NEW YORK, May 09, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Krispy Kreme, Inc. (“Krispy Kreme” or the “Company”) (NASDAQ: DNUT). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.    The investigation concerns whether Krispy Kreme and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number: 001-40573 Krispy Kreme, Inc. (Exact name of registrant as specified in its c ...

It's been a while since I last reviewed the operations of Krispy Kreme, Inc. (NASDAQ: DNUT ). In my last article , I was cautious about Krispy Kreme's prospects, as the company was trading at elevated valuation multiples with aAuthor of the Macro Trends & Inflection Points Newsletter. I spent 5 years as a co-founder and hedge fund CIO / manager. Before that, I was a hedge fund analyst/portfolio manager at a leading Canadian alternative asset manager. I write articles as part of my own due diligence on the s ...

Core Viewpoint - Krispy Kreme's stock dropped 24% following the announcement of a reassessment of its partnership with McDonald's and the withdrawal of its full-year outlook due to economic softness [1][9] Company Performance - Over the past year, Krispy Kreme shares have decreased by more than 70%, resulting in a market value of less than $600 million [2] - The company reported a net loss of $33 million for the quarter ending March 30 [6] - Krispy Kreme has experienced three quarters of net losses in the last year [7] Partnership with McDonald's - The rollout of Krispy Kreme doughnuts in McDonald's locations has been suspended, with no additional launches planned for the second quarter [1] - The initial phases of the partnership showed promise, but sales fell below expectations, prompting the need for intervention to achieve sustainable growth [5] - The two companies had previously announced plans for Krispy Kreme doughnuts to be sold in all McDonald's U.S. locations by the end of 2026, but the rollout began only six months ago [3] Economic Context - McDonald's reported a 3.6% decline in U.S. same-store sales for the first quarter, indicating a broader trend of reduced spending at restaurants among middle- and low-income consumers [4] - The company cited macroeconomic softness and uncertainty regarding the McDonald's partnership schedule as reasons for pulling its 2025 outlook [9] Strategic Adjustments - Krispy Kreme is working with McDonald's to stimulate demand and cut costs by simplifying operations [6] - The company is considering pruning unprofitable locations, which could affect up to 10% of its U.S. network [8]

Financial Performance and Key Metrics - In Q1, net revenue was $375.2 million, reflecting continued growth through the omnichannel model, offset by the sale of Insomnia Cookies [22] - Organic revenue declined by 1%, largely due to expected consumer softness in a challenging macro environment [22] - Adjusted EBITDA was $24 million with a margin of 6.4%, impacted by the sale of Insomnia Cookies and costs associated with U.S. nationwide expansion [22][24] - Adjusted earnings per share were negative $0.05 in Q1, a decline from the prior year driven by expected lower revenue and EBITDA [27] Business Line Performance - U.S. segment organic revenue declined by 2.6%, with adjusted EBITDA declining to $15.9 million due to softness in the retail segment and operational inefficiencies related to a cybersecurity incident [23][24] - International markets saw organic revenue growth of 1.5%, led by strong results in Canada [24] - In the Market Development segment, organic revenue grew by 2.7% due to franchise business expansion [25] Market Data and Key Metrics - Average revenue per door per week (APD) was $587, down from the same period last year, reflecting a shift in customer mix [24] - Points of Access grew by 6.3%, indicating expansion in Australia with Kohl's and BP [24] Company Strategy and Industry Competition - The company is focused on profitable U.S. expansion and capital-light international franchise growth, aiming for 100,000 points of access [6] - The strategy includes paying down debt, generating positive cash flow, and pursuing only profitable growth based on sustainable revenue streams [6][29] - The company is reassessing its partnership with McDonald's to ensure a profitable business model before further expansion [14][60] Management Commentary on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment and the need to prioritize financial flexibility and deleveraging the balance sheet [21][29] - The company expects to deliver positive operating cash flow in 2025 as it continues to reduce capital intensity and improve working capital [28] - The prior full-year outlook has been withdrawn due to macroeconomic softness and uncertainty around McDonald's [31] Other Important Information - The company has decided to discontinue the quarterly dividend to allocate capital towards debt repayment [29] - A new Minneapolis hub is under construction, retrofitting an existing building to save 20% in capital and real estate costs [17] Q&A Session Summary Question: How is the company thinking about CapEx given the current changes? - The company is focused on strengthening the balance sheet and becoming more disciplined in capital allocation, investing only in high-return projects [35][36] Question: Was the decision to pause McDonald's expansion made by the company or McDonald's? - The decision was made collaboratively with McDonald's, ensuring that profitable growth is prioritized before further expansion [60] Question: How aggressive will the company be in pruning underperforming locations in the U.S.? - The company could exit as much as 5% to 10% of doors in the U.S. network to drive profitable growth [40][41] Question: Can you explain the refranchising process for international markets? - The company is looking for the right partners to grow the business in a capital-efficient way, with proceeds used to pay down debt [42][43] Question: What was the impact of the cybersecurity incident on operations? - The $5 million inefficiency related to the cybersecurity incident was expected and is now behind the company, allowing for improved operational efficiency [53] Question: Why was there a pause in the McDonald's rollout? - Sales initially started strong but dropped below expectations after local marketing efforts, prompting the need to ensure profitable growth before further expansion [60]

Financial Performance and Key Metrics - In Q1 2025, net revenue was $375.2 million, reflecting a decline of 1% in organic revenue due to consumer softness in a challenging macro environment [22][27] - Adjusted EBITDA was $24 million with a margin of 6.4%, impacted by the sale of Insomnia Cookies and costs associated with U.S. nationwide expansion [22][26] - Adjusted earnings per share were negative $0.05, a decline from the prior year driven by lower revenue and EBITDA [26] Business Line Performance - U.S. segment organic revenue declined by 2.6%, with adjusted EBITDA dropping to $15.9 million due to softness in the retail segment and operational inefficiencies related to a cybersecurity incident [23][24] - International markets saw organic revenue growth of 1.5%, led by strong results in Canada, while the Market Development segment grew organic revenue by 2.7% [24][25] Market Data and Key Metrics - Average revenue per door per week (APD) was $587, down from the previous year, reflecting a shift in customer mix due to the introduction of McDonald's [24] - Points of Access grew by 6.3%, indicating expansion efforts in Australia and Canada [24] Company Strategy and Industry Competition - The company is focused on profitable U.S. expansion and capital-light international franchise growth, aiming for 100,000 points of access [6][17] - A strategic shift includes prioritizing debt reduction, generating positive cash flow, and pursuing only profitable growth based on sustainable revenue streams [6][28] - The partnership with McDonald's is being reassessed to ensure a profitable business model before further expansion [12][13] Management Commentary on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment and the need to focus on profitable growth while simplifying operations [6][31] - The company has withdrawn its prior full-year outlook due to macroeconomic softness and uncertainty around the McDonald's partnership, but expects Q2 revenue between $370 million and $385 million [30][31] Other Important Information - The decision to discontinue the quarterly dividend was made to allocate capital towards debt reduction [28] - The company is actively pursuing refranchising opportunities in international markets to strengthen its balance sheet [17][28] Q&A Session Summary Question: How is the company thinking about CapEx given the current changes? - The company is becoming more disciplined in capital allocation, focusing on strengthening the balance sheet and investing in high-return projects [34][35] Question: Was the decision to pause McDonald's expansion made by the company or McDonald's? - The decision was made collaboratively with McDonald's, focusing on ensuring profitable growth before further expansion [37][38] Question: How aggressive will the company be in pruning underperforming locations? - The company could exit 5% to 10% of doors in the U.S. network as part of its focus on driving profitable growth [40][41] Question: What is the process for refranchising international markets? - The company is looking for the right partners to grow the business in a capital-efficient way, with proceeds used to pay down debt [42][43] Question: Was the $5 million inefficiency related to cybersecurity expected? - This was anticipated in the guidance, and the company is now operating more efficiently post-incident [53] Question: What is the status of sales per hub being down 2%? - The decline is attributed to consumer softness in retail channels and a planned reduction in discount days [56][57] Question: Was the pause in McDonald's expansion a quick decision? - The company believes in making decisive actions to ensure profitable growth, working closely with McDonald's to improve sales and simplify operations [62][63]

Krispy Kreme (DNUT) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this doughnut wholesaler and retailer would post earnings of $0.10 per share when it actually produced earnings of $0.01, delivering a surprise of -90%.Over the last four quarte ...

Krispy Kreme, Inc. FIRST QUARTER 2025 EARNINGS PRESENTATION MAY 8, 2025 Krispy Kreme | 1Q25 Earnings 1 Cautionary Note Regarding Forward-Looking Statements Certain statements made in this presentation and 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 the use of forward-looking terminology, including terms such as "plan," "believe," "may," "contin ...

Exhibit 10.1 INCREMENTAL ASSUMPTION AGREEMENT AND AMENDMENT NO. 1 TO CREDIT AGREEMENT INCREMENTAL ASSUMPTION AGREEMENT AND AMENDMENT NO. 1 TO CREDIT AGREEMENT, dated as of May 2, 2025 (this "Agreement"), by and among Krispy Kreme, Inc., a Delaware corporation ("PubCo"), Cotton Parent, Inc., a Delaware corporation ("Holdings"), Krispy Kreme Doughnuts, Inc., a North Carolina corporation (the "Parent Borrower"), the other Loan Parties party hereto, the Lenders party hereto (which constitute all of the Lenders ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Krispy Kreme (DNUT) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 8, 2025, might help the stock move higher if these key numbers are better than expectati ...