Krispy Kreme shares surge 12.20% premarket as Q3 adjusted EBITDA jumps 17% to $40.6M, driven by profitable U.S. expansion, franchise optimization, and cost-cutting.

Krispy Kreme surged 12.20% in premarket trading following its Q3 2025 earnings report, which highlighted a 17% rise in adjusted EBITDA to $40.6 million, positive free cash flow of $15.5 million, and strategic closures of 960 underperforming global points of access. The company attributed the improvement to cost-cutting measures, including exiting the McDonald’s partnership, outsourcing 54% of U.S. logistics, and focusing on high-traffic retail partners like Walmart and Costco. CEO Josh Charlesworth emphasized progress in deleveraging the balance sheet and optimizing profitability through refranchising and operational efficiency. Strong cash flow generation and early turnaround results, including a 6.1% sequential increase in adjusted EBITDA margin, drove investor optimism amid a broader shift toward capital-light international growth and U.S. expansion.