DNUT · Krispy Kreme, Inc.

Krispy Kreme's Q1 2026 results demonstrate meaningful progress on its turnaround plan announced in August 2025, with Adjusted EBITDA surging 38% to $33.1 million and margin expanding 260 basis points to 9.0%, driven by productivity initiatives, SG&A savings, and removal of McDonald’s USA partnership costs following its Q3 2025 end. Net revenue declined 2.2% to $367.0 million due to strategic closures of 2,857 global points of access (15.9% drop), including ~2,400 McDonald’s doors, but systemwide sales grew 0.7% in constant currency excluding that impact. U.S. segment showed robust improvement with revenue down 6.3% but Adjusted EBITDA up 60.6% to $25.5 million (margin +480 bps to 11.5%), fueled by 16.7% higher APD to $685 from higher-volume strategic partner doors and exit of unprofitable locations; added 276 U.S. doors in Q1 atop 200 in Q4 2025. International revenue rose 4.7% to $125.3 million (organic +0.4%), though Adjusted EBITDA dipped 2.9% post-Japan refranchising. Key milestones include completing Japan refranchising (March 2026, $70M cash for debt paydown) and Western U.S. JV reduction to 20% stake ($90M total, $53M cash at March 23 closing), cutting net leverage 1.2x to 5.5x. Capex fell 66% to $8.8 million, enabling positive free cash flow of $11.4 million (up $58.1M YoY). CEO Josh Charlesworth highlighted holiday demand strength and momentum from U.S. partner growth, digital sales (up to 18.9%), logistics outsourcing (completed April 2026), and 26 new mostly franchised shops. FY2026 guidance signals confidence: net revenue $1.25B-$1.35B, Adjusted EBITDA $140M-$150M, systemwide sales +2-4%, at least 100 new franchised shops, FCF >$15M, net leverage <5.5x, incorporating completed refranchisings but excluding future ones.