Krispy Kreme, Inc. reported second quarter 2026 financial results for the quarter ended June 28, 2026, demonstrating continued progress on its comprehensive turnaround plan. While net revenue declined 12.8% year-over-year to $331.0 million due to refranchising efforts and strategic door closures, the company delivered a 43.2% increase in Adjusted EBITDA and a significant improvement in its GAAP net loss, maintaining its previously issued full-year guidance.

Key Q2 2026 Financial Highlights (vs Q2 2025)

The following table summarizes the key financial metrics for the quarter ended June 28, 2026, compared to the quarter ended June 29, 2025.

Systemwide sales were $497.3 million in the second quarter of 2026, increasing 1.1% in constant currency. Excluding the impact of sales from the now-ended McDonald's USA partnership, systemwide sales increased 2.6%.

CEO Commentary

"The second quarter highlighted continued significant progress on our turnaround to strengthen the balance sheet, reduce leverage, and drive sustainable, profitable growth. Demand for our fresh, iconic doughnuts across the U.S. and international markets drove systemwide sales growth of 2.6% excluding the impact of the now-ended McDonald's USA partnership," said Krispy Kreme CEO Josh Charlesworth. He further noted that results demonstrate the success of actions being taken to grow the business and improve profitability, including a significant expansion in Adjusted EBITDA margin of 340 basis points compared to last year, and that the company remains confident in achieving its 2026 financial targets.

Turnaround Plan Progress

Krispy Kreme's comprehensive turnaround plan, announced in August 2025, is designed to deleverage the balance sheet and deliver sustainable, profitable growth across four key components:

• Refranchising: Completed refranchising of Japan and the western U.S. joint venture with WKS Restaurant Group in March 2026. The company continues to pursue its goal of two to three international refranchising deals in 2026.
• Improving Return on Invested Capital: Capital expenditures decreased 70% in the first half of 2026 compared to the year-ago period. Year-to-date, 59 doughnut shops have been opened around the world, nearly all franchised. Three new international franchise market agreements were entered into year-to-date, including the Netherlands, Estonia, and Mauritius.
• Expanding Margins: 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. U.S. logistics outsourcing was completed in April 2026.
• Driving Sustainable, Profitable Growth: Fresh delivery doors increased by 448 in the U.S. with strategic partners during the first half of 2026. Average revenue per door per week (APD) in the second quarter for the U.S. increased 33.2% to approximately $697 year-over-year.

Segment Performance (Q2 2026 vs Q2 2025)

The table below presents net revenues and Adjusted EBITDA by segment for the quarter ended June 28, 2026.

U.S.: Net revenue declined 25.0% to $172.7 million, driven by refranchising efforts and strategic door closures. Organic revenue increased 0.1% year-over-year, or 4.4% excluding the impact of McDonald's USA. U.S. Adjusted EBITDA margin increased approximately 370 basis points to 8.0%.

International: Net revenue decreased 11.6% to $117.3 million, due primarily to the refranchising of Japan. Organic revenue decreased 5.1%, primarily due to declines in the U.K. and Australia, partially offset by growth in Canada. International Adjusted EBITDA margin decreased 160 basis points to 12.1%.

Market Development: Net revenue increased 142.3% to $41.0 million, driven primarily by the impact of refranchising. Organic revenue increased 14.4%, due primarily to growth in royalty revenues in the Middle East, Japan, and Brazil. Market Development Adjusted EBITDA margin decreased 560 basis points to 47.3%, driven by changes in the regional mix associated with refranchising the western U.S. joint venture and Japan.

Key Operating Metrics

Balance Sheet, Capital Expenditures, and Leverage

During the first half of 2026, the company spent $16.1 million, or 4.9% of net revenue, on capital expenditures, down 70.2% versus $54.1 million in the first half of 2025. As of the end of the second quarter of 2026, the company's net leverage ratio was 5.4x, reflecting a 1.3x reduction compared to the fourth quarter of 2025. Total available liquidity was $263.9 million as of June 27, 2026, comprising $21.8 million of cash and cash equivalents and undrawn capacity of $242.1 million under its credit facilities. The company remains in compliance with all financial covenants as of June 28, 2026.

On the refranchising front, approximately 42% of systemwide sales are currently generated through franchised locations, up from approximately 25% in fiscal 2025. The company's goal remains to reach approximately 50% of systemwide sales generated by franchisees beginning fiscal 2027.

2026 Financial Outlook

Krispy Kreme is maintaining its previously provided annual financial guidance. The guidance includes the impact of completed refranchising transactions but does not include additional transactions in 2026.

Krispy Kreme, Inc. (NASDAQ: DNUT) has promoted Suk Nicholas to Chief Commercial Officer and Lori Suess to Chief People Officer, effective August 3, 2026. The appointments strengthen the Global Leadership Team as the company focuses on sustainable, profitable growth. Nicholas will lead the fresh delivery business in the U.S. and internationally, overseeing enterprise sales strategies to accelerate growth and expand key partnerships. Suess will oversee global people, culture, talent development, and employee engagement efforts.

These moves represent a strategic shift toward internal talent development for senior leadership roles. Nicholas brings more than 15 years of experience with Krispy Kreme, having joined Krispy Kreme U.K. & Ireland in 2010 before moving to the global team in 2023. She has held various leadership roles across sales and global commercial strategy. Suess joined Krispy Kreme in 2020 and was named Head of People & Culture earlier this year when she joined the Global Leadership Team.

Josh Charlesworth, CEO of Krispy Kreme, emphasized the operational impact of these leaders. He noted that Nicholas played a pivotal role in building and scaling the fresh delivery business and expanding commercial capabilities. Charlesworth described her as a growth-oriented leader with deep commercial expertise and a proven track record of delivering results.

Regarding Suess’s appointment, Charlesworth highlighted her instrumental role in advancing the company’s people strategy. He stated that her promotion reflects the strong leadership she brings to the organization and her deep commitment to employees, referred to as "Krispy Kremers." Charlesworth concluded that these promotions demonstrate the company's commitment to developing talent from within while executing its strategy for sustainable, profitable growth.

Leadership Changes

Strategic Context

The creation of the Chief Commercial Officer role signals a heightened focus on the fresh delivery business segment. Nicholas’s mandate includes strengthening customer relationships and building world-class commercial capabilities across markets. This aligns with Krispy Kreme’s broader network of fresh doughnut shops, partnerships with leading retailers, and its rapidly growing digital business across more than 40 countries.