Krispy Kreme (NASDAQ:DNUT) Announces Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Krispy Kreme (NASDAQ:DNUT) released its quarterly earnings data on Thursday. The company reported $0.06 earnings per share for the quarter, beating the consensus estimate of $0.01 by $0.05, Briefing.com reports. Krispy Kreme had a negative return on equity of 0.28% and a negative net margin of 5.94%. The business had revenue of $328.76 million for the quarter, compared to analyst estimates of $311.41 million. During the same period last year, the firm posted $0.01 earnings per share. Krispy Kreme’s revenue was down 12.4% compared to the same quarter last year.

Here are the key takeaways from Krispy Kreme’s conference call:

• Margins improved excluding last year’s cyber insurance recovery: Q3 adjusted EBITDA rose 13% on that basis, with adjusted EBITDA margin expanding 240 basis points. U.S. adjusted EBITDA increased 18% and its margin expanded 320 basis points, driven by productivity and cost controls.
• The company strengthened cash flow and reduced capital spending: Year-to-date free cash flow improved by $82 million, CapEx fell about 65%, and net leverage was 5.5x—1.2 turns lower than at the end of 2025. Management expects more than $15 million of positive free cash flow in 2026.
• 2026 revenue guidance increased, while EBITDA guidance was unchanged: The company raised and narrowed its net revenue range to $1.35–$1.4 billion and lowered CapEx guidance to $40–$45 million, while maintaining adjusted EBITDA guidance of $140–$150 million despite higher commodity inflation.
• Reported Q3 revenue and EBITDA declined amid refranchising and a tough comparison: Revenue fell 12%, primarily due to the refranchising of the Western U.S. and Japan, while adjusted EBITDA declined 13.1%, partly because the prior-year quarter included a $9.3 million cyber insurance recovery. Organic revenue was essentially flat overall, with international organic revenue down 5.4%, primarily due to the U.K.
• U.S. fresh delivery returned to growth: Krispy Kreme added 715 net doors year over year and now serves about 7,700 U.S. locations, with management citing higher average weekly sales at new doors. The company also highlighted further franchise expansion, including a New York-area agreement for 33 shops and a Pakistan agreement for 120 shops over five years.

Krispy Kreme Trading Down 9.3%

Shares of DNUT traded down $0.43 during mid-day trading on Friday, reaching $4.17. 9,669,116 shares of the company were exchanged, compared to its average volume of 4,310,843. The business has a 50 day simple moving average of $3.14 and a two-hundred day simple moving average of $3.34. The company has a debt-to-equity ratio of 1.28, a quick ratio of 0.29 and a current ratio of 0.36. The stock has a market capitalization of $718.91 million, a PE ratio of -7.87 and a beta of 1.29. Krispy Kreme has a 52 week low of $2.81 and a 52 week high of $5.03.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Zacks Research upgraded shares of Krispy Kreme from a “strong sell” rating to a “hold” rating in a research report on Tuesday, October 27th. Evercore set a $4.00 price objective on Krispy Kreme in a research note on Friday, August 7th. Wall Street Zen upgraded shares of Krispy Kreme from a “sell” rating to a “hold” rating in a report on Saturday. Finally, Weiss Ratings cut shares of Krispy Kreme from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Friday, October 16th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Reduce” and an average target price of $4.33.

Krispy Kreme News Summary

Here are the key news stories impacting Krispy Kreme this week:

• Positive Sentiment: Third-quarter adjusted earnings were $0.06 per share, above estimates of about $0.01–$0.02, while revenue of $328.76 million also topped forecasts. The company raised its 2026 revenue outlook, citing continued turnaround progress. Bloomberg article
• Positive Sentiment: The shift toward an asset-light model is reducing investment needs: franchisees accounted for 42% of systemwide sales in Q3, and year-to-date capital spending fell 65% to $28.6 million. These changes could support cash flow and profitability if the strategy continues to gain traction. The Motley Fool article
• Neutral Sentiment: Traders bought 4,003 DNUT put options, about 23% above the average daily volume. This may reflect increased hedging or bearish positioning, but options volume alone does not establish traders’ outlook.
• Negative Sentiment: Despite the earnings beat, revenue declined 12.4% year over year and the company continues to report a net loss. The stock’s pullback may also reflect profit-taking after its strong initial reaction to the results.

About Krispy Kreme

Krispy Kreme, Inc is a global doughnut and coffee company best known for its Original Glazed doughnuts. The company sells doughnuts, packaged sweets, coffee and other beverages through Krispy Kreme shops, in-store retail displays and digital ordering channels.

Krispy Kreme operates a hub-and-spoke distribution model that combines doughnut-making hubs and shops with delivery to grocery stores, convenience stores and other retail locations. Its products are also distributed through partnerships and branded locations, allowing the company to expand its reach beyond traditional Krispy Kreme shops.

Founded in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme has grown into an international brand serving customers in the United States and various markets across North America, Europe, Asia and Oceania.