Krispy Kreme Faces Revenue Decline Amid Expansion Efforts

Krispy Kreme, Inc. ( (DNUT) ) has released its Q1 earnings. Here is a breakdown of the information Krispy Kreme, Inc. presented to its investors.

Krispy Kreme, Inc., a renowned global sweet treat brand, is recognized for its iconic Original Glazed doughnuts and operates in the food and beverage industry with a significant international presence. In its first quarter of 2025, Krispy Kreme reported net revenue of $375.2 million, marking a 15.3% decline from the previous year, primarily due to the divestiture of a majority stake in Insomnia Cookies. The company also experienced a GAAP net loss of $33.4 million and an adjusted EBITDA of $24.0 million.

Key financial metrics reveal a challenging quarter for Krispy Kreme, with organic revenue decreasing by 1.0% and a significant drop in adjusted EBITDA by 58.8% compared to the same period last year. The company’s U.S. segment saw a 20.1% revenue decline, influenced by the Insomnia Cookies divestiture, while the international segment faced a 4.1% revenue drop due to foreign currency impacts. Despite these challenges, Krispy Kreme expanded its Global Points of Access by 21.4% to 17,982 locations.

Strategically, Krispy Kreme is focusing on U.S. expansion and international franchise growth. The company is taking steps to improve its financial position by paying down debt and enhancing operational efficiencies. Additionally, Krispy Kreme is reevaluating its capital allocation strategy, including the decision to halt quarterly cash dividends to prioritize debt reduction and growth investments.

Looking ahead, Krispy Kreme remains committed to its U.S. expansion and international franchise model despite macroeconomic challenges. The company has withdrawn its full-year outlook due to uncertainties but anticipates second-quarter net revenue between $370 million and $385 million, with adjusted EBITDA projected to range from $30 million to $35 million.