Key Highlights
- DNUT shares rose 17.1% in premarket trading following Q4 adjusted EPS of $0.09, surpassing the $0.03 estimate by $0.06
- Fourth quarter revenue reached $392.4 million, topping the consensus forecast of $389.47 million
- Adjusted EBITDA increased 21% to $55.6 million, while margin grew 280 basis points to reach 14.2%
- Strategic closure of underperforming stores reduced Global Points of Access by 13.5% to 15,194 locations
- Company projects 2026 systemwide sales growth between 2–4% with anticipated positive free cash flow
Krispy Kreme (DNUT) experienced a significant 17.1% surge in premarket trading Thursday following the release of fourth quarter financial results that exceeded analyst projections across key metrics.
The doughnut retailer delivered adjusted EPS of $0.09 for the fourth quarter, significantly outperforming the $0.03 consensus forecast. Revenue totaled $392.4 million, surpassing Wall Street’s $389.47 million expectation.
Investors responded enthusiastically to these results, driving shares higher.
Fourth quarter net revenue declined 2.9% compared to $404 million recorded in the same period last year. This decrease reflects a deliberate strategy as DNUT has been systematically shutting down locations that fail to meet performance standards during its ongoing transformation.
Global Points of Access decreased 13.5% to 15,194, representing a reduction of 2,363 locations from the previous year. While substantial, this contraction reflects management’s focus on optimizing profitability over sheer location count.
The strategy appears to be yielding results. Adjusted EBITDA grew 21% year-over-year to reach $55.6 million, while the adjusted EBITDA margin expanded by 280 basis points to 14.2%.
Profitability Improvements Take Center Stage
The margin expansion resulted from multiple factors including productivity enhancements, SG&A expense reductions, elimination of costs associated with the concluded McDonald’s USA partnership, and $4.8 million received from business interruption insurance claims stemming from a 2024 cybersecurity incident.
Within the U.S. segment, average revenue per door per week increased 4.5% year-over-year to $660, benefiting from the closure of lower-volume locations that elevated the overall average. U.S. Adjusted EBITDA grew by $9.2 million to reach $32.8 million.
GAAP results presented a different narrative. The company recorded a net loss of $29.1 million, equivalent to $0.17 per share, versus a net loss of $22.2 million, or $0.13 per share, during Q4 2024.
For fiscal year 2025, DNUT generated net revenue of $1.52 billion, declining 8.6% from $1.67 billion. The full-year GAAP net loss totaled $523.8 million, contrasting with net income of $3.8 million achieved in 2024. The substantial loss stemmed partially from selling a majority stake in Insomnia Cookies and terminating the McDonald’s partnership.
Full-year adjusted EBITDA decreased 27.5% to $140.3 million.
2026 Outlook and Strategic Initiatives
For the coming year, Krispy Kreme anticipates systemwide sales growth of 2% to 4% in constant currency from the 2025 baseline of $1.96 billion.
Management plans to launch at least 100 new shops worldwide and has allocated capital expenditures between $50 million and $60 million. The company also forecasts positive free cash flow generation and a net leverage ratio at or below 5.5x.
DNUT revealed a refranchising agreement for its Japan operations, scheduled to finalize in Q1 2026 with anticipated cash proceeds around $65 million. The company additionally intends to restructure its Western U.S. joint venture with WKS Restaurant Group.
Digital sales represented 18.2% of retail sales in 2025, climbing from 14.4% in 2024 — marking a 380 basis point improvement.
CEO Josh Charlesworth emphasized that the company remains committed to “profitable U.S. expansion and capital-light international franchise growth” as fundamental pillars of its recovery strategy.
The Japan refranchising transaction is on track to close during the first quarter of 2026.
