Krispy Kreme Q1 revenue falls 2.2%, slightly beats estimates

Krispy Kreme

07/05/2026 11:58

Overview

U.S. doughnut chain's Q1 revenue declined 2.2% but slightly beat analyst expectations

Adjusted loss per share was flat from a year ago, but wider than analyst expectations

Adjusted EBITDA rose 38% and beat consensus, driven by margin expansion and refranchising

Outlook

Krispy Kreme sees 2026 net revenue of $1.25 bln to $1.35 bln

Company expects 2026 adjusted EBITDA of $140 mln to $150 mln

Krispy Kreme expects systemwide sales up 2% to 4% year-over-year in constant currency

Result Drivers

STRATEGIC DOOR CLOSURES - Revenue declined mainly due to closure of underperforming locations, including doors tied to the ended McDonald's USA partnership

MARGIN EXPANSION - Adjusted EBITDA margin rose to 9.0% from 6.4%, driven by productivity initiatives, SG&A savings, and removal of McDonald's USA-related costs

REFRANCHISING - Refranchising of Japan and Western U.S. operations improved financial flexibility and contributed to lower capital expenditures

Company press release: ID:nBw1YdQvca

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$367 mln
$365.91 mln (3 Analysts)
Q1 Adjusted EPS
Miss
-$0.05
-$0.02 (5 Analysts)
Q1 EPS
-$0.16
Q1 Adjusted Net Income
Miss
-$7.80 mln
-$6.81 mln (2 Analysts)
Q1 Net Income
-$22.70 mln
Q1 Adjusted EBITDA
Beat
$33.10 mln
$27.62 mln (3 Analysts)
Q1 Adjusted EBITDA Margin
9.00%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 2 "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 $4.75, about 29.1% above its May 6 closing price of $3.68

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)