As Krispy Kreme's U.S. Business and Stock Price Have Stumbled, the Donut Chain Looks Abroad

Core Insights - Krispy Kreme is focusing on international expansion to revive its fortunes, opening a new shop in Madrid and planning to launch over 50 locations in Spain over the next four years [1][7] - The CEO emphasized the importance of strengthening international presence and the commitment to a franchise model for sustainable growth [2] - The company has faced significant challenges, with shares losing 65% of their value in 2025 due to sales declines and net losses in the first two quarters [3][4] Financial Performance - In the second quarter, U.S. revenue dropped by 21% year-over-year, attributed to the sale of its stake in Insomnia Cookies, the end of the partnership with McDonald's, and reduced consumer demand [4] - Conversely, international revenue increased by 6%, driven by growth in Canada, Japan, and Mexico [4] - Krispy Kreme operates in 40 countries through shops and retailer partnerships and is expected to report third-quarter results in early November [4] Strategic Initiatives - The company is set to open two locations in São Paulo, Brazil, and will debut in Uzbekistan by the end of 2025 [2] - The international expansion strategy is seen as a critical move to counteract the recent poor earnings and stock performance [7]