Krispy Kreme (NASDAQ:DNUT – Get Free Report) posted its earnings results 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 net margin of 5.94% and a negative return on equity of 0.28%. The firm had revenue of $328.76 million during the quarter, compared to the consensus estimate of $311.41 million. During the same quarter last year, the firm earned $0.01 EPS. The firm’s revenue for the quarter was down 12.4% on a year-over-year basis.
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 Stock Down 9.3%
DNUT traded down $0.43 on Friday, hitting $4.17. 9,669,116 shares of the company were exchanged, compared to its average volume of 4,310,843. Krispy Kreme has a twelve month low of $2.81 and a twelve month high of $5.03. The company has a market cap of $718.91 million, a price-to-earnings ratio of -7.87 and a beta of 1.29. The company has a current ratio of 0.36, a quick ratio of 0.29 and a debt-to-equity ratio of 1.28. The firm has a 50-day moving average price of $3.14 and a two-hundred day moving average price of $3.34.
Analyst Upgrades and Downgrades
Several equities research analysts recently issued reports on DNUT shares. Weiss Ratings downgraded Krispy Kreme from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, October 16th. Wall Street Zen upgraded Krispy Kreme from a “sell” rating to a “hold” rating in a report on Saturday. Evercore set a $4.00 target price on Krispy Kreme in a research report on Friday, August 7th. Finally, Zacks Research upgraded shares of Krispy Kreme from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 27th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $4.33.
View Our Latest Stock Analysis on Krispy Kreme
More Krispy Kreme News
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.
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