Krispy Kreme Lifts 2026 Revenue Outlook After Refranchising Push

Krispy Kreme, Inc. reported third-quarter net revenue of $328.8 million, down 12.4% from a year earlier, and raised its full-year 2026 net revenue outlook to $1.35 billion to $1.40 billion from a prior range of $1.25 billion to $1.35 billion, according to the company’s Exhibit 99.1 furnished to the Securities and Exchange Commission on Thursday.

The Charlotte-based doughnut chain said the revenue decline mainly reflected completed refranchising of its Japan business and its western U.S. joint venture with WKS Restaurant Group in March. Systemwide sales rose 1.0% in constant currency to $490.2 million. GAAP net loss narrowed to $13.3 million from $20.1 million a year earlier. Diluted loss per share improved to $0.08 from $0.11. Quartz reported the same figures and said third-quarter revenue topped Wall Street estimates.

Margins and cash

Adjusted EBITDA was $35.3 million, down 13.1% including a year-ago $9.3 million cybersecurity insurance recovery. Excluding that recovery, adjusted EBITDA rose 12.7% and the adjusted EBITDA margin widened 240 basis points to 10.7%, the company said. Year-to-date operating cash flow was $18.7 million, up $29.8 million from the first three quarters of 2025. Free cash flow was negative $10 million, an $82 million improvement. Net leverage stood at 5.5 times as of Sept. 27, down from 6.7 times at the end of fiscal 2025.

Franchise mix and openings

Franchised locations generated about 42% of systemwide sales in the third quarter, compared with about 25% in fiscal 2025. Krispy Kreme said it aims for about 50% beginning in fiscal 2027. It opened 98 doughnut shops in the first three quarters of 2026, nearly all franchised, and cut capital expenditures 64.6% over the same period. After the quarter ended, the company said it signed a development agreement to open 120 shops in Pakistan over five years, its fourth international franchise development deal of 2026.

2026 guidance

Beyond the higher revenue range, guidance includes adjusted EBITDA of $140 million to $150 million, capital expenditures of $40 million to $45 million (down from $50 million to $60 million), free cash flow of more than $15 million, a net leverage ratio below 5.5 times, and at least 100 shop openings, nearly all franchised. The company said the outlook includes completed refranchising but no additional 2026 deals.

Sources: Krispy Kreme Exhibit 99.1 (SEC EDGAR), Quartz, Nasdaq (company release)