(Nov 5): Krispy Kreme Inc raised its revenue outlook for the year, showing that efforts to turn around the doughnut chain by refranchising and cutting costs are working.
 
The company now expects full-year net revenue to reach at least the top end of its prior range, with much of the growth coming from renewed momentum in international markets, along with online orders and its fresh delivery business in the US, chief executive officer Josh Charlesworth said in an interview.

The Charlotte, North Carolina-based donut chain now sees full-year net revenue of between US$1.35 billion (RM5.49 billion) and US$1.4 billion, in line with the US$1.38 billion expected by Wall Street. It had previously guided between US$1.25 billion and US$1.35 billion. Third-quarter net revenue of US$328.8 million also topped estimates.

Krispy Kreme has been working to cut costs and reduce debt for about a year to turn around its business. It cut capital expenditures for the first three quarters of the year by almost 65% from a year earlier, primarily by franchising much of its store network. It added 98 new shops around the world so far this year, nearly all of which are franchised. 

During the quarter, about 42% of system-wide sales came from franchised locations, up from 25% over all of fiscal 2025. System-wide sales were up 1% in constant currency.

Krispy Kreme also aims to boost its fresh delivery business, which sells Krispy Kreme doughnuts and pastries in retailers like Walmart, Target and Publix. The company backed out of lower-performing locations about a year ago, Charlesworth said, and is focusing on locations with better traffic. 

Much of the sales growth is coming from the company’s own site and app, Charlesworth said, as well as newer initiatives to sell on Walmart’s and Target’s websites.

Demand is largely holding up, Charlesworth said, even as many in the food and restaurant industries worry about the impacts of GLP-1s and other weight-loss drugs, as well as consumers pulling back on spending. Krispy Kreme has seen an uptick in customers ordering its “double dozens” as they look for the best value, he said. 

The chain has been less affected by budget-conscious consumers pulling back since customers typically only visit two or three times per year, and are typically purchasing to share, for a holiday or for a special occasion.

Uploaded by Felyx Teoh