Krispy Kreme Outlines Turnaround Progress in Q4 Earnings Call

Company highlights improved profitability, positive free cash flow, and steps to reduce leverage despite revenue decline.

Mar. 3, 2026 at 2:15am

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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 store and delivery-door exits. The company's plan is focused on 'deleverage the balance sheet and deliver sustainable, profitable growth,' anchored by strong consumer demand for Krispy Kreme's 'iconic fresh doughnuts'.

Why it matters

Krispy Kreme's turnaround efforts come as the company faces challenges in the highly competitive doughnut and coffee retail market. The company's ability to improve profitability, reduce debt, and drive sustainable growth will be crucial to its long-term success.

The details

Krispy Kreme plans to refranchise certain international markets and is targeting 'two to three international refranchising deals in 2026.' The company also intends to reduce its ownership to a minority stake in its existing Western U.S. joint venture with WKS Restaurant Group. Internationally, Krispy Kreme operates more than 1,700 shops across over 40 countries and expects more than 100 shop openings globally in 2026. In the U.S., the company is focused on 'quality growth' and improved utilization of existing assets, with plans to add locations without significant new capacity investment.

  • Krispy Kreme expects the strategic agreement with Unison Capital for its Japan operations to close in March 2026.
  • The company plans to complete the transition of 57% of its U.S. fresh delivery network to third-party logistics providers in 2026.

The players

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.

Josh Charlesworth

President and CEO of Krispy Kreme.

Raphael Duvivier

CFO of Krispy Kreme.

Unison Capital

A strategic partner that Krispy Kreme has announced a deal with for its Japan operations.

WKS Restaurant Group

A joint venture partner with Krispy Kreme in the Western U.S.

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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.