Krispy Kreme (DNUT) investor relations material

Executive summary

• Achieved significant progress on turnaround plan, focusing on deleveraging, refranchising, and sustainable, profitable growth through U.S. expansion and international franchise development.

• Net revenue declined 2.2% to $367 million, reflecting strategic closures and the end of the McDonald's USA partnership.

• Adjusted EBITDA rose 38% year-over-year to $33.1 million, with margin expanding 260 basis points to 9.0%.

• Free cash flow turned positive at $11.4 million, up $58.1 million year-over-year.

• Turnaround plan progress included refranchising in Japan and the Western U.S., outsourcing U.S. logistics, and expanding U.S. access points.

Financial highlights

• Net revenue for Q1 2026 was $367 million, down 2.2% year-over-year due to strategic closures.

• Systemwide sales reached $485.3 million, up 0.7% in constant currency, excluding McDonald's USA partnership.

• Adjusted EBITDA reached $33.1 million, up 38% year-over-year.

• Free cash flow was $11.4 million, a turnaround from negative $47 million in Q1 2025.

• Net leverage ratio improved to 5.5x, down from 6.7x at year-end 2025.

Outlook and guidance

• Full-year 2026 net revenue guidance: $1.25 billion–$1.35 billion.

• Systemwide sales expected to increase 2%-4% in constant currency from $1.96 billion in 2025.

• Adjusted EBITDA guidance: $140 million–$150 million, including impact of completed refranchising.

• Capital expenditures projected at $50 million–$60 million, down significantly from last year.

• Net leverage ratio targeted below 5.5x and positive free cash flow of more than $15 million expected.