DNUT

Krispy Kreme’s second quarter saw positive market reaction as the company’s revenue topped Wall Street’s expectations despite a notable year-over-year decline. Management attributed this outperformance to ongoing progress in its turnaround plan, particularly through re-franchising efforts and operational improvements in the U.S. CEO Joshua Charlesworth emphasized that “our focus on optimizing operations and logistics, along with driving more profitable sales per door in fresh delivery, is translating into stronger financial performance.” Enhanced production planning, labor optimization, and cost control initiatives were highlighted as key contributors to margin improvement. Is now the time to buy DNUT? Find out in our full research report (it’s free). Revenue: $331 million vs analyst estimates of $302.7 million (12.8% year-on-year decline, 9.4% beat) Adjusted EPS: -$0.03 vs analyst estimates of -$0.02 (in line) Adjusted EBITDA: $28.81 million vs analyst estimates of $27.74 million (8.7% margin, 3.9% beat) Operating Margin: -3.3%, up from -114% in the same quarter last year Locations: 15,665 at quarter end, down from 18,113 in the same quarter last year Market Capitalization: $572.6 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Brian Harbour (Morgan Stanley) asked about long-term margin drivers post-logistics outsourcing. CFO Raphael Duvivier highlighted that as more re-franchising deals are completed, margins should continue to improve, with CEO Joshua Charlesworth adding that most logistics benefits are yet to be fully realized. David Palmer (Evercore ISI) questioned the sustainability of U.S. organic sales growth and margin expansion. Charlesworth cited strong promotional response and product innovation, while Duvivier confirmed that margin improvements are expected to continue in the back half of the year. Sara Senatore (Bank of America) probed the causes of underperformance in the U.K. and Australia and the attractiveness of re-franchising in struggling markets. Duvivier noted a mix of door rationalization and weather-related impacts but stressed the importance of finding strong local partners to drive recovery. Rahul Krotthapalli (JPMorgan) inquired about the expansion of distribution with retail partners and long-term penetration goals. Charlesworth explained that growth is being managed to ensure profitability and quality, with current penetration at strategic retailers remaining relatively low but growing. Jon Tower (Citibank) asked about commodity inflation and performance differences across income demographics. Duvivier projected low single-digit commodity cost increases, while Charlesworth emphasized value-focused pricing and broad accessibility for customers across segments. Looking ahead, the StockStory team will monitor (1) additional re-franchising transactions and their impact on capital efficiency, (2) the pace of digital channel growth and uptake of the loyalty program, and (3) the effectiveness of new retail partnerships in expanding brand reach. Progress in key international markets, particularly the U.K. and Australia, and execution of operational efficiencies will also serve as indicators of turnaround momentum. Krispy Kreme currently trades at $3.30, up from $3.10 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:00 a.m. ET President and Chief Executive Officer - Joshua Charlesworth Chief Financial Officer - Raphael Duvivier Vice President of Investor Relations - Steve West Operator: Hello everyone, and thank you for standing by. My name is Paige, and I will be your conference operator today. At this time, I would like to welcome everyone to the Krispy Kreme Second Quarter 2026 Earnings Call. [Operator Instructions] I would now like to turn the call over to Steve West, Krispy Kreme Vice President of Investor Relations. Steve, please go ahead. Steve West: Good morning, everyone, and welcome to Krispy Kreme's second quarter 2026 earnings call. Joining me are President and Chief Executive Officer Josh Charlesworth and Chief Financial Officer Raphael Duvivier. The second quarter earnings release and accompanying presentation are available on our Investor Relations website at investors.krispykreme.com. This call will also be available on our website and contains forward-looking statements. Forward-looking statements, including those of expectations, future events, or financial performance, are based on current expectations and are subject to risks and uncertainties. Actual events or results could differ materially from those forward-looking statements due to factors described in the cautionary statements in our earnings release, annual report on Form 10-K filed with the SEC, and in other SEC filings we make from time to time. We assume no obligation to update any forward-looking statement, except as may be required by law. Additionally, we will reference certain non-GAAP financial measures. Information about these non-GAAP measures and reconciliations to the closest comparable GAAP measures is available in our earnings release. Any reference to percentage growth when discussing second quarter results is a comparison to the second quarter of 2025, unless otherwise indicated. I will now turn the call over to Josh. Joshua Charlesworth: Thank you, Steve, and good morning, everyone. The second quarter highlighted continued significant progress on our turnaround to strengthen the balance sheet, reduce leverage, and drive sustainable, profitable growth. Our year-to-date results demonstrate the success of the actions we are taking to grow the business and improve profitability. We remain confident in our ability to deliver our 2026 financial targets and are maintaining our previously issued guidance. Krispy Kreme remains a compelling global growth story, supported by increasing consumer demand for our iconic fresh doughnuts, even in a dynamic macro environment. Unlocking that demand remains our priority, and we are doing so through our 2 largest opportunities: profitable U.S. expansion and capital-light international franchise growth. In the second quarter, demand for our fresh, iconic doughnuts across the U.S. and international markets drove system-wide sales growth of 2.6%, excluding the impact of the now-ended McDonald's USA partnership from last year. Overall, our goal remains to deliver system-wide sales of more than $2 billion in 2026. Adjusted EBITDA margin significantly increased by 340 basis points as our focus on optimizing operations and logistics, along with driving more profitable sales per door in fresh delivery, is translating into stronger financial performance. Now let's move to the 4 pillars of our turnaround plan and the progress we are making on each. 1, re-franchising; 2, improving returns on capital; 3, expanding margins; and 4, driving sustainable, profitable U.S. growth. Our first pillar, re-franchising, enables us to drive more profitable system-wide sales growth while accelerating new shop development through a capital-light model. So far this year, we have completed 2 transactions that advanced this strategy in Japan and the Western U.S., both of which contributed to a reduction in net debt. Last year, approximately 25% of system-wide sales were generated by franchisees. Today, franchisees account for 42% of system-wide sales. With additional re-franchising efforts, our goal remains to reach approximately 50% of system-wide sales generated by franchisees beginning next year. As we evaluate additional re-franchising opportunities, we remain focused on identifying the right partners, both in international markets and the U.S., to maximize value and position our brand for long-term growth. The second pillar of our turnaround is improving returns on capital. Across the business, we are significantly reducing capital intensity and improving our utilization of existing assets, while our franchisees invest to support brand growth. As a result, we reduced our CapEx in the first half of the year by 70% compared to last year, which will contribute to achieving positive free cash flow in 2026. We are pleased to have entered into agreements for 3 new international franchise markets this year, including the Netherlands, Estonia, and Mauritius, achieving our goal of 3 to 4 new markets in 2026. The continued strength of the Krispy Kreme brand is reflected in the interest we see from prospective franchise partners around the world, and we remain focused on pursuing additional opportunities to expand our global footprint through our capital-light franchise model. Year-to-date, we have opened 59 new shops driven by growth in Japan, Brazil, South Korea, and the Middle East. All but 2 of these shops were opened by franchisees, and we remain on track to achieve our goal of opening at least 100 shops in 2026. While our international development pipeline remains an important driver of capital-light growth, we are also focused on U.S. growth by leveraging existing manufacturing capacity to expand fresh delivery. Our current network utilization is only about 25%, demonstrating the opportunity to expand to more locations without incremental capacity investment. Walmart and Target, along with other strategic partners, are still significantly under-penetrated, and we can support additional growth through the same facilities that currently deliver to more than 7,600 doors nationwide. The third pillar of our turnaround is expanding margins. We are simplifying the business and reducing costs across the P&L, resulting in significant margin improvement versus last year, driven by the U.S. segment. In the U.S., we are making doughnuts more efficiently through enhanced advanced production planning, labor optimization, and streamlined hub operations, all leading to a meaningful reduction in labor spend. We continue to increase delivery efficiency through improved route management, demand planning, and the optimization of production and delivery schedules. Now that we have successfully outsourced our U.S. logistics, we have greater cost predictability and reduced operational risk, enabling our teams to focus on what they do best: making fresh doughnuts. After completing a successful test of a new AI-enabled platform for fresh delivery demand planning, we are now rolling it out across our company network. Based on the preliminary results, we expect this advanced technology solution will reduce out-of-stocks on the shelf while also minimizing returns. The fourth pillar of our turnaround is sustainable, profitable growth in the U.S. across our doughnut shops, digital channels, and fresh delivery partners. Our doughnut shops are the largest driver of sustainable, profitable growth in the U.S. The strength of our doughnut shops has been driven by our recently expanded core menu, led by our iconic Original Glazed doughnut, supported by 5 seasonal doughnut collections each year and a steady cadence of innovative limited-time offerings. Each plays a key role, but it's the combination that makes them so successful. Our core menu provides consistency and value. Our seasonal collections deliver new flavors and variety, and our LTOs create excitement and cultural relevance. Together, they keep the brand fresh and engaging for consumers, stimulate curiosity, and drive sustained demand. We further support demand through targeted marketing and promotional programs that reinforce value and encourage larger purchases. Promotions such as our discounted second dozen offer provide value for consumers while driving doughnut sales and growth in average ticket size. Sales through our growing digital channel have grown 8% year-over-year and now represent approximately 22% of total U.S. retail sales. This is driven by improvements in our proprietary digital platforms, including easier payment options and the growth of our loyalty program. This now includes nearly 18 million members in the U.S. who visit typically 30% more frequently than non-loyalty members. In fresh delivery, we know that when our doughnuts are available in the right places and in the right quantities with strategic partners, we can generate higher average weekly sales and profitability. During the second quarter, we added more than 200 doors with strategic partners such as Walmart, Target, Kroger, and Sam's Club. A key component of our continued success in increasing average weekly sales per door is strengthening our relationships with these key strategic partners. Target is a great example of how deeper collaboration can unlock additional growth opportunities and create value for both organizations. We are expanding our relationship with Target to enhance merchandising and checkout placement. And beginning in September, Krispy Kreme products will be available for purchase on target.com. We believe this expanded relationship reflects the confidence leading retailers have in the strength of our brand and creates additional opportunities to increase sales and expand our fresh delivery network. Much of our progress in fresh delivery has been led by Suk Nicholas, who we recently announced as our Chief Commercial Officer. Her primary focus is to accelerate growth, expand key partnerships, strengthen customer relationships, and build world-class commercial capabilities across markets. Additionally, we continue to stay closely attuned to evolving consumer trends, including the use of GLP-1 and other weight loss medications. Last quarter, I discussed the conclusion from our research, which found Krispy Kreme consumers who use these medications are just as likely as non-users to purchase sweet treats for holidays and special occasions. With our differentiated fresh doughnuts, typically purchased 2 to 3 times per year, primarily for sharing occasions, we believe Krispy Kreme is well-positioned in this context. While we continue to monitor this trend, among other macro factors, we remain focused on expanding the ways consumers experience and share Krispy Kreme, including through our high-performing Minis category. Featuring Doughnut Minis, Doughnut Dots, and Mini Crullers, this category offers consumers compelling value and greater variety. Overall, we are pleased with the continued progress on our turnaround, extending the momentum that began late last year. We believe the actions we have taken are positioning Krispy Kreme for sustainable, profitable growth for the long term and delivering the results our turnaround plan was designed to achieve: improved financial flexibility, reduced capital intensity, expanded margins through greater operational efficiency, and improved sustainable, profitable U.S. growth. With that, Raphael will now review our second quarter financials. Raphael Duvivier: Thank you, Josh. I'm pleased with another quarter of improvements in our financial performance driven by the execution of our turnaround plan. We remain focused on sustainable, profitable growth through quality sales and effective cost management across the P&L. We continue to deleverage the balance sheet through increased adjusted EBITDA and increase our profitability by expanding our adjusted EBITDA margin. Net revenue was $331 million in the second quarter, down 13%, reflecting our planned re-franchising of the Western U.S. and Japan. Excluding re-franchising, we were essentially flat on an organic revenue basis. In fact, system-wide sales were $497 million, up 2.6% in constant currency when excluding the impact from McDonald's USA in the prior year period. This reflects the strength of the Krispy Kreme brand around the world. Adjusted EBITDA of $28.8 million increased 43% driven by productivity initiatives across our network and cost controls at the corporate level. This represents the fourth consecutive quarter of adjusted EBITDA growth and an acceleration versus our first quarter adjusted EBITDA growth of 38%. During the quarter, our consolidated adjusted EBITDA margin improved 340 basis points to 8.7% through our intense focus on driving sustainable, profitable growth. In our U.S. segment, organic revenue increased 0.1% driven by the strategic closure of underperforming fresh delivery doors. Excluding the McDonald's impact from last year, U.S. organic revenue was up 4.4%, driven mostly by growth in digital and our retail shops. In fresh delivery, we have taken disciplined actions to improve the productivity of our doors. Our average weekly sales per door in the U.S., now inclusive of both company and franchise-operated doors, were approximately $697, an increase of 33% year-over-year. Adjusted EBITDA for the U.S. segment increased 38% to $13.8 million, reflecting continued traction from our turnaround plan, more than offsetting the impact of our re-franchising efforts. We benefited from cost control initiatives and increased efficiencies, including outsourcing our U.S. logistics network, savings in SG&A, and eliminating costs related to the now-ended McDonald's USA partnership. Those initiatives drove an adjusted EBITDA margin increase of about 370 basis points to 8%. In our International segment, organic revenue decreased 5.1%, due mostly to declines in the U.K. and Australia, partially offset by growth in Canada. Adjusted EBITDA of $14.2 million declined 22% year-over-year, driven by the re-franchising of Japan. Additionally, our adjusted EBITDA margin for the international business was 12.1%, which was 160 basis points lower year-over-year due mostly to a change in mix from the Japan re-franchising. In our Market Development segment, organic revenue increased 14.4%, driven by growth in royalty revenues from the Middle East, Japan, and Brazil. Adjusted EBITDA increased 117% to $19.4 million due to the re-franchising of the Western U.S. and Japan and increased royalty revenue. Adjusted EBITDA margin decreased to 47.3%, driven by a higher domestic versus international revenue mix associated with re-franchising. Our adjusted earnings per share improved $0.12 year-over-year, about $0.02 of which was due to our re-franchising deals. Moving to our balance sheet, we continued to deleverage and ended the quarter with a net leverage ratio of 5.4x our trailing 4 quarters of adjusted EBITDA. Our leverage ratio has improved by 1.3 turns versus our reported ratio of 6.7x at the end of 2025 and more than 2 turns since last year's second quarter. We are pleased with the progress but continue to focus on reducing our leverage ratio through additional net debt reduction and adjusted EBITDA growth. Additionally, our free cash flow improved by more than $100 million in the first half of 2026 as compared to the first half of last year, driven by our focus on reducing our capital intensity. CapEx year-to-date of $16.1 million decreased 70% versus the first half of 2025. We continue to focus our invested capital on repairs and maintenance of existing infrastructure, which is in line with our asset-light business model, and we believe will contribute meaningfully to free cash flow generation during the year. Before providing our guidance update, I wanted to discuss our long-term re-franchising philosophy. We believe our attractive franchise margins advance our capital-light growth strategy. As Josh mentioned, we added 3 international franchise markets this year, and we are working to add more. We also continue discussions to re-franchise additional markets to trusted partners to grow our brand around the world. We believe this will lead to higher margins, reduce CapEx, and generate more free cash flow than owning the markets ourselves. While some re-franchising deals can be dilutive to the income statement, we believe it is important to view them from a discounted cash flow perspective. Our re-franchising deals intend to be accretive to free cash flow over time by increasing our high-margin royalty stream and reducing CapEx, which we believe will increase long-term shareholder value. Moving to our financial targets, I'm pleased to say we're maintaining our previously stated full-year guidance metrics as laid out in our earnings release. Key metrics include net revenue of $1.25 billion to $1.35 billion. System-wide sales growth of 2% to 4% in constant currency. Adjusted EBITDA of $140 million to $150 million. Capital expenditures of $50 million to $60 million. Given the dynamic changes over the last 4 quarters, I want to provide some additional color on the rest of the year. The fourth quarter is typically stronger due to seasonality, and thus we expect to see higher growth and margins in the fourth quarter than in the third quarter. Additionally, as a reminder, in the third quarter of 2025, we reported a $9.3 million cyber-related insurance gain. Adjusted EBITDA in the third quarter of 2025 would have been $31.3 million excluding this gain. And with that, I will now turn it over to Josh for his closing remarks. Joshua Charlesworth: We are pleased to have delivered another consecutive quarter of significant progress on our turnaround to strengthen the balance sheet, reduce leverage, and drive sustainable, profitable growth. We're confident in the foundation we are building for Krispy Kreme's next era of growth and believe our results continue to demonstrate that we are well on our way. Operator, you may now open the line for Q&A. Operator: [Operator Instructions] Your first question comes from the line of Brian Harbour with Morgan Stanley. Your line is open. Please go ahead. Brian Harbour: When I think about sort of EBITDA margins, I mean, you don't have a longer-term target out there right now, but like you've obviously completed quite a bit here. On the cost side, you've sort of completed the outsourcing of delivery. I mean, where do you see this going over time, or as we think about kind of upside into next year and beyond, what will be the key margin drivers? Where do you see that going? Raphael Duvivier: Hey, Brian, how are you? This is Raphael. We were happy with the turnaround plan. I think as you said, look, this is the fourth quarter. We've seen the results. It's more important than the first quarter where we've seen the 2 deals that we already did, Japan and the Western U.S., flow to the P&L, right? So you're seeing that impact and you see the margin coming up, right? So as we complete more deals, and we continue to move our agenda to become capital-light, we believe margins will continue to increase and as well drive more free cash flow by doing so. Joshua Charlesworth: I'll just add, as you mentioned, the outsourcing of logistics in the U.S. Yes, we've completed that transition, but most of the benefits of our logistics optimization have not really yet come through to the P&L. We're seeing greater cost certainty, improved service levels and efficiencies. These are, at the moment, more than offsetting any inflation on gas prices, for example. So we'd expect to see over time the benefits to margin of that logistics outsourcing as well. Brian Harbour: Okay. Which of the DFD, you know, I guess which of the retailers are performing best for you right now? Do you continue to still have some net closures, or other things, places that you're still rationalizing? It seems like Walmart and Target are more of the focus for growth, but could you talk more about what's working best there and should that continue to drive that increase in average weekly sales? Joshua Charlesworth: Yes. We're working closely with our strategic partners. You mentioned Walmart, Target, there are others, Kroger, Publix, just to mention a couple more, Costco, Sam's Club as well in the club channel. Very promising, and we work closely with those both to expand distribution where the conditions are right, where we can make sure we have sustainable, profitable sales. That's how we made the interventions that we made last year, but also where we already are that we're improving in-store merchandising, placement of the product. And that's why we've not only increased the number of doors where we distribute so far this year in the U.S. by about 450 doors, but we've also increased the average weekly sales in our whole network by over 30% compared to a year ago. So, to your overall question, yes, we're very pleased with the fresh delivery channel. It was important to make interventions on it last year, and we continue to work with those partners to improve the whole network. Most recently, even adding .com availability with the likes of kroger.com, walmart.com, and soon target.com. Operator: Your next question comes from the line of David Palmer with Evercore ISI. Your line is open. Please go ahead. David Palmer: I'm looking at your margin stuff for the quarter, and actually your U.S. organic sales, it looked like the U.S. organic sales were better than we would have thought. EBITDA margins we could have envisioned stronger than what they were. So I'm just wondering, are there any ramp costs or any call-outs this quarter that you would point out? You talked about some of the expansion you're doing with certain retailers, so maybe there's something there that we should be thinking about and modeling into the second half. And I have a quick follow-up. Joshua Charlesworth: Sure. I'll start with the growth and I'll hand over to Raphael to talk about the margins. Both importantly go hand in hand. You know, actually, you're right. We saw strong underlying growth in the second quarter in the U.S. If you exclude the McDonald's business that we exited from last year, the organic growth was up 4.4% in the second quarter. You know, we're seeing popularity, both with our popular and affordable Original Glazed doughnuts, especially these second dozen promotions that are driving additional volume and ticket, but also our doughnut innovations. As I described earlier, this cadence of limited-time offerings backed up by a seasonal program is generating a lot of engagement with the brand. It's good to see the underlying growth coming through, but also the profit. Raphael. Raphael Duvivier: Hey, David. On the U.S. margin, and we are pleased with the results in the quarter, right? If I look at the margin, we almost doubled the U.S. margin compared to last quarter. You have to remember as well that Q3 and Q4, the second half is stronger for us. So you should see higher margins as we get to the balance of the year. David Palmer: That's great. And I guess international sales, anything to point out, you know, looked like organic sales were maybe a little lighter. Any trends you want to call out there or actions that you're taking in your key international markets? Raphael Duvivier: Yes, so look at international. We continue to see strong growth in Canada, even in places like Japan. We're also just going back because we recently re-franchised, but they're growing, right, so it's not hitting that segment anymore, but they opened 5 shops already this quarter. We did see some decline in our company-owned U.K. market. It's mostly from door rationalization that we did last year, plus the extreme hot weather, which affected both sales and profits, but we feel confident on the team's turnaround plan as we head into the second half of the year. Operator: Your next question comes from the line of Sara Senatore with Bank of America. Sara Senatore: This is [ Ashley ] on for Sara. I was just wondering if you could give a little more color on what is happening in the U.K. and Australia. It sounds like those markets are still kind of weighing on international. So I'm curious whether the pressure is mostly, you know, demand or brand relevance. And when you have markets that are underperforming, does that make re-franchising more attractive because a local partner may be kind of better positioned to fix them or more challenging because it weighs on valuation? Raphael Duvivier: Hey, [ Ashley ], this is Raphael. Thanks for the question. Look, I was just saying we did see some decline in the U.K. on the revenue side. There's also portfolio mix just as we look at the margin that you have to think about. But yes, in the U.K., we have door rationalization plus extreme hot weather. Feel confident about the second half. I think your question on the views is a good one. And look, we're committed to finding the right partners, right? We believe there's a lot of opportunity for us in both Australia and the U.K. We also said we want to re-franchise all the markets outside of the U.S. We're also working, as we said last quarter, on Canada, and make sure that we're finding the right partners that can bring capital for us to grow and continue to develop all the markets. Operator: Your next question comes from the line of Rahul Krotthapalli with JPMorgan. Rahul Krotthapalli: This is [ Christopher ] on for Rahul. I just want to ask on the retail partners after the 450 you've added this year, but where do you see current DFD penetration across the retailers today versus where you wanted to land over the long term? And if you could share the current turn in doors and how this will change going forward as you focus on improving profitability. Joshua Charlesworth: Yes, one of the great things about the strategic partners that we are growing with is that we are, you're right, relatively under-penetrated. Typically around about 30% of their network is where we're currently present. And because we're working so closely with them, and people are looking for our doughnuts in places where they want them more conveniently. Our customers want us to expand more. What we've learned is growth is great, but it needs to be sustainable, profitable growth as well. And so we've been very focused on making sure that the deliveries are locally made. That way, we ensure great quality. We also make sure that the delivery routes are efficient, and profitable. So we're growing thoughtfully with those customers where those conditions are right, where the traffic is high in the store, where we can secure really good in-store displays, or indeed, beyond their online platforms. And that's an ongoing journey. We added 450 already this year, on top of about 7,500 that we had at the beginning of the year. So, we're pleased with the momentum that we've seen with that expansion, a momentum which always also ensures profitable growth is key, and that's how we see it going forward. Rahul Krotthapalli: And then just follow-up on competition, like where do you see Krispy Kreme positioning themselves amongst the broader space of desserts and sweets and how fast competition can change? Joshua Charlesworth: That's a great question. You know, we make high-quality fresh doughnuts made from scratch with our Krispy Kremers preparing the dough, making and decorating the doughnuts in front of the eyes of the customer, and those same doughnuts we sell in our doughnut shops we sell online and we sell through the fresh delivery channel. So I'd say that we're pretty unique in the competitive set. The other thing to remember is it's a relatively infrequent purchase for people. Most people are buying our doughnuts just 2 to 3 times a year for special occasions and sharing. So we think about all the ways we can bring those doughnuts to people in ways that are a lot more convenient for them, like the fresh delivery expansion we just discussed, or indeed digital, where we see us growing 8% right now. With our loyalty membership already having reached 18 million for a 400-doughnut shop chain, it's a pretty unique player in the industry. So we worry mostly about making sure our great doughnuts are high quality and available and convenient to people rather than the competition. Operator: Your next question comes from the line of Jon Tower with Citibank. Jon Tower: This is Gautam Nanda on for Jon Tower. Can you provide some insight into commodity inflation during the quarter, and have you begun contracting with suppliers for 2027? Raphael Duvivier: Hey, how are you? This is Raphael again. We said before, and we haven't changed, that we expect low single-digit commodity. Josh also mentioned that we outsource fully logistics, and we expect the benefit of it to more than offset any potential fuel price increases over the year. So we feel good about where we are from a commodity point of view. Jon Tower: Thank you. And just for a follow-up, could you provide any color on maybe how your retail doors are performing across maybe higher versus lower-income zip codes? Joshua Charlesworth: Yes, sure. Our overall focus here at Krispy Kreme is making sure we offer great value to our customers. And we're really fortunate with the popular Original Glazed doughnuts. They are also our most affordable doughnuts, whether bought in singles but actually usually bought in dozens, and increasingly in double dozens, where we've been providing additional discounts almost every day to our customers to enable them to buy those at even better value. And we're seeing that drive volumes, drive ticket, and drive results. And so that's our main focus, is making sure that our doughnuts are available to as many people as possible. Operator: Your next question comes from the line of Daniel Guglielmo with Capital One Securities. Daniel Guglielmo: Guidance stayed the same this quarter, but the midpoint of adjusted EBITDA represents 3% growth this year on a much stronger capital structure. Can you just highlight why it was so important to bring leverage down before moving on to this next phase of growth for Krispy Kreme? Raphael Duvivier: Hey, Dan. Hi, this is Raphael. Good question. You remember as well that we quoted the impact of Japan and WKS on a full year basis. So when you look at, when you adjust for that, you're going to end up with a lower base last year. So I think that's already 1 point. On the question of the leverage, look, we knew the leverage that we had at 7.5x, I call it a year ago, was something we had to work on. And we've been working on that because the objective is to continue to do the right deals that not only will help us with leverage, but will fuel our capital-light growth going forward. Right. As we move to a lower CapEx, higher EBITDA margin, and leverage global partners across the globe to grow the brand. And that's what we are already doing, by the way, in a lot of places, like we mentioned last quarter and still the same this one, we've already seen growth in Brazil, Spain and Middle East. And as I was saying before as well on Japan, where we just re-franchised with our new partner, Unison, and then they're putting in business with growth. Daniel Guglielmo: Great, great. I appreciate that color. And then longer term, with the focus on system-wide sales in the U.S. and internationally, does the existing factory and production footprint across the world support significant growth there over the next few years? Will there be any need for additional capital from franchisees or you all at some point to build that out? Joshua Charlesworth: In the U.S., we currently operate at around about 25% production utilization. So there's plenty of room for growth, and that's why we have focused on partnering with those fresh delivery partners we've already discussed today, or indeed why we're able to capture the digital e-commerce opportunity. Internationally, utilization isn't as low, but there's also a lot of opportunity for our franchisees to expand. And we've seen already this year in India, Brazil, the Middle East, Japan, our franchisees supporting expansion of new shops, 59 already this year. We're on track to get over 100 for the full year. And we also have already announced 3 new international markets on top of the 42 we already operate in. And we are, when we're bringing those partners on, we're sitting down with them and talking about how we're going to build the brand, support them, build the brand in their markets with development. And so they're pretty excited about the capital returns that they can see themselves from bringing the brand or expanding the brand around the world. So it's definitely a lot of opportunity when you remember the number 1 reason why people say they may not yet purchase Krispy Kreme, they just don't have easy access to it. And that applies to the U.S. and around the world. Operator: There are no further questions at this time. I will now turn the call back to Josh for any closing remarks. Joshua Charlesworth: Thank you, everyone, for joining the call. It's important to understand that we're making significant progress on our turnaround. You can hear that as we strengthen the balance sheet and position ourselves for sustainable, profitable growth. I want to thank all our Krispy Kremers around the world for your passion, dedication, and commitment. And we look forward to continuing the momentum throughout 2026 and beyond. Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Krispy Kreme, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Krispy Kreme wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Krispy Kreme (DNUT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is pivoting to a capital-light model by re-franchising company-owned markets, increasing franchisee system-wide sales from 25% to 42% year-over-year. The 340 basis point adjusted EBITDA margin expansion was primarily driven by optimizing U.S. logistics and improving sales productivity per door. U.S. growth is being fueled by leveraging significant excess manufacturing capacity, with current network utilization at only 25%. The company successfully outsourced U.S. logistics to gain cost predictability and reduce operational risk, allowing a focus on core production. Strategic partnerships with major retailers like Target and Walmart are being deepened to enhance merchandising and unlock under-penetrated locations. A new AI-enabled demand planning platform is being rolled out to reduce out-of-stocks and minimize returns in the fresh delivery channel. Consumer demand remains resilient despite macro factors, with GLP-1 users showing similar purchase patterns for sharing occasions as non-users. Management maintained 2026 guidance, targeting system-wide sales of more than $2 billion and positive free cash flow. The re-franchising strategy aims to have approximately 50% of system-wide sales generated by franchisees starting in 2027. International expansion will focus on a capital-light franchise model, with a goal of opening at least 100 new shops in 2026. The company expects higher growth and margins in the fourth quarter due to historical seasonality and holiday demand. Future margin improvements are expected as the full benefits of logistics optimization and AI demand planning flow through to the P&L. Net leverage was reduced by more than 2 turns since last year, reaching 5.4x as part of a concerted effort to strengthen the balance sheet. Capital expenditures were reduced by 70% in the first half of the year as the company shifts toward an asset-light maintenance model. The conclusion of the McDonald's USA partnership created a year-over-year headwind that masked underlying organic growth of 4.4% in the U.S. International margins were impacted by a 160 basis point decline due to mix changes following the Japan re-franchising and weather headwinds in the U.K. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that most benefits from U.S. logistics outsourcing have not yet hit the P&L and will provide future margin upside. Re-franchising deals are viewed through a discounted cash flow lens, intended to be accretive to free cash flow by increasing high-margin royalties. Krispy Kreme is currently present in only about 30% of its strategic partners' total store networks, leaving significant room for expansion. Average weekly sales per door increased by 33% year-over-year due to disciplined door rationalization and improved in-store merchandising. Weakness in the U.K. was attributed to door rationalization and extreme hot weather rather than a loss of brand relevance. Management remains committed to re-franchising all markets outside the U.S. to local partners who can provide growth capital.

This article first appeared on GuruFocus. Net Revenue: $331 million in the second quarter, down 13% due to planned refranchising of the Western US and Japan. Organic Revenue: Essentially flat when excluding refranchising impacts. System-Wide Sales: $497 million, up 2.6% in constant currency, excluding the impact of the ended McDonald's USA partnership. Adjusted EBITDA: $28.8 million, up 43% year-over-year, marking the fourth consecutive quarter of growth. Adjusted EBITDA Margin: Improved 340 basis points to 8.7%. US Segment Organic Revenue: Increased 0.1%, or up 4.4% excluding the McDonald's impact from last year. US Segment Adjusted EBITDA: Increased 38% to $13.8 million, with margin up 370 basis points to 8%. International Segment Organic Revenue: Decreased 5.1% due to declines in UK and Australia, partially offset by growth in Canada. International Segment Adjusted EBITDA: $14.2 million, down 22% year-over-year due to the refranchising of Japan; margin was 12.1%. Market Development Segment Organic Revenue: Increased 14.4% driven by royalty revenue growth from Middle East, Japan, and Brazil. Market Development Segment Adjusted EBITDA: Increased 117% to $19.4 million; margin decreased to 47.3%. Adjusted Earnings Per Share: Improved $0.12 year-over-year, with about $0.02 of that due to refranchising deals. Net Leverage Ratio: 5.4 times, improved by 1.3 turns versus the end of 2025 and more than 2 turns since last year's second quarter. Free Cash Flow: Improved by more than $100 million in the first half of 2026 compared to the first half of 2025. Capital Expenditures: $16.1 million year-to-date, down 70% versus the first half of 2025. Average Weekly Sales Per Door (US): Approximately $697, an increase of 33% year-over-year. Digital Sales: Grew 8% year-over-year, representing approximately 22% of total US retail sales. New Shops Opened: 59 new shops year-to-date, with all but two opened by franchisees. Full-Year 2026 Guidance: Net revenue of $1.25 billion to $1.35 billion; system-wide sales growth of 2% to 4% in constant currency; adjusted EBITDA of $140 million to $150 million; capital expenditures of $50 million to $60 million. Warning! GuruFocus has detected 3 Warning Signs with DNUT. Is DNUT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EBITDA increased 43% year-over-year, marking the fourth consecutive quarter of growth, with margin expanding 340 basis points to 8.7%. Net leverage ratio improved to 5.4x, down 1.3 turns from year-end 2025 and over 2 turns from the prior year, driven by refranchising and EBITDA growth. CapEx reduced by 70% in the first half of 2026, contributing to a $100 million improvement in free cash flow and supporting the path to positive free cash flow for the year. US fresh delivery average weekly sales per door increased 33% year-over-year to approximately $697, reflecting improved productivity and strategic partner collaboration. Digital sales grew 8% year-over-year, now representing 22% of US retail sales, with loyalty membership reaching nearly 18 million members who visit 30% more frequently. Expanded fresh delivery network by over 200 doors in Q2 and 450 doors year-to-date, with new e-commerce partnerships including target.com, walmart.com, and kroger.com. International franchise expansion remains strong, with three new markets added in 2026 (Netherlands, Estonia, Mauritius) and 59 new shops opened year-to-date, mostly by franchisees. US organic revenue grew 4.4% excluding the McDonald's impact, driven by strong performance in donut shops and digital channels. Outsourcing US logistics has improved cost predictability and operational efficiency, with benefits expected to further enhance margins over time. AI-enabled demand planning platform is being rolled out, expected to reduce out-of-stocks and minimize returns, improving fresh delivery profitability. Net revenue declined 13% year-over-year to $331 million, reflecting the planned refranchising of Western US and Japan, which reduced company-owned revenue. International organic revenue decreased 5.1%, driven by declines in the UK and Australia, partially offset by growth in Canada. International adjusted EBITDA declined 22% year-over-year, with margin down 160 basis points due to the Japan refranchising and mix changes. The UK market faced challenges from door rationalization and extreme hot weather, impacting both sales and profits, though management expects improvement in H2. Adjusted EBITDA guidance midpoint implies only 3% growth for the full year, reflecting the dilutive impact of refranchising deals on reported EBITDA. The company still carries a high net leverage ratio of 5.4x, indicating significant debt levels despite recent improvements. Fresh delivery network utilization remains low at approximately 25%, highlighting underpenetration but also the need for continued investment in partner relationships. The company faces ongoing competitive pressure in the broader dessert and sweets market, though management emphasizes its unique fresh donut positioning. Commodity inflation is expected to be low single-digit, but fuel price increases could offset some logistics outsourcing benefits, requiring careful management. The refranchising strategy, while beneficial for free cash flow, can be dilutive to the income statement, as seen in the current year's revenue and EBITDA declines. Q: When thinking about EBITDA margins, what will be the key margin drivers and where do you see that going over time, especially after completing the outsourcing of delivery? A: Raphael Duvivier (CFO) stated that the company is happy with the turnaround plan, noting that the second quarter results reflect the impact of the Japan and Western US refranchising deals flowing through the P&L. As more deals are completed and the company moves to a more capital-light model, margins are expected to continue increasing and drive more free cash flow. Josh Charlesworth (CEO) added that while the US logistics outsourcing is complete, most of the benefits have not yet come through to the P&L. The company is seeing greater cost certainty and improved service levels, which are currently more than offsetting inflation on gas prices, and expects the margin benefits of the logistics outsourcing to materialize over time. Q: Which of the DFD retailers are performing best right now, and do you continue to have net closures or places you are still rationalizing? A: Josh Charlesworth (CEO) highlighted that the company is working closely with strategic partners like Walmart, Target, Kroger, Publix, Costco, and Sam's Club. The focus is on expanding distribution where conditions are right for sustainable, profitable sales, and improving in-store merchandising and product placement where they already operate. This strategy has led to an increase of about 450 doors in the US so far this year and a more than 30% increase in average weekly sales across the network. He also mentioned recent additions of .com availability with partners like kroger.com, walmart.com, and soon target.com. Q: US organic sales were better than expected, but EBITDA margins could have been stronger. Are there any ramp costs or call-outs this quarter, and what should we model for the second half? A: Josh Charlesworth (CEO) attributed the strong underlying growth in the US (up 4.4% excluding McDonald's) to the popularity of the affordable original glazed donuts, second dozen promotions driving volume and ticket, and a strong cadence of limited time offerings. Raphael Duvivier (CFO) noted that the company is pleased with the US margin results, which nearly doubled compared to the last quarter. He reminded that the second half of the year (Q3 and Q4) is typically stronger, so margins should be higher as the year progresses. Q: Can you provide more color on what is happening in the UK and Australia, and does underperformance make refranchising more attractive or more challenging? A: Raphael Duvivier (CFO) explained that the UK decline is due to door rationalization and extreme hot weather, but the company is confident in the team's turnaround plan for the second half. Regarding refranchising, he reiterated the commitment to finding the right partners for all markets outside the US, including Australia and the UK, and mentioned ongoing work on Canada. The goal is to find partners who can bring capital to grow and develop these markets. Q: After adding 450 doors this year, where do you see current DFD penetration across retailers versus the long-term goal, and how will this change as you focus on profitability? A: Josh Charlesworth (CEO) stated that the company is relatively underpenetrated with strategic partners, currently present in about 30% of their networks. While growth is great, it needs to be sustainable and profitable. The company is focused on ensuring deliveries are locally made for quality and that routes are efficient. They are growing thoughtfully with customers where traffic is high and in-store displays are secured, adding 450 doors this year on top of the 7,500 at the start of the year, with a continued focus on profitable growth. Q: Where does Krispy Kreme position itself amongst the broader space of desserts and sweets, and how has competition changed? A: Josh Charlesworth (CEO) emphasized that Krispy Kreme makes high-quality fresh donuts from scratch, which is unique in the competitive set. He noted that purchases are infrequent (two to three times a year for special occasions), so the focus is on convenience through fresh delivery expansion and digital growth. With loyalty membership reaching 18 million for a 400-shop chain, he believes the company is a unique player and focuses more on ensuring quality and availability rather than worrying about the competition. Q: Can you provide insight into commodity inflation during the quarter and have you begun contracting with suppliers for 2027? A: Raphael Duvivier (CFO) reiterated that the company expects low single-digit commodity inflation. He also noted that the benefits from the fully outsourced logistics are expected to more than offset any potential fuel price increases over the year, leaving the company feeling good about its commodity position. Q: How are your retail doors performing across higher versus lower income ZIP codes? A: Josh Charlesworth (CEO) stated that the overall focus is on offering great value to customers. The popular original glazed donuts are also the most affordable, especially when bought in dozens or double dozens with additional discounts. This strategy is driving volumes, ticket size, and results, ensuring donuts are available to as many people as possible. Q: Guidance stayed the same, but the midpoint of adjusted EBITDA represents 3% growth on a much stronger capital structure. Why was it so important to bring leverage down before moving to the next phase of growth? A: Raphael Duvivier (CFO) explained that the full-year impact of the Japan and Western US refranchising deals creates a lower base for comparison. He emphasized that reducing leverage from 7.5 times a year ago was a priority to enable the right deals that fuel capital-light growth. This strategy is already showing results in places like Brazil, Spain, the Middle East, and Japan, where new partners like Unison are driving growth. Q: Does the existing factory and production footprint support significant growth over the next few years, or will there be a need for additional capital? A: Josh Charlesworth (CEO) stated that in the US, the company operates at about 25% production utilization, leaving plenty of room for growth without incremental capital. Internationally, utilization is higher, but franchisees are supporting expansion, with 59 new shops opened this year and a track to exceed 100 for the full year. He noted that new franchise partners are excited about the capital returns from building the brand, and the number one reason people don't purchase Krispy Kreme is lack of easy access, which presents a significant opportunity For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Krispy Kreme (DNUT) reported $331 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 12.8%. EPS of -$0.03 for the same period compares to -$0.15 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $323.03 million, representing a surprise of +2.47%. The company has not delivered EPS surprise, with the consensus EPS estimate being -$0.03. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Krispy Kreme performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total Global Points of Access: 15,665 versus 15,104 estimated by two analysts on average. Hubs, by segment and type - U.S. - Doughnut Factories: 6 compared to the 6 average estimate based on two analysts. Global Points of Access, by segment and type - U.S. - Fresh Shops: 46 versus the two-analyst average estimate of 58. Global Points of Access, by segment and type - U.S. - Total: 6,408 compared to the 6,519 average estimate based on two analysts. Global Points of Access, by segment and type - International - Hot Light Theater Shops: 47 versus the two-analyst average estimate of 46. Global Points of Access, by segment and type - International - Fresh Shops: 448 versus the two-analyst average estimate of 490. Global Points of Access, by segment and type - International - Carts, Food Trucks, and Other: 17 versus the two-analyst average estimate of 19. Global Points of Access, by segment and type - International - Total: 4,411 versus the two-analyst average estimate of 4,563. Global Points of Access, by segment and type - Market Development - Hot Light Theater Shops: 180 versus 147 estimated by two analysts on average. Geographic Revenue- International: $117.34 million versus $116.18 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -11.6% change. Geographic Revenue- U.S.: $172.68 million compared to the $183.42 million average estimate based on two analysts. The reported number represents a change of -25% year over year. Geographic Revenue- Market Development: $40.97 million versus $22.45 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +142.3% change. View all Key Company Metrics for Krispy Kreme here>>> Shares of Krispy Kreme have returned -9.9% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Krispy Kreme, Inc. (DNUT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Krispy Kreme, Inc.? Here are five stocks we like better. Turnaround progress continued: Q2 adjusted EBITDA rose 43% year over year to $28.8 million, while the margin expanded 340 basis points to 8.7%. Free cash flow improved by more than $100 million in the first half, and net leverage fell to 5.4 times. Refranchising is reshaping the business: Franchisees now generate 42% of systemwide sales, up from about 25% last year, with Krispy Kreme targeting roughly 50% beginning in 2027. The strategy reduced capital needs and supported debt reduction, although Q2 revenue declined 13% to $331 million because of refranchising transactions. 2026 guidance was reaffirmed: Krispy Kreme continues to target $1.25 billion-$1.35 billion in revenue, $140 million-$150 million in adjusted EBITDA and $50 million-$60 million in capital expenditures. U.S. digital sales, retail distribution and fresh-delivery capacity remain key growth drivers. Krispy Kreme: A Meme Stock Sugar Rush or a Sustainable Treat? Krispy Kreme (NASDAQ:DNUT) said its second-quarter results reflected continued progress in its turnaround plan, with improved profitability, lower capital spending and further deleveraging offsetting the revenue impact of refranchising transactions in Japan and the Western United States. President and Chief Executive Officer Josh Charlesworth said the company remains focused on four priorities: refranchising, improving returns on capital, expanding margins and generating sustainable, profitable U.S. growth. The company maintained its full-year 2026 guidance. → 3 Drone Stocks That Should Soar After the Summer Slump 3 Fast Food Stocks That Won’t Give You Indigestion Right Now Second-quarter net revenue was $331 million, down 13% from a year earlier, primarily reflecting the planned refranchising transactions. Excluding refranchising, revenue was essentially flat on an organic basis, Chief Financial Officer Raphael Duvivier said. Systemwide sales totaled $497 million and increased 2.6% in constant currency after excluding the prior-year impact of the now-ended McDonald’s USA partnership. The company continues to target more than $2 billion in systemwide sales during 2026. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth MarketBeat Week in Review – 4/8 - 4/12 Adjusted EBITDA rose 43% year over year to $28.8 million, marking the company’s fourth consecutive quarter of adjusted EBITDA growth. Consolidated adjusted EBITDA margin expanded 340 basis points to 8.7%. Duvivier attributed the improvement to productivity initiatives across the company’s network and corporate cost controls. He said the company’s U.S. logistics outsourcing has been completed, providing greater cost predictability, improved service levels and lower operational risk. While the transition is complete, he said most of the margin benefits from logistics optimization have yet to be reflected in results. → Jersey Mike's Serves Fresh Gains After IPO Stumble Krispy Kreme’s net leverage ratio was 5.4 times trailing four-quarter adjusted EBITDA at the end of the quarter, compared with 6.7 times at the end of 2025 and more than two turns higher in the second quarter of 2025. The company said it will continue pursuing lower leverage through net debt reduction and adjusted EBITDA growth. Free cash flow improved by more than $100 million in the first half compared with the year-earlier period. Capital expenditures totaled $16.1 million year to date, down 70% from the first half of 2025, as the company focused investment on repairs and maintenance of its existing infrastructure. The company said franchisees now account for 42% of systemwide sales, up from approximately 25% last year. Krispy Kreme aims to have franchisees generate roughly 50% of systemwide sales beginning next year through additional refranchising efforts. Charlesworth said refranchising supports a capital-light growth model by allowing partners to invest in new development while Krispy Kreme receives royalty income. The company completed refranchising transactions in Japan and the Western U.S. this year, both of which contributed to lower net debt. Krispy Kreme also entered agreements for new franchise markets in the Netherlands, Estonia and Mauritius, meeting its stated goal of adding three to four new international markets in 2026. The company opened 59 new shops year to date, largely in Japan, Brazil, South Korea and the Middle East. All but two were opened by franchisees, and the company remains on track to open at least 100 shops for the year. International organic revenue declined 5.1% during the quarter, largely due to declines in the U.K. and Australia, partially offset by Canadian growth. Duvivier said the U.K. results were affected by door rationalization undertaken last year and extreme hot weather. International adjusted EBITDA declined 22% to $14.2 million, primarily due to the Japan refranchising. In the U.S., organic revenue increased 0.1%. Excluding the prior-year McDonald’s impact, U.S. organic revenue rose 4.4%, supported primarily by digital sales and retail shops. The U.S. segment’s adjusted EBITDA increased 38% to $13.8 million, while adjusted EBITDA margin rose about 370 basis points to 8%. The company cited logistics outsourcing, SG&A savings and the elimination of costs associated with the McDonald’s partnership. Krispy Kreme said it added more than 200 doors during the second quarter with partners including Walmart, Target, Kroger and Sam’s Club. During the call, management said the company had added about 450 doors year to date, on top of roughly 7,500 doors at the start of the year. Average weekly sales per U.S. door, including both company- and franchise-operated doors, were approximately $697, up 33% from a year earlier. Charlesworth said the company is prioritizing expansion where it can maintain local production, efficient delivery routes, high store traffic and favorable merchandising. The company said its current U.S. production network is operating at about 25% utilization, leaving capacity for additional fresh-delivery and digital growth without incremental manufacturing investment. Management said it is typically present in about 30% of the networks of its major retail partners. Digital sales increased 8% year over year and represented approximately 22% of U.S. retail sales. Krispy Kreme’s U.S. loyalty program has nearly 18 million members, who visit about 30% more frequently than non-members, according to Charlesworth. Beginning in September, the company’s products are expected to become available on Target.com, following similar availability through Kroger.com and Walmart.com. Krispy Kreme reaffirmed its 2026 outlook, including net revenue of $1.25 billion to $1.35 billion, constant-currency systemwide sales growth of 2% to 4%, adjusted EBITDA of $140 million to $150 million and capital expenditures of $50 million to $60 million. Duvivier said the fourth quarter is typically stronger seasonally than the third quarter, and the company expects higher growth and margins in the fourth quarter. He also noted that third-quarter 2025 adjusted EBITDA included a $9.3 million cyber-related insurance gain; excluding that gain, third-quarter 2025 adjusted EBITDA would have been $31.3 million. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Krispy Kreme Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Delivers reduced leverage, expanded Adjusted EBITDA margin, improved cash flow, and international expansion CHARLOTTE, N.C., August 06, 2026--(BUSINESS WIRE)--Krispy Kreme, Inc. (NASDAQ: DNUT) ("Krispy Kreme", "KKI", or the "Company") today reported financial results for the quarter ended June 28, 2026. Second Quarter 2026 Highlights (vs Q2 2025) Net revenue of $331.0 million declined 12.8%, reflecting our refranchising efforts and the strategic closure of underperforming doors completed in the third quarter of 2025 Systemwide sales of $497.3 million increased 1.1% in constant currency, and increased 2.6% excluding sales attributable to the now-ended McDonald’s USA partnership GAAP net loss of $19.8 million improved $421.3 million Adjusted EBITDA of $28.8 million increased 43.2% Year-to-date cash provided by operating activities of $10.0 million increased $63.3 million, and free cash flow of $(6.1) million improved $101.3 million, when compared to the first half of 2025 "The second quarter highlighted continued significant progress on our turnaround to strengthen the balance sheet, reduce leverage, and drive sustainable, profitable growth. Demand for our fresh, iconic doughnuts across the U.S. and international markets drove systemwide sales growth of 2.6% excluding the impact of the now-ended McDonald’s USA partnership," said Krispy Kreme CEO Josh Charlesworth. "Our results demonstrate the success of the actions we are taking to grow the business and improve profitability, including a significant expansion in Adjusted EBITDA margin of 340 basis points compared to last year. We remain confident in achieving our 2026 financial targets and are maintaining our previously issued guidance." Turnaround Plan The Company’s comprehensive turnaround plan, announced in August 2025, is designed to deleverage the balance sheet and deliver sustainable, profitable growth. The four components of the plan, along with progress on each, are as follows: Refranchising: Improve financial flexibility through refranchising international markets and the joint venture in the western U.S. Improving Return on Invested Capital: Reduce capital intensity by using existing assets and focusing on franchise development. Expanding Margins: Expand margins through greater operational efficiency, including outsourcing U.S. logistics. Driving Sustainable, Profitable Growth: Pursue U.S. growth based upon sustainable and profitable revenue streams. Fresh delivery is inclusive of both Company- and franchise-operated doors. Second Quarter 2026 Consolidated Results (vs Q2 2025) Krispy Kreme’s results reflect continued progress in improving U.S. profitability and wider adoption of the capital-light international franchise model. Net revenue was $331.0 million in the second quarter of 2026, a decline of 12.8% or $48.8 million. Organic revenue decreased by 0.3%, primarily driven by a decline in global points of access and in the International segment, partially offset by growth in the Market Development segment. Global points of access declined 2,448, or 13.5%, reflecting the strategic closure of underperforming doors, including approximately 2,400 doors attributable to the now-ended McDonald’s USA partnership, that was completed in the third quarter of 2025. Systemwide sales were $497.3 million in U.S. dollars during the second quarter of 2026. Systemwide sales increased 1.1% in constant currency and, excluding the impact of sales from the McDonald’s USA doors in the prior year second quarter, systemwide sales increased 2.6%. GAAP net loss improved to $19.8 million, compared to the prior year second quarter net loss of $441.1 million. Diluted loss per share improved to $0.12, compared to a diluted loss per share of $2.55. Adjusted net loss was $5.4 million, an improvement from an Adjusted net loss of $25.3 million in the prior year second quarter, and Adjusted EPS was a loss of $(0.03), compared with an Adjusted EPS loss of $(0.15) in the prior year second quarter. Adjusted EBITDA increased 43.2% to $28.8 million compared to the prior year second quarter. Adjusted EBITDA margin increased to 8.7% from 5.3%, due primarily to productivity initiatives, SG&A savings, and the removal of costs relating to McDonald’s USA. Diluted weighted average common shares outstanding were 172.6 million, compared to 170.8 million for the prior year second quarter. The reported diluted weighted-average share count reflects basic shares outstanding, as the Company incurred a net loss; approximately 2.0 million and 2.6 million anti-dilutive securities were excluded from the diluted share calculation in the second quarter of 2026 and 2025, respectively. Second Quarter 2026 Segment Results (vs Q2 2025) U.S.: In the U.S. segment, net revenue declined by 25.0% to $172.7 million, driven by refranchising efforts associated with our turnaround plan and strategic door closures. Organic revenue increased by 0.1% year-over-year, or 4.4% excluding the impact of McDonald’s USA, reflecting strength of our retail and digital channels and improved APD in fresh delivery. U.S. Adjusted EBITDA increased by 38.5% to $13.8 million and Adjusted EBITDA margin increased approximately 370 basis points to 8.0%. These results demonstrated meaningful improvement as a result of the turnaround plan initiatives. International: In the International segment, net revenue decreased by 11.6% to $117.3 million compared to the prior year second quarter, due primarily to refranchising Japan. Organic revenue decreased by 5.1%, primarily due to declines in the U.K. and Australia, partially offset by growth in Canada. International segment Adjusted EBITDA decreased by 22.2% to $14.2 million driven by the refranchising of Japan. Adjusted EBITDA margin decreased by 160 basis points to 12.1% due to lower Adjusted EBITDA in the U.K. and Australia and the Japan refranchising. Market Development: In the Market Development segment, net revenue increased by 142.3% to $41.0 million, driven primarily by the impact of refranchising. Organic revenue increased by 14.4%, due primarily to growth in royalty revenues in the Middle East, Japan, and Brazil. Market Development Adjusted EBITDA increased by 116.7% to $19.4 million. Adjusted EBITDA margin decreased 560 basis points to 47.3%, driven by changes in the regional mix of increased lower-margin U.S. franchised sales, associated with refranchising the western U.S. joint venture with WKS Restaurant Group and the Japan refranchising. Balance Sheet and Capital Expenditures During the first half of 2026, the Company spent $16.1 million, or 4.9% of net revenue, on capital expenditures, as the Company continues to primarily invest in repairs and maintenance of existing infrastructure, while leveraging excess capacity for growth where available. Year to date, the Company’s capital expenditures are down 70.2% versus $54.1 million in the first half of 2025. As of the end of the second quarter of 2026, the Company’s net leverage ratio was 5.4x, reflecting a 1.3x reduction compared to the fourth quarter of 2025. The Company had total available liquidity of $263.9 million as of June 27, 2026, which includes $21.8 million of cash and cash equivalents as well as undrawn capacity of $242.1 million under its credit facilities. The Company remains in compliance with all financial covenants as of June 28, 2026. Refranchising Krispy Kreme continues to pursue its goal of two to three international refranchising deals in 2026 and has already completed the refranchising of Japan. In addition, the Company completed the refranchising of the western U.S. joint venture with WKS Restaurant Group. Through evaluation of additional refranchising opportunities, Krispy Kreme remains focused on identifying the right partners both in international markets and the U.S. to maximize value and position the Company for long-term growth. For fiscal 2025, approximately 25% of the Company’s systemwide sales came from franchise-operated locations. Currently, approximately 42% of systemwide sales are generated through franchised locations. Through additional refranchising efforts, the Company’s goal remains to reach approximately 50% of systemwide sales generated by franchisees beginning fiscal 2027. 2026 Financial Outlook The Company is maintaining its previously provided annual financial guidance, which includes the impact of the refranchising transactions described above but does not include additional transactions in 2026: Net revenue of $1.25 billion to $1.35 billion Systemwide sales up 2% to 4% year-over-year in constant currency Open at least 100 shops, nearly all of which are expected to be franchised Adjusted EBITDA(1) of $140 million to $150 million Capital expenditures of $50 million to $60 million Free cash flow(1) of more than $15 million Net leverage ratio(1) below 5.5x (1) Non-GAAP figures. The Company does not reconcile forward-looking non-GAAP measures. See "Key Performance Indicators and Non-GAAP Measures." Definitions The following definitions apply to terms used throughout this press release: Systemwide Sales: Reflects global sales in U.S. dollars on a nominal basis of all Krispy Kreme products, whether by the Company or franchisees, excluding mix, equipment, and royalty revenue. Sales from franchisees are reported to the Company by such franchisees and are not included in Company revenues. Growth in systemwide sales represents the change in one period from the same period in the prior year on a constant currency basis. The Company believes systemwide sales information is important because it is indicative of the health of the Company’s brand and aids in understanding the Company’s financial performance. Global Points of Access: Reflects all locations at which fresh doughnuts can be purchased. We define global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, and fresh delivery doors (which includes Krispy Kreme branded cabinets and merchandising units within high traffic grocery and convenience stores, quick service or fast casual restaurants, club memberships, and drug stores), and other points at which fresh doughnuts can be purchased at both Company-owned and franchise locations as of the end of the applicable reporting period. We monitor global points of access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type. Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any global point of access. We define hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the applicable reporting period. Hubs with Spokes: Reflects hubs currently producing fresh doughnuts for other Fresh Shops, Carts and Food Trucks, or fresh delivery doors, and excludes hubs not currently producing fresh doughnuts for other shops, Carts and Food Trucks, or fresh delivery doors. Sales Per Hub: Sales per hub equals fresh revenues from hubs with spokes, divided by the average number of hubs with spokes at the end of each of the five most recent quarters. Fresh Revenues from Hubs with Spokes: Fresh revenues is a measure focused on the Krispy Kreme doughnut business and includes product sales generated from our Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, fresh delivery doors, and digital channels and excludes sales from Cookie Bakeries and Branded Sweet Treats (through the date of the Insomnia Cookies Holdings, LLC ("Insomnia Cookies") deconsolidation and Branded Sweet Treats exit, respectively). Fresh revenues from hubs with spokes equals the fresh revenues derived from hubs with spokes. Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment. Conference Call Krispy Kreme will host a public conference call and webcast at 8:00 AM Eastern Time today to discuss its results for the second quarter 2026. A slide presentation will be available prior to the start time on the investor relations section of the Company’s website at investors.krispykreme.com. To listen to the live webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay of the webcast will be available on the website within 24 hours after the call. This earnings release and related materials will also be available on the investor relations section of the Company’s website. About Krispy Kreme Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in more than 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme and www.X.com/KrispyKreme. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by use of forward-looking terminology, including terms such as "plan," "believe," "may," "continue," "guidance," "outlook," "could," "will," "should," "would," "anticipate," "estimate," "expect," "intend," "objective," "seek," "pursue," "strive," "look forward," or the negative of these words, comparable terminology, or other references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included in this press release. We consider the assumptions and estimates on which forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross-contamination; impacts from any material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents; our ability to execute our business strategy, including our turnaround plan and growth through international development with strategic partners and profitable expansion of our fresh delivery and digital channels; our ability to realize the anticipated benefits from past or potential future strategic transactions (including refranchising); failure by our franchisees, subfranchisees, or third-party service providers to operate effectively and in compliance with our standards and applicable law; any harm to our reputation or brand image; negative impacts on our business due to changes in consumer spending habits, consumer preferences, or demographic trends; our ability to open new and maintain existing shops and points of access both domestically and internationally; disruptions to our and our franchisees’ supply chain, including the loss of or failure to perform by single-source or limited suppliers, vendors, distributors, or manufacturers; our significant indebtedness and our ability to meet the financial and other covenants under our credit facilities; changes in the cost of raw materials and fuel or other commodities, including due to import and export requirements (including tariffs), inflation, fluctuations in foreign exchange rates, or heightened geopolitical tensions (including the recent Iran conflict); our ability to recruit and retain key personnel; failure to develop or maintain effective internal control over financial reporting or disclosure controls and procedures; adverse regulatory actions or publicity concerning food or occupational safety, food quality, health, and other issues or regulatory investigations, enforcement actions, or material litigation; and other risks and uncertainties described under the heading "Risk Factors" and elsewhere in our Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission (the "SEC") and in other filings the Company makes from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law. Key Performance Indicators and Non-GAAP Measures This press release includes certain financial information that is not presented in conformity with accounting principles generally accepted in the U.S. ("GAAP"). These non-GAAP and operating measures include organic revenue growth/(decline), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net loss, diluted, Adjusted EPS, free cash flow, net debt, fresh revenue from hubs with spokes, sales per hub and systemwide sales. We believe these non-GAAP and operating measures are useful in evaluating our operating performance. Management believes these measures are important indicators of operations because they exclude items that may not be indicative of our core operating results and provide a better baseline for analyzing trends in our underlying business, and they are consistent with how business performance is planned, reported and assessed internally by management and the Company’s Board of Directors. We monitor the key business metrics and non-GAAP metrics set forth herein to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. These non-GAAP and operating measures are not standardized, and it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, the non-GAAP financial measures are not measurements of financial performance under GAAP or a substitute for results reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAP financial measures in conjunction with the Company’s financial statements and not to rely on any single financial measure. The Company does not provide reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure because it is unable to predict with reasonable certainty or without unreasonable effort non-recurring items, such as those reflected in our reconciliation of historic numbers. The variability of these items is unpredictable and may have a significant impact on the forward-looking non-GAAP financial measures presented. See "Reconciliation of Non-GAAP Financial Measures" below for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure. Krispy Kreme, Inc.Reconciliation of Non-GAAP Financial Measures (Unaudited)(in thousands, except per share amounts) We define "Adjusted EBITDA" as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBITDA, both on a consolidated and at the segment level, is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. "Adjusted EBITDA margin" reflects Adjusted EBITDA as a percentage of net revenues. We define "Adjusted net loss, diluted" as net loss attributable to common shareholders, Adjusted for interest expense, share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent, or non-core income and expense items. "Adjusted EPS" is Adjusted net loss, diluted converted to a per share amount. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net loss, diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP measures supplementally. Organic revenue growth/(decline) measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define "organic revenue growth/(decline)" as the growth/(decline) in revenues, excluding (i) the impact of revenues of acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs, (iv) the impact of the divestiture of shops through refranchising, and (v) the impact of revenues generated during the 53rd week for those fiscal years that have a 53rd week based on our fiscal calendar. Fresh revenues from hubs with spokes and sales per hub are defined above. Category: Financial News Source: Krispy Kreme View source version on businesswire.com: https://www.businesswire.com/news/home/20260806709308/en/ Contacts Investor Relations and Media Steve WestVice President, Investor [email protected] ICR for Krispy Kreme, [email protected]

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the traditional fast food stocks, including Krispy Kreme (NASDAQ:DNUT) and its peers. Traditional fast-food restaurants are renowned for their speed and convenience, boasting menus filled with familiar and budget-friendly items. Their reputations for on-the-go consumption make them favored destinations for individuals and families needing a quick meal. This class of restaurants, however, is fighting the perception that their meals are unhealthy and made with inferior ingredients, a battle that's especially relevant today given the consumers increasing focus on health and wellness. The 12 traditional fast food stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.4%. In light of this news, share prices of the companies have held steady as they are up 3.5% on average since the latest earnings results. Famous for its Original Glazed doughnuts and parent company of Insomnia Cookies, Krispy Kreme (NASDAQ:DNUT) is one of the most beloved and well-known fast-food chains in the world. Krispy Kreme reported revenues of $367 million, down 2.2% year on year. This print exceeded analysts’ expectations by 0.5%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but EPS in line with analysts’ estimates. The market seems disappointed with the results as the stock is down 5.5% since reporting and currently trades at $3.48. Is now the time to buy Krispy Kreme? Access our full analysis of the earnings results here, it’s free. With a name that translates into ‘The Crazy Chicken’, El Pollo Loco (NASDAQ:LOCO) is a fast food chain known for its citrus-marinated, fire-grilled chicken recipe that hails from the coastal town of Sinaloa, Mexico. El Pollo Loco reported revenues of $126.2 million, up 5.9% year on year, outperforming analysts’ expectations by 3.2%. The business had a stunning quarter with a solid beat of analysts’ EBITDA and same-store sales estimates. The market seems happy with the results as the stock is up 19.4% since reporting. It currently trades at $16.13. Is now the time to buy El Pollo Loco? Access our full analysis of the earnings results here, it’s free. Founded by the eclectic John “Papa John” Schnatter, Papa John’s (NASDAQ:PZZA) is a globally recognized pizza delivery and carryout chain known for “better ingredients” and “better pizza”. Papa John's reported revenues of $478.6 million, down 7.7% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates. Papa John's delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 3.7% since the results and currently trades at $35.04. Read our full analysis of Papa John’s results here. Founded by two brothers in Michigan, Domino’s (NASDAQ:DPZ) is a globally recognized pizza chain known for its creative marketing and fast delivery. Domino's reported revenues of $1.15 billion, up 3.5% year on year. This result came in 1% below analysts’ expectations. Overall, it was a slower quarter as it also produced a slight miss of analysts’ same-store sales and EPS estimates. The stock is down 16.7% since reporting and currently trades at $306.35. Read our full, actionable report on Domino's here, it’s free. Delighting customers since its inception in 1951, Jack in the Box (NASDAQ:JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing. Jack in the Box reported revenues of $254.3 million, down 4.3% year on year. This print missed analysts’ expectations by 0.8%. More broadly, it was a mixed quarter as it also recorded full-year EBITDA guidance topping analysts’ expectations but a slight miss of analysts’ same-store sales estimates. The stock is up 22.9% since reporting and currently trades at $15.72. Read our full, actionable report on Jack in the Box here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Interested in Krispy Kreme, Inc.? Here are five stocks we like better. Krispy Kreme says its turnaround is gaining traction via refranchising, cost controls and lower capex, with first-quarter results showing a 38% rise in Adjusted EBITDA to $33.1 million, the first positive Q1 free cash flow since its IPO, and net leverage down to 5.5x with liquidity over $300 million. The growth strategy emphasizes profitable U.S. expansion by better using under‑utilized production capacity (~25% network utilization) and capital‑light international franchise growth, targeting more than 100 shop openings this year and a goal of 50% franchisee‑generated system sales by 2027 while entering 3–4 new markets including the Netherlands. Management reiterated 2026 targets including net revenue $1.25–1.35 billion, Adjusted EBITDA $140–150 million, capex $50–60 million, >$15 million in positive free cash flow, and system‑wide sales growth of 2–4% (to over $2 billion) with net leverage expected below 5.5x. Krispy Kreme: A Meme Stock Sugar Rush or a Sustainable Treat? Krispy Kreme (NASDAQ:DNUT) executives said the company made “significant progress” during the first quarter of 2026 as it continued executing a turnaround plan focused on deleveraging its balance sheet and driving “sustainable, profitable growth.” Speaking on the company’s first-quarter earnings call, President and CEO Josh Charlesworth highlighted two primary growth priorities: “profitable U.S. expansion and capital-light international franchise growth.” Chief Financial Officer Raphael Duvivier said results were supported by “disciplined execution of the turnaround plan,” including cost controls, refranchising activity, and reduced capital expenditures. → Berkshire Hathaway’s Record Cash Hoard: Why and What's Next? 3 Fast Food Stocks That Won’t Give You Indigestion Right Now Charlesworth outlined four pillars of the turnaround plan: Refranchising Improving returns on capital Expanding margins Driving sustainable, profitable U.S. growth On refranchising, Charlesworth said the company completed two transactions in March that contributed to reducing net debt. In Japan, Krispy Kreme reached a refranchising agreement with Unison Capital, which Charlesworth described as “an experienced operator in the retail restaurant sector.” He noted Krispy Kreme has operated in Japan for 20 years, with “approximately 90 shops and 300 fresh delivery points of access.” → A Prada Payday: Is AMC Back in Style? MarketBeat Week in Review – 4/8 - 4/12 Charlesworth said Japan is “the first of the 2-3 international refranchising deals we are targeting in 2026.” He added that as the company evaluates other markets, it remains focused on finding the “right partners to maximize value and position our brand for long-term growth.” The second transaction reduced the company’s ownership in its Western U.S. joint venture to a 20% minority stake with long-standing partner WKS Restaurant Group. Charlesworth said the WKS franchisee operates “more than 70 shops across the Western U.S.” and has agreed to develop new shops and expand the fresh delivery footprint. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Charlesworth emphasized that a greater share of sales is expected to come from franchisees following the recent refranchising moves. He said franchisees generated about 25% of system-wide sales last year, but after the first-quarter transactions, the expected share “has increased to 42%,” reflecting progress toward a goal of reaching 50% of system-wide sales generated by franchisees entering 2027. On development, Charlesworth said the company is projecting “more than 100 shop openings this year, nearly all through franchisees.” During the first quarter, Krispy Kreme opened 26 shops globally. He also pointed to progress in Brazil, where the company marked its first anniversary in April and opened its second Hot Light Theater shop in São Paulo. Charlesworth said the Krispy Kreme system now includes “more than 2,100 locations, both company owned and franchised, across 42 countries.” He added the company expects to add “three to four new markets” in 2026, including the Netherlands. The first Hot Light Theater shop in the Netherlands is expected to open in late 2026 and serve as a retail shop and production hub, anchoring “a broader phased expansion to approximately 30 shops across the country over the next five years.” In the U.S., Charlesworth said the company is prioritizing growth through leveraging existing production capacity more efficiently, noting network utilization is “only about 25%.” He said Walmart and Target and other strategic partners remain “meaningfully under-penetrated,” with existing facilities currently delivering to more than 7,400 fresh doors nationwide. On margins and execution, Charlesworth said the company has been simplifying operations and reducing costs across the P&L, delivering “a significant margin improvement in the first quarter,” led by an increase in the U.S. segment. He attributed U.S. efficiency gains to improved production planning, labor optimization, streamlined hub operations, and better route management and demand planning. Charlesworth also said the company completed the transition of its U.S. fresh delivery network to third-party logistics partners in April, “ahead of schedule.” He said outsourcing provides “greater cost predictability and reduced operational risk,” and the company expects the benefits to offset the impact of recent increases in fuel prices. On demand and growth initiatives, Charlesworth said the company has now returned to growth over the last two quarters following a door optimization completed in the third quarter of 2025. He said Krispy Kreme added “over 250 higher volume, higher margin doors” in the first quarter with partners including Publix, Sam’s Club, and Target, and also launched in Jewel-Osco, part of Albertsons. Charlesworth highlighted Original Glazed and dozen sales trends, limited time offerings tied to seasonal and cultural moments, and the growing digital channel. He said the company had “record sales” for both Valentine’s Day and St. Patrick’s Day, and also cited strong demand for the Artemis II Doughnut tied to NASA’s deep space crew mission, prompting the company to extend the promotion beyond an initial three-day plan. Digital represented 23% of U.S. retail sales in the first quarter, Charlesworth said, and the loyalty program has “over 17 million members.” He also discussed consumer research related to GLP-1 and other weight loss medications, saying the company found consumers who identify as users of these medications are “just as likely as non-users to purchase sweet treats for holidays and special occasions,” with a focus on quality and taste. Duvivier reported first-quarter 2026 net revenue of $367 million, down 2.2% year-over-year, which he said reflected the strategic closure of underperforming doors completed in the third quarter of 2025. System-wide sales were $485.3 million, increasing 0.7% in constant currency, excluding sales attributed to the now-ended McDonald’s USA partnership. Adjusted EBITDA rose 38% year-over-year to $33.1 million, which Duvivier said was driven by productivity initiatives and corporate cost control. He said it marked the third consecutive quarter of year-over-year Adjusted EBITDA growth. Duvivier also said the company generated free cash flow in the quarter, calling it “our first positive free cash flow in a Q1 period since our 2021 IPO,” aided by lower capital expenditures and improved working capital management. At quarter-end, Duvivier said the net leverage ratio improved 1.2x quarter-over-quarter to 5.5x and was down 2x since the company announced its turnaround plan in August of the prior year. He added liquidity increased to more than $300 million and that bank leverage is now below 4x, lowering the interest rate on the primary credit facility by 25 basis points. Segment results included: U.S.: Organic revenue declined 4% year-over-year due to door closures, while average weekly sales rose to $685, up 16.7% year-over-year. U.S. segment Adjusted EBITDA increased 61% to $25.5 million, with a 480 basis point year-over-year margin increase. International: Organic revenue increased 0.4%, primarily due to Canada and Mexico. International segment Adjusted EBITDA declined 2.9% to $14.5 million, which Duvivier attributed to the refranchising of Japan in early March. Market Development: Organic revenue declined 4.3% as higher royalty revenues were more than offset by lower equipment sales. Segment Adjusted EBITDA rose 5.3% to $11.6 million, while margin decreased 60 basis points to 57.5% due to product sales mix. Management reiterated expectations for system-wide sales growth of 2% to 4% in constant currency in 2026, to over $2 billion, which Charlesworth said would be driven primarily by international expansion. He also said the company anticipates U.S. growth in the back half of the year as it laps the now-ended McDonald’s partnership, which the company exited last July. Duvivier provided full-year guidance ranges that include the impact of refranchising transactions already completed, but not future transactions. The company expects: Net revenue: $1.25 billion to $1.35 billion System-wide sales: up 2% to 4% in constant currency from $1.96 billion in 2025 Adjusted EBITDA: $140 million to $150 million Capital expenditures: $50 million to $60 million (about a 50% decrease from last year) Positive free cash flow: more than $15 million Net leverage ratio: below 5.5x In the Q&A, asked how additional international refranchising could affect guidance, Duvivier said the company would update guidance as more deals are completed. Separately, responding to a question about U.S. consumer trends, Charlesworth said demand remained strong, pointing to Original Glazed dozens supported by second dozen promotions and strong performance in “gifting and sharing moments,” while noting weather disruption in January in the U.S. Southeast. Charlesworth closed the call saying the company is “confident in the foundation” being built for the next era of growth and plans to continue executing the turnaround plan throughout 2026. 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. The article "Krispy Kreme Q1 Earnings Call Highlights" was originally published by MarketBeat. 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