| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 367.03 | 2.2% |
| Total Income | 367.03 | 2.2% |
| Expenditure | 370.66 | 6.3% |
| PBT | -19.09 | 47.1% |
| Net Profit | -22.78 | 31.6% |
| OPM | -0.99% | 4.41pp |
| NPM | -6.21% | 2.66pp |
| EPS | -0.16 | 20.0% |
Krispy Kreme Reports Q1 2026: Adjusted EBITDA Up 38.0%
07 May 2026 · 7 May, 4:22 pm
Summary
Krispy Kreme reported a net revenue of $367.0 million for Q1 2026, a 2.2% decrease compared to the prior year. However, adjusted EBITDA increased significantly by 38.0% to $33.1 million, with the adjusted EBITDA margin improving to 9.0%. The company's GAAP net loss also improved to $22.7 million. Management is issuing guidance for net revenue and adjusted EBITDA for the full year, updating the net leverage reduction target, and reaffirming the outlook for systemwide sales growth.
Key Highlights
- 1
Krispy Kreme's net revenue was $367.0 million, a decrease of 2.2% compared to the first quarter of 2025.
- 2
Systemwide sales increased 0.7% in constant currency, excluding sales attributable to the McDonald’s USA partnership.
- 3
The company's GAAP net loss improved by $10.7 million to $22.7 million.
- 4
Adjusted EBITDA increased by 38.0% to $33.1 million.
- 5
Cash provided by operating activities increased by $41.0 million to $20.2 million, and free cash flow increased by $58.1 million to $11.4 million.
- 6
U.S. adjusted EBITDA increased by 60.6% to $25.5 million, with adjusted EBITDA margin increasing 480 basis points year-over-year to 11.5%.
Management Comments
Josh Charlesworth
“The first quarter highlighted significant progress across every pillar of our turnaround plan. We reduced net leverage, increased adjusted EBITDA margin by 260 basis points, and delivered positive free cash flow. We also closed two refranchising transactions, expanded access to our fresh doughnuts in the U.S. quarter-over-quarter, and accelerated the outsourcing of U.S. logistics, which is now complete. Strong consumer demand during recent holidays such as Valentine’s Day and St. Patrick’s Day also demonstrated that we remain a top choice for gifting, sharing, and celebrating.” “We expect this momentum to continue through 2026, driven by profitable growth in the U.S. with key strategic partners, higher digital sales, and international expansion. For the full year, we are issuing guidance for net revenue and adjusted EBITDA, updating our net leverage reduction target, and reaffirming our outlook for systemwide sales growth.”
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