Key Points – Turnaround progress continued: Q2 adjusted EBITDA rose 43% year over year to $28.8 million, while the margin expanded 340 basis points to 8.7%.
Free cash flow improved by more than $100 million in the first half, and net leverage fell to 5.4 times. – Refranchising is reshaping the business: Franchisees now generate 42% of systemwide sales, up from about 25% last year, with Krispy Kreme targeting roughly 50% beginning in 2027
The strategy reduced capital needs and supported debt reduction, although Q2 revenue declined 13% to $331 million because of refranchising transactions. – 2026 guidance was reaffirmed: Krispy Kreme continues to target $1.25 billion-$1.35 billion in revenue, $140 million-$150 million in adjusted EBITDA and $50 million-$60 million in capital expenditures. U.S. digital sales, retail distribution and fresh-delivery capacity remain key growth drivers. – Krispy Kreme: A Meme Stock Sugar Rush or a Sustainable Treat? Krispy Kreme (NASDAQ:DNUT) said its second-quarter results reflected continued progress in its turnaround plan, with improved profitability, lower capital spending and further deleveraging offsetting the revenue impact of refranchising transactions in Japan and the Western United States.
President and Chief Executive Officer Josh Charlesworth said the company remains focused on four priorities: refranchising, improving returns on capital, expanding margins and generating sustainable, profitable U.S. growth. The company maintained its full-year 2026 guidance. – 3 Fast Food Stocks That Won’t Give You Indigestion Right Now Second-quarter net revenue was $331 million, down 13% from a year earlier, primarily reflecting the planned refranchising transactions. Excluding refranchising, revenue was essentially flat on an organic basis, Chief Financial Officer Raphael Duvivier said.