KRISPY KREME INC (NASDAQ:DNUT) Q2 2025 Earnings: Revenue and EPS Miss Estimates Amid Turnaround Efforts

Krispy Kreme Inc (NASDAQ:DNUT) Reports Q2 2025 Earnings: Misses Revenue and EPS Estimates Amid Turnaround Plan

Krispy Kreme Inc. released its second-quarter 2025 financial results, revealing a mixed performance as the company navigates a strategic turnaround. The doughnut chain reported revenue of $379.8 million, falling short of analyst expectations of $385.7 million. Adjusted earnings per share (EPS) came in at -$0.15, significantly below the estimated -$0.0331, reflecting ongoing operational challenges.

Key Financial Highlights vs. Estimates

• Revenue Miss: Reported $379.8M vs. $385.7M expected (-1.5% variance).
• EPS Underperformance: Adjusted EPS of -$0.15 vs. -$0.0331 estimated.
• GAAP Net Loss: $441.1M, including $406.9M in non-cash impairment charges.
• Adjusted EBITDA: $20.1M, down sharply from $54.7M in Q2 2024.

The company attributed the weaker results to the termination of its McDonald’s USA partnership, which contributed to a 13.5% decline in net revenue year-over-year. Organic revenue also dipped 0.8%, driven by reduced discounting and softer consumer demand.

Market Reaction

Following the earnings release, DNUT shares showed modest pre-market gains of ~0.29%, suggesting cautious optimism about the company’s restructuring efforts. However, the stock has declined 10% over the past week and 20.8% in the last two weeks, reflecting broader investor skepticism ahead of the earnings report.

Turnaround Plan and Strategic Shifts

Krispy Kreme outlined a four-part turnaround strategy aimed at improving profitability and reducing leverage:

1. Refranchising: Exiting underperforming markets (Australia, New Zealand, Japan, Mexico, U.K.).
2. Capital Efficiency: Reducing capital intensity by leveraging existing assets.
3. Margin Expansion: Outsourcing U.S. logistics and improving operational efficiency.
4. Sustainable U.S. Growth: Focusing on high-margin delivery and retail expansion.

The company also announced the sale of its remaining stake in Insomnia Cookies for $75M, with proceeds used to pay down debt.

Outlook vs. Analyst Estimates

While management did not provide explicit forward guidance, analysts currently project:

• Q3 2025 Revenue: $385.2M (vs. $385.2M consensus).
• Full-Year 2025 Revenue: $1.567B.
• Full-Year 2025 EPS: -$0.091.

The lack of a formal outlook suggests continued uncertainty, though cost-cutting measures and refranchising could stabilize margins in the coming quarters.

Conclusion

Krispy Kreme’s Q2 results reflect the challenges of its restructuring efforts, with revenue and earnings missing expectations. The market’s muted reaction indicates a wait-and-see approach as the company executes its turnaround plan.

For more detailed earnings estimates and historical performance, visit Krispy Kreme’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.