Krispy Kreme (NASDAQ:DNUT) Issues Earnings Results, Meets Expectations

Krispy Kreme (NASDAQ:DNUT) released its quarterly earnings data on Thursday. The company reported ($0.03) EPS for the quarter, meeting the consensus estimate of ($0.03), Briefing.com reports. The business had revenue of $331.00 million for the quarter, compared to the consensus estimate of $303.35 million. Krispy Kreme had a negative net margin of 6.16% and a negative return on equity of 1.15%. The company’s revenue was down 12.8% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.15) earnings per share.

Here are the key takeaways from Krispy Kreme’s conference call:

• Turnaround momentum continued: Adjusted EBITDA rose 43% to $28.8 million, while the consolidated adjusted EBITDA margin expanded 340 basis points to 8.7%. Management attributed the improvement to productivity initiatives, logistics outsourcing, and corporate cost controls.
• U.S. growth is strengthening: Excluding the discontinued McDonald’s USA partnership, U.S. organic revenue increased 4.4%, digital sales rose 8%, and average weekly sales per U.S. fresh-delivery door climbed 33% to approximately $697. The company added more than 200 strategic-partner doors in the quarter and is expanding its relationship with Target, including availability on Target.com beginning in September.
• Capital intensity and leverage are declining: First-half capital expenditures fell 70% to $16.1 million, improving free cash flow by more than $100 million year over year. Net leverage declined to 5.4 times from 6.7 times at year-end 2025, with further refranchising expected to reduce CapEx and increase royalty-driven cash flow over time.
• Capital-light expansion remains on track: Franchisees opened 59 shops year to date, with the company still targeting at least 100 openings in 2026. Krispy Kreme also added three international franchise markets— the Netherlands, Estonia, and Mauritius—reaching its goal for new markets this year.
• International performance remained mixed: International organic revenue declined 5.1% and adjusted EBITDA fell 22%, primarily due to weakness in the U.K. and Australia and the impact of refranchising Japan. Management cited U.K. door rationalization and unusually hot weather as additional pressure, although it expressed confidence in improvement during the second half.

Krispy Kreme Price Performance

Shares of Krispy Kreme stock traded up $0.11 during trading on Friday, hitting $3.34. The stock had a trading volume of 4,442,487 shares, compared to its average volume of 2,672,790. The firm has a market cap of $575.82 million, a price-to-earnings ratio of -5.96 and a beta of 1.27. Krispy Kreme has a 12 month low of $2.88 and a 12 month high of $5.11. The business’s 50-day moving average is $3.46 and its 200 day moving average is $3.41. The company has a current ratio of 0.42, a quick ratio of 0.36 and a debt-to-equity ratio of 1.31.

Insider Transactions at Krispy Kreme

In other Krispy Kreme news, Director Bernardo Hees bought 25,002 shares of Krispy Kreme stock in a transaction that occurred on Friday, June 5th. The stock was acquired at an average cost of $3.49 per share, for a total transaction of $87,256.98. Following the completion of the transaction, the director directly owned 1,574,635 shares in the company, valued at $5,495,476.15. This represents a 1.61% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Insiders acquired a total of 880,190 shares of company stock worth $2,973,833 over the last three months. 1.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Deutsche Bank AG boosted its stake in shares of Krispy Kreme by 4.5% in the 4th quarter. Deutsche Bank AG now owns 83,611 shares of the company’s stock valued at $336,000 after purchasing an additional 3,638 shares in the last quarter. Russell Investments Group Ltd. boosted its holdings in Krispy Kreme by 1,229.5% during the 3rd quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company’s stock valued at $33,000 after acquiring an additional 7,832 shares during the period. Price T Rowe Associates Inc. MD grew its position in Krispy Kreme by 21.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 47,672 shares of the company’s stock worth $192,000 after acquiring an additional 8,351 shares during the last quarter. Raymond James Financial Inc. grew its position in Krispy Kreme by 69.1% during the 3rd quarter. Raymond James Financial Inc. now owns 21,287 shares of the company’s stock worth $82,000 after acquiring an additional 8,701 shares during the last quarter. Finally, Nuveen LLC increased its stake in Krispy Kreme by 5.6% in the 4th quarter. Nuveen LLC now owns 165,576 shares of the company’s stock worth $666,000 after purchasing an additional 8,735 shares during the period. 81.72% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on DNUT shares. Zacks Research lowered shares of Krispy Kreme from a “hold” rating to a “strong sell” rating in a research note on Thursday. Weiss Ratings restated a “sell (d)” rating on shares of Krispy Kreme in a research report on Wednesday, June 24th. Wall Street Zen lowered Krispy Kreme from a “hold” rating to a “sell” rating in a report on Saturday. Finally, Evercore set a $4.00 price target on Krispy Kreme in a research report on Friday. Two analysts have rated the stock with a Buy rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and an average target price of $4.33.

About Krispy Kreme

Krispy Kreme Doughnuts, Inc (NASDAQ: DNUT) is a global retailer and wholesaler renowned for its signature Original Glazed doughnut and a variety of other sweet treats. The company operates through a combination of company-owned stores, franchise outlets and strategic partnerships with supermarkets, convenience stores and other foodservice channels. In addition to its doughnut portfolio, Krispy Kreme offers freshly brewed coffee, assorted beverages and proprietary seasonal items designed to drive traffic and foster brand loyalty.

Founded in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme has grown from a single local shop to a multinational brand.