TLDR
- DNUT jumped 17.1% premarket after Q4 adjusted EPS of $0.09 beat estimates of $0.03 by $0.06
- Q4 revenue came in at $392.4 million, slightly above the $389.47 million consensus
- Adjusted EBITDA rose 21% to $55.6 million, with margin expanding 280 basis points to 14.2%
- The company is closing underperforming locations, cutting Global Points of Access by 13.5% to 15,194
- For 2026, DNUT targets systemwide sales growth of 2â4% and expects positive free cash flow
Krispy Kreme (DNUT) jumped 17.1% in premarket trading on Thursday after posting fourth quarter results that beat analyst expectations on both earnings and revenue.
đŠ FY25 Earnings: Krispy Kreme $DNUT
Headline: Clear turnaround progress in Q4, but full-year still reflects restructuring pain.
đ Q4 2025 Snapshot (vs Q4 2024)
Revenue: $392.4M (-2.9%)
Organic Revenue: -3.9%
GAAP Net Loss: $29.1M
Adjusted EBITDA: $55.6M (+21%) â
Adj. EBITDA⌠pic.twitter.com/gogmzfpVnA— Emmanuel â Big Tech & AI Investor (@EmmanuelInvest) February 26, 2026
The company reported adjusted EPS of $0.09 for Q4, well above the $0.03 consensus estimate. Revenue came in at $392.4 million, edging past the $389.47 million Wall Street expected.
That’s a solid beat, and the market wasted no time responding.
Q4 net revenue was down 2.9% from $404 million in the same quarter a year ago. The decline was intentional â DNUT has been closing underperforming locations as part of its broader turnaround.
Global Points of Access fell 13.5% to 15,194, down 2,363 from the prior year. That’s a big drop, but the company is trading volume for profitability.
It seems to be working. Adjusted EBITDA climbed 21% year-over-year to $55.6 million, and the adjusted EBITDA margin expanded 280 basis points to 14.2%.
Margin Gains Stand Out
The margin improvement was driven by productivity initiatives, SG&A savings, the removal of costs tied to the now-ended McDonald’s USA partnership, and $4.8 million in business interruption insurance recoveries related to a 2024 cybersecurity incident.
In the U.S. segment, average revenue per door per week rose 4.5% year-over-year to $660, as the exit of lower-volume locations lifted the average. U.S. Adjusted EBITDA increased $9.2 million to $32.8 million.
On the GAAP side, the picture is rougher. The company posted a net loss of $29.1 million, or $0.17 per share, compared to a net loss of $22.2 million, or $0.13 per share, in Q4 2024.
For the full year 2025, DNUT reported net revenue of $1.52 billion, down 8.6% from $1.67 billion. The full-year GAAP net loss was $523.8 million, compared to net income of $3.8 million in 2024. The large loss was tied in part to the sale of a majority stake in Insomnia Cookies and the termination of the McDonald’s partnership.
Full-year adjusted EBITDA fell 27.5% to $140.3 million.
What’s Ahead for 2026
Looking at the year ahead, Krispy Kreme expects systemwide sales to grow 2% to 4% in constant currency from the 2025 base of $1.96 billion.
The company plans to open at least 100 new shops globally and is targeting capital expenditures of $50 million to $60 million. It also expects positive free cash flow and a net leverage ratio at or below 5.5x.
DNUT announced a refranchising deal for its Japan operations, expected to close in Q1 2026 with cash proceeds of around $65 million. The company also plans to restructure its Western U.S. joint venture with WKS Restaurant Group.
Digital sales as a percentage of retail sales rose to 18.2% in 2025, up from 14.4% in 2024 â a 380 basis point increase.
CEO Josh Charlesworth said the company is focused on “profitable U.S. expansion and capital-light international franchise growth” as the core of its recovery plan.
The Japan refranchising deal is expected to close in the first quarter of 2026.
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