Krispy Kreme (DNUT) Stock Jumps 17% as Company Beats Q4 Earnings Estimates

TLDR

• DNUT jumped 17.1% premarket after Q4 adjusted EPS of $0.09 beat estimates of $0.03 by $0.06
• Q4 revenue came in at $392.4 million, slightly above the $389.47 million consensus
• Adjusted EBITDA rose 21% to $55.6 million, with margin expanding 280 basis points to 14.2%
• The company is closing underperforming locations, cutting Global Points of Access by 13.5% to 15,194
• For 2026, DNUT targets systemwide sales growth of 2–4% and expects positive free cash flow

Krispy Kreme (DNUT) jumped 17.1% in premarket trading on Thursday after posting fourth quarter results that beat analyst expectations on both earnings and revenue.

The company reported adjusted EPS of $0.09 for Q4, well above the $0.03 consensus estimate. Revenue came in at $392.4 million, edging past the $389.47 million Wall Street expected.

That’s a solid beat, and the market wasted no time responding.

Krispy Kreme, Inc., DNUT

Q4 net revenue was down 2.9% from $404 million in the same quarter a year ago. The decline was intentional — DNUT has been closing underperforming locations as part of its broader turnaround.

Global Points of Access fell 13.5% to 15,194, down 2,363 from the prior year. That’s a big drop, but the company is trading volume for profitability.

It seems to be working. Adjusted EBITDA climbed 21% year-over-year to $55.6 million, and the adjusted EBITDA margin expanded 280 basis points to 14.2%.

Margin Gains Stand Out

The margin improvement was driven by productivity initiatives, SG&A savings, the removal of costs tied to the now-ended McDonald’s USA partnership, and $4.8 million in business interruption insurance recoveries related to a 2024 cybersecurity incident.

In the U.S. segment, average revenue per door per week rose 4.5% year-over-year to $660, as the exit of lower-volume locations lifted the average. U.S. Adjusted EBITDA increased $9.2 million to $32.8 million.

On the GAAP side, the picture is rougher. The company posted a net loss of $29.1 million, or $0.17 per share, compared to a net loss of $22.2 million, or $0.13 per share, in Q4 2024.

For the full year 2025, DNUT reported net revenue of $1.52 billion, down 8.6% from $1.67 billion. The full-year GAAP net loss was $523.8 million, compared to net income of $3.8 million in 2024. The large loss was tied in part to the sale of a majority stake in Insomnia Cookies and the termination of the McDonald’s partnership.

Full-year adjusted EBITDA fell 27.5% to $140.3 million.

What’s Ahead for 2026

Looking at the year ahead, Krispy Kreme expects systemwide sales to grow 2% to 4% in constant currency from the 2025 base of $1.96 billion.

The company plans to open at least 100 new shops globally and is targeting capital expenditures of $50 million to $60 million. It also expects positive free cash flow and a net leverage ratio at or below 5.5x.

DNUT announced a refranchising deal for its Japan operations, expected to close in Q1 2026 with cash proceeds of around $65 million. The company also plans to restructure its Western U.S. joint venture with WKS Restaurant Group.

Digital sales as a percentage of retail sales rose to 18.2% in 2025, up from 14.4% in 2024 — a 380 basis point increase.

The Japan refranchising deal is expected to close in the first quarter of 2026.

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