Krispy Kreme just beats Q2 revenue estimates, announces turnaround plan

Krispy Kreme

07/08/2025 11:57

Overview

Krispy Kreme Q2 rev declines 13.5% but beats analyst expectations, per LSEG data

Adjusted EPS for Q2 misses consensus, reflecting operational challenges, per LSEG data

Co announces turnaround plan to drive sustainable, profitable growth

Turnaround to also focus on refranchising and driving return on invested capital

Outlook

Krispy Kreme expects to recoup profitability in the third quarter

Company aims for profitable U.S. expansion and capital-light international growth

Krispy Kreme focuses on profitable, high-volume retail distribution points

Company plans to reduce leverage through refranchising international markets

Result Drivers

MCDONALD'S PARTNERSHIP END - Termination of McDonald's USA partnership impacted revenue and operating leverage

INSOMNIA COOKIES SALE - Sale of majority stake in Insomnia Cookies contributed to revenue decline

CONSUMER SOFTNESS - Reduced discounting and consumer softness led to decline in doughnut shop transaction volume

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$379.80 mln
$378.10 mln (6 Analysts)
Q2 Adjusted EPS
Miss
-$0.15
-$0.03 (7 Analysts)
Q2 EPS
-$2.55
Q2 Adjusted Net Income
Miss
-$25.30 mln
-$6.55 mln (5 Analysts)
Q2 Net Income
-$441.10 mln
Q2 Adjusted EBITDA
Miss
$20.10 mln
$32.20 mln (6 Analysts)
Q2 Adjusted EBITDA Margin
5.3%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy."

Wall Street's median 12-month price target for Krispy Kreme Inc is $5.27, about 35.1% above its August 6 closing price of $3.42

Press Release: ID:nBw6QRghQa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)