Krispy Kreme Q2 Loss Triggers Turnaround Plan

Krispy Kreme reported a GAAP net loss of over $435 million in the second quarter of 2025, primarily driven by $406.9 million in non-cash goodwill and asset impairment charges and the abrupt end of its major distribution partnership with McDonald’s. Revenue fell 13.5% to $379.8 million, slightly beating analyst expectations, while adjusted EBITDA declined by over 60% year-over-year. The company posted an adjusted loss per share of $0.15, missing consensus estimates and contributing to a year-to-date share price drop of over 65%. In response to these challenges, Krispy Kreme has withdrawn its future guidance, ended its quarterly dividend, and announced a turnaround plan centered on cost reduction, refranchising—including reducing its stake in its Western US joint venture and international markets—and operational efficiency. The company’s performance was also impacted by the sale of a majority stake in Insomnia Cookies, increased discounting, and lower transaction volumes. Future recovery is contingent on the successful execution of its turnaround plan and restoration of investor confidence.