Krispy Kreme
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Krispy Kreme (DNUT) investor relations material

Krispy Kreme Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary26 Feb, 2026

Executive summary

  • Achieved significant progress on the turnaround plan, focusing on deleveraging, refranchising, and capital-light expansion, despite a modest revenue decline from strategic exits and underperforming U.S. store closures.

  • Adjusted EBITDA rose 21% year-over-year to $55.6 million in Q4 2025, with margin up 280 basis points to 14.2%, driven by productivity gains, SG&A savings, and insurance recoveries.

  • Ended 2025 with positive momentum from U.S. growth, higher digital sales, and international expansion, while system-wide sales reached $2 billion with 75% from company-operated locations.

  • Full-year net loss was $523.8 million, impacted by a $355.9 million goodwill impairment and restructuring costs.

  • Turnaround plan emphasizes refranchising, margin expansion, and sustainable, profitable growth.

Financial highlights

  • Q4 2025 net revenue was $392.4 million, down 2.9% year-over-year; organic revenue declined 3.9%.

  • Q4 adjusted EBITDA was $55.6 million, up 21% year-over-year; adjusted net income was $15.0 million (EPS $0.09).

  • Q4 free cash flow was $27.9 million; full-year free cash flow was -$64.0 million.

  • Ended 2025 with $207 million in excess liquidity and full compliance with bank covenants.

  • Full-year adjusted EBITDA was $140.3 million, down 27.5% year-over-year.

Outlook and guidance

  • 2026 guidance: system-wide sales up 2%-4% from $1.96 billion, at least 100 new shops globally, CapEx of $50-$60 million, positive free cash flow, and net leverage ratio at or below 5.5x.

  • Refranchising expected to shift nearly 50% of system-wide sales to franchisees by 2027.

  • Continued focus on deleveraging and expanding the capital-light business model.

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Frequently asked questions

Krispy Kreme Doughnuts, known for its distinctive taste and high-quality ingredients, offers a wide variety of doughnuts, including traditional glazed varieties and non-traditional offerings such as the original Glazed Holes and chocolate covered options. In addition to offering coffee, hot tea and other beverages, Krispy Kreme also sells packaged doughnuts that can be baked at home.

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