcile net (loss)/income to net cash provided by operating activities:
Depreciation and amortization expense
137,074
133,597
125,894
Deferred and other income taxes
(35,552
)
3,067
(18,486
)
Goodwill impairment
355,958
—
—
Loss on extinguishment of debt
—
—
472
Long-lived asset impairment and lease termination charges
76,464
4,464
24,909
Loss on disposal of property and equipment
1,643
1,250
110
Loss/(gain) on divestiture of Insomnia Cookies
11,501
(90,455
)
—
Gain on refranchising
(1,358
)
—
—
Gain on remeasurement of equity method investment
—
(5,579
)
—
Gain on sale-leaseback
(6,749
)
(1,569
)
(9,646
)
Share-based compensation
12,865
35,149
24,196
Change in accounts and notes receivable allowances
1,443
646
654
Inventory write-off
6,328
2,783
11,248
Settlement of interest rate swap derivatives
—
—
7,657
Amortization related to settlement of interest rate swap derivatives
—
(5,910
)
(10,289
)
Other
2,064
(619
)
2,155
Change in operating assets and liabilities, excluding business acquisitions and divestitures, and foreign currency translation adjustments:
Accounts, notes, and taxes receivable
12,423
(13,895
)
(3,523
)
Inventories
(19,194
)
(2,011
)
780
Assets held for sale
(16,523
)
—
—
Other current and noncurrent assets
17,403
(873
)
(2,395
)
Operating lease assets and liabilities
(564
)
(1,227
)
5,111
Accounts payable and accrued liabilities
5,748
(20,156
)
(74,471
)
Other long-term obligations and deferred credits
(3,271
)
3,355
(2,185
)
Net cash provided by operating activities
33,924
45,832
45,544
CASH FLOWS (USED FOR)/PROVIDED BY INVESTING ACTIVITIES:
Purchase of property and equipment
(97,929
)
(120,792
)
(121,427
)
Proceeds from disposals of assets
3,077
183
218
Proceeds from sale-leaseback
10,882
6,308
10,025
Acquisition of shops and franchise rights from franchisees, net of cash acquired
—
(31,938
)
—
Purchase of equity method investment
(2,998
)
(3,506
)
(1,424
)
Net proceeds from divestiture of Insomnia Cookies
75,000
124,126
—
Principal payment received from loan to Insomnia Cookies
—
45,000
—
Principal payments received from loans to franchisees
1,202
985
20
Disbursement for loan receivable
(1,379
)
(1,086
)
—
Net cash (used for)/provided by investing activities
(12,145
)
19,280
(112,588
)
CASH FLOWS (USED FOR)/PROVIDED BY FINANCING ACTIVITIES:
Proceeds from the issuance of debt
778,538
676,250
1,175,698
Repayment of long-term debt and lease obligations
(728,602
)
(712,778
)
(1,084,390
)
Payment of financing costs
(825
)
—
(5,175
)
Proceeds from structured payables
291,028
376,189
241,148
Payments on structured payables
(334,576
)
(345,327
)
(214,574
)
Payment of contingent consideration related to a business combination
—
—
(925
)
Capital contribution from shareholders, net of loans issued
—
919
764
Payments of issuance costs in connection with initial public offering
—
—
—
Proceeds from sale of noncontrolling interest in subsidiary
—
1,562
292
Distribution to shareholders
(11,934
)
(23,692
)
(23,558
)
Payments for repurchase and retirement of common stock
(1,350
)
(5,489
)
(1,880
)
Distribution to noncontrolling interest
(36
)
(41,583
)
(15,538
)
Net cash (used for)/provided by financing activities
(7,757
)
(73,949
)
71,862
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(446
)
(462
)
(1,934
)
Net increase/(decrease) in cash, cash equivalents and restricted cash
13,576
(9,299
)
2,884
Cash, cash equivalents and restricted cash at beginning of the fiscal year
29,315
38,614
35,730
Cash, cash equivalents and restricted cash at end of the fiscal year
$
42,891
$
29,315
$
38,614
Net cash provided by operating activities
$
33,924
$
45,832
$
45,544
Less: Purchase of property and equipment
(97,929
)
(120,792
)
(121,427
)
Free cash flow
$
(64,005
)
$
(74,960
)
$
(75,883
)
Krispy Kreme, Inc.
Consolidated Statements of Cash Flows
(in thousands)
Quarter Ended
December 28,
2025 (13 weeks)
December 29,
2024 (13 weeks)
December 31,
2023 (13 weeks)
(unaudited)
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Net (loss)/income
$
(29,125
)
$
(22,163
)
$
1,883
Adjustments to reconcile net (loss)/income to net cash provided by operating activities:
Depreciation and amortization expense
33,945
34,035
36,752
Deferred and other income taxes
1,844
3,089
(31,120
)
Long-lived asset impairment and lease termination charges
20,523
4,096
17,198
Loss on disposal of property and equipment
177
780
278
Gain on divestiture of Insomnia Cookies
—
(3,327
)
—
Gain on refranchising
(295
)
—
—
Gain on sale-leaseback
—
(1,569
)
—
Share-based compensation
4,854
10,546
6,375
Change in accounts and notes receivable allowances
363
213
150
Inventory write-off
(90
)
1,052
726
Amortization related to settlement of interest rate swap derivatives
—
—
(2,955
)
Other
1,747
(882
)
1,589
Change in operating assets and liabilities, excluding business acquisitions and divestitures, and foreign currency translation adjustments:
Accounts, notes, and taxes receivable
997
(4,786
)
(6,124
)
Inventories
880
1,770
(37
)
Assets held for sale
(16,523
)
—
—
Other current and noncurrent assets
6,682
2,285
2,055
Operating lease assets and liabilities
288
(1,044
)
(2,121
)
Accounts payable and accrued liabilities
23,426
3,710
(24,690
)
Other long-term obligations and deferred credits
(4,674
)
(760
)
1,553
Net cash provided by operating activities
45,019
27,045
1,512
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Purchase of property and equipment
(17,085
)
(33,915
)
(32,822
)
Proceeds from disposals of assets
2,900
3
16
Proceeds from sale-leaseback
—
6,308
—
Acquisition of shops and franchise rights from franchisees, net of cash acquired
—
(5,326
)
—
Purchase of equity method investment
—
—
(1,424
)
Net proceeds from divestiture of Insomnia Cookies
—
6,480
—
Principal payments received from loans to franchisees
—
985
—
Disbursement for loan receivable
(1,379
)
—
—
Net cash used for investing activities
(15,564
)
(25,465
)
(34,230
)
CASH FLOWS (USED FOR)/PROVIDED BY FINANCING ACTIVITIES:
Proceeds from the issuance of debt
117,512
186,250
131,000
Repayment of long-term debt and lease obligations
(122,021
)
(167,086
)
(119,140
)
Payment of financing costs
—
—
(175
)
Proceeds from structured payables
48,678
77,638
96,049
Payments on structured payables
(64,158
)
(80,981
)
(55,003
)
Capital contribution from shareholders, net of loans issued
—
—
133
Proceeds from sale of noncontrolling interest in subsidiary
—
1,198
292
Distribution to shareholders
—
(5,949
)
(5,901
)
Payments for repurchase and retirement of common stock
(166
)
(1,123
)
(271
)
Distribution to noncontrolling interest
—
(6,548
)
(2,655
)
Net cash (used for)/provided by financing activities
(20,155
)
3,399
44,329
Effect of exchange rate changes on cash, cash equivalents and restricted cash
2,439
(1,548
)
862
Net increase in cash, cash equivalents and restricted cash
11,739
3,431
12,473
Cash, cash equivalents and restricted cash at beginning of the fiscal year
31,152
25,884
26,141
Cash, cash equivalents and restricted cash at end of the fiscal year
$
42,891
$
29,315
$
38,614
Net cash provided by operating activities
$
45,019
$
27,045
$
1,512
Less: Purchase of property and equipment
(17,085
)
(33,915
)
(32,822
)
Free cash flow
$
27,934
$
(6,870
)
$
(31,310
)
Krispy Kreme, Inc.
Reconciliation of Non-GAAP Financial Measures
(unaudited and in thousands, except per share amounts)
We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent or non-core income and expense items. Adjusted EBITDA, both on a consolidated and at the segment level, is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. “Adjusted EBITDA margin” reflects Adjusted EBITDA as a percentage of net revenues.
We define “Adjusted EBIT” as earnings before interest expense, net and income tax expense, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, and certain other non-recurring, infrequent or non-core income and expense items. Adjusted EBIT is a metric complementary to Adjusted EBITDA that takes into account depreciation expense and amortization of right of use assets, allowing management to have a view of performance when including amortized costs from capital investments and lease obligations.
We define “Adjusted Net Income/(Loss), Diluted” as net (loss)/income attributable to common shareholders, adjusted for interest expense, share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent or non-core income and expense items. “Adjusted EPS” is Adjusted Net Income/(Loss), Diluted converted to a per share amount.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted Net Income/(Loss), Diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP measures supplementally.
Quarter Ended
Fiscal Years Ended
(in thousands)
December 28,
2025
December 29,
2024
December 28,
2025
December 29,
2024
Net (loss)/income
$
(29,125
)
$
(22,163
)
$
(523,779
)
$
3,815
Interest expense, net
16,545
15,598
65,795
60,066
Income tax expense/(benefit)
5,116
(2,376
)
(20,820
)
15,954
Share-based compensation
4,854
10,546
12,865
35,149
Employer payroll taxes related to share-based compensation
24
59
307
358
(Gain)/loss on divestiture of Insomnia Cookies
—
(3,327
)
11,501
(90,455
)
Goodwill impairment
—
—
355,958
—
Other non-operating expense/(income), net (1)
194
770
(1,967
)
1,885
Strategic initiatives (2)
2,769
(441
)
39,847
19,993
Acquisition and integration expenses (3)
—
245
(111
)
3,282
New market penetration expenses (4)
32
213
560
1,407
Shop closure expenses, net (5)
19,897
4,073
56,394
4,861
Restructuring and severance expenses (6)
927
6,792
6,396
7,561
Gain on remeasurement of equity method investment (7)
—
—
—
(5,579
)
Gain on refranchising (8)
(295
)
—
(1,358
)
—
Gain on sale-leaseback
—
(1,569
)
(6,749
)
(1,569
)
Other (9)
682
3,460
8,340
3,203
Amortization of acquisition related intangibles (10)
7,887
7,700
31,279
30,297
Consolidated Adjusted EBIT
$
29,507
$
19,580
$
34,458
$
90,228
Depreciation expense and amortization of right of use assets
26,058
26,335
105,795
103,300
Consolidated Adjusted EBITDA
$
55,565
$
45,915
$
140,253
$
193,528
Quarter Ended
Fiscal Years Ended
(in thousands)
December 28,
2025
December 29,
2024
December 28,
2025
December 29,
2024
U.S.
U.S. Adjusted EBIT
$
17,699
$
8,229
$
16,145
$
52,361
Depreciation expense and amortization of right of use assets
15,084
15,332
63,489
60,406
U.S. Adjusted EBITDA
32,783
23,561
79,634
112,767
International
International Adjusted EBIT
17,854
17,461
50,113
59,407
Depreciation expense and amortization of right of use assets
8,942
8,285
32,958
31,309
International Adjusted EBITDA
26,796
25,746
83,071
90,716
Market Development
Market Development Adjusted EBIT
12,072
11,820
43,949
47,750
Depreciation expense and amortization of right of use assets
31
38
143
154
Market Development Adjusted EBITDA
12,103
11,858
44,092
47,904
Total reportable segment Adjusted EBIT
47,625
37,510
110,207
159,518
Total reportable segment Adjusted EBITDA
71,682
61,165
206,797
251,387
Corporate
Corporate expenses within consolidated Adjusted EBIT
(18,118
)
(17,930
)
(75,749
)
(69,290
)
Depreciation expense and amortization of right of use assets
2,001
2,680
9,205
11,431
Corporate expenses within consolidated Adjusted EBITDA
(16,117
)
(15,250
)
(66,544
)
(57,859
)
Total consolidated Adjusted EBIT
$
29,507
$
19,580
$
34,458
$
90,228
Total consolidated Adjusted EBITDA
$
55,565
$
45,915
$
140,253
$
193,528
Quarter Ended
Fiscal Years Ended
(in thousands, except per share amounts)
December 28,
2025
December 29,
2024
December 28,
2025
December 29,
2024
Net (loss)/income
$
(29,125
)
$
(22,163
)
$
(523,779
)
$
3,815
Share-based compensation
4,854
10,546
12,865
35,149
Employer payroll taxes related to share-based compensation
24
59
307
358
(Gain)/loss on divestiture of Insomnia Cookies
—
(3,327
)
11,501
(90,455
)
Goodwill impairment
—
—
355,958
—
Other non-operating expense/(income), net (1)
193
770
(1,967
)
1,885
Strategic initiatives (2)
2,769
(441
)
39,847
19,993
Acquisition and integration expenses (3)
—
245
(111
)
3,282
New market penetration expenses (4)
32
213
560
1,407
Shop closure expenses, net (5)
19,897
4,073
56,394
4,861
Restructuring and severance expenses (6)
927
6,792
6,396
7,561
Gain on remeasurement of equity method investment (7)
—
—
—
(5,579
)
Gain on sale-leaseback
—
(1,569
)
(6,749
)
(1,569
)
Gain on refranchising (8)
(295
)
—
(1,358
)
—
Other (9)
683
3,460
8,340
3,203
Amortization of acquisition related intangibles (10)
7,887
7,700
31,279
30,297
Tax impact of adjustments (11)
6,158
(4,075
)
(20,958
)
9,690
Tax specific adjustments (12)
(332
)
(778
)
5,770
(3,988
)
Net loss/(income) attributable to noncontrolling interest
1,346
(280
)
8,012
(720
)
Adjusted net income/(loss) attributable to common shareholders - Basic
$
15,018
$
1,225
$
(17,693
)
$
19,190
Additional income attributed to noncontrolling interest due to subsidiary potential common shares
(1
)
(8
)
(10
)
(20
)
Adjusted net income/(loss) attributable to common shareholders - Diluted
$
15,017
$
1,217
$
(17,703
)
$
19,170
Basic weighted average common shares outstanding
171,436
169,989
170,923
169,341
Dilutive effect of outstanding common stock options, RSUs, and PSUs
2,551
1,861
—
2,159
Diluted weighted average common shares outstanding
173,987
171,850
170,923
171,500
Adjusted net income/(loss) per share attributable to common shareholders:
Basic
$
0.09
$
0.01
$
(0.10
)
$
0.11
Diluted
$
0.09
$
0.01
$
(0.10
)
$
0.11
(1)
Primarily foreign translation gains and losses in each period, as well as equity method income from Insomnia Cookies following the divestiture of a controlling interest during fiscal 2024 until the sale of our remaining interest in the second quarter of fiscal 2025.
(2)
Fiscal 2025 consists primarily of $33.6 million in costs associated with the U.S. national expansion (including McDonald’s USA), including exit costs associated with the termination of the Business Relationship Agreement with McDonald’s USA, and $2.8 million in costs for the evaluation of potential opportunities to refranchise certain equity markets. Fiscal 2024 consists primarily of $8.2 million in costs associated with the divestiture of the Insomnia Cookies business, $7.3 million in costs preparing for the U.S. national expansion (including McDonald’s USA), and $4.0 million in costs associated with global transformation. Fiscal 2023 consists primarily of costs associated with global transformation of $5.9 million and U.S. initiatives such as the decision to exit the Branded Sweet Treats business, including property, plant and equipment impairments, inventory write-offs, employee severance, and other related costs of $17.8 million.
(3)
Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period.
(4)
Consists of start-up costs associated with entry into new countries in which the Company has not previously operated, including Brazil and Spain.
(5)
Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment.
(6)
Fiscal 2025 consists primarily of costs associated with restructuring of the U.S. and U.K. businesses. Fiscal 2024 consists primarily of costs associated with the restructuring of the U.S. and U.K. executive teams. Fiscal 2023 consists primarily of costs associated with restructuring of the global executive team.
(7)
Consists of a gain related to the remeasurement of the equity method investments in KremeWorks USA, LLC and KremeWorks Canada, L.P. to fair value immediately prior to the acquisition of the shops.
(8)
Includes gains and losses on the deconsolidation of assets and liabilities associated with the refranchising of certain Krispy Kreme shops.
(9)
Fiscal 2025 and fiscal 2024 consist primarily of $7.4 million and $3.1 million, respectively, related to remediation of the 2024 Cybersecurity Incident, including fees for cybersecurity experts and other advisors, net of $2.4 million of insurance proceeds received in fiscal 2025 relating to these costs. Fiscal 2023 consists primarily of legal and other regulatory expenses incurred outside the ordinary course of business.
(10)
Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Consolidated Statements of Operations.
(11)
Tax impact of adjustments calculated by applying the applicable statutory rates. The Company’s adjusted effective tax rate is 17.9%, 34.0%, and 27.2%, for each of fiscal 2025, fiscal 2024, and fiscal 2023, respectively. Fiscal 2025 and fiscal 2024 also include the impact of disallowed executive compensation expense.
(12)
Fiscal 2025 consists of the recording of valuation allowances of $4.9 million associated with tax attributes primarily attributable to incremental costs removed from the calculation of Adjusted Net (Loss)/Income, a discrete tax benefit unrelated to ongoing operations of $1.0 million, and the effect of various tax law changes on existing temporary differences of $0.2 million. Fiscal 2024 consists of the recognition of previously unrecognized tax benefits unrelated to ongoing operations of $0.3 million, a discrete tax benefit unrelated to ongoing operations of $0.5 million, the release of valuation allowances associated with the divestiture of Insomnia Cookies of $2.9 million, and the effect of various tax law changes on existing temporary differences of $0.3 million. Fiscal 2023 consists of the recognition of a previously unrecognized tax benefit unrelated to ongoing operations of $2.3 million, the effect of tax law changes on existing temporary differences $0.1 million, and a discrete tax benefit unrelated to ongoing operations of $1.0 million.
Krispy Kreme, Inc.
Segment Reporting
(unaudited and in thousands, except percentages or otherwise stated)
Quarter Ended
December 28,
2025
December 29,
2024
December 31,
2023
Net revenues:
U.S.
$
230,220
$
245,121
$
296,006
International
142,461
138,386
130,978
Market Development
19,686
20,516
23,921
Total net revenues
$
392,367
$
404,023
$
450,905
Organic revenue (decline)/growth measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define “organic revenue (decline)/growth” as the (decline)/growth in revenues, excluding (i) the impact of revenues of acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs, (iv) the impact of the divestiture of a controlling interest in Insomnia Cookies, (v) the impact of the divestiture of shops through refranchising, and (vi) the impact of revenues generated during the 53rd week for those fiscal years that have a 53rd week based on our fiscal calendar.
Q4 2025 Organic Revenue - QTD
(in thousands, except percentages)
U.S.
International
Market
Development
Total Company
Total net revenues in fourth quarter of fiscal 2025
$
230,220
$
142,461
$
19,686
$
392,367
Total net revenues in fourth quarter of fiscal 2024
245,121
138,386
20,516
404,023
Total Net Revenues (Decline)/Growth
(14,901
)
4,075
(830
)
(11,656
)
Total Net Revenues (Decline)/Growth %
-6.1
%
2.9
%
-4.0
%
-2.9
%
Less: Impact of refranchising
(1,400
)
—
406
(994
)
Adjusted net revenues in fourth quarter of fiscal 2024
243,721
138,386
20,922
403,029
Adjusted net revenue (decline)/growth
(13,501
)
4,075
(1,236
)
(10,662
)
Impact of acquisitions
(693
)
—
201
(492
)
Impact of foreign currency translation
—
(4,507
)
—
(4,507
)
Organic Revenue (Decline)/Growth
$
(14,194
)
$
(432
)
$
(1,035
)
$
(15,661
)
Organic Revenue (Decline)/Growth %
-5.8
%
-0.3
%
-4.9
%
-3.9
%
Q4 2024 Organic Revenue - QTD
(in thousands, except percentages)
U.S.
International
Market
Development
Total Company
Total net revenues in fourth quarter of fiscal 2024
$
245,121
$
138,386
$
20,516
$
404,023
Total net revenues in fourth quarter of fiscal 2023
296,006
130,978
23,921
450,905
Total Net Revenues (Decline)/Growth
(50,885
)
7,408
(3,405
)
(46,882
)
Total Net Revenues (Decline)/Growth %
-17.2
%
5.7
%
-14.2
%
-10.4
%
Less: Impact of Insomnia Cookies divestiture
(57,434
)
—
—
(57,434
)
Adjusted net revenues in fourth quarter of fiscal 2023
238,572
130,978
23,921
393,471
Adjusted net revenue (decline)/growth
6,549
7,408
(3,405
)
10,552
Impact of acquisitions
(9,428
)
(1,757
)
3,244
(7,941
)
Impact of foreign currency translation
—
4,545
—
4,545
Organic Revenue (Decline)/Growth
$
(2,879
)
$
10,196
$
(161
)
$
7,156
Organic Revenue (Decline)/Growth %
-1.2
%
7.8
%
-0.7
%
1.8
%
Fiscal Years Ended
December 28,
2025
December 29,
2024
December 31,
2023
Net revenues:
U.S.
$
913,050
$
1,058,736
$
1,104,944
International
535,088
519,102
489,631
Market Development
74,478
87,559
91,529
Total net revenues
$
1,522,616
$
1,665,397
$
1,686,104
Full Year 2025 Organic Revenue - YTD
(in thousands, except percentages)
U.S.
International
Market
Development
Total Company
Total net revenues in fiscal 2025 (52 weeks)
$
913,050
$
535,088
$
74,478
$
1,522,616
Total net revenues in fiscal 2024 (52 weeks)
1,058,736
519,102
87,559
1,665,397
Total Net Revenues (Decline)/Growth
(145,686
)
15,986
(13,081
)
(142,781
)
Total Net Revenues (Decline)/Growth %
-13.8
%
3.1
%
-14.9
%
-8.6
%
Less: Impact of Insomnia Cookies divestiture
(138,522
)
—
—
(138,522
)
Less: Impact of refranchising
(1,533
)
—
445
(1,088
)
Adjusted net revenues in fiscal 2024
918,681
519,102
88,004
1,525,787
Adjusted net revenue (decline)/growth
(5,631
)
15,986
(13,526
)
(3,171
)
Impact of acquisitions
(26,334
)
(3,102
)
8,536
(20,900
)
Impact of foreign currency translation
—
4,050
—
4,050
Organic Revenue (Decline)/Growth
$
(31,965
)
$
16,934
$
(4,990
)
$
(20,021
)
Organic Revenue (Decline)/Growth %
-3.5
%
3.3
%
-5.7
%
-1.3
%
Full Year 2024 Organic Revenue - YTD
(in thousands, except percentages)
U.S.
International
Market
Development
Total Company
Total net revenues in fiscal 2024
$
1,058,736
$
519,102
$
87,559
$
1,665,397
Total net revenues in fiscal 2023
1,104,944
489,631
91,529
1,686,104
Total Net Revenues (Decline)/Growth
(46,208
)
29,471
(3,970
)
(20,707
)
Total Net Revenues (Decline)/Growth %
-4.2
%
6.0
%
-4.3
%
-1.2
%
Less: Impact of shop optimization closures
(463
)
—
—
(463
)
Less: Impact of Insomnia Cookies divestiture
(100,965
)
—
—
(100,965
)
Less: Impact of Branded Sweet Treats exit
(5,853
)
—
—
(5,853
)
Adjusted net revenues in fiscal 2023
997,663
489,631
91,529
1,578,823
Adjusted net revenue growth/(decline)
61,073
29,471
(3,970
)
86,574
Impact of acquisitions
(15,656
)
(2,865
)
5,371
(13,150
)
Impact of foreign currency translation
—
5,883
—
5,883
Organic Revenue Growth
$
45,417
$
32,489
$
1,401
$
79,307
Organic Revenue Growth %
4.6
%
6.6
%
1.5
%
5.0
%
Fresh Revenues from Hubs with Spokes and Sales per Hub are defined above.
Fiscal Years Ended
Sales per Hub
(in thousands, unless otherwise stated)
December 28,
2025 (52 weeks)
December 29,
2024 (52 weeks)
December 31,
2023 (52 weeks)
U.S.:
Revenues
$
913,050
$
1,058,736
$
1,104,944
Non-Fresh Revenues (1)
(2,454
)
(3,161
)
(9,416
)
Fresh Revenues from Insomnia Cookies and Hubs without Spokes (2)
(154,151
)
(307,665
)
(399,061
)
Fresh Revenues from Hubs with Spokes
756,445
747,910
696,467
Sales per Hub (millions)
4.7
4.9
4.9
International:
Fresh Revenues from Hubs with Spokes (3)
$
535,088
$
519,102
$
489,631
Sales per Hub (millions) (4)
9.7
9.9
9.7
(1)
Includes the exited Branded Sweet Treats business revenues as well as licensing royalties from customers for use of the Krispy Kreme brand.
(2)
Includes Insomnia Cookies revenues (through the date of deconsolidation) and Fresh Revenues generated by Hubs without Spokes.
(3)
Total International net revenues is equal to Fresh Revenues from Hubs with Spokes for that business segment.
(4)
International sales per Hub comparative data has been restated in constant currency based on current exchange rates.
Krispy Kreme, Inc.
Global Points of Access
Global Points of Access
Fiscal Years Ended
December 28, 2025
December 29, 2024
December 31, 2023
(unaudited)
U.S.:
Hot Light Theater Shops
235
237
229
Fresh Shops
68
70
70
Cookie Bakeries (1)
—
—
267
Fresh Delivery Doors (2)
7,160
9,644
6,808
Total
7,463
9,951
7,374
International:
Hot Light Theater Shops
52
49
44
Fresh Shops
527
519
483
Carts, Food Trucks, and Other (3)
18
17
16
Fresh Delivery Doors
4,225
4,583
3,977
Total
4,822
5,168
4,520
Market Development:
Hot Light Theater Shops
113
108
116
Fresh Shops
1,130
1,095
968
Carts, Food Trucks, and Other (3)
29
30
30
Fresh Delivery Doors
1,637
1,205
1,139
Total
2,909
2,438
2,253
Total Global Points of Access (as defined)
15,194
17,557
14,147
Total Hot Light Theater Shops
400
394
389
Total Fresh Shops
1,725
1,684
1,521
Total Cookie Bakeries (1)
—
—
267
Total Shops
2,125
2,078
2,177
Total Carts, Food Trucks, and Other
47
47
46
Total Fresh Delivery Doors
13,022
15,432
11,924
Total Global Points of Access (as defined)
15,194
17,557
14,147
(1)
Reflects the deconsolidation of Insomnia Cookies during fiscal 2024.
(2)
Includes approximately 1,900 McDonald’s USA doors as of December 29, 2024, which were exited in the third quarter of fiscal 2025 due to termination of the Business Relationship Agreement with McDonald’s USA.
(3)
Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of Access in this category are primarily found in international locations in airports and train stations.
Krispy Kreme, Inc.
Global Hubs
Hubs
Fiscal Years Ended
December 28, 2025
December 29, 2024
December 31, 2023
(unaudited)
U.S.:
Hot Light Theater Shops (1)
223
232
220
Doughnut Factories
6
6
4
Total
229
238
224
Hubs with Spokes
159
158
149
Hubs without Spokes
70
80
75
International:
Hot Light Theater Shops (1)
43
40
36
Doughnut Factories
14
14
14
Total
57
54
50
Hubs with Spokes
57
54
50
Market Development:
Hot Light Theater Shops (1)
111
106
112
Doughnut Factories
26
27
23
Total
137
133
135
Total Hubs
423
425
409
(1)
Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a Spoke location that produces some doughnuts for itself and also receives doughnuts from another producing location.
Krispy Kreme, Inc.
Net Debt and Leverage
(in thousands, except leverage ratio)
As of
December 29, 2025
December 31, 2024
(unaudited)
Current portion of long-term debt
$
65,977
$
56,356
Long-term debt, less current portion
911,852
844,547
Total long-term debt, including debt issuance costs
977,829
900,903
Add back: Debt issuance costs
2,904
3,322
Total long-term debt, excluding debt issuance costs
980,733
904,225
Less: Cash and cash equivalents
(42,390
)
(28,962
)
Net debt
$
938,343
$
875,263
Adjusted EBITDA - trailing four quarters
140,253
193,528
Net leverage ratio
6.7
x
4.5
x
Category: Financial News
Source: Krispy Kreme
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225438995/en/
Investor Relations and Media
ICR for Krispy Kreme, Inc.
krispykreme@icrinc.com
Original: Krispy Kreme Reports Fourth Quarter and Full Year 2025 Financial Results Demonstrating Meaningful Progress on Turnaround
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