Krispy Kreme shares surge 10.88% premarket as adjusted EBITDA jumps 17% to $40.6M and turnaround plan shows progress.

Krispy Kreme surged 10.88% in premarket trading following its Q3 2025 earnings report, which highlighted a 17% increase in adjusted EBITDA to $40.6 million, driven by productivity initiatives, SG&A savings, and cost removal from the terminated McDonald’s USA partnership. The company reported positive free cash flow of $15.5 million, reduced leverage, and organic revenue growth of 0.6% despite a 1.2% net revenue decline due to the 2024 sale of Insomnia Cookies. Strategic closures of 960 unprofitable global points of access and a focus on profitable U.S. expansion and international franchising underscored its turnaround plan. CEO Josh Charlesworth emphasized progress in deleveraging and margin expansion, with adjusted EBITDA margins rising to 10.8%. The stock’s sharp rise reflects optimism over improved operational efficiency, cost-cutting measures, and a path toward sustainable growth, despite a GAAP net loss of $20.1 million.