Krispy Kreme, Inc. reported a significant decline in financial performance for the quarter ended June 29, 2025, with total net revenues of $379.8 million, down 13.5% from $438.8 million in the same quarter of the previous year. The company's product sales decreased by 13.5% to $371.4 million, while royalties and other revenues fell by 10.7% to $8.4 million. The net loss attributable to Krispy Kreme, Inc. was $435.3 million, compared to a loss of $5.5 million in the prior year, resulting in a net loss per share of $(2.55) for the quarter.
The decline in revenue was primarily attributed to the divestiture of Insomnia Cookies, which resulted in a $64.2 million reduction in revenue. Organic revenue also saw a slight decline of 0.8%, driven by lower transaction volumes in the Doughnut Shop segment amid challenging macroeconomic conditions. The U.S. segment experienced a 20.5% drop in net revenue, while the International segment reported a 6.0% increase, largely due to growth in Canada, Japan, and Mexico.
Strategically, Krispy Kreme announced the termination of its Business Relationship Agreement with McDonald’s USA, effective July 2, 2025, which is expected to reduce approximately 2,400 DFD Doors in the third quarter of fiscal 2025. The company is focusing on a turnaround plan that includes refranchising certain international markets and enhancing operational efficiency. Additionally, Krispy Kreme has been expanding its global presence, opening its first franchise shop in Brazil during the second quarter.
Operationally, Krispy Kreme reported a total of 18,113 Global Points of Access, reflecting a net addition of 131 locations during the quarter. The company continues to outsource some of its U.S. DFD deliveries to third-party logistics carriers, aiming to improve profitability. However, the company also recorded a substantial non-cash goodwill impairment charge of $406.9 million, reflecting a decline in the fair value of its reporting units, which management attributed to a sustained decline in stock price and operating results below forecasts.
Looking ahead, Krispy Kreme anticipates that the termination of its partnership with McDonald’s will positively impact profitability trends in the U.S. segment starting in the third quarter of fiscal 2025. The company is committed to enhancing its omni-channel strategy and expanding its global footprint, with plans to enter three to four new countries in fiscal 2025. Despite the current challenges, Krispy Kreme aims to leverage its brand and operational strategies to drive sustainable growth in the future.
About Krispy Kreme, Inc.
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