Krispy Kreme Q3 revenue misses estimates, plans to reduce expenses

Krispy Kreme

06/11/2025 11:55

Overview

Krispy Kreme Q3 2025 revenue slightly misses analyst expectations, declining 1.2% yr/yr

Adjusted EPS for Q3 2025 beats consensus, reflecting effective cost management

Adjusted EBITDA rises 17% yr/yr, driven by productivity and cost-saving initiatives

Outlook

Company expects further improvement in adjusted EBITDA and positive free cash flow

Krispy Kreme plans to reduce capital spending and pay down debt

Company anticipates progress on refranchising agenda and profitable U.S. expansion

Result Drivers

TURNAROUND PLAN - Krispy Kreme's turnaround plan focused on U.S. expansion and international franchise growth, improving adjusted EBITDA and free cash flow

COST MANAGEMENT - Termination of McDonald's USA partnership helped reduce costs and improve profitability

STRATEGIC CLOSURES - Closure of unprofitable Points of Access contributed to a decline in global access points but optimized operations

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$375.30 mln
$378.29 mln (5 Analysts)
Q3 Adjusted EPS
Beat
$0.01
-$0.05 (5 Analysts)
Q3 EPS
-$0.11
Q3 Adjusted Net Income
Beat
$1.40 mln
-$8.07 mln (4 Analysts)
Q3 Net Income
-$20.10 mln
Q3 Adjusted EBITDA
Beat
$40.60 mln
$28.34 mln (5 Analysts)
Q3 Adjusted EBITDA Margin
10.80%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "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 $3.75, about 0.5% below its November 5 closing price of $3.77

Press Release: ID:nBw9ysSpa

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(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.)