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Krispy Kreme , Inc. SECOND QUARTER 2026 EARNINGS PRESENTATION AUGUST 6 , 2026 Krispy Kreme
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Krispy Kreme | Q226 Earnings 2 Cautionary Note Regarding Forward - Looking Statements Certain statements made in this presentation and on the conference call that this presentation accompanies are forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . Forward - looking statements can be identified by use of forward - looking terminology, including terms such as “plan,” “believe,” “may,” “continue,” “guidance,” “outlook,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “goal,” “seek,” “pursue,” “strive,” “target,” “look forward” or the negative of these words, comparable terminology, or other references to future periods ; however, statements may be forward - looking whether or not these terms or their negatives are used . Forward - looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved . Our actual results could differ materially from the forward - looking statements included herein . We consider the assumptions and estimates on which forward - looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions . Therefore, you should not place undue reliance on any of these forward - looking statements . Important factors could cause our actual results to differ materially from those contained in forward - looking statements including, without limitation : food safety issues, including risks of food - borne illnesses, tampering, contamination, and cross - contamination ; impacts from any material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security - related incidents ; our ability to execute our business strategy, including our turnaround plan and growth through international development with strategic partners and profitable expansion of our fresh delivery and digital channels ; our ability to realize the anticipated benefits from past or potential future strategic transactions (including refranchising) ; failure by our franchisees, subfranchisees , or third - party service providers to operate effectively and in compliance with our standards and applicable law ; any harm to our reputation or brand image ; negative impacts on our business due to changes in consumer spending habits, consumer preferences, or demographic trends ; our ability to open new and maintain existing shops and points of access both domestically and internationally ; disruptions to our and our franchisees’ supply chain, including the loss of or failure to perform by single - source or limited suppliers, vendors, distributors, or manufacturers ; our significant indebtedness and our ability to meet the financial and other covenants under our credit facilities ; changes in the cost of raw materials and fuel or other commodities, including due to import and export requirements (including tariffs), inflation, fluctuations in foreign exchange rates, or heightened geopolitical tensions (including the recent Iran conflict) ; our ability to recruit and retain key personnel ; failure to develop or maintain effective internal control over financial reporting or disclosure controls and procedures ; adverse regulatory actions or publicity concerning food or occupational safety, food quality, health, and other issues or regulatory investigations, enforcement actions, or material litigation ; and other risks and uncertainties described under the heading “Risk Factors” and elsewhere in our Annual Report on Form 10 - K filed by the Company with the Securities and Exchange Commission (the “SEC”) and in other filings the Company makes from time to time with the SEC . These forward - looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward - looking statement whether as a result of new information, future events, or otherwise, except as may be required by law . Non - GAAP Measures This presentation includes certain financial information that is not presented in conformity with accounting principles generally accepted in the U . S . (“GAAP”) . These non - GAAP financial measures include Adjusted EBITDA, Adjusted EBITDA margin, free cash flow and net debt . These non - GAAP financial measures are not standardized, and it may not be possible to compare these financial measures with other companies’ non - GAAP financial measures having the same or similar names, limiting their usefulness as comparative measures . Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all . Additionally, these non - GAAP financial measures are not measurements of financial performance under GAAP or a substitute for results reported under GAAP . In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non - GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC and not to rely on any single financial measure . For a reconciliation of non - GAAP financial measures to the most directly comparable GAAP financial measure and additional information regarding these measures, see the appendix to this presentation . All metrics are as of June 28 , 2026 , unless stated otherwise . The Company does not provide reconciliations of forward - looking non - GAAP financial measures to the most directly comparable GAAP financial measure because it is unable to predict with reasonable certainty or without unreasonable effort non - recurring items, such as those reflected in our reconciliation of historic numbers . The variability of these items is unpredictable and may have a significant impact on the forward - looking non - GAAP financial measures presented .
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Krispy Kreme | Q226 Earnings 3 São Paulo, Brazil Madrid, Spain
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Krispy Kreme | Q226 Earnings 4 Our Turnaround Plan: Deleverage the Balance Sheet and Drive Sustainable, Profitable Growth Improve financial flexibility through refranchising international markets and the joint venture in the western U.S. Refranchise Expand margins through greater operational efficiency, including outsourcing U.S. logistics Expand Margins Reduce capital intensity by using existing assets and focusing on franchise development Drive ROIC Pursue U.S. growth based upon sustainable and profitable revenue streams Quality Growth
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Krispy Kreme | Q226 Earnings 5 Second Quarter Highlights “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. Our results demonstrate the success of the actions we are taking to grow the business and improve profitability, including a significant expansion in Adjusted EBITDA margin of 340 basis points compared to last year. We remain confident in achieving our 2026 financial targets and are maintaining our previously issued guidance.” Krispy Kreme CEO Josh Charlesworth ADJUSTED EBITDA 1 : $28.8M ADJUSTED EBITDA MARGIN 1 : 8.7% NET REVENUE: $331 MILLION NET LEVERAGE RATIO 1 : 5.4x 1) Non-GAAP figures. See the appendix to this presentation for more information and a reconciliation to the most directly comparable GAAP measure. 1H26 FREE CASH FLOW 1 : ($6.1M)
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Krispy Kreme | Q226 Earnings 6 Significant Progress in Adjusted EBITDA and Adjusted EBITDA Margin ADJUSTED EBITDA MARGIN 1 ADJUSTED EBITDA 1 $20M $29M Q225 Q226 8.7% 5.3% 1) Non-GAAP figures. See the appendix to this presentation for more information and a reconciliation to the most directly comparable GAAP measure. +43% +340 bps
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Krispy Kreme | Q226 Earnings 7 Significant Improvement in Free Cash Flow 1 ($45M) ($37M) ($107M) ($62M) ($6M) $101M 1) Non-GAAP figures. See the appendix to this presentation for more information and a reconciliation to the most directly comparable GAAP measure. FREE CASH FLOW ($M) Y/Y IMPROVEMENT ($M) 1H24 1H25 1H26
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Improved Net Leverage Ratio on Lower Net Debt and Higher Adjusted EBITDA NET LEVERAGE RATIO 1 6.7x Q425 Q226 1) Non-GAAP figures. See the appendix to this presentation for more information and a reconciliation to the most directly comparable GAAP measure. - 2.1x 5.4x Q225 7.5x
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Krispy Kreme | Q226 Earnings 9 Q1 2026 Progress Target 2 - 3 international refranchising deals Completed refranchising of J apan 2026 Goals Shared Q4 2025 YTD 2026 Progress Deleveraging the Balance Sheet and Driving Sustainable, Profitable Growth 1 2 3 4 5 → → → → → Completed refranchising of joint venture in the western U.S. Completed ahead of schedule Franchise systemwide sales mix at ~42% Announced three new agreements to enter the N etherlands , Estonia, and Mauritius Complete refranchising of joint venture in the western U.S. Expand international franchise markets, open 3 - 4 new markets Complete outsourcing of U .S. logistics ~50% of systemwide sales from franchisees, ~25% in 2025
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Krispy Kreme | Q226 Earnings 10 Maintained Full Year 2026 Outlook $140 - $150M ADJUSTED EBITDA 1 100+ SHOP OPENINGS, NEARLY ALL FRANCHISED 5.50x NET LEVERAGE RATIO 1 BELOW $50 - $60M CAPITAL EXPENDITURES $15M +2 - 4% SYSTEMWIDE SALES GROWTH FREE CASH FLOW 1 MORE THAN $1.25 - $1.35B NET REVENUE 1) Non-GAAP figures. See slide 2 of this presentation for more information on forward- looking non-GAAP financial measures.
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Appendix
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Krispy Kreme | Q226 Earnings 12 We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBITDA, both on a consolidated and at the segment level, is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. “Adjusted EBITDA margin” reflects adjusted EBITDA as a percentage of net revenues.
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Krispy Kreme | Q226 Earnings 13 We define “Free Cash Flow” as cash provided by operating activities less purchases of property and equipment. July 2, 2023 (26 weeks) June 30, 2024 (26 weeks) June 29, 2025 (26 weeks) June 28, 2026 (26 weeks) Net cash provided by/(used for) operating activities $ 46,253 $ 15,525 $ (53,377) $ 9,961 Less: Purchase of property and equipment (54,290) (60,735) (54,106) (16,097) Free cash flow $ (8,037) $ (45,210) $ (107,483) $ (6,136) Two Quarters Ended
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Krispy Kreme | Q226 Earnings 14
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