Krispy Kreme Q2 CY2025: Revenue Beats Estimates, Non-GAAP Loss Below Consensus

Krispy Kreme reported Q2 CY2025 revenue of $379.8 million, a 13.5% YoY decline, and a non-GAAP loss of $0.15 per share, beating analyst estimates. The company's turnaround plan focuses on a franchise model and margin recovery, with management citing the exit from unprofitable partnerships and a shift towards refranchising international operations as key themes. The company expects to benefit from reducing G&A expenses and expanding profitable high-volume delivery doors.

Krispy Kreme (NASDAQ: DNUT) reported its Q2 CY2025 financial results, revealing a 13.5% year-on-year (YoY) decline in revenue to $379.8 million, while beating Wall Street's estimates by 0.6%. The company also reported a non-GAAP loss of $0.15 per share, significantly below analysts' consensus estimates. Despite the mixed results, Krispy Kreme announced a comprehensive turnaround plan aimed at reducing leverage and driving sustainable, profitable growth [1].

The company's turnaround plan focuses on two primary opportunities: profitable U.S. expansion and capital-light international franchise growth. This plan involves refranchising, improving returns on capital, expanding margins, and driving sustainable, profitable U.S. growth. Krispy Kreme CEO Josh Charlesworth highlighted the exit from unprofitable partnerships, such as the McDonald's partnership, which ended in July 2025, and the shift towards refranchising international operations as key themes [2].

The company expects to benefit from reducing general and administrative (G&A) expenses and expanding profitable high-volume delivery doors. Additionally, Krispy Kreme has outlined six specific actions for the second half of fiscal 2025, including targeting one to two international refranchising deals, restructuring joint ventures in the Western United States, and expanding with high-return, national U.S. Delivered Fresh Daily (DFD) customers [3].

While the company's financial performance remains challenging, with a $441.1 million net loss and negative cash flow, the turnaround plan provides a roadmap for potential future growth. Investors will be closely watching Krispy Kreme's ability to execute its turnaround strategy and restore profitability.

References:
[1] https://finance.yahoo.com/news/krispy-kreme-nasdaq-dnut-exceeds-182911896.html
[2] https://www.ainvest.com/news/krispy-kreme-reports-q2-2025-financial-results-announces-turnaround-plan-2508/
[3] https://investors.krispykreme.com/news/news-releases/news-details/2025/Krispy-Kreme-Reports-Second-Quarter-2025-Financial-Results-and-Announces-Turnaround-Plan/default.aspx