Krispy Kreme has unveiled a turnaround plan designed to boost profitability after posting a net loss of USD 441 million.
Krispy Kreme, Inc. has reported its 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.
Its net revenue sits at USD 379.8 million, while organic revenue declined 0.8 percent. GAAP net loss was reported at USD 441.1 million, including non-cash goodwill and other asset impairment charges totalling USD 406.9 million. The company also has an adjusted EBITDA of USD 20.1 million.
Cash used for operating activities totalled USD 32.5 million, while Global Points of Access increased 2,260, or 14.3 percent, to 18,113, which includes approximately 2,400 McDonald’s doors that were closed subsequent to Q2.
“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,” said Krispy Kreme CEO Josh Charlesworth.
“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.”
In the International segment, organic revenue grew by USD 7.4 million, or approximately 5.9 percent, driven primarily by growth in Canada, Japan and Mexico. International net revenue grew by USD 7.5 million, or approximately 6.0 percent, with foreign currency translation impacts of USD 1.4 million. Points of Access declined by 3.3 percent due to strategic door closures in Japan and Mexico to optimise the DFD network.
International segment Adjusted EBITDA declined by USD 3.4 million, or 15.9 percent, with a margin decline of 360 basis points to 13.7 percent as strength in Japan was offset by the ongoing turnaround in the U.K. Importantly, U.K. margin improved sequentially, and the Company looks forward to continued progress from the new leadership team in that market.
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