Krispy Kreme Inc. (DNUT) saw its stock tumble over 23% on Tuesday, setting a record low as investors reacted to a disappointing fourth-quarter earnings report and a weaker-than-expected 2025 outlook. The iconic doughnut brand reported revenue and profit figures that fell short of analyst expectations, while a cybersecurity breach and the sale of its Insomnia Cookies stake weighed heavily on financials.
Krispy Kreme Q4 Earnings: Key Takeaways
Krispy Kreme’s Q4 revenue fell 10.4% year-over-year to $404 million, missing analysts’ forecast of $414 million, according to FactSet. The company attributed the decline to a $101 million impact from the partial sale of Insomnia Cookies and an $11 million hit from a cyberattack that disrupted online orders in the U.S.
The doughnut maker swung to a net loss of $22.4 million (13 cents per share), compared to a $2.6 million profit (2 cents per share) in the same quarter last year. Adjusted earnings came in at 1 cent per share, falling short of the expected 10 cents per share.
Cybersecurity Incident and Business Restructuring
The cyberattack that Krispy Kreme disclosed in December had a material impact on Q4 sales, causing online-ordering disruptions in parts of the U.S. The company is now taking steps to restructure its management teams, outsource U.S. logistics, and explore refranchising certain international markets to drive more efficient growth.
Despite the setbacks, CEO Josh Charlesworth highlighted 18 consecutive quarters of organic sales growth, with organic revenue up 5% in 2024 to $1.658 billion.
Krispy Kreme Expands McDonald’s Partnership
One bright spot for Krispy Kreme is its growing partnership with McDonald’s (MCD). The company is now delivering fresh doughnuts to over 1,900 McDonald’s locations, significantly increasing its total points of sale to 17,557 locations in 2024—up from just 3,410 the year before.
Weak 2025 Outlook Weighs on Stock
Krispy Kreme’s full-year 2025 revenue guidance came in between $1.55 billion and $1.65 billion, well below analyst expectations of $1.76 billion. The company also forecasted adjusted earnings between 4 cents and 8 cents per share, far below Wall Street’s estimate of 30 cents per share.
Stock Performance: DNUT Hits Record Low
Following the earnings release, Krispy Kreme shares plummeted to $7.02, marking a new all-time low based on data since its 2021 IPO. The stock is now down 45% over the last 12 months, compared to the S&P 500’s 17.5% gain.
With investor sentiment shaken by weak earnings, a soft outlook, and operational challenges, Krispy Kreme faces a critical year ahead as it works to regain momentum.
