Krispy Kreme, Inc. (NASDAQ:DNUT) shares rose Thursday after the doughnut chain topped profit expectations and edged past Wall Street's sales forecast.
Investors also weighed the company's ongoing footprint optimisation and its plans to expand distribution while targeting improved cash generation.
• Krispy Kreme stock is among today’s top performers. Why is DNUT stock up today?
Quarterly Metrics
The company reported fourth-quarter adjusted earnings per share of nine cents, beating the analyst consensus estimate of 3 cents.
Quarterly sales of $392.367 million outpaced the Street view of $386.715 million. Organic revenue decreased 3.9%, reflecting the strategic closure of underperforming doors.
In the U.S. segment, net revenue declined by $14.9 million to $230.2 million, or 6.1%, primarily due to strategic door closures, which led to an organic revenue decline of 5.8%.
In the International segment, net revenue grew by $4.1 million, or 2.9%, with a foreign currency translation benefit of $4.5 million.
In the Market Development segment, net revenue declined by $0.8 million to $19.7 million, or 4%.
Adjusted EBITDA in the quarter under review totaled $55.565 million, higher than $45.915 million a year ago.
During fiscal 2025, the company invested $97.9 million in capital expenditures, representing 6.4% of net revenue.
Most spending was focused in the U.S. to support expansion initiatives aimed at bringing doughnuts closer to consumers nationwide.
Krispy Kreme reported a total of 15,194 global points of access as of Dec. 28, 2025. Digital channels accounted for 18.2% of retail sales, reflecting continued growth in online and app-based ordering.
The company exited the quarter with cash and equivalents worth $42.390 million.
Outlook
For 2026, the company expects systemwide sales to rise 2% to 4% in constant currency from $1.96 billion in 2025.
It plans to open at least 100 shops globally after ending 2025 with 2,125 locations.
Capital expenditures are projected at $50 million to $60 million. The company also expects to generate positive free cash flow.
DNUT Price Action: Krispy Kreme shares are trading higher by 30.10% to $3.89 at publication on Thursday.
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