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CHARLOTTE, N.C., USA – Krispy Kreme, Inc. reported financial results for the quarter ended March 30, 2025. Krispy Kreme’s first quarter results reflect continued investment ahead of growth in the Company’s U.S. nationwide expansion and wider adoption of the capital-light international franchise model.
Net revenue was $375.2 million in the first quarter of 2025, a decline of 15.3% or $67.5 million, primarily due to the $64.3 million reduction associated with the divestiture of a majority stake in Insomnia Cookies in the third quarter of fiscal 2024.
In line with expectations, organic revenue declined $3.6 million, or approximately 1.0%, as growth in Global Points of Access and Delivered Fresh Daily (“DFD”) revenues were more than offset by expected consumer softness leading to a decline in doughnut shop transaction volume.
GAAP Net Loss was $33.4 million, compared to prior year net loss of $6.7 million. GAAP diluted loss per share was $0.20, compared to a loss of $0.05 in the same quarter last year.
Adjusted EBITDA declined to $24.0 million, with Adjusted EBITDA Margin declining to 6.4% as the Company invests ahead of growth and navigates a challenged global consumer backdrop linked to macroeconomic, weather, and inflationary factors. Adjusted Net Loss, diluted was $8.8 million in the quarter. Adjusted Diluted loss per share was $0.05 in the quarter.
Krispy Kreme: Financial Outlook
As of March 30, 2025, Krispy Kreme doughnuts are now available in more than 2,400 McDonald’s restaurants. The Company is reassessing the deployment schedule together with McDonald’s while it works to achieve a profitable business model for all parties and does not expect to launch in any additional restaurants in the second quarter of 2025.
Krispy Kreme continues to believe in the long-term opportunity of profitable growth through the U.S. nationwide expansion including McDonald’s.
Given macroeconomic softness and the uncertainty around the McDonald’s deployment schedule, the Company is withdrawing its prior full year outlook and not updating it at this time. Regarding the second quarter of 2025, the Company expects to deliver:
- Net Revenue of $370 to $385 million
- Adjusted EBITDA of $30 to $35 million
