Overview

• U.S. doughnut chain's Q1 revenue declined 2.2% but slightly beat analyst expectations

• Adjusted loss per share was flat from a year ago, but wider than analyst expectations

• Adjusted EBITDA rose 38% and beat consensus, driven by margin expansion and refranchising

Outlook

• Krispy Kreme sees 2026 net revenue of $1.25 bln to $1.35 bln

• Company expects 2026 adjusted EBITDA of $140 mln to $150 mln

• Krispy Kreme expects systemwide sales up 2% to 4% year-over-year in constant currency

Result Drivers

• STRATEGIC DOOR CLOSURES - Revenue declined mainly due to closure of underperforming locations, including doors tied to the ended McDonald's USA partnership

• MARGIN EXPANSION - Adjusted EBITDA margin rose to 9.0% from 6.4%, driven by productivity initiatives, SG&A savings, and removal of McDonald's USA-related costs

• REFRANCHISING - Refranchising of Japan and Western U.S. operations improved financial flexibility and contributed to lower capital expenditures

Company press release: ID:nBw1YdQvca

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$367 mln	$365.91 mln (3 Analysts)
Q1 Adjusted EPS	Miss	-$0.05	-$0.02 (5 Analysts)
Q1 EPS		-$0.16
Q1 Adjusted Net Income	Miss	-$7.80 mln	-$6.81 mln (2 Analysts)
Q1 Net Income		-$22.70 mln
Q1 Adjusted EBITDA	Beat	$33.10 mln	$27.62 mln (3 Analysts)
Q1 Adjusted EBITDA Margin		9.00%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $4.75, about 29.1% above its May 6 closing price of $3.68

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