Krispy Kreme (DNUT) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenue was $375.2M, down 15.3% year-over-year, mainly due to the Insomnia Cookies divestiture and softer consumer demand.

• Organic revenue declined 1.0% as growth in Global Points of Access was offset by consumer softness.

• Adjusted EBITDA fell 58.8% to $24.0M, impacted by U.S. expansion costs, the Insomnia Cookies divestiture, and the 2024 Cybersecurity Incident.

• Global Points of Access grew 21.4% to 17,982, reflecting ongoing DFD Door expansion and McDonald's rollout.

• The company is prioritizing debt reduction, balance sheet deleveraging, and profitable U.S. and international franchise growth, with a pause on further McDonald's launches in Q2 2025.

Financial highlights

• Net revenue: $375.2M (down 15.3% year-over-year); organic revenue: $374.7M (down 1.0%).

• Adjusted EBITDA: $24.0M (6.4% margin, down 670 bps); adjusted EPS: $(0.05), down from $0.07 in Q1 2024.

• GAAP net loss widened to $33.4M from $6.7M a year ago; diluted loss per share: $0.20.

• Cash and equivalents at quarter end: $18.7M; net cash used for operating activities: $20.8M.

• Net leverage ratio increased to 6.1x from 4.5x at year-end 2024; net debt at $973.9M.

Outlook and guidance

• Withdrew full-year outlook due to macroeconomic softness and uncertainty around McDonald's deployment.

• Q2 2025 guidance: net revenue of $370–$385M; adjusted EBITDA of $30–$35M.

• No additional McDonald's restaurant launches expected in Q2 2025; long-term U.S. expansion opportunity remains.

• Plans to open in three to four new countries in 2025, with Brazil already launched.

• No further quarterly dividends planned to align with growth and debt reduction strategy.