Krispy Kreme reported fourth‑quarter 2025 results that beat expectations on both revenue and earnings. Revenue reached $392.4 million, topping the consensus estimate of $389.5 million and representing a $2.9 million beat. Adjusted earnings per share were $0.09 versus the $0.03 consensus, a $0.06 upside that reflects strong cost discipline and margin expansion. Adjusted EBITDA climbed 21% to $55.6 million, lifting the margin to 14.2% from 11.4% in the same quarter a year earlier.
The year‑over‑year revenue decline of 2.9% was driven by a strategic reduction in global points of access, with a 13.5% drop in store count as the company exited underperforming U.S. locations. The termination of the McDonald’s partnership removed a significant cost component, which helped offset the revenue impact. Digital sales grew to 18.2% of retail sales, up 380 basis points, providing a higher‑margin channel that helped support the overall margin expansion.
Margin growth was largely a result of cost‑control initiatives and the elimination of partnership‑related expenses. The removal of the McDonald’s partnership costs, combined with disciplined operating expenses, allowed the company to raise its adjusted EBITDA margin to 14.2%. Digital sales, which now represent a larger share of revenue, also contributed to the margin lift by delivering higher profitability per transaction.
Management guided for systemwide sales growth of 2%–4% on a constant‑currency basis in 2026, while capital expenditures are projected between $50 million and $60 million. Free cash flow is expected to remain positive, and the company plans to close a refranchising deal for its Japan operations in the first quarter of 2026, with anticipated proceeds of approximately $65 million. These forward‑looking statements signal confidence in sustaining momentum and improving the balance sheet after the turnaround initiatives.
CEO Josh Charlesworth said the company was “making meaningful progress on our turnaround, unlocking strong consumer demand for Krispy Kreme’s iconic, fresh doughnuts through our two biggest opportunities: profitable U.S. expansion and capital‑light international franchise growth.” He added that “exiting underperforming U.S. doors modestly pressured revenue but materially lifted EBITDA margin.” CFO Raphael Duvivier noted that the results “reflect meaningful progress on our turnaround, positioning us to deliver sustainable, profitable growth while continuing to leverage the balance sheet.”
Full‑year 2025 performance contextualizes the quarter: net revenue declined 8.6% to $1.5 billion, and the company posted a GAAP net loss of $523.8 million. Adjusted EBITDA fell 27.5% to $140.3 million, largely due to the sale of Insomnia Cookies and the termination of the McDonald’s partnership. In comparison, Q4 2024 revenue was $404.0 million, adjusted EPS was $0.01, and adjusted EBITDA was $45.9 million, underscoring the turnaround’s impact on profitability despite a modest revenue decline.
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