Krispy Kreme narrows losses amid turnaround plan

Krispy Kreme narrows losses amid turnaround plan

Thu, August 6, 2026 at 6:36 PM GMT+3 2 min read

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Krispy Kreme launched a turnaround plan a year ago after its ambitious McDonald's partnership fizzled out, leaving the chain with a heavy load of debt and without a major revenue stream.

That four-part plan includes steps to refranchise, focus on asset-light development, cut costs, and pursue long-term profitability. During Krispy Kreme's second quarter 2026 earnings call Thursday before market, CEO Josh Charlesworth said significant progress has been made.

The doughnut chain's revenue fell 12.8%, driven by those refranchising efforts and strategic closures of underperforming locations, but it narrowed its loss significantly to $20.3 million, from $435.3 million in the second quarter of 2025.

Systemwide sales were $497.3 million, an increase of 1.1% in constant currency, and 2.6% excluding sales attributable to the now-ended McDonald's partnership. Further, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased over 43% to $28.8 million. The company added that capital expenditures have decreased by 70% in the first half of the year.

"The second quarter highlighted continued significant progress on our turnaround to strengthen the balance sheet, reduce leverage, and drive sustainable, profitable growth," Charlesworth said in a statement, adding that Krispy Kreme is maintaining its previously issued guidance of systemwide sales growth of 2% to 4%.

During the quarter, the company refranchised the Japan business and signed a joint venture with franchisee WKS Restaurant Group to increase its stake to 80%.

Since Jan. 1, 59 shops have been opened around the world, nearly all of which are franchised. Krispy Kreme has also entered into agreements to debut in three additional international markets, including the Netherlands, Estonia, and Mauritius.

In April, Krispy Kreme completed the outsourcing of its U.S. delivery logistics, which contributed to margin expansion. Consolidated Adjusted EBITDA margin in the second quarter increased from 5.3% to 8.7% year-over-year, driven by a 370-basis-point increase in the U.S. segment.

Finally, Krispy Kreme increased its fresh delivery doors by 448 in the U.S., including with retail partners such as Walmart, Target, and Costco. The average revenue-per-door-per -week jumped by 33.2% year-over-year to nearly $700.

Contact Alicia Kelso at Alicia.Kelso@informa.com

Follow her on TikTok: @aliciakelso