“Paying down debt and deleveraging our balance sheet, generating positive cash flow, and pursuing only profitable growth based on sustainable revenue streams.”
— Joshua Charlesworth
03Detailed Report
DNUT
Company DNUT
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
Krispy Kreme reported QQ1 2025 net revenue of $375.2 million, a YoY decline of approximately 15% and a QoQ drop of about 7%, pressured by macro softness and the sale of Insomnia Cookies. Adjusted EBITDA reached $24.0 million with a 6.4% margin, while GAAP operating income was negative by $20.3 million and net income registered a loss of $33.3 million (EPS -0.20). The quarter reflects the company’s strategic pivot toward deleveraging, profitable growth, and capital-light expansion, even as it navigates a softer macro backdrop and the McDonald’s distribution pause.
Key Performance Indicators
Revenue
Decreasing
375.18M
QoQ: -7.14% | YoY: -15.25%
Gross Profit
Increasing
284.45M
75.82% margin
QoQ: -6.91% | YoY: 193.54%
Operating Income
Decreasing
-20.27M
QoQ: -76.28% | YoY: -252.78%
Net Income
Decreasing
-33.28M
QoQ: -48.30% | YoY: -290.02%
EPS
Decreasing
-0.20
QoQ: -53.85% | YoY: -295.26%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability metrics for QQ1 2025 vs QQ1 2024 and QQ4 2024:
- Revenue: $375.184 million; YoY change: -15.3%; QoQ change: -7.1% (driven by the Insomnia Cookies sale and mix effects). Organic revenue declined 1% in the US/international footprint amid softer consumer demand.
- Gross Profit: $284.448 million; gross margin 75.82% (slightly down QoQ by ~6.9% on a margin basis, aided by one-time effects from the portfolio changes).
- Adjusted EBITDA: $24.0 million; EBITDA margin 6.4% (drivers include Insomnia Cookies sale, ongoing US expansion costs, cybersecurity residuals).
- Operating Income: -$20.269 million; operating margin -5.40% (reflects ramp in expansion costs and ramp-down of unprofitable assets).
- Net Income / EPS: Net income -$33.284 million; net margin -8.87%; EPS -0.20. Diluted shares ~170.3 million.
- Cash Flow: Operating cash flow -$20.834 million; free cash flow -$46.731 million. Net cash used in investing activities -$25.811 million; net cash provided by financing activities +$36.798 million (driven by debt actions and working capital management).
- Balance Sheet: Total assets $3,089.323 million; total liabilities $1,957.907 million; total stockholders’ equity $1,101.631 million. Long-term debt $1,345.186 million; net debt $1,431.989 million. Cash and cash equivalents around $18.7 million. Leverage metrics remain elevated (debt/capitalization ~56.8%; debt/equity ~1.32).
- Key ratios: current ratio 0.35; quick ratio 0.28; cash ratio 0.042. Gross margin ~75.8%; operating margin ~-5.4%; net margin ~-8.9%. Payout ratios show negative dividend payout as the company suspended the quarterly dividend to prioritize debt reduction.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
375.18M
-15.25%
-7.14%
Gross Profit
284.45M
193.54%
-6.91%
Operating Income
-20.27M
-252.78%
-76.28%
Net Income
-33.28M
-290.02%
-48.30%
EPS
-0.20
-295.26%
-53.85%
Key Financial Ratios
Gross Profit Margin
Excellent
75.80%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.05%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.09%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.03%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.35
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
1.32
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-6.29x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.76x
Trading below book value, potential value opportunity or distressed
Management Insights Available for Members
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