Earnings release
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KRISPY KREME REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS , MAINTAINS GUIDANCE AS SIGNIFICANT TURNAROUND PROGRESS CONTINUES 08/06/2026 Delivers reduced leverage , expanded Adjusted EBITDA margin , improved cash flow , and international expansion CHARLOTTE , N.C .-- ( BUSINESS WIRE ) -- Krispy Kreme , Inc. ( NASDAQ : DNUT ) ( " Krispy Kreme " , " KKI " , or the " Company " ) today reported financial results for the quarter ended June 28 , 2026 . Second Quarter 2026 Highlights ( vs Q2 2025 ) . • Net revenue of $ 331.0 million declined 12.8 % , reflecting our refranchising efforts and the strategic closure of underperforming doors completed in the third quarter of 2025 • Systemwide sales of $ 497.3 million increased 1.1 % in constant currency , and increased 2.6 % excluding sales attributable to the now - ended McDonald's USA partnership • GAAP net loss of $ 19.8 million improved $ 421.3 million • Adjusted EBITDA of $ 28.8 million increased 43.2 % • Year - to - date cash provided by operating activities of $ 10.0 million increased $ 63.3 million , and free cash flow of $ ( 6.1 ) million improved $ 101.3 million , when compared to the first half of 2025 " 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 , " said Krispy Kreme CEO Josh Charlesworth . " 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 . " Turnaround Plan The Company's comprehensive turnaround plan , announced in August 2025 , is designed to deleverage the balance sheet and deliver sustainable , profitable growth . The four components of the plan , along with progress on each , are as follows : 1. Refranchising : Improve financial flexibility through refranchising international markets and the joint venture in the western U.S. a . Completed refranchising of Japan and the joint venture in the western U.S. in March 2026 . 2. Improving Return on Invested Capital : Reduce capital intensity by using existing assets and focusing on franchise development . a . Capital expenditures decreased 70 % in the first half of 2026 compared to the year - ago period . b . Year - to - date , 59 doughnut shops have been opened around the world , nearly all of which are franchised . c . Entered into agreements for three new international franchise markets year - to - date , including the Netherlands , Estonia , and Mauritius . 3. Expanding Margins : Expand margins through greater operational efficiency , including outsourcing U.S. logistics . a . Consolidated Adjusted EBITDA margin in the second quarter increased from 5.3 % to 8.7 % year - over - year , driven by a 370 basis point increase in the U.S. segment . b . Completed outsourcing of U.S. logistics in April 2026 . 4. Driving Sustainable , Profitable Growth : Pursue U.S. growth based upon sustainable and profitable revenue streams . Fresh delivery is inclusive of both Company- and franchise - operated doors . a . Increased fresh delivery doors by 448 in the U.S. with strategic partners during the first half of 2026 . b . Average revenue per door per week ( " APD " ) in the second quarter for the U.S. increased 33.2 % to approximately $ 697 year - over - year . Financial Highlights $ in millions , except per share data GAAP : Quarter Ended June 28 , 2026 June 29 , 2025 Change Net revenue $ 331.0 $ 379.8 ( 12.8 ) % Net loss $ ( 19.8 ) $ ( 441.1 ) nm Net loss attributable to KKI $ ( 20.3 ) $ ( 435.3 ) nm Diluted loss per share $ ( 0.12 ) $ ( 2.55 ) $ 2.43 Non - GAAP ( 1 ) Organic revenue growth ( 0.3 ) % Adjusted net loss , diluted $ ( 5.4 ) Adjusted EBITDA $ 28.8 $ Adjusted EBITDA margin 8.7 % ( 0.9 ) % $ ( 25.3 ) 20.1 5.3 % 60 bps nm 43.2 % 340 bps Adjusted EPS $ ( 0.03 ) $ ( 0.15 ) $ 0.12 nm not meaningful ( 1 ) Non - GAAP figures . See " Key Performance Indicators and Non - GAAP Measures " and " Reconciliation of Non - GAAP Financial Measures . " Key Operating Metrics Quarter Ended June 28 , June 29 , $ in millions Global points of access 2026 15,665 2025 18,113 Change ( 13.5 ) % Sales per hub ( U.S. ) trailing four quarters ( 1 ) Sales per hub ( International ) trailing four quarters ( 2 ) $ 5.1 $ 4.9 4.1 % $ 9.5 $ 9.8 Digital sales as a percent of retail sales ( 3.1 ) % 190 19.8 % 17.9 % bps ( 1 ) Includes operations of the joint venture in the western U.S. through the date of deconsolidation of March 23 , 2026 . ( 2 ) Includes operations of Japan through the date of disposition of March 2 , 2026 .
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Second Quarter 2026 Consolidated Results (vs Q2 2025)Krispy Kreme’s results reflect continued progress in improving U.S. profitability and wider adoption of the capital-light international franchise model.Net revenue was $331.0 million in the second quarter of 2026, a decline of 12.8% or $48.8 million. Organic revenue decreased by 0.3%, primarily driven by adecline in global points of access and in the International segment, partially offset by growth in the Market Development segment. Global points of accessdeclined 2,448, or 13.5%, reflecting the strategic closure of underperforming doors, including approximately 2,400 doors attributable to the now-endedMcDonald’s USA partnership, that was completed in the third quarter of 2025. Systemwide sales were $497.3 million in U.S. dollars during the secondquarter of 2026. Systemwide sales increased 1.1% in constant currency and, excluding the impact of sales from the McDonald’s USA doors in the prior yearsecond quarter, systemwide sales increased 2.6%.GAAP net loss improved to $19.8 million, compared to the prior year second quarter net loss of $441.1 million. Diluted loss per share improved to $0.12,compared to a diluted loss per share of $2.55. Adjusted net loss was $5.4 million, an improvement from an Adjusted net loss of $25.3 million in the prior yearsecond quarter, and Adjusted EPS was a loss of $(0.03), compared with an Adjusted EPS loss of $(0.15) in the prior year second quarter.Adjusted EBITDA increased 43.2% to $28.8 million compared to the prior year second quarter. Adjusted EBITDA margin increased to 8.7% from 5.3%, dueprimarily to productivity initiatives, SG&A savings, and the removal of costs relating to McDonald’s USA.Diluted weighted average common shares outstanding were 172.6 million, compared to 170.8 million for the prior year second quarter. The reported dilutedweighted-average share count reflects basic shares outstanding, as the Company incurred a net loss; approximately 2.0 million and 2.6 million anti-dilutivesecurities were excluded from the diluted share calculation in the second quarter of 2026 and 2025, respectively.Second Quarter 2026 Segment Results (vs Q2 2025)U.S.: In the U.S. segment, net revenue declined by 25.0% to $172.7 million, driven by refranchising efforts associated with our turnaround plan and strategicdoor closures. Organic revenue increased by 0.1% year-over-year, or 4.4% excluding the impact of McDonald’s USA, reflecting strength of our retail anddigital channels and improved APD in fresh delivery.U.S. Adjusted EBITDA increased by 38.5% to $13.8 million and Adjusted EBITDA margin increased approximately 370 basis points to 8.0%. These resultsdemonstrated meaningful improvement as a result of the turnaround plan initiatives.International: In the International segment, net revenue decreased by 11.6% to $117.3 million compared to the prior year second quarter, due primarily torefranchising Japan. Organic revenue decreased by 5.1%, primarily due to declines in the U.K. and Australia, partially offset by growth in Canada.International segment Adjusted EBITDA decreased by 22.2% to $14.2 million driven by the refranchising of Japan. Adjusted EBITDA margin decreased by160 basis points to 12.1% due to lower Adjusted EBITDA in the U.K. and Australia and the Japan refranchising.Market Development: In the Market Development segment, net revenue increased by 142.3% to $41.0 million, driven primarily by the impact ofrefranchising. Organic revenue increased by 14.4%, due primarily to growth in royalty revenues in the Middle East, Japan, and Brazil.Market Development Adjusted EBITDA increased by 116.7% to $19.4 million. Adjusted EBITDA margin decreased 560 basis points to 47.3%, driven bychanges in the regional mix of increased lower-margin U.S. franchised sales, associated with refranchising the western U.S. joint venture with WKSRestaurant Group and the Japan refranchising.Balance Sheet and Capital ExpendituresDuring the first half of 2026, the Company spent $16.1 million, or 4.9% of net revenue, on capital expenditures, as the Company continues to primarily investin repairs and maintenance of existing infrastructure, while leveraging excess capacity for growth where available. Year to date, the Company’s capitalexpenditures are down 70.2% versus $54.1 million in the first half of 2025.As of the end of the second quarter of 2026, the Company’s net leverage ratio was 5.4x, reflecting a 1.3x reduction compared to the fourth quarter of 2025.The Company had total available liquidity of $263.9 million as of June 27, 2026, which includes $21.8 million of cash and cash equivalents as well asundrawn capacity of $242.1 million under its credit facilities. The Company remains in compliance with all financial covenants as of June 28, 2026.RefranchisingKrispy Kreme continues to pursue its goal of two to three international refranchising deals in 2026 and has already completed the refranchising of Japan. Inaddition, the Company completed the refranchising of the western U.S. joint venture with WKS Restaurant Group. Through evaluation of additionalrefranchising opportunities, Krispy Kreme remains focused on identifying the right partners both in international markets and the U.S. to maximize value andposition the Company for long-term growth.For fiscal 2025, approximately 25% of the Company’s systemwide sales came from franchise-operated locations. Currently, approximately 42% ofsystemwide sales are generated through franchised locations. Through additional refranchising efforts, the Company’s goal remains to reach approximately50% of systemwide sales generated by franchisees beginning fiscal 2027.2026 Financial OutlookThe Company is maintaining its previously provided annual financial guidance, which includes the impact of the refranchising transactions described abovebut does not include additional transactions in 2026: Net revenue of $1.25 billion to $1.35 billionSystemwide sales up 2% to 4% year-over-year in constant currency
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Open at least 100 shops, nearly all of which are expected to be franchisedAdjusted EBITDA of $140 million to $150 millionCapital expenditures of $50 million to $60 millionFree cash flow of more than $15 millionNet leverage ratio below 5.5x Non-GAAP figures. The Company does not reconcile forward-looking non-GAAP measures. See “Key Performance Indicators and Non-GAAP Measures.”DefinitionsThe following definitions apply to terms used throughout this press release: Systemwide Sales: Reflects global sales in U.S. dollars on a nominal basis of all Krispy Kreme products, whether by the Company or franchisees, excluding mix, equipment, and royalty revenue. Sales from franchisees are reported to the Company by such franchisees and are not included in Companyrevenues. Growth in systemwide sales represents the change in one period from the same period in the prior year on a constant currency basis. The Company believes systemwide sales information is important because it is indicative of the health of the Company’s brand and aids in understanding theCompany’s financial performance.Global Points of Access: Reflects all locations at which fresh doughnuts can be purchased. We define global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, and fresh delivery doors (which includes Krispy Kreme branded cabinets and merchandising unitswithin high traffic grocery and convenience stores, quick service or fast casual restaurants, club memberships, and drug stores), and other points at which fresh doughnuts can be purchased at both Company-owned and franchise locations as of the end of the applicable reporting period. We monitorglobal points of access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type.Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any global point of access. We define hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the applicable reportingperiod.Hubs with Spokes: Reflects hubs currently producing fresh doughnuts for other Fresh Shops, Carts and Food Trucks, or fresh delivery doors, and excludes hubs not currently producing fresh doughnuts for other shops, Carts and Food Trucks, or fresh delivery doors.Sales Per Hub: Sales per hub equals fresh revenues from hubs with spokes, divided by the average number of hubs with spokes at the end of each of the five most recent quarters.Fresh Revenues from Hubs with Spokes: Fresh revenues is a measure focused on the Krispy Kreme doughnut business and includes product sales generated from our Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, fresh delivery doors, and digital channels and excludes sales fromCookie Bakeries and Branded Sweet Treats (through the date of the Insomnia Cookies Holdings, LLC (“Insomnia Cookies”) deconsolidation and Branded Sweet Treats exit, respectively). Fresh revenues from hubs with spokes equals the fresh revenues derived from hubs with spokes.Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment. Conference CallKrispy Kreme will host a public conference call and webcast at 8:00 AM Eastern Time today to discuss its results for the second quarter 2026. A slidepresentation will be available prior to the start time on the investor relations section of the Company’s website at INVESTORS.KRISPYKREME.COM.To listen to the live webcast and Q&A, visit the Krispy Kreme investor relations website at INVESTORS.KRISPYKREME.COM. A replay of the webcast will beavailable on the website within 24 hours after the call. This earnings release and related materials will also be available on the investor relations section ofthe Company’s website.About Krispy KremeHeadquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed®doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in more than 40 countries through its uniquenetwork of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business. Our purpose of touching and enhancing livesthrough the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet.Connect with Krispy Kreme Doughnuts at WWW.KRISPYKREME.COM, or on one of its many social media channels,including WWW.FACEBOOK.COM/KRISPYKREME and WWW.X.COM/KRISPYKREME.Cautionary Note Regarding Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-lookingstatements 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,” “seek,” “pursue,” “strive,” “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 areused. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Ouractual results could differ materially from the forward-looking statements included in this press release. We consider the assumptions and estimates on whichforward-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 shouldnot place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from thosecontained 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 failuresof such systems or other cybersecurity or data security-related incidents; our ability to execute our business strategy, including our turnaround plan andgrowth through international development with strategic partners and profitable expansion of our fresh delivery and digital channels; our ability to realize theanticipated benefits from past or potential future strategic transactions (including refranchising); failure by our franchisees, subfranchisees, or third-partyservice providers to operate effectively and in compliance with our standards and applicable law; any harm to our reputation or brand image; negativeimpacts on our business due to changes in consumer spending habits, consumer preferences, or demographic trends; our ability to open new and maintainexisting shops and points of access both domestically and internationally; disruptions to our and our franchisees’ supply chain, including the loss of or failureto perform by single-source or limited suppliers, vendors, distributors, or manufacturers; our significant indebtedness and our ability to meet the financial andother covenants under our credit facilities; changes in the cost of raw materials and fuel or other commodities, including due to import and exportrequirements (including tariffs), inflation, fluctuations in foreign exchange rates, or heightened geopolitical tensions (including the recent Iran conflict); ourability to recruit and retain key personnel; failure to develop or maintain effective internal control over financial reporting or disclosure controls andprocedures; 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 Reporton 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 timewith 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 reviseany forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law.Key Performance Indicators and Non-GAAP MeasuresThis press release includes certain financial information that is not presented in conformity with accounting principles generally accepted in the U.S.(“GAAP”). These non-GAAP and operating measures include organic revenue growth/(decline), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net (1) (1)(1) (1)
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loss, diluted, Adjusted EPS, free cash flow, net debt, fresh revenue from hubs with spokes, sales per hub and systemwide sales. We believe these non-GAAPand operating measures are useful in evaluating our operating performance. Management believes these measures are important indicators of operationsbecause they exclude items that may not be indicative of our core operating results and provide a better baseline for analyzing trends in our underlyingbusiness, and they are consistent with how business performance is planned, reported and assessed internally by management and the Company’s Board ofDirectors. We monitor the key business metrics and non-GAAP metrics set forth herein to help us evaluate our business and growth trends, establishbudgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. These non-GAAP and operating measures arenot standardized, and it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same orsimilar names, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do ormay not calculate them at all. Additionally, the non-GAAP financial measures are not measurements of financial performance under GAAP or a substitute forresults reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAPfinancial measures in conjunction with the Company’s financial statements and not to rely on any single financial measure.The Company does not provide reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measurebecause it is unable to predict with reasonable certainty or without unreasonable effort non-recurring items, such as those reflected in our reconciliation ofhistoric numbers. The variability of these items is unpredictable and may have a significant impact on the forward-looking non-GAAP financial measurespresented.See “Reconciliation of Non-GAAP Financial Measures” below for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAPfinancial measure. Krispy Kreme, Inc.Condensed Consolidated Statements of Operations (Unaudited)(in thousands, except per share amounts)Quarter Ended Two Quarters EndedJune 28, 2026(13 weeks)June 29, 2025(13 weeks)June 28, 2026(26 weeks)June 29, 2025(26 weeks)Net revenuesProduct sales $315,674$371,377$673,112$737,856Royalties and otherrevenues 15,321 8,390 24,917 17,095Total net revenues 330,995 379,767 698,029 754,951Product anddistribution costs 86,037 92,627 174,367 183,363Operating expenses 158,869 210,712 346,975 409,555Selling, general andadministrativeexpense 53,695 62,920 111,728 122,325Marketing expenses 11,086 12,185 21,205 22,424Pre-opening costs — 1,471 194 2,400Goodwill and otherasset impairments 4,238 406,932 6,126 407,094Gain onrefranchising, net — — (8,885) —Other income(expense), net 1,039 (8,311) 1,798 (7,073)Depreciation andamortizationexpense 27,007 35,782 59,122 69,683Operating loss (10,976) (434,551) (14,601) (454,820)Interest expense, net 13,375 16,696 28,999 32,892Loss on divestitureof Insomnia Cookies — 11,501 — 11,501Other non-operatingincome, net (261) (1,177) (420) (1,570)Loss beforeincome taxes (24,090) (461,571) (43,180) (497,643)Income taxexpense/(benefit) (4,259) (20,453) (676) (23,120)Net loss (19,831) (441,118) (42,504) (474,523)Net income/(loss)attributable to 480 (5,858) 591 (5,979)
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noncontrollinginterestNet lossattributable toKrispy Kreme, Inc.$(20,311) $(435,260)$(43,095)$(468,544)Net loss per share:Common stock —Basic $ (0.12) $ (2.55)$ (0.28)$ (2.77)Common stock —Diluted $ (0.12) $ (2.55)$ (0.28)$ (2.77)Weighted averagesharesoutstanding:Basic 172,578 170,802 172,299 170,546Diluted 172,578 170,802 172,299 170,546Krispy Kreme, Inc.Condensed Consolidated Balance Sheets(in thousands, except per share amounts)As of(Unaudited)June 28,2026 December 28,2025ASSETSCurrent assets:Cash and cash equivalents $21,825$42,390Restricted cash 317 501Accounts receivable, net 77,411 61,611Inventories 28,666 26,877Taxes receivable 14,161 10,854Current assets held for sale 2,273 13,294Prepaid expense and other current assets 20,766 18,927Total current assets 165,419 174,454Property and equipment, net 375,652 460,935Goodwill, net 669,745 712,264Other intangible assets, net 727,725 797,749Operating lease right of use assets, net 350,029 395,523Investments in unconsolidated entities 21,947 7,413Noncurrent assets held for sale — 31,056Other assets 52,806 13,565Total assets $2,363,323$2,592,959LIABILITIES, MEZZANINE EQUITY, ANDSHAREHOLDERS’ EQUITYCurrent liabilities:Current portion of long-term debt $71,036$65,977Current operating lease liabilities 46,951 51,213Accounts payable 148,502 134,384Accrued liabilities 91,634 99,805Current liabilities held for sale — 13,535Structured payables 106,998 92,366Total current liabilities 465,121 457,280Long-term debt, less current portion 794,214 911,852Noncurrent operating lease liabilities 351,011 395,895Deferred income taxes, net 93,802 96,236Noncurrent liabilities held for sale — 11,816Other long-term obligations and deferred credits 39,396 42,919Total liabilities 1,743,544 1,915,998Commitments and contingenciesMezzanine equity:
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Redeemable noncontrolling interest — 24,181Total mezzanine equity — 24,181Shareholders’ equity:Common stock, $0.01 par value; 300,000 sharesauthorized as of both June 28, 2026 and December28, 2025; 172,744 and 171,555 shares issued andoutstanding as of June 28, 2026 and December 28,2025, respectively 1,725 1,716Additional paid-in capital 1,474,652 1,473,644Shareholder note receivable (1,139) (1,791)Accumulated other comprehensive income/(loss),net of income tax 7,299 (2,059)Retained deficit (864,482) (821,387)Total shareholders’ equity attributable toKrispy Kreme, Inc. 618,055 650,123Noncontrolling interest 1,724 2,657Total shareholders’ equity 619,779 652,780Total liabilities, mezzanine equity, andshareholders’ equity $2,363,323$2,592,959 Krispy Kreme, Inc.Condensed Consolidated Statements of Cash Flows (Unaudited)(in thousands)Quarter Ended Two Quarters EndedJune 28, 2026(13 weeks)June 29, 2025(13 weeks)June 28, 2026(26 weeks)June 29, 2025(26 weeks)CASH FLOWSPROVIDEDBY/(USED FOR)OPERATINGACTIVITIES:Net loss $(19,831)$(441,118)$(42,504)$(474,523)Adjustments toreconcile net loss tonet cash providedby/(used for)operating activities:Depreciation andamortizationexpense 27,008 35,782 59,123 69,683Deferred and otherincome taxes (4,248) (20,117) (4,957) (30,785)Goodwill impairment — 355,958 — 355,958Other assetimpairments andlease terminationcharges 4,236 50,974 6,125 51,136Loss on disposal ofproperty andequipment 942 214 1,400 403(Gain)/loss ondivestiture ofInsomnia Cookies — 11,501 — 11,501Gain onrefranchising, net — — (8,885) —Gain on acquisitionof equity methodinvestment (416) — (416) —
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Gain on sale-leaseback — (6,749) — (6,749)Share-basedcompensation 3,287 4,634 7,926 7,237Change in accountsand notesreceivableallowances 2,915 784 3,349 986Inventory write-off 10 647 (4) 1,495Other (661) 999 (128) 2,224Change in operatingassets andliabilities, excludingbusinessacquisitions anddivestitures, andforeign currencytranslationadjustments:AccountsReceivable (27,643) 11,782 (27,741) 10,503Inventories (2,316) (2,330) (7,034) (6,446)Accounts Payable 13,933 (27,051) 41 (38,393)Other current andnon-current assets (2,020) (1,621) 36,533 9,083Operating leaseassets andliabilities (1,229) (6,163) (6,254) (3,269)Accrued liabilities (664) (530) 4,067 (12,626)Other long-termobligations anddeferred credits (3,508) (139) (10,680) (795)Net cash providedby/(used for)operating activities (10,205) (32,543) 9,961 (53,377)CASH FLOWSPROVIDEDBY/(USED FOR)INVESTINGACTIVITIES:Purchase ofproperty andequipment (7,313) (28,209) (16,097) (54,106)Proceeds fromdisposals of assets 228 13 252 —Proceeds from sale-leaseback — 10,882 — 10,882Net proceeds fromrefranchisingtransactions — — 111,411 —Purchase/proceedsof equity methodinvestment 129 (2,140) 129 (2,140)Purchase ofminority interests — 75,000 — 75,000Net proceeds fromdivestiture ofInsomnia Cookies — — (2,600) —
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Principal paymentsreceived from loansto franchisees — 1,202 — 1,202Purchase ofredeemablenoncontrollinginterest (25,106) — (25,106) —Other investingactivities — — — 99Net cash providedby/(used for)investing activities (32,062) 56,748 67,989 30,937CASH FLOWS(USEDFOR)/PROVIDED BYFINANCINGACTIVITIES:Proceeds from theissuance of debt 48,000 334,400 120,750 516,900Repayment of long-term debt and leaseobligations (74,494) (370,272) (234,173) (485,894)Payment offinancing costs — (825) — (825)Proceeds fromstructured payables 61,236 79,144 118,634 198,052Payments onstructured payables (45,417) (56,360) (104,067) (199,228)Capital contributionby shareholders, netof loans issued 132 — 262 —Distribution toshareholders — (5,973) — (11,934)Payments forrepurchase andretirement ofcommon stock (125) (664) (527) (787)Distribution tononcontrollinginterest (131) — 219 (36)Net cash (usedfor)/provided byfinancing activities (10,799) (20,550) (98,902) 16,248Effect of exchangerate changes on cash,cash equivalents andrestricted cash 500 (999) 203 (1,300)Net decrease in cash,cash equivalents andrestricted cash (52,566) 2,656 (20,749) (7,492)Cash, cashequivalents andrestricted cash atbeginning of period 74,708 19,167 42,891 29,315Cash, cashequivalents andrestricted cash atend of period $22,142$ 21,823$22,142$21,823
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Net cash providedby/(used for)operating activities $(10,205)$(32,543)$ 9,961$(53,377)Less: Purchase ofproperty andequipment (7,313) (28,209) (16,097) (54,106)Free cash flow $(17,518)$(60,752)$ (6,136)$(107,483) Krispy Kreme, Inc.Reconciliation of Non-GAAP Financial Measures (Unaudited)(in thousands, except per share amounts)We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments forshare-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent, or non-core incomeand expense items. Adjusted EBITDA, both on a consolidated and at the segment level, is a principal metric that management uses to monitor and evaluateoperating performance and provides a consistent benchmark for comparison across reporting periods. “Adjusted EBITDA margin” reflects Adjusted EBITDAas a percentage of net revenues.We define “Adjusted net loss, diluted” as net loss attributable to common shareholders, Adjusted for interest expense, share-based compensation, certainstrategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent, or non-core income and expense items. “Adjusted EPS” is Adjusted net loss, diluted converted to a per share amount.Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net loss, diluted, and Adjusted EPS have certain limitations, including adjustments for income andexpense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that arethe same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measuresshould not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relyingon our GAAP results in addition to using these non-GAAP measures supplementally.Quarter Ended Two Quarters Ended(in thousands) June 28, 2026June 29, 2025June 28, 2026June 29, 2025Net loss $(19,831)$(441,118)$(42,504)$(474,523)Interest expense, net 13,375 16,696 28,999 32,892Income taxexpense/(benefit) (4,259) (20,453) (676) (23,120)Share-basedcompensation 3,287 4,634 7,926 7,237Employer payrolltaxes related toshare-basedcompensation 55 91 72 257Loss on divestiture ofInsomnia Cookies — 11,501 — 11,501Goodwill impairment — 355,958 — 355,958Other non-operatingincome, net (261) (1,177) (420) (1,570)Strategic initiatives 3,119 22,867 10,319 25,220Acquisition andintegrationexpenses 2,002 (182) 2,002 (111)New marketpenetrationexpenses — 245 — 320Shop closureexpenses, net 2,657 35,723 2,689 35,995Restructuring andseveranceexpenses 33 4,839 427 4,947Gain on sale-leaseback — (6,749) — (6,749)Gain onrefranchising — — (8,885) —Other 1,622 1,454 2,831 6,154 (1) (2) (3) (4) (5) (6) (7) (8)
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Amortization ofacquisition relatedintangibles 6,156 7,830 13,964 15,491ConsolidatedAdjusted EBIT $ 7,955$ (7,841)$16,744$(10,101)Depreciationexpense andamortization of rightof use assets 20,851 27,952 45,158 54,192ConsolidatedAdjusted EBITDA$28,806$20,111$61,902$44,091 Quarter Ended Two Quarters Ended(in thousands) June 28, 2026June 29, 2025June 28, 2026June 29, 2025Segment AdjustedEBITDA:U.S. $13,752 $ 9,930$39,301$25,841International 14,182 18,221 28,654 33,118MarketDevelopment 19,386 8,948 31,020 19,995Corporate (18,513) (16,988) (37,073) (34,863)ConsolidatedAdjustedEBITDA $28,807 $20,111$61,902$44,091Quarter Ended Two Quarters Ended(in thousands,except per shareamounts) June 28, 2026June 29, 2025June 28, 2026June 29, 2025Net loss $(19,831)$(441,118)$(42,504)$(474,523)Share-basedcompensation 3,287 4,634 7,926 7,237Employer payrolltaxes related toshare-basedcompensation 55 91 72 257(Gain)/loss ondivestiture ofInsomnia Cookies — 11,501 — 11,501Goodwill impairment — 355,958 — 355,958Other non-operatingincome, net (261) (1,177) (420) (1,570)Strategic initiatives 3,119 22,867 10,319 25,220Acquisition andintegrationexpenses 2,002 (182) 2,002 (111)New marketpenetrationexpenses — 245 — 320Shop closureexpenses, net 2,657 35,723 2,689 35,995Restructuring andseveranceexpenses 33 4,839 427 4,947Gain on sale-leaseback — (6,749) — (6,749)Gain onrefranchising — — (8,885) —Other 1,622 1,454 2,831 6,154 (9) (1) (2) (3) (4) (5) (6) (7) (8)
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Amortization ofacquisition relatedintangibles 6,156 7,830 13,964 15,491Tax impact ofadjustments (3,588) (27,081) (164) (20,251)Tax specificadjustments (127) — (802) —Net (income)/lossattributable tononcontrollinginterest (480) 5,858 (591) 5,979Adjusted net lossattributable tocommonshareholders -Basic $(5,356)$(25,307)$(13,136)$(34,145)Additional incomeattributed tononcontrollinginterest due tosubsidiary potentialcommon shares — — — —Adjusted net lossattributable tocommonshareholders -Diluted $(5,356)$(25,307)$(13,136)$(34,145)Basic weightedaverage commonshares outstanding 172,578 170,802 172,299 170,546Dilutive effect ofoutstandingcommon stockoptions, RSUs, andPSUs — — — —Diluted weightedaverage commonshares outstanding 172,578 170,802 172,299 170,546Adjusted net lossper shareattributable tocommonshareholders:Basic $ (0.03)$ (0.15)$ (0.08)$ (0.20)Diluted $ (0.03)$ (0.15)$ (0.08)$ (0.20) Primarily foreign translation gains and losses in each period. The quarter and two quarters ended June 29, 2025 also consists of equity method incomefrom Insomnia Cookies following the divestiture of a controlling interest in Insomnia Cookies during fiscal 2024 until the sale of our remaining interest in thesecond quarter of fiscal 2025.The quarter and two quarters ended June 28, 2026 consists primarily of $2.1 million and $6.3 million, respectively, of costs associated with the evaluationand execution of refranchising certain equity markets as well as $1.3 million and $4.2 million, respectively, in costs associated with the transition to thirdparty logistics in the U.S.; of that amount $1.7 million and $3.3 million, respectively, is related to non-cash impairments. The quarter and two quartersended June 29, 2025 consists primarily of $20.9 million and $23.3 million, respectively, of costs associated with preparing for and executing the U.S.national expansion (including McDonald’s).Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence,and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period.Consists of start-up costs associated with entry into new countries in which the Company’s brands had not previously operated, including Brazil and Spain.Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment.The quarter and two quarters ended June 28, 2026 consist primarily of costs associated with restructuring the Australia and New Zealand business. Thequarter and two quarters ended June 29, 2025 consist primarily of costs associated with restructuring of the U.S. and U.K. businesses. (9) (10) (11) (1) (2) (3) (4) (5) (6) (7)
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Includes gains and losses on the deconsolidation of assets and liabilities associated with the refranchising of Krispy Kreme shops.The quarter and two quarters ended June 28, 2026 consists primarily of $0.8 million and $1.6 million, respectively, of legal fees primarily related toshareholder derivative litigation. The quarter and two quarters ended June 29, 2025 consists primarily of $0.9 million and $5.3 million, respectively, in costsrelated to remediation of the 2024 Cybersecurity Incident, including fees for cybersecurity experts and other advisors.Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statementsof Operations.Tax impact of adjustments calculated applying the applicable statutory rates. The quarter and two quarters ended June 28, 2026 and June 29, 2025 alsoinclude the impact of disallowed executive compensation expense.Consists of the recognition of previously unrecognized tax benefits unrelated to ongoing operations of $0.1 million and $0.8 million for the quarter and twoquarters ended June 28, 2026. Krispy Kreme, Inc.Segment Reporting (Unaudited)(in thousands, except percentages or otherwise stated)Quarter Ended Two Quarters EndedJune 28, 2026June 29, 2025June 28, 2026June 29, 2025Net revenues:U.S. $ 172,680$230,099$394,230$466,643International 117,342 132,755 242,600 252,390MarketDevelopment 40,973 16,913 61,199 35,918Total netrevenues $ 330,995$379,767$698,029$754,951Organic revenue growth/(decline) measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and webelieve it is useful for investors to understand the expansion of our global footprint through internal efforts. We define “organic revenue growth/(decline)” asthe growth/(decline) in revenues, excluding (i) the impact of revenues of acquired shops owned by us for less than 12 months following their acquisition, (ii)the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs, (iv) the impact of the divestiture ofshops through refranchising, and (v) the impact of revenues generated during the 53week for those fiscal years that have a 53 week based on our fiscalcalendar.Q2 2026 Organic Revenue(in thousands, exceptpercentages) U.S. International MarketDevelopment TotalCompanyTotal net revenues insecond quarter of fiscal2026 $172,680$117,342$40,973$330,995Total net revenues insecond quarter of fiscal2025 230,099 132,755 16,913 379,767Total net revenues(decline)/growth (57,419) (15,413) 24,060 (48,772)Total net revenues(decline)/growth % -25.0% -11.6% 142.3% -12.8%Less: Impact ofrefranchising (57,526) (16,342) 17,990 (55,878)Adjusted net revenues insecond quarter of fiscal2025 172,573 116,413 34,903 323,889Adjusted net revenue(decline)/growth 107 929 6,070 7,106Adjusted net revenue(decline)/growth % 0.1% 0.8% 17.4% 2.2%Impact of acquisitions — — (1,039) (1,039)Impact of foreign currencytranslation — (6,893) (3) (6,896)Organic revenue(decline)/growth $ 107$(5,964) $5,028$(829)Organic revenue(decline)/growth % 0.1% -5.1% 14.4% -0.3%Fresh revenues from hubs with spokes and sales per hub are defined above. (7) (8) (9) (10) (11) rd rd
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TrailingFourQuartersEnded Fiscal Year Ended(in thousands, unless otherwisestated) June 28,2026 December 28,2025 December 29,2024U.S.:Revenues $841,204$913,050$1,058,736Non-fresh revenues (2,600) (2,454) (3,161)Fresh revenues from InsomniaCookies and hubs without spokes (139,782) (154,151) (307,665)Fresh revenues from hubs withspokes 698,822 756,445 747,910Sales per hub (millions) 5.1 4.7 4.9International:Fresh revenues from hubs withspokes $525,301$535,088$519,102Sales per hub (millions) 9.5 9.7 9.9 Includes licensing royalties from customers for use of the Krispy Kreme brand.Includes Insomnia Cookies revenues (through the date of deconsolidation of July 14, 2024) and Fresh revenues generated by Hubs without Spokes.Includes operations of the joint venture in the western U.S. through the date of deconsolidation of March 23, 2026.Total International net revenues is equal to fresh revenues from hubs with spokes for that business segment.International sales per hub comparative data has been restated in constant currency based on current exchange rates and includes operations of Japan through the date of disposition of March 2, 2026.Krispy Kreme, Inc.Global Points of Access (Unaudited)Global Points of AccessQuarter Ended Fiscal Year EndedJune 28, 2026June 29, 2025December 28, 2025U.S.:Hot Light Theater Shops 176 239 235Fresh Shops 46 68 68Fresh Delivery Doors 6,186 9,869 7,160Total 6,408 10,176 7,463International:Hot Light Theater Shops 47 50 52Fresh Shops 448 524 527Carts, Food Trucks, andOther 17 17 18Fresh Delivery Doors 3,899 4,669 4,225Total 4,411 5,260 4,822Market Development:Hot Light Theater Shops 180 110 113Fresh Shops 1,273 1,111 1,130Carts, Food Trucks, andOther 32 30 29Fresh Delivery Doors 3,361 1,426 1,637Total 4,846 2,677 2,909Total Global Points ofAccess (as defined) 15,665 18,113 15,194Total Hot Light TheaterShops 403 399 400Total Fresh Shops 1,767 1,703 1,725Total Shops 2,170 2,102 2,125Total Carts, Food Trucks,and Other 49 47 47Total Fresh DeliveryDoors 13,446 15,964 13,022Total Global Points ofAccess (as defined) 15,665 18,113 15,194During the first quarter of fiscal 2026, certain points of access moved from the U.S. and International segments to the Market Development segment.During fiscal 2025 we exited approximately 2,400 McDonald’s USA fresh delivery doors related to termination of the Business Relationship Agreement withMcDonald’s USA. (1) (2) (3) (4) (5)(1)(2)(3)(4)(5) (1) (2) (1) (3) (1) (3) (2) (1) (2) (3)
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Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light TheaterShop or Doughnut Factory. Other includes a vending machine. Points of access in this category are primarily found in international locations in airports andtrain stations. Krispy Kreme, Inc.Global Hubs (Unaudited)HubsQuarter Ended Fiscal Year EndedJune 28, 2026June 29, 2025December 28, 2025U.S.:Hot Light TheaterShops 154 235 223Doughnut Factories 6 6 6Total 160 241 229Hubs with Spokes 100 161 159Hubs without Spokes 60 80 70International:Hot Light TheaterShops 41 41 43Doughnut Factories 11 14 14Total 52 55 57Hubs with Spokes 52 55 57Market Development:Hot Light TheaterShops 174 108 111Doughnut Factories 31 26 26Total 205 134 137Total Hubs 417 430 423During the first quarter of fiscal 2026, certain hubs moved from the U.S. and International segments to the Market Development segment.Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a spoke location that produces some doughnuts for itself and alsoreceives doughnuts from another producing location.The decrease in total Hubs is driven by Hub optimization in the U.S.Krispy Kreme, Inc.Net Debt and Leverage (Unaudited)(in thousands, except leverage ratio) As of(Unaudited)June 28,2026 December28,2025Current portion of long-term debt $71,036$65,977Long-term debt, less current portion 794,214 911,852Total long-term debt, including debt issuancecosts 865,250 977,829Add back: Debt issuance costs 2,234 2,904Total long-term debt, excluding debt issuancecosts 867,484 980,733Less: Cash and cash equivalents (21,825) (42,390)Net debt $845,659$938,343Adjusted EBITDA - trailing four quarters 158,044 140,253Net leverage ratio 5.4 x 6.7 xCategory: Financial NewsSource: Krispy KremeInvestor Relations and MediaSteve WestVice President, Investor RelationsINVESTORS@KRISPYKREME.COM (3) (1) (2) (1) (2) (1) (2) (3)(1) (2) (3)
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ICR for Krispy Kreme, Inc.KRISPYKREME@ICRINC.COM Source: Krispy Kreme