CEO Josh Charlesworth highlighted growth in systemwide sales, international franchise expansion, lower leverage and improved free cash flow year over year.

  • Krispy Kreme reported revenue of $328.8 million, down 12.4% year over year but above estimates, while adjusted earnings of $0.06 beat the $0.01 estimate, according to Fiscal.ai.
  • The company raised and narrowed its 2026 net revenue guidance to $1.35 billion to $1.40 billion, from its previous range of $1.25 billion to $1.35 billion.
  • The firm opened 98 shops worldwide in the first nine months of 2026, nearly all franchised, and signed an agreement to open 33 shops across the New York metropolitan area over the next five years.

Krispy Kreme (DNUT) shares rose more than 30% on Thursday after the doughnut maker reported better-than-expected third-quarter results and raised its 2026 revenue guidance.

“We made significant progress on our turnaround in the third quarter, growing systemwide sales through international franchise expansion, reducing leverage, and improving free cash flow compared to last year,” CEO Josh Charlesworth said.

The company reported third-quarter revenue of $328.8 million, down 12.4% year-over-year but above the $311.41 million estimate. Adjusted earnings came in at $0.06 per share, beating the analyst estimates of $0.01, according to estimates compiled by Fiscal.ai. 

Revenue And Profitability

The decline in revenue was primarily driven by the previously announced refranchising of Krispy Kreme's Japan business and its western U.S. joint venture with WKS. Systemwide sales, however, increased 1% in constant currency to $490.2 million.

The company reported a GAAP net loss of $13.3 million, compared with a loss of $20.1 million in the year-ago quarter. Adjusted net income increased to $9.9 million from $1.4 million.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $35.3 million, down 13.1% from $40.6 million a year earlier. However, the prior-year period included a $9.3 million cybersecurity insurance recovery. Excluding that recovery, adjusted EBITDA increased 12.7%, while the adjusted EBITDA margin expanded 240 basis points to 10.7%.

2026 Revenue Guidance Raised

Krispy Kreme raised and narrowed its 2026 net revenue guidance to $1.35 billion to $1.40 billion, from its previous range of $1.25 billion to $1.35 billion.

The company expects systemwide sales to grow 2% to 4% year over year in constant currency and plans to open at least 100 new shops in 2026, nearly all of which are expected to be franchised.

It maintained its full-year adjusted EBITDA guidance at $140 million to $150 million but lowered its capital expenditure outlook to $40 million to $45 million, down from $50 million to $60 million. Krispy Kreme also expects free cash flow of more than $15 million.

Commenting on the revised outlook, CEO Josh Charlesworth said, “We remain focused on successfully executing our turnaround plan and as a result are confident in our decision to increase and narrow our 2026 revenue guidance range.”

Franchise Expansion And Debt Reduction

Krispy Kreme added 98 shops worldwide during the first nine months of 2026, nearly all through franchise development. It also entered an agreement to open 33 doughnut shops in the New York metropolitan area over the next five years.

After the quarter ended, the company signed a development agreement with a subsidiary of Gray Mackenzie Restaurants International to enter Pakistan and develop 120 shops over the next five years.

The company reported $18.7 million in operating cash flow for the first nine months of 2026, an improvement of $29.8 million from the year-ago period. Its net leverage ratio stood at 5.5x at the end of the third quarter, down 1.2x from the end of 2025.

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