Overview

• Krispy Kreme Q3 2025 revenue slightly misses analyst expectations, declining 1.2% yr/yr

• Adjusted EPS for Q3 2025 beats consensus, reflecting effective cost management

• Adjusted EBITDA rises 17% yr/yr, driven by productivity and cost-saving initiatives

Outlook

• Company expects further improvement in adjusted EBITDA and positive free cash flow

• Krispy Kreme plans to reduce capital spending and pay down debt

• Company anticipates progress on refranchising agenda and profitable U.S. expansion

Result Drivers

• TURNAROUND PLAN - Krispy Kreme's turnaround plan focused on U.S. expansion and international franchise growth, improving adjusted EBITDA and free cash flow

• COST MANAGEMENT - Termination of McDonald's USA partnership helped reduce costs and improve profitability

• STRATEGIC CLOSURES - Closure of unprofitable Points of Access contributed to a decline in global access points but optimized operations

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy."

• Wall Street's median 12-month price target for Krispy Kreme Inc is $3.75, about 0.5% below its November 5 closing price of $3.77

Press Release: ID:nBw9ysSpa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)