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

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

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%

NASDAQ:DNUT traded up $0.11 during mid-day trading on Friday, hitting $3.34. 4,442,487 shares of the company’s stock were exchanged, compared to its average volume of 2,672,790. The company has a market cap of $575.82 million, a PE ratio of -5.96 and a beta of 1.27. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.42 and a quick ratio of 0.36. Krispy Kreme has a one year low of $2.88 and a one year high of $5.11. The business has a fifty day moving average price of $3.46 and a 200 day moving average price of $3.41.

Insider Activity

In related news, Director Bernardo Hees purchased 235,875 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were purchased at an average cost of $3.39 per share, with a total value of $799,616.25. Following the transaction, the director directly owned 1,229,037 shares in the company, valued at $4,166,435.43. This trade represents a 23.75% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders have purchased 880,190 shares of company stock worth $2,973,833 in the last ninety days. 1.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in DNUT. Prudential Financial Inc. purchased a new stake in shares of Krispy Kreme in the second quarter worth $32,000. Russell Investments Group Ltd. raised its position in shares of Krispy Kreme by 1,229.5% in the 3rd quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company’s stock worth $33,000 after purchasing an additional 7,832 shares during the last quarter. Captrust Financial Advisors bought a new position in Krispy Kreme in the 2nd quarter worth about $34,000. Raymond James Financial Inc. bought a new position in Krispy Kreme in the 2nd quarter worth about $37,000. Finally, Oxford Asset Management LLP purchased a new stake in Krispy Kreme during the 2nd quarter valued at about $42,000. Hedge funds and other institutional investors own 81.72% of the company’s stock.

Analyst Ratings Changes

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

Trending Headlines about Krispy Kreme

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

• Positive Sentiment: Krispy Kreme is launching its 2026 Autumn Seasonal Collection on Aug. 11, bringing back Pumpkin Spice and Biscoff Cookie Butter doughnuts alongside new seasonal doughnuts and lattes. The limited-time menu could support customer traffic, brand engagement and near-term sales. Pumpkin Spice is Back! Krispy Kreme Welcomes Fall with New Autumn Seasonal Collection Krispy Kreme launches fall doughnut and latte lineup for 2026
• Neutral Sentiment: Krispy Kreme’s latest quarterly results were mixed: adjusted earnings matched the expected loss of $0.03 per share, while revenue of $331 million exceeded the $303.35 million consensus estimate. However, revenue declined 12.8% year over year, and the company remained unprofitable, limiting the bullish impact of the sales beat. Krispy Kreme 2026 Q2 Results Earnings Call Presentation
• Neutral Sentiment: A temporary Daytona Beach location closure and the company’s mobile operations appear localized and are unlikely to materially affect the overall investment case. Krispy Kreme goes mobile in Daytona Beach
• Negative Sentiment: Zacks Research downgraded Krispy Kreme from “Hold” to “Strong Sell,” adding to pressure on investor sentiment. Wall Street Zen also moved the stock to a Sell rating, reinforcing concerns about profitability, revenue trends and the company’s financial outlook. Krispy Kreme Downgraded by Zacks Research Krispy Kreme Downgraded to Sell Rating by Wall Street Zen

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.