Krispy Kreme Stock Surges Up to 43% After Q3 Revenue and Earnings Beat, Full-Year Guidance Raised

Krispy Kreme reported third-quarter 2026 results that topped Wall Street estimates on both revenue and earnings, sending shares as high as 42.9% higher in a single session. The company posted revenue of $328.8 million against an analyst consensus of $311 million, while adjusted earnings per share came in at $0.06, well above the $0.01 estimate and representing a 500% year-over-year improvement. GAAP EPS remained negative at -$0.08.

Despite the earnings beat, revenue fell 12.4% from a year earlier, with the U.S. segment declining 25.6% to $160.9 million and the International segment down 12.0% to $123.5 million. The Market Development segment was the standout, surging 135.3% to $44.4 million. Adjusted EBITDA came in at $35.3 million, down 13.1% year over year, with the adjusted EBITDA margin slipping 10 basis points to 10.7%. Organic revenue growth was essentially flat at -0.1%, while global points of access rose 7.0% to 15,889.

Building on the quarterly results, the company raised and narrowed its full-year 2026 revenue guidance to a range of $1.35 billion to $1.40 billion, compared to a prior consensus of $1.35 billion. Full-year adjusted EBITDA is now guided at $140 million to $150 million, with systemwide sales expected to grow 2% to 4% in constant currency. The company also lowered its capital expenditure forecast to $40 million to $45 million from the prior $50 million to $60 million, and guided free cash flow above $15 million. Net leverage is expected to fall below 5.5 times.

On the expansion front, Krispy Kreme announced two franchise development agreements: 33 new doughnut shops in New York City over five years and 120 shops in Pakistan over the same period. The company also disclosed that it has increased the CEO's bonus target and stock award grants. Management cited international franchise expansion, reduced leverage, and improved free cash flow as evidence that its turnaround plan is gaining traction.