Krispy Kreme Q2 Revenue Beats by 9%, Turnaround Gains Traction
DNUT is trading near its 52-week low of $2.88 (10% above the low).
Summary
Krispy Kreme reported Q2 revenue of $331M, beating estimates by 9%, with Adjusted EBITDA up 43% and full-year guidance maintained. The turnaround plan is delivering margin expansion and debt reduction.
Key Events · Earnings and Guidance · DNUT
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Revenue Beat
Q2 net revenue of $331.0M exceeded the $303M consensus, despite a 12.8% decline from refranchising and McDonald's exit.
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Profitability Surge
Adjusted EBITDA rose 43.2% to $28.8M; U.S. segment Adjusted EBITDA margin expanded 370 bps to 8.0%.
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Guidance Maintained
Full-year 2026 guidance reiterated: revenue $1.25B-$1.35B, Adjusted EBITDA $140M-$150M, free cash flow >$15M.
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Balance Sheet Improvement
Net leverage ratio reduced to 5.4x from 6.7x at year-end 2025; liquidity of $263.9M.
Analysis · DNUT · Trade & Services
Krispy Kreme's Q2 results show the turnaround plan is working. Revenue of $331 million beat the $303 million consensus despite a 13% decline from refranchising and McDonald's exit. Adjusted EBITDA jumped 43% to $28.8 million, with U.S. margins expanding 370 basis points. The company maintained full-year guidance, signaling confidence in the recovery. Net leverage fell to 5.4x from 6.7x, and free cash flow improved by $101 million year-over-year. The stock trades at $3.17, near its lows, but these results suggest the worst may be over.
At the time of this filing, DNUT was trading at $3.17 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $534.4M. The 52-week trading range was $2.88 to $5.11. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.