Krispy Kreme Q4 Revenue Falls 2.9%, Adjusted EBITDA Margin Expands 280bps
Krispy Kreme’s Q4 net revenue fell 2.9% year-over-year to $392.4 million while organic revenue dropped 3.9% as the chain closed underperforming stores. Adjusted EBITDA rose 21% to $55.6 million with margin expanding 280bps, and full-year systemwide sales grew 0.7% to $1.96 billion despite a 13.5% drop in global points of access to 15,194.
1. Q4 Revenue Declines as Store Closures
In the fourth quarter ended December 28, 2025, net revenue fell 2.9% year-over-year to $392.4 million and organic revenue declined 3.9% following the strategic closure of underperforming stores to support profitability.
2. Adjusted EBITDA Rises, Cash Flow Positive
Adjusted EBITDA rose 21.0% to $55.6 million, expanding margin by 280 basis points to 14.2%, while operating cash flow reached $45.0 million and free cash flow turned positive at $27.9 million in the quarter.
3. Full Year Sales and Losses
For the full year 2025, net revenue dropped 8.6% to $1,522.6 million, while systemwide sales edged up 0.7% in constant currency to $1.96 billion; the company posted a GAAP net loss of $523.8 million and generated $140.3 million in adjusted EBITDA but recorded negative free cash flow of $64.0 million.
4. Turnaround Strategy and 2026 Outlook
Krispy Kreme reduced global points of access by 2,363 units, or 13.5%, to 15,194 through refranchising and closures, and plans to drive profitable U.S. expansion, capital-light international franchise growth, disciplined capital expenditures and leverage reduction to achieve systemwide sales growth and positive free cash flow in 2026.