Overview
- Krispy Kreme reported improved adjusted EBITDA margin and turned free cash flow positive in the latest quarter.
- Management closed 960 underperforming points of access to prioritize profitability over footprint expansion.
- The company’s asset-heavy, company-owned model remains a core obstacle to high returns on invested capital.
- Plans to refranchise stores and outsource logistics aim to reduce capital intensity but carry significant execution risk.
- Analysts caution that aggressive cuts could reduce brand visibility and that shifting consumer preferences may limit long‑term demand.