Krispy Kreme (NASDAQ:DNUT) Releases Earnings Results

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

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 Stock Up 3.4%

Shares of NASDAQ:DNUT 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. Krispy Kreme has a 12 month low of $2.88 and a 12 month high of $5.11. The company has a market capitalization of $575.82 million, a PE ratio of -5.96 and a beta of 1.27. The firm’s fifty day moving average is $3.46 and its 200 day moving average is $3.41. The company has a quick ratio of 0.36, a current ratio of 0.42 and a debt-to-equity ratio of 1.31.

Insider Activity at Krispy Kreme

In other news, Director Bernardo Hees purchased 235,875 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were bought at an average cost of $3.39 per share, for a total transaction of $799,616.25. Following the completion of the transaction, the director directly owned 1,229,037 shares of the company’s stock, valued at $4,166,435.43. This trade represents a 23.75% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In the last three months, insiders purchased 880,190 shares of company stock valued at $2,973,833. Company insiders own 1.60% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Prudential Financial Inc. bought a new stake in Krispy Kreme during the second quarter worth about $32,000. Russell Investments Group Ltd. increased its stake in shares of Krispy Kreme by 1,229.5% during the third quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company’s stock valued at $33,000 after purchasing an additional 7,832 shares in the last quarter. Captrust Financial Advisors purchased a new position in shares of Krispy Kreme during the second quarter valued at approximately $34,000. Raymond James Financial Inc. purchased a new position in shares of Krispy Kreme during the second quarter valued at approximately $37,000. Finally, Oxford Asset Management LLP bought a new stake in shares of Krispy Kreme in the 2nd quarter worth approximately $42,000. 81.72% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

DNUT has been the subject of a number of research analyst reports. Evercore set a $4.00 price target on Krispy Kreme in a research note on Friday. Wall Street Zen downgraded shares of Krispy Kreme from a “hold” rating to a “sell” rating in a research report on Saturday. Zacks Research lowered shares of Krispy Kreme from a “hold” rating to a “strong sell” rating in a report on Thursday. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Krispy Kreme in a research report on Wednesday, June 24th. Two research analysts have rated the stock with a Buy rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, Krispy Kreme presently has a consensus 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.