Krispy Kreme (NASDAQ:DNUT) Posts Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Key Points

• Krispy Kreme reported quarterly EPS of -$0.05, missing analyst expectations by $0.02, while revenue came in at $367.0 million, above estimates but down 2.2% year over year.
• Management said its turnaround is gaining traction, with Adjusted EBITDA up 38% to $33.1 million, the first positive Q1 free cash flow since the IPO, and net leverage improving to 5.5x.
• The company outlined 2026 guidance calling for revenue of $1.25 billion to $1.35 billion, Adjusted EBITDA of $140 million to $150 million, and more than 100 shop openings, most of them franchised, as it pushes toward a more capital-light model.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) released its earnings results on Thursday. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.02), Briefing.com reports. Krispy Kreme had a negative net margin of 33.36% and a negative return on equity of 4.25%. The business had revenue of $367.03 million for the quarter, compared to analysts' expectations of $359.42 million. During the same quarter in the previous year, the business posted ($0.05) earnings per share. Krispy Kreme's revenue for the quarter was down 2.2% on a year-over-year basis.

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

• Krispy Kreme accelerated refranchising, completing deals in Japan with Unison Capital and reducing its Western U.S. JV stake to 20%, raising the expected franchise portion of system-wide sales from ~25% to 42% and targeting 50% in 2027, which reduced net debt and supports capital-light growth.
• Financial performance improved meaningfully — first-quarter Adjusted EBITDA $33.1M (+38% YoY), first positive Q1 free cash flow since the IPO, net leverage down to 5.5x, bank leverage below 4x, and liquidity above $300M.
• Full-year 2026 guidance was provided: net revenue of $1.25B–$1.35B, Adjusted EBITDA $140M–$150M, system-wide sales growth of 2%–4% to over $2B, capex of $50M–$60M, >100 shop openings (mostly franchised), and >$15M positive free cash flow.
• U.S. operations show higher profitability and efficiency — outsourced logistics, average weekly sales per door up to $685 (+16.7% YoY) and U.S. Adjusted EBITDA +61% — but organic U.S. revenue declined ~4% due to strategic closures and the exit from the McDonald’s partnership.

Krispy Kreme Stock Down 1.1%

NASDAQ DNUT traded down $0.04 during mid-day trading on Friday, reaching $3.60. The stock had a trading volume of 2,829,087 shares, compared to its average volume of 2,331,207. Krispy Kreme has a 1 year low of $2.50 and a 1 year high of $5.73. The stock has a market cap of $620.57 million, a PE ratio of -1.20 and a beta of 1.32. The company has a fifty day moving average price of $3.53 and a 200 day moving average price of $3.72. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.38 and a quick ratio of 0.32.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the stock. Wall Street Zen lowered shares of Krispy Kreme from a "hold" rating to a "sell" rating in a report on Saturday. Zacks Research upgraded shares of Krispy Kreme from a "hold" rating to a "strong-buy" rating in a report on Friday, March 27th. Morgan Stanley reiterated an "underweight" rating and set a $3.00 target price on shares of Krispy Kreme in a report on Tuesday, January 20th. Capital One Financial upgraded shares of Krispy Kreme from an "equal weight" rating to an "overweight" rating and set a $6.00 target price for the company in a report on Thursday, March 26th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Krispy Kreme in a report on Friday, March 27th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $4.63.

Key Headlines Impacting Krispy Kreme

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

• Positive Sentiment: Krispy Kreme reported a 38% jump in adjusted EBITDA, indicating its turnaround efforts are improving margins and profitability. Krispy Kreme 1Q Adjusted EBITDA Jumps 38% Amid Turnaround
• Positive Sentiment: The company said it expects 2026 system-wide sales to rise 2% to 4% to more than $2 billion and guided to $140 million to $150 million in adjusted EBITDA, signaling confidence in the recovery. Krispy Kreme projects 2026 system-wide sales up 2% to 4% to over $2B while targeting $140M to $150M in adjusted EBITDA
• Positive Sentiment: Management highlighted “significant progress” on the turnaround, with narrowing losses and expanding margins suggesting the business is becoming more efficient. Krispy Kreme Narrows Loss, Sees Growth Returning as Turnaround Advances
• Neutral Sentiment: The company also leaned into seasonal marketing, bringing back Mother's Day-themed mini and special-flavor doughnuts, which may help near-term sales but is not a major financial catalyst. Krispy Kreme releases special flavors for Mother's Day
• Negative Sentiment: Q1 EPS came in at a loss of $0.05 per share, wider than the $0.03 loss analysts expected, showing profitability remains under pressure. Krispy Kreme (DNUT) shares rise despite quarterly earnings and revenue miss
• Negative Sentiment: Revenue fell 2.2% year over year to $367 million, and the company guided 2026 revenue below Wall Street’s expectation, which could limit upside if growth does not accelerate. Krispy Kreme Reports First Quarter 2026 Financial Results Demonstrating Significant Progress on Turnaround

Hedge Funds Weigh In On Krispy Kreme

Hedge funds have recently added to or reduced their stakes in the company. ExodusPoint Capital Management LP purchased a new position in Krispy Kreme in the 4th quarter worth approximately $69,000. Banco BTG Pactual S.A. purchased a new position in Krispy Kreme in the 4th quarter worth approximately $98,000. PharVision Advisers LLC purchased a new position in Krispy Kreme in the 3rd quarter worth approximately $62,000. Quantessence Capital LLC purchased a new position in Krispy Kreme in the 3rd quarter worth approximately $66,000. Finally, Jain Global LLC purchased a new position in Krispy Kreme in the 3rd quarter worth approximately $49,000. 81.72% of the stock is currently owned by hedge funds and other institutional investors.

About Krispy Kreme

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.

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