Krispy Kreme Stock Takes a Nosedive After ‘Weak’ Outlook and Harsh Q4 Results

Brand fans and investors alike may not be particularly heartened by the latest news concerning Krispy Kreme, with the doughnut and confection chain reporting largely disappointing fourth-quarter results and a “weak” outlook, according to MarketWatch.

Revenue dipped to $404 million set against $450.9 million in the same quarter a year prior (a tumble of 10.4%), a figure which also missed the FactSet consensus estimate of $414 million.

As TipRanks reported, Krispy Kreme also fell short of analyst projections on two other fronts: net revenue and adjusted earnings. The company anticipates full-year fiscal net revenue between $1.55 billion and $1.65 billion for 2025, below expectations of $1.76 billion, and adjusted earnings are forecast to be between $180 million to $200 million, missing the projected marker of about $230 million.

On the other hand, there was a silver lining attached to Krispy Kreme’s report.

Organic revenue for 2024 ticked upward by 5%, resting at $1.658 billion — even after having been negatively impacted by a significant cybersecurity breach occurring late last year. That breach was apparently responsible for a 70 basis point loss against said revenue, according to a Feb. 25 company press release.

“We delivered an 18th consecutive quarter of year-over-year organic sales growth. Excluding the estimated cybersecurity incident impact, results were largely in line with our expectations,” Krispy Kreme CEO Josh Charlesworth said in the press release.

“Last quarter, we announced we were aligning our talent and capital to our business priorities, and we have taken significant action. We have restructured our management teams to maximize profitable U.S. expansion and capital-light international growth. We expect to soon award contracts to outsource U.S. logistics. Finally, we have begun a process to evaluate refranchising certain international markets. I believe these changes will drive capital efficient growth, as we continue our transformation into a bigger and better Krispy Kreme,” he added.

Krispy Kreme Stock Price Suffers Significant Blow

Despite Charlesworth’s optimism, investors appear to have been somewhat spooked by the reported results. In premarket trading on Feb. 25, Krispy Kreme stock tumbled by 18% — and as of 12:42 p.m. ET, shares slid by nearly 24%, priced at $6.96.

TipRanks suggested a Moderate Buy consensus rating, although it should be noted that this analysis was provided by just four analysts in aggregate.

The Motley Fool also seemed to advocate for caution, although it highlighted tailwinds such as Krispy Kreme’s new partnership with McDonald’s — more than 1,900 McDonald’s locations are receiving daily deliveries from the doughnut chain, a number expected to hit 6,000 restaurants as 2025 draws to a close — as well as its organic growth.