Earnings

Krispy Kreme Raises 2026 Revenue Outlook After Refranchising

The Tip Desk · November 11, 2026 · 4 min read

The doughnut operator lifted its 2026 net revenue range to $1.35 billion–$1.40 billion after third-quarter revenue of $328.8 million and a 5.5x net leverage ratio.

Krispy Kreme, Inc. (DNUT) raised and narrowed its 2026 net revenue outlook to $1.35 billion to $1.40 billion from $1.25 billion to $1.35 billion previously, after reporting third-quarter results that the company said reflected continued progress on its August 2025 turnaround.

Net revenue for the quarter ended September 27, 2026 was $328.8 million, down 12.4% from $375.3 million a year earlier, due primarily to refranchising the western U.S. joint venture with WKS Restaurant Group and Japan. Organic revenue declined 0.1%, reversing 0.6% growth in the year-ago quarter. Systemwide sales were $490.2 million, up 1.0% in constant currency.

GAAP net loss improved to $13.3 million from $20.1 million, and diluted loss per share improved to $0.08 from $0.11. Adjusted net income was $9.9 million, or $0.06 a share, versus $1.4 million, or $0.01 a share, a year earlier.

Adjusted EBITDA was $35.3 million. Including a $9.3 million cybersecurity insurance recovery in the year-ago quarter, that figure was down 13.1%. Excluding the recovery, Adjusted EBITDA increased $4.0 million and the margin improved 240 basis points to 10.7%, driven by a 320 basis point increase in the U.S. segment. The company said the margin decline versus 10.8% a year earlier was due primarily to lapping that recovery, mostly offset by productivity initiatives and SG&A savings.

In the U.S. segment, net revenue declined 25.6% to $160.9 million, while organic revenue increased 0.9%, driven by growth in fresh delivery and digital. U.S. Adjusted EBITDA decreased 34.0% to $13.9 million and margin declined about 110 basis points to 8.6%. Excluding the $9.3 million cyber recovery, U.S. Adjusted EBITDA increased $2.2 million and margin improved 320 basis points.

International net revenue decreased 12.0% to $123.5 million, due primarily to refranchising Japan, partially offset by foreign currency translation. Organic revenue decreased 5.4%, due primarily to declines in the U.K., partially offset by an increase in Canada. International Adjusted EBITDA decreased 13.2% to $20.1 million and margin decreased 20 basis points to 16.3%.

Market Development net revenue increased 135.3% to $44.4 million, driven primarily by the refranchisings in the first quarter of 2026. Organic revenue increased 14.0%, due primarily to growth in royalty revenues in the U.S., Middle East, Japan and Brazil. Market Development Adjusted EBITDA increased 54.0% to $18.5 million. Adjusted EBITDA margin decreased 2,190 basis points to 41.6%, driven by changes in the regional mix of increased lower-margin U.S. franchised sales associated with the refranchising transactions.

Global points of access increased 7.0% to 15,889 from 14,851, primarily from the addition of 715 net doors in the U.S. fresh delivery business. U.S. sales per hub on a trailing four-quarter basis increased 10.4% to $5.3 million from $4.8 million. International sales per hub decreased 4.1% to $9.4 million from $9.8 million. Digital sales as a percent of retail sales increased 200 basis points to 19.4% from 17.4%. Third-quarter average revenue per door per week was $606, a 1.5% decrease year over year.

During the first three quarters of 2026, the company spent $28.6 million, or 2.8% of net revenue, on capital expenditures, a 64.6% decline versus $80.8 million in the year-ago period. Net leverage was 5.5x as of September 27, 2026, a 1.2x reduction versus end of the fourth quarter of 2025. Total available liquidity was $250.5 million, including $30.3 million of cash and cash equivalents and $220.2 million of undrawn capacity under credit facilities. The company said it remains in compliance with all financial covenants.

Approximately 42% of systemwide sales were generated through franchised locations in the third quarter, versus about 25% for fiscal 2025. The company’s goal remains to reach approximately 50% of systemwide sales generated by franchisees beginning fiscal 2027. Subsequent to the third quarter end, it entered a development agreement with a subsidiary of Gray Mackenzie Restaurants International to enter Pakistan and develop 120 shops over five years, the fourth international franchise development agreement in 2026.

For the full year, the company also reduced and narrowed capital expenditures to $40 million to $45 million from $50 million to $60 million previously, and guides to systemwide sales up 2% to 4% year over year in constant currency from $1.96 billion in 2025, at least 100 shop openings nearly all expected to be franchised, Adjusted EBITDA of $140 million to $150 million, free cash flow of more than $15 million, and a net leverage ratio below 5.5x. The updated revenue guidance includes the refranchising transactions described above but does not include any additional refranchising transactions in 2026.

More on DNUT

September 28, 2026 QBook Stronger demand supports expansion as pricing diverges

Krispy Kreme, Inc. — all coverage and financials