Krispy Kreme Q3 revenue falls 12% but beats estimates
Overview
US doughnut chain's Q3 revenue fell 12% but beat analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company raised and narrowed FY net revenue guidance
Outlook
Krispy Kreme raises and narrows 2026 net revenue guidance to $1.35 bln-$1.40 bln from $1.25 bln-$1.35 bln
Company expects 2026 systemwide sales to rise 2%-4% year over year in constant currency
Krispy Kreme projects 2026 adjusted EBITDA of $140 mln-$150 mln
Result Drivers
REFRANCHISING IMPACT - Co said lower revenue was primarily due to refranchising of the western US joint venture and Japan
U.S. FRESH DELIVERY GROWTH - Organic revenue in the US rose 0.9%, driven by growth in fresh delivery and digital channels
INTERNATIONAL WEAKNESS - Organic revenue in the International segment fell 5.4%, mainly due to declines in the UK, partially offset by growth in Canada
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $328.80 mln | $311.41 mln (4 Analysts) |
Q3 Adjusted EPS | Beat | $0.06 | $0.01 (5 Analysts) |
Q3 Loss Per Share | $0.08 | ||
Q3 Adjusted Net Income | Beat | $9.90 mln | $2.15 mln (3 Analysts) |
Q3 Net Loss | $13.30 mln | ||
Q3 Adjusted EBITDA | Miss | $35.30 mln | $35.98 mln (5 Analysts) |
Q3 Adjusted EBITDA Margin | 10.70% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy."
Wall Street's median 12-month price target for Krispy Kreme, Inc. is $4.00, about 13.6% above its November 4 closing price of $3.52
The stock recently traded at 53 times the next 12-month earnings vs. a P/E of 169 three months ago
Reuters Recommended Reads
Nov 4 - One Group Hospitality Q3 revenue dips, misses estimates
Nov 4 - Applebee's owner Dine Brands beats Q3 sales estimates on value, menu innovation
Nov 4 - McDonald's Q3 revenue misses estimates on weaker US comparable sales
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)