Overview
- Krispy Kreme reported a GAAP net loss of $19.4 million, or 11 cents per share, with adjusted earnings of 1 cent per share versus Zacks’ projected 6-cent loss.
- Revenue came in at $375.3 million, topping Zacks’ $374 million estimate but trailing broader Street expectations near $378.7 million, with sales down 1.2% year over year.
- The stock jumped as much as 19.4% in morning trading before gains moderated to mid-single digits by early afternoon.
- Management highlighted a turnaround plan that includes closing underperforming locations, eliminating costs tied to the ended McDonald’s USA partnership, and prioritizing capital-light international franchising.
- Organic revenue rose 0.6% as Points of Access fell 6.1% on closures; U.S. revenue declined 5.3% to $216.2 million, operating loss narrowed to $7.2 million, adjusted EBITDA increased 17% to $40.6 million, and the company guided to further EBITDA improvement and positive free cash flow.