Krispy Kreme Posts Mixed Earnings, Sharpens Debt-Reduction Goal

(Bloomberg) -- Krispy Kreme Inc. reported earnings that were broadly in line with estimates and tightened its debt reduction target, signaling its recovery plan is gaining traction.

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The Charlotte, North Carolina–based company posted adjusted earnings before interest, taxes, depreciation, and amortization of $33.1 million, just ahead of the $30.6 million analyst consensus. The net loss of $22.8 million narrowed from $33.3 million a year earlier, though missed the $10.8 million loss analysts had predicted.

Krispy Kreme now expects a net leverage ratio of less than 5.5 times in 2026 while generating positive cash flow, sharpening prior guidance.

The company has been cutting debt and boosting profitability through refranchising, including the sale of its Japan operations and a reduced stake in its Western US joint venture. It plans to refranchise one or two more international businesses this year, and fully outsourced its US logistics as part of cost-cutting efforts.

The company forecast 2026 net revenue of $1.25 billion to $1.35 billion, below analyst expectations of $1.46 billion. The company said Wall Street’s estimates don’t yet reflect recent asset sales.

“Expansion is still part of our story,” Krispy Kreme Chief Executive Officer Josh Charlesworth said in an interview in light of plans to cut its stake in several businesses.

The company plans to open at least 100 new shops this year, almost all likely to be franchised. Krispy Kreme recently entered the Netherlands. It plans to open in three to four new international markets this year.

In the US, growth is being driven by sales through third-party retailers like Walmart Inc. and Target Corp., delivery platforms and its app, Charlesworth said. Softer consumer sentiment hasn’t weighed on demand, he added.

Addressing the rise of weight-loss drugs, Charlesworth said the company is focused on offering consumers choice, including smaller portion options like mini doughnuts.

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