Krispy Kreme Shares Surge 30% Following Raised Full-Year Sales Forecast
Krispy Kreme (DNUT) shares jumped over 30% on Thursday after the company raised its full-year net revenue guidance to a range of $1.35 billion to $1.4 billion. Despite a year-over-year decline in net revenue to $328.8 million for the third quarter, the company reported a significant sevenfold increase in adjusted net income, reaching $9.9 million. The growth is driven by a strategic shift toward an asset-light, franchise-based business model. Franchise-operated stores now account for 42% of systemwide sales, up from roughly 25% in fiscal 2025, with management targeting a 50% franchise share by fiscal 2027. This refranchising strategy is intended to improve profit margins, enhance cash flow, and assist in debt reduction.
Tickers: $DNUT
Topics: earnings report franchise model sales forecast stock surge
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Part of the story Krispy Kreme Reports Third Quarter Earnings Improvement Amid Refranchising Strategy (3 articles)