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CHARLOTTE, N.C., USA – Krispy Kreme, Inc. yesterday (reported financial results for the quarter ended June 29, 2025, and outlined a turnaround plan designed to deleverage the balance sheet and drive sustainable, profitable growth. “Our results for the second quarter primarily reflect the impact of unsustainable operating costs relative to unit demand in the McDonald’s USA partnership, which ended July 2, 2025.
We are quickly removing our costs related to the McDonald’s partnership and growing fresh delivery through profitable, high-volume doors with major customers. We expect to begin recouping profitability in the third quarter.”
“Looking ahead, we have implemented a comprehensive turnaround plan aimed at unlocking our two biggest opportunities: profitable U.S. expansion and capital-light international franchise growth.
This plan is designed to reduce leverage and deliver sustainable, profitable growth through refranchising, improving returns on capital, expanding margins, and driving sustainable, profitable U.S. growth,” said Krispy Kreme CEO Josh Charlesworth.
Second Quarter Highlights (vs Q2 2024)
- Net revenue of $379.8 million
- Organic revenue declined 0.8%
- GAAP net loss of $441.1 million, including non-cash goodwill and other asset impairment charges totaling $406.9 million
- Adjusted EBITDA of $20.1 million
- Cash used for operating activities of $32.5 million
- Global Points of Access (“POA”) increased 2,260, or 14.3%, to 18,113 which includes approximately 2,400 McDonald’s doors that were closed subsequent to Q2
Turnaround Plan
The Company has implemented a comprehensive turnaround plan to deleverage the balance sheet and deliver sustainable, profitable growth through a focus on the following four components:
- Refranchising: Improve financial flexibility through refranchising international markets and restructuring the joint venture in the Western U.S.
- Driving Return on Invested Capital: Reduce capital intensity by using existing assets and focusing on franchisee development
- Expanding Margins: Expand margins through greater operational efficiency, including outsourcing U.S. logistics
- Driving Sustainable, Profitable Growth: Pursue U.S. growth based upon sustainable and profitable revenue streams
