Krispy Kreme (NASDAQ:DNUT) Announces Quarterly Earnings Results

Krispy Kreme (NASDAQ:DNUT) released its quarterly earnings results on Thursday. The company reported $0.09 EPS for the quarter, topping analysts’ consensus estimates of $0.03 by $0.06, Briefing.com reports. The business had revenue of $392.37 million during the quarter, compared to analysts’ expectations of $386.72 million. Krispy Kreme had a negative net margin of 33.27% and a negative return on equity of 5.13%. The business’s quarterly revenue was down 2.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.01 EPS.

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

• Adjusted EBITDA and cash flow strengthened — adjusted EBITDA reached $96.2M in H2 2025 (Q4: $55.6M), Q4 free cash flow was $27.9M, and management expects continued deleveraging with net leverage at 6.7x now and targeting ≤6.0x by end of Q1 and ≤5.5x for FY2026.
• Refranchising/capital-light strategy is underway — announced sale of Japan rights to Unison (~$65M expected proceeds), plans to pursue 2–3 international refranchising deals in 2026, and targets ~50% of system-wide sales from franchisees by early 2027 to improve capital efficiency.
• Lower CapEx and operational leverage — 2025 CapEx fell 19% vs. 2024, 2026 CapEx is expected to be nearly half of 2025 (guidance $50–$60M), and with U.S. network utilization only ~25% the company expects to open ≥100 shops globally in 2026 without major new capacity spend.
• Near-term revenue impacts from closures — Q4 net revenue declined 2.9% (organic -3.9%) and U.S. organic revenue fell 5.8% largely due to exiting ~1,400 underperforming fresh-delivery doors, leaving top-line pressure even as average weekly sales per door improved.

Krispy Kreme Trading Down 1.8%

Shares of NASDAQ:DNUT traded down $0.07 on Friday, reaching $3.75. 4,601,517 shares of the company traded hands, compared to its average volume of 2,617,505. The stock has a market capitalization of $642.38 million, a P/E ratio of -1.25 and a beta of 1.31. The business’s 50-day simple moving average is $3.59 and its 200 day simple moving average is $3.67. The company has a current ratio of 0.36, a quick ratio of 0.30 and a debt-to-equity ratio of 1.31. Krispy Kreme has a 52 week low of $2.50 and a 52 week high of $6.51.

Key Headlines Impacting Krispy Kreme

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

• Positive Sentiment: EPS and profit metrics beat expectations — Krispy Kreme reported $0.09 EPS vs. ~ $0.03 consensus, a meaningful beat that underpinned the rally after the release. Krispy Kreme (DNUT) Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Operational improvement: Adjusted EBITDA and cash flow strengthened — management highlighted $55.6M adjusted EBITDA and $45M cash from operations, signaling the turnaround is producing margin and cash benefits. Krispy Kreme Reports Fourth Quarter and Full Year 2025 Financial Results
• Neutral Sentiment: Top‑line: revenue slightly beat Street (~$392.4M vs. estimates near $386–389M) but was down year‑over‑year — the beat came while management intentionally closed lower‑traffic distribution points as part of the turnaround. Krispy Kreme (NASDAQ:DNUT) Posts Better-Than-Expected Sales In Q4 CY2025
• Neutral Sentiment: Management commentary and guidance: the earnings call and slide deck emphasized strategic growth, unit rationalization and a constructive 2026 outlook — investors will watch execution and comps next year. Krispy Kreme, Inc. (DNUT) Q4 2025 Earnings Call Transcript
• Negative Sentiment: GAAP loss and weak profitability metrics remain — the company reported a GAAP net loss (Q4 ~$29.1M) and still shows a negative net margin and negative ROE, so profitability isn’t fully healed. Krispy Kreme Earnings Release and Transcript (MarketBeat)
• Negative Sentiment: Balance‑sheet and liquidity considerations — low current/quick ratios and meaningful leverage (debt/equity ~1.3) mean the company is still financially vulnerable if the turnaround stalls. WSJ: Krispy Kreme Revenue Falls as Chain Exits Underperforming Locations

Hedge Funds Weigh In On Krispy Kreme

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Deutsche Bank AG lifted its position in Krispy Kreme by 4.5% in the fourth 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 during the last quarter. Russell Investments Group Ltd. increased its stake in shares of 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 during the period. Price T Rowe Associates Inc. MD raised its holdings 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 valued at $192,000 after buying an additional 8,351 shares during the last quarter. Raymond James Financial Inc. boosted 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 valued at $82,000 after buying an additional 8,701 shares during the period. Finally, Nuveen LLC grew its holdings 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 acquiring an additional 8,735 shares during the last quarter. 81.72% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

DNUT has been the subject of a number of research analyst reports. Wall Street Zen raised shares of Krispy Kreme from a “sell” rating to a “hold” rating in a report on Sunday, February 22nd. Morgan Stanley restated an “underweight” rating and set a $3.00 price target on shares of Krispy Kreme in a research report on Tuesday, January 20th. Zacks Research upgraded Krispy Kreme from a “strong sell” rating to a “hold” rating in a report on Monday, December 22nd. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Krispy Kreme in a report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and an average price target of $4.52.

Krispy Kreme Company Profile

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.