Krispy Kreme(DNUT) - 2026 Q3 - Quarterly Results

Financial Performance - Net revenue for Q3 2025 was $375.3 million, a decrease of 1.2% compared to Q3 2024[5] - GAAP net loss was $20.1 million, compared to a net income of $37.6 million in the same quarter last year[8] - Total net revenues for the quarter ended September 28, 2025, were $375.3 million, a decrease of 1.5% compared to $379.9 million for the same quarter in 2024[27] - For the quarter ended September 28, 2025, Krispy Kreme reported a net loss of $20.1 million compared to a net income of $37.6 million for the same quarter in 2024[39] - The company experienced a total net revenue decline of $131.1 million or 10.4% for the first three quarters of fiscal 2025 compared to the same period in 2024[42] Adjusted EBITDA - Adjusted EBITDA increased by 17% to $40.6 million, with an adjusted EBITDA margin of 10.8%, up from 9.1%[9] - Adjusted EBITDA for the quarter was $40,597 thousand, representing an increase from $34,699 thousand in the prior year, reflecting a growth of approximately 23%[37] - The U.S. segment's Adjusted EBITDA increased to $21,010 thousand from $13,922 thousand year-over-year, marking a growth of about 51%[38] - International segment Adjusted EBITDA was $23,157 thousand, slightly up from $22,779 thousand, indicating a growth of approximately 2%[38] Revenue Segments - U.S. segment net revenue declined by $12.2 million to $216.2 million, a decrease of approximately 5.3%[11] - International segment net revenue grew by $9.5 million, or approximately 7.3%, with organic revenue growth of 6.2%[13] - U.S. revenues decreased by 5.3% to $216.2 million in Q3 2025 from $228.4 million in Q3 2024, while international revenues increased by 7.3% to $140.2 million[42] - Organic revenue increased by $2.2 million, or approximately 0.6%, driven by growth in the International segment[7] - Organic revenue growth for the third quarter of fiscal 2025 was 0.6%, with U.S. organic revenue declining by 2.2% and international organic revenue growing by 6.2%[42] Cash Flow and Liquidity - Cash provided by operating activities was $42.3 million, resulting in free cash flow of $15.5 million[3] - Net cash provided by operating activities for the quarter was $42,282 thousand, a substantial increase from $3,262 thousand in the same quarter last year[31] - Free cash flow for the quarter was $15,544 thousand, contrasting with a negative free cash flow of $(22,880) thousand in the prior year[31] - Total available liquidity as of September 28, 2025, was $215.2 million, including $30.7 million in cash[17] Assets and Liabilities - Total assets decreased to $2.6 billion as of September 28, 2025, down from $3.1 billion as of December 29, 2024[29] - Current liabilities totaled $448.9 million, a decrease from $486.2 million at the end of the previous fiscal year[29] - The company’s long-term debt, less current portion, increased to $906.2 million from $844.5 million[29] - Net debt increased to $951,995,000 as of September 28, 2025, compared to $875,263,000 as of December 29, 2024, reflecting a rise of 8.7%[50] - The total long-term debt, including debt issuance costs, rose to $979,463,000 as of September 28, 2025, compared to $900,903,000 as of December 29, 2024, an increase of 8.7%[50] Impairment Charges - The company experienced a significant impairment charge of $411.9 million related to goodwill and other assets[27] - The company experienced a significant goodwill impairment of $355,958 thousand during the three quarters ended September 28, 2025[31] - The company reported a goodwill impairment of $356.0 million for the three quarters ended September 28, 2025[39] Operational Metrics - Global Points of Access decreased by 960, or 6.1%, to 14,851 due to strategic closures of unprofitable locations[3] - Total Global Points of Access decreased to 14,851 in Q3 2025 from 15,811 in Q3 2024, a decline of 6.1%[46] - The total number of U.S. DFD Doors decreased to 6,971 in Q3 2025 from 7,711 in Q3 2024, a reduction of 9.6%[46] - Total Hot Light Theater Shops in the U.S. remained stable at 235 in Q3 2025 compared to 236 in Q3 2024[46] - International Hot Light Theater Shops increased to 52 in Q3 2025 from 48 in Q3 2024, a growth of 8.3%[46] - Total Hubs decreased slightly to 421 in Q3 2025 from 423 in Q3 2024, a decline of 0.5%[48] - The number of Fresh Shops in the U.S. decreased to 69 in Q3 2025 from 71 in Q3 2024, a decline of 2.8%[46] - The total number of Fresh Shops globally increased to 1,718 in Q3 2025 from 1,638 in Q3 2024, a growth of 4.9%[46] Cybersecurity Costs - The company incurred $1.5 million in costs related to the remediation of a cybersecurity incident during the quarter ended September 28, 2025[40]