Krispy Kreme Reports Third Quarter 2025 Financial Results Demonstrating Progress on Turnaround

Advancing initiatives to deleverage the balance sheet and drive sustainable, profitable growth

Krispy Kreme, Inc. (NASDAQ: DNUT) (“Krispy Kreme”, “KKI”, or the “Company”) today reported financial results for the quarter ended September 28, 2025.

Third Quarter Highlights (vs Q3 2024)

• Net revenue of $375.3 million
• Organic revenue increased 0.6%
• GAAP net loss of $20.1 million
• Adjusted EBITDA of $40.6 million
• Cash provided by operating activities of $42.3 million, free cash flow of $15.5 million
• Global Points of Access (“POA”) decreased 960, or 6.1%, to 14,851 reflecting the strategic closure of unprofitable POA

“The third quarter marked a significant pivot as we implemented our comprehensive turnaround plan focused on Krispy Kreme’s two biggest opportunities: profitable U.S. expansion and capital-light international franchise growth. Early results showed progress over the second quarter with reduced leverage, positive free cash flow, and substantially higher adjusted EBITDA. I am particularly pleased by the ongoing optimization and profitable expansion of our U.S. fresh delivery model, productivity improvements, and the removal of costs related to our now-ended McDonald's USA partnership.”

“Looking ahead to the remainder of 2025 and beyond, we expect further improvement in adjusted EBITDA and positive free cash flow. We also anticipate progress on our refranchising agenda and continued profitable expansion with key customers in the U.S., all while reducing capital spending and paying down debt,” said Krispy Kreme CEO Josh Charlesworth.

Turnaround Plan

The Company’s comprehensive turnaround plan is designed to deleverage the balance sheet and deliver sustainable, profitable growth through a focus on the following four components:

1. Refranchising: Improve financial flexibility through refranchising international markets and restructuring the joint venture in the Western U.S.
2. Improving Return on Invested Capital: Reduce capital intensity by using existing assets and focusing on franchise development
3. Expanding Margins: Expand margins through greater operational efficiency, including outsourcing U.S. logistics
4. Driving Sustainable, Profitable Growth: Pursue U.S. growth based upon sustainable and profitable revenue streams

Third Quarter 2025 Consolidated Results (vs Q3 2024 unless otherwise stated)

Krispy Kreme’s results reflect early progress in improving U.S. profitability and wider adoption of the capital-light international franchise model. Net revenue was $375.3 million in the third quarter of 2025, a decline of approximately 1.2% or $4.6 million, primarily due to the 2024 sale of a majority stake in Insomnia Cookies Holdings, LLC (“Insomnia Cookies”), which produced $10 million in net revenue in the third quarter of 2024. The Company sold its remaining ownership stake in Insomnia Cookies during the second quarter of 2025.

Organic revenue increased by $2.2 million, or approximately 0.6%, primarily driven by growth in the International segment. The organic revenue increase reflects a Global Points of Access decline of 960, or 6.1%, impacted by the strategic closure of underperforming doors.

GAAP net loss was $20.1 million, compared to the prior year net income of $37.6 million, which included a one-time, pre-tax $87.1 million gain in July 2024 related to the sale of a majority stake in Insomnia Cookies. GAAP diluted loss per share was $0.11, compared to earnings of $0.23 in the same quarter last year.

Adjusted EBITDA increased 17% to $40.6 million, more than double that of the second quarter of 2025. Adjusted EBITDA margin increased to 10.8% from 9.1% positively impacted by productivity initiatives, SG&A savings, and the removal of costs from the now-ended McDonald’s USA partnership, combined with business interruption insurance recoveries of $9.3 million related to the losses incurred in the fourth quarter of 2024 and the first quarter of 2025 due to the Company’s 2024 cybersecurity incident. Adjusted net income, diluted, was $1.4 million for the quarter, up $3.9 million compared to prior year, and adjusted diluted earnings per share were $0.01.

As previously disclosed, in the third quarter of 2025, Krispy Kreme and McDonald’s USA jointly decided to terminate their Business Relationship Agreement, effective July 2, 2025. As demonstrated by the Company’s profitability, which increased significantly from the second quarter of 2025, Krispy Kreme immediately began removing costs related to this partnership and is focused on growing fresh delivery with profitable, high-volume retail points of distribution.

Third Quarter 2025 Segment Results (vs Q3 2024 unless otherwise stated)

U.S.: In the U.S. segment, net revenue declined by $12.2 million to $216.2 million, or approximately 5.3%, primarily due to the 2024 sale of a majority stake in Insomnia Cookies, which produced $10 million in net revenue in the third quarter of 2024. Strategic door closures and lower retail transactions led to an organic revenue decline of $4.7 million, or approximately 2.2%. Sequentially, average revenue per door per week (“APD”) increased 18% to $617, primarily driven by the exit of lower volume, unprofitable doors.

U.S. Adjusted EBITDA increased by $7.1 million to $21 million, or 50.9%, significantly aided by the timing of cybersecurity-related insurance recoveries of $9.3 million. Excluding cybersecurity insurance recoveries and the Insomnia Cookies sale, U.S. Adjusted EBITDA decreased by $1.4 million compared to the third quarter of 2024 and increased $1.8 million compared to the second quarter of 2025. The sequential improvement in Adjusted EBITDA was despite lagging costs related to the now-ended McDonald’s USA partnership early in the third quarter of 2025, demonstrating meaningful improvement resulting from the turnaround plan initiatives.

International: In the International segment, net revenue grew by $9.5 million, or approximately 7.3%, with a foreign currency translation benefit of $1.2 million. International organic revenue grew by $8.1 million to $138.8 million, or approximately 6.2%, driven primarily by continued momentum in Canada, Japan, and Mexico and recovery in the UK. Points of Access declined by 10.2% due to strategic door closures in Japan and Mexico to optimize the Company’s delivered fresh network.

International segment Adjusted EBITDA increased by $0.4 million, or 1.7%, to $23.2 million driven by revenue growth in Japan and Mexico. The margin decline of 90 basis points to 16.5% was due to the ongoing turnaround in the UK where there was strong sequential Adjusted EBITDA growth improvement as the new UK leadership team makes continued progress.

Market Development: In the Market Development segment, net revenue declined by $1.9 million to $18.9 million, or approximately 9.2%, reflecting the $0.9 million impact of franchise acquisitions in fiscal 2024. Market Development organic revenue declined by approximately 5.3%, as growth in royalty revenue from international markets including Brazil, South Korea, and the Middle East was more than offset by lower product sales and limited equipment sales in the quarter. Market Development Adjusted EBITDA increased by $0.7 million, or 6.4% to $12 million with a margin of 63.5%, up 930 basis points, mainly due to changes in revenue mix.

Balance Sheet and Capital Expenditures

On a year-to-date basis, the Company invested $80.8 million, or 7.2% of net revenue, in capital expenditures, primarily in the U.S. to support previously committed initiatives aimed at bringing doughnuts closer to consumers through nationwide expansion. This includes a Hot Light Theater Shop and production hub in Minneapolis, MN that will open this month. Overall, the Company has reduced investment in building new hubs in favor of leveraging existing excess capacity for growth where available.

As of September 28, 2025, the Company has total available liquidity of $215.2 million, which includes $30.7 million of cash and cash equivalents as well as undrawn committed capacity of $184.5 million under its credit facilities. The Company was in compliance with all financial covenants as of September 28, 2025.

Refranchising

The Company is making progress toward signing refranchising agreements for certain international markets. It also plans to restructure its well-established joint venture in the Western U.S. with WKS Restaurant Group (“WKS”), which today represents approximately 15% of U.S. revenues. The Company expects to reduce its ownership stake to a minority position by 2026.

These efforts are expected to provide the Company with greater financial flexibility and enable debt paydown.

Definitions

The following definitions apply to terms used throughout this press release:

• Global Points of Access: Reflects all locations at which fresh doughnuts can be purchased. We define Global Points of Access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, Delivered Fresh Daily (“DFD”) Doors (which includes DFD branded cabinets and merchandising units within high traffic grocery and convenience stores, quick service or fast casual restaurants (“QSR”), club memberships, and drug stores) and Cookie Bakeries (through the date of the Insomnia Cookies deconsolidation), and other points at which fresh doughnuts can be purchased at both Company-owned and franchise locations as of the end of the applicable reporting period. We monitor Global Points of Access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type.
• Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any point of access. We define Hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the applicable reporting period.
• Hubs with Spokes: Reflects Hubs currently producing product for other Fresh Shops, Carts and Food Trucks, or DFD Doors, and excludes Hubs not currently producing product for other shops, Carts and Food Trucks, or DFD Doors.
• Sales Per Hub: Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes at the end of each of the five most recent quarters.
• Fresh Revenues from Hubs with Spokes: Fresh Revenues is a measure focused on the Krispy Kreme doughnut business and includes product sales generated from our Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors, and digital channels and excludes sales from Cookie Bakeries and Branded Sweet Treats (through the date of the Insomnia cookies deconsolidation and Branded Sweet Treats exit, respectively). Fresh Revenues from Hubs with Spokes equals the Fresh Revenues derived from Hubs with Spokes.
• Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment.

Conference Call

Krispy Kreme will host a public conference call and webcast at 8:30 AM Eastern Time today to discuss its results for the third quarter of 2025. A slide presentation will be available prior to the start time on the investor relations section of the Company’s website at investors.krispykreme.com.

To register for the conference call, please use this LINK. After registering, confirmation will be sent through email, including dial-in details and unique conference call codes for entry. To listen to the live webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay of the webcast will be available on the website within 24 hours after the call. This earnings press release and related materials will also be available on the investor relations section of the Company’s website.

About Krispy Kreme

Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in more than 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme and www.X.com/KrispyKreme.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as “plan,” “believe,” “may,” “continue,” “guidance,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive,” “look forward,” or, in each case, the negatives of these words, comparable terminology, or similar references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included in this press release. We consider the assumptions and estimates on which our forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross-contamination; impacts from our 2024 cybersecurity incident or any other material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents; any harm to our reputation or brand image; negative impacts on our business due to changes in consumer spending habits, consumer preferences, or demographic trends; changes in the cost of raw materials and other commodities, including due to import and export requirements (including tariffs), inflation, or foreign exchange rates; our ability to execute on our omni-channel business strategy; our significant indebtedness and our ability to meet the financial and other covenants under our credit facilities; regulatory investigations, enforcement actions, or material litigation; and other risks and uncertainties described under the heading “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 29, 2024, filed by us with the Securities and Exchange Commission (the “SEC”) and in other filings we make from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law.

Non-GAAP Measures

This press release includes certain financial information that is not presented in conformity with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures include organic revenue growth/(decline), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted Net (Loss)/Income, Diluted, Adjusted EPS, Free Cash Flow, Net Debt, Fresh Revenue from Hubs with Spokes and Sales per Hub. These non-GAAP financial measures are not standardized, and it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance under GAAP or a substitute for results reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC and not to rely on any single financial measure.

See “Reconciliation of Non-GAAP Financial Measures” below for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

Krispy Kreme, Inc.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

(in thousands, except per share amounts)

We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBITDA is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. “Adjusted EBITDA margin” reflects Adjusted EBITDA as a percentage of net revenues.

We define “Adjusted EBIT” as earnings before interest expense, net and income tax expense, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBIT is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods.

We define “Adjusted Net Income/(Loss), Diluted” as net (loss)/income attributable to common shareholders, adjusted for share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent, or non-core income and expense items. “Adjusted EPS” is Adjusted Net Income/(Loss), Diluted converted to a per share amount.

Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income/(Loss), Diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP measures supplementally.

Organic revenue (decline)/growth measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define “organic revenue (decline)/growth” as the (decline)/growth in revenues, excluding (i) acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs, (iv) the impact of the divestiture of a controlling interest in Insomnia Cookies, (v) the impact of the divestiture of shops through refranchising, and (vi) revenues generated during the 53^rd week for those fiscal years that have a 53^rd week based on our fiscal calendar.

Fresh Revenues from Hubs with Spokes and Sales per Hub are defined above.