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

Krispy Kreme (NASDAQ:DNUT) issued its quarterly earnings results on Thursday. The company reported ($0.03) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates 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 business had revenue of $331.00 million for the quarter, compared to analyst estimates of $303.35 million. During the same period in the previous year, the business posted ($0.15) earnings per share. The business’s revenue was down 12.8% compared to the same quarter last year.

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 Trading Up 3.4%

Shares of DNUT traded up $0.11 on Friday, hitting $3.34. 4,442,487 shares of the stock traded hands, compared to its average volume of 2,672,790. The firm has a market capitalization of $575.82 million, a P/E ratio of -5.96 and a beta of 1.27. The company has a quick ratio of 0.36, a current ratio of 0.42 and a debt-to-equity ratio of 1.31. Krispy Kreme has a 1 year low of $2.88 and a 1 year high of $5.11. The stock’s 50 day moving average is $3.46 and its two-hundred day moving average is $3.41.

Insider Buying and Selling

In other Krispy Kreme news, Director Bernardo Hees bought 235,875 shares of Krispy Kreme stock in a transaction that occurred on Tuesday, June 2nd. The shares were purchased at an average cost of $3.39 per share, for a total transaction of $799,616.25. Following the completion of the transaction, the director owned 1,229,037 shares of the company’s stock, valued at $4,166,435.43. This represents a 23.75% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders acquired 880,190 shares of company stock valued at $2,973,833 in the last ninety days. Corporate insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Krispy Kreme

Institutional investors and hedge funds have recently bought and sold shares of the stock. Prudential Financial Inc. purchased a new stake in shares of Krispy Kreme during the 2nd quarter valued at $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 buying an additional 7,832 shares during the period. Captrust Financial Advisors purchased a new position in shares of Krispy Kreme in the 2nd quarter worth $34,000. Raymond James Financial Inc. acquired a new position in Krispy Kreme in the second quarter valued at $37,000. Finally, Oxford Asset Management LLP acquired a new position in Krispy Kreme in the second quarter valued at $42,000. Institutional investors and hedge funds own 81.72% of the company’s stock.

Key Stories Impacting 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

Wall Street Analyst Weigh In

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

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.