Krispy Kreme (NASDAQ:DNUT) Issues Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Krispy Kreme (NASDAQ:DNUT) announced its earnings results on Thursday. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.02), Briefing.com reports. Krispy Kreme had a negative return on equity of 4.25% and a negative net margin of 33.36%.The company had revenue of $367.03 million during the quarter, compared to analysts’ expectations of $359.42 million. During the same quarter last year, the firm posted ($0.05) earnings per share. The firm’s revenue was down 2.2% on a year-over-year basis.

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

• Krispy Kreme accelerated refranchising, completing deals in Japan with Unison Capital and reducing its Western U.S. JV stake to 20%, raising the expected franchise portion of system-wide sales from ~25% to 42% and targeting 50% in 2027, which reduced net debt and supports capital-light growth.
• Financial performance improved meaningfully — first-quarter Adjusted EBITDA $33.1M (+38% YoY), first positive Q1 free cash flow since the IPO, net leverage down to 5.5x, bank leverage below 4x, and liquidity above $300M.
• Full-year 2026 guidance was provided: net revenue of $1.25B–$1.35B, Adjusted EBITDA $140M–$150M, system-wide sales growth of 2%–4% to over $2B, capex of $50M–$60M, >100 shop openings (mostly franchised), and >$15M positive free cash flow.
• U.S. operations show higher profitability and efficiency — outsourced logistics, average weekly sales per door up to $685 (+16.7% YoY) and U.S. Adjusted EBITDA +61% — but organic U.S. revenue declined ~4% due to strategic closures and the exit from the McDonald’s partnership.

Krispy Kreme Trading Down 1.1%

Shares of NASDAQ:DNUT traded down $0.04 during midday trading on Friday, hitting $3.60. 2,829,087 shares of the stock traded hands, compared to its average volume of 2,331,207. The stock has a market capitalization of $620.57 million, a PE ratio of -1.20 and a beta of 1.32. The business’s 50 day moving average is $3.53 and its two-hundred day moving average is $3.72. The company has a quick ratio of 0.32, a current ratio of 0.38 and a debt-to-equity ratio of 1.40. Krispy Kreme has a one year low of $2.50 and a one year high of $5.73.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the stock. Morgan Stanley reiterated an “underweight” rating and issued a $3.00 target price on shares of Krispy Kreme in a research report on Tuesday, January 20th. Zacks Research upgraded shares of Krispy Kreme from a “hold” rating to a “strong-buy” rating in a research report on Friday, March 27th. Wall Street Zen lowered shares of Krispy Kreme from a “hold” rating to a “sell” rating in a research report on Saturday. Capital One Financial upgraded shares of Krispy Kreme from an “equal weight” rating to an “overweight” rating and set a $6.00 target price for the company in a research report on Thursday, March 26th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Krispy Kreme in a research report on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Krispy Kreme presently has an average rating of “Hold” and a consensus target price of $4.63.

Key Stories Impacting Krispy Kreme

Here are the key news stories impacting Krispy Kreme this week:

• Positive Sentiment: Krispy Kreme reported a 38% jump in adjusted EBITDA, indicating its turnaround efforts are improving margins and profitability. Krispy Kreme 1Q Adjusted EBITDA Jumps 38% Amid Turnaround
• Positive Sentiment: The company said it expects 2026 system-wide sales to rise 2% to 4% to more than $2 billion and guided to $140 million to $150 million in adjusted EBITDA, signaling confidence in the recovery. Krispy Kreme projects 2026 system-wide sales up 2% to 4% to over $2B while targeting $140M to $150M in adjusted EBITDA
• Positive Sentiment: Management highlighted “significant progress” on the turnaround, with narrowing losses and expanding margins suggesting the business is becoming more efficient. Krispy Kreme Narrows Loss, Sees Growth Returning as Turnaround Advances
• Neutral Sentiment: The company also leaned into seasonal marketing, bringing back Mother’s Day-themed mini and special-flavor doughnuts, which may help near-term sales but is not a major financial catalyst. Krispy Kreme releases special flavors for Mother’s Day
• Negative Sentiment: Q1 EPS came in at a loss of $0.05 per share, wider than the $0.03 loss analysts expected, showing profitability remains under pressure. Krispy Kreme (DNUT) shares rise despite quarterly earnings and revenue miss
• Negative Sentiment: Revenue fell 2.2% year over year to $367 million, and the company guided 2026 revenue below Wall Street’s expectation, which could limit upside if growth does not accelerate. Krispy Kreme Reports First Quarter 2026 Financial Results Demonstrating Significant Progress on Turnaround

Hedge Funds Weigh In On Krispy Kreme

A number of institutional investors have recently bought and sold shares of DNUT. Prudential Financial Inc. bought a new position in Krispy Kreme in the second quarter worth about $32,000. Russell Investments Group Ltd. raised its stake in Krispy Kreme by 1,229.5% in the third quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company’s stock worth $33,000 after buying an additional 7,832 shares in the last quarter. Captrust Financial Advisors bought a new position in Krispy Kreme in the second quarter worth about $34,000. Raymond James Financial Inc. bought a new position in Krispy Kreme in the second quarter worth about $37,000. Finally, Oxford Asset Management LLP bought a new position in Krispy Kreme in the second quarter worth about $42,000. 81.72% of the stock is owned by institutional investors.

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.