Krispy Kreme (NASDAQ:DNUT) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Krispy Kreme (NASDAQ:DNUT) announced its quarterly earnings data on Thursday. The company reported $0.09 earnings per share for the quarter, topping analysts’ consensus estimates of $0.03 by $0.06, Briefing.com reports. The company had revenue of $392.37 million during the quarter, compared to analyst estimates of $386.72 million. Krispy Kreme had a negative net margin of 33.27% and a negative return on equity of 5.13%. The firm’s revenue for the quarter was down 2.9% on a year-over-year basis. During the same period in the previous year, the business 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 Price Performance

NASDAQ DNUT traded down $0.07 during trading on Friday, hitting $3.75. 4,601,522 shares of the stock traded hands, compared to its average volume of 2,617,708. The company has a quick ratio of 0.30, a current ratio of 0.36 and a debt-to-equity ratio of 1.31. The company has a market capitalization of $642.38 million, a P/E ratio of -1.25 and a beta of 1.31. Krispy Kreme has a 12-month low of $2.50 and a 12-month high of $6.51. The firm has a 50-day simple moving average of $3.59 and a 200-day simple moving average of $3.67.

Krispy Kreme News Summary

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

Wall Street Analyst Weigh In

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

Institutional Trading of Krispy Kreme

A number of large investors have recently made changes to their positions in the business. AQR Capital Management LLC purchased a new stake in shares of Krispy Kreme in the first quarter valued at $217,000. Millennium Management LLC grew its holdings in Krispy Kreme by 522.1% during the 1st quarter. Millennium Management LLC now owns 2,093,416 shares of the company’s stock valued at $10,300,000 after purchasing an additional 1,756,932 shares during the last quarter. Creative Planning raised its position in Krispy Kreme by 568.2% in the 2nd quarter. Creative Planning now owns 67,074 shares of the company’s stock worth $195,000 after purchasing an additional 57,036 shares during the period. Legal & General Group Plc boosted its position in shares of Krispy Kreme by 44.0% during the second quarter. Legal & General Group Plc now owns 137,268 shares of the company’s stock valued at $399,000 after buying an additional 41,929 shares during the period. Finally, Prudential Financial Inc. bought a new position in shares of Krispy Kreme during the second quarter valued at approximately $32,000. 81.72% of the stock is currently 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.