Krispy Kreme Reports Q2 Loss, Surpasses Revenue Estimates with $379.77 Million in Sales.

Krispy Kreme reported a Q2 loss of $0.15 per share, beating revenue estimates of $379.77 million. The company has topped consensus revenue estimates two times over the last four quarters. Its shares have lost about 65.6% since the beginning of the year. The Zacks Rank for the stock is #3 (Hold), indicating it is expected to perform in line with the market in the near future.

Krispy Kreme, Inc. (NASDAQ: DNUT), also known as Krispy Kreme, reported its financial results for the second quarter of 2025, ending June 29, 2025. The company posted a net loss of $0.15 per share, which was a significant improvement over the same period last year. This quarter, the company reported net revenue of $379.8 million, slightly exceeding analyst estimates of $379.77 million. This marks the second consecutive quarter where Krispy Kreme has topped consensus revenue estimates [1].

The company's shares have experienced a notable decline since the beginning of the year, losing approximately 65.6% of their value. Despite the losses, the Zacks Rank for the stock remains at #3 (Hold), indicating that analysts expect the stock to perform in line with the broader market in the near future [2].

Krispy Kreme's CEO, Josh Charlesworth, attributed the company's second-quarter results to the impact of unsustainable operating costs relative to unit demand in the McDonald's USA partnership, which ended on July 2, 2025. The company is now focused on growing fresh delivery through profitable, high-volume doors with major customers. Charlesworth also announced a comprehensive turnaround plan aimed at deleveraging the balance sheet and driving sustainable, profitable growth. This plan includes refranchising international markets, improving returns on capital, expanding margins, and driving profitable U.S. growth [1].

Key financial highlights for the second quarter of 2025 include a 14.3% increase in global points of access (POA) to 18,113, and a decline in organic revenue of 0.8% to $371.7 million. Adjusted EBITDA was $20.1 million, down 63.3% from the prior year's $54.7 million. The company also reported cash used for operating activities of $32.5 million [1].

Krispy Kreme's turnaround plan focuses on four main components: refranchising, driving return on invested capital, expanding margins, and driving sustainable, profitable growth. The company is also in active discussions to restructure its joint venture with the WKS Restaurant Group in the Western U.S. and has initiated the process to refranchise certain markets, including Australia, New Zealand, Japan, Mexico, and the U.K. and Ireland. These efforts are aimed at providing the company with greater financial flexibility, enabling debt paydown and focus on profitable, high return growth [1].

In conclusion, Krispy Kreme's second-quarter results reflect a significant turnaround in the company's financial performance. The company's focus on deleveraging its balance sheet and driving sustainable, profitable growth is a positive step forward. However, the company's stock has experienced a notable decline since the beginning of the year, and investors will be closely watching the company's progress in executing its turnaround plan.

References:
[1] https://investors.krispykreme.com/news/news-releases/news-details/2025/Krispy-Kreme-Reports-Second-Quarter-2025-Financial-Results-and-Announces-Turnaround-Plan/default.aspx
[2] Zacks Investment Research