Krispy Kreme (DNUT) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 2026 was $331 million, down 12.8% year-over-year, mainly due to refranchising and strategic closures, including the exit from the McDonald's USA partnership.

• Systemwide sales grew 2.6% year-over-year, excluding the ended McDonald's USA partnership.

• Adjusted EBITDA rose 43.2% to $28.8 million, with margin expanding 340 basis points to 8.7%, reflecting operational efficiencies and cost reductions.

• Net loss attributable to the company improved to $19.8 million from $441.1 million in Q2 2025, which included a large non-cash goodwill impairment.

• Turnaround plan progress includes refranchising, margin expansion, improved cash flow, and a focus on sustainable, profitable growth.

Financial highlights

• Q2 2026 net revenues: $331 million (down 12.8% year-over-year); H1 2026 net revenues: $698 million (down 7.5%).

• Adjusted EBITDA: $28.8 million in Q2 2026 (margin 8.7%), up from $20.1 million in Q2 2025.

• Adjusted net loss was $5.4 million, an improvement from $25.3 million in Q2 2025.

• Free cash flow for the first half of 2026 improved by $101.3 million to $(6.1) million.

• Net leverage ratio improved to 5.4x as of June 28, 2026, down from 6.7x at year-end 2025 and 7.5x in Q2 2025.

Outlook and guidance

• 2026 guidance maintained: net revenue $1.25–$1.35 billion, systemwide sales up 2–4%, adjusted EBITDA $140–$150 million, and capital expenditures of $50–$60 million.

• Plans to open at least 100 shops, nearly all franchised, and keep net leverage below 5.5x.

• Free cash flow projected above $15 million; Q4 expected to be stronger due to seasonality.