Overview

* Krispy Kreme Q2 rev declines 13.5% but beats analyst expectations, per LSEG data

* Adjusted EPS for Q2 misses consensus, reflecting operational challenges, per LSEG data

* Co announces turnaround plan to drive sustainable, profitable growth

* Turnaround to also focus on refranchising and driving return on invested capital

Outlook

* Krispy Kreme expects to recoup profitability in the third quarter

* Company aims for profitable U.S. expansion and capital-light international growth

* Krispy Kreme focuses on profitable, high-volume retail distribution points

* Company plans to reduce leverage through refranchising international markets

Result Drivers

* MCDONALD'S PARTNERSHIP END - Termination of McDonald's USA partnership impacted revenue and operating leverage

* INSOMNIA COOKIES SALE - Sale of majority stake in Insomnia Cookies contributed to revenue decline

* CONSUMER SOFTNESS - Reduced discounting and consumer softness led to decline in doughnut shop transaction volume

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $379.80 $378.10

Revenue mln mln (6

Analysts

)

Q2 Miss -$0.15 -$0.03

Adjusted (7

EPS Analysts

)

Q2 EPS -$2.55

Q2 Miss -$25.30 -$6.55

Adjusted mln mln (5

Net Analysts

Income )

Q2 Net -$441.10

Income mln

Q2 Miss $20.10 $32.20

Adjusted mln mln (6

EBITDA Analysts

)

Q2 5.3%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy."

* Wall Street's median 12-month price target for Krispy Kreme Inc ( DNUT ) is $5.27, about 35.1% above its August 6 closing price of $3.42

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)