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

Krispy Kreme (NASDAQ:DNUT) posted its quarterly earnings data on Thursday. The company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.03 by $0.06, Briefing.com reports. Krispy Kreme had a negative return on equity of 5.13% and a negative net margin of 33.27%.The business had revenue of $392.37 million for the quarter, compared to the consensus estimate of $386.72 million. During the same quarter in the prior year, the business earned $0.01 earnings per share. Krispy Kreme’s revenue for the quarter was down 2.9% on a year-over-year basis.

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

Shares of Krispy Kreme stock traded down $0.07 on Friday, reaching $3.75. The stock had a trading volume of 4,601,517 shares, compared to its average volume of 2,617,505. The business’s 50 day moving average is $3.59 and its two-hundred day 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 1 year low of $2.50 and a 1 year high of $6.51. The company has a market cap of $642.38 million, a P/E ratio of -1.25 and a beta of 1.31.

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

Institutional Trading of Krispy Kreme

Several institutional investors and hedge funds have recently bought and sold shares of the company. Marshall Wace LLP bought a new position in shares of Krispy Kreme in the third quarter worth $11,704,000. Balyasny Asset Management L.P. grew its position in Krispy Kreme by 419.2% during the third quarter. Balyasny Asset Management L.P. now owns 2,795,546 shares of the company’s stock worth $10,819,000 after buying an additional 2,257,061 shares in the last quarter. Millennium Management LLC increased its stake in Krispy Kreme by 522.1% in the 1st quarter. Millennium Management LLC now owns 2,093,416 shares of the company’s stock worth $10,300,000 after acquiring an additional 1,756,932 shares during the last quarter. Federated Hermes Inc. raised its holdings in shares of Krispy Kreme by 42.4% in the 4th quarter. Federated Hermes Inc. now owns 3,565,152 shares of the company’s stock valued at $14,332,000 after acquiring an additional 1,061,308 shares in the last quarter. Finally, HRT Financial LP bought a new stake in shares of Krispy Kreme during the 4th quarter valued at about $2,231,000. 81.72% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on DNUT. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Krispy Kreme in a research report on Monday, December 29th. Morgan Stanley reiterated an “underweight” rating and issued a $3.00 target price on shares of Krispy Kreme in a research note on Tuesday, January 20th. Wall Street Zen upgraded shares of Krispy Kreme from a “sell” rating to a “hold” rating in a research note on Sunday, February 22nd. Finally, Zacks Research raised shares of Krispy Kreme from a “strong sell” rating to a “hold” rating in a report on Monday, December 22nd. Two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Krispy Kreme currently has a consensus rating of “Reduce” and an average target price 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.