Krispy Kreme Sees Turnaround Progress in 2025

Improved profitability, positive free cash flow, and reduced leverage despite revenue decline from store and delivery exits

Feb. 26, 2026 at 8:48pm

Got story updates? Submit your updates here. ›

Krispy Kreme executives said the company made 'meaningful progress' on a turnaround plan during the fourth quarter and full year 2025, highlighting improved profitability, positive free cash flow, and steps to reduce leverage even as reported revenue declined due to strategic closures of underperforming stores and delivery doors.

Why it matters

Krispy Kreme's turnaround efforts are aimed at deleveraging its balance sheet and delivering sustainable, profitable growth through a focus on expanding its iconic fresh doughnut brand in the U.S. and growing its capital-light international franchise business.

The details

Management said the business generated $2 billion in system-wide sales in 2025 and expects 2-4% growth in 2026, driven by higher sales volumes, expanding points of access, and franchise development. The company plans to reduce its ownership stake in its Western U.S. joint venture and refranchise certain international markets to improve capital efficiency. Krispy Kreme also discussed optimizing its U.S. footprint, improving capacity utilization, and streamlining logistics to reduce costs.

  • In the fourth quarter of 2025, Krispy Kreme reported adjusted EBITDA of $55.6 million, up 21% year-over-year and 37% quarter-over-quarter.
  • By the end of the fourth quarter of 2025, Krispy Kreme had added more than 1,100 new higher-volume, higher-margin fresh delivery doors with strategic partners.
  • The company expects to complete the transition to having 57% of its U.S. fresh delivery network outsourced to third-party logistics providers in 2026.

The players

Josh Charlesworth

President and CEO of Krispy Kreme.

Raphael Duvivier

CFO of Krispy Kreme.

Krispy Kreme

A global retailer and wholesaler renowned for its signature Original Glazed doughnut and a variety of other sweet treats, operating through a combination of company-owned stores, franchise outlets, and strategic partnerships.

WKS Restaurant Group

A joint venture partner with Krispy Kreme in the Western U.S. that will continue operating existing shops and expand fresh delivery.

Unison Capital

A strategic partner that Krispy Kreme announced a deal with in December 2025 to refranchise the company's operations in Japan.

Got photos? Submit your photos here. ›

What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.