--- title: "Krispy Kreme raises guidance as turnaround plan gains steam" url: https://burnaze.com/article/b93ebb48-d99c-4d87-bc63-bcdb95250bd8 source: "Nation's Restaurant News" original_url: https://www.nrn.com/quick-service/krispy-kreme-raises-guidance-as-turnaround-plan-gains-steam author: "Alicia Kelso" category: "Bakery & breakfast" industry: "Restaurants" segment: "Bakery & breakfast" published: 2026-11-05T17:01:38.000Z modified: 2026-11-06T00:02:04.867Z image: https://eu-images.contentstack.com/v3/assets/bltea7aee2fca050a19/blt16bb6025356fc6e3/6aecb74256255d447f469cdb/krispy_kreme.jpg?disable=upscale&width=1200&height=630&fit=crop --- # Krispy Kreme raises guidance as turnaround plan gains steam **TL;DR:** Krispy Kreme continues to make progress against its four-part turnaround plan introduced last year, reporting a systemwide sales increase of 1% in the third quarter and increasing its full-year guidance. *By Alicia Kelso, originally published in Nation's Restaurant News on 2026-11-05. [Read the original](https://www.nrn.com/quick-service/krispy-kreme-raises-guidance-as-turnaround-plan-gains-steam).* ## Story Executive Editor,Nation's Restaurant News Krispy KremePhoto courtesy of Krispy Kreme Krispy Kreme continues to make progress against its four-part turnaround plan introduced last year, reporting a systemwide sales increase of 1% in the third quarter and increasing its full-year guidance. Meanwhile, net revenue was 12.4% lower year-over-year because of the company’s refranchising deals as part of that turnaround plan, while adjusted EBITDA (earnings before interest, taxes, depreciation, amortization) grew 12.7% to $35.3 million. Free cash flow of -$10 million marked an $82 million improvement as the company works to recover from a failed McDonald’s partnership that required heavy investments. The company expects to report positive free cash flow of more than $15 million in 2026. “Our results demonstrate the success of the actions we are taking to drive sustainable, profitable growth and improve profitability,” CEO Josh Charlesworth said during the company's earnings call Thursday morning. He added that Krispy Kreme is a “compelling growth story supported by sustained consumer demand.” For the first pillar of that turnaround plan, refranchising, Krispy Kreme’s franchisees now generate approximately 42% of systemwide sales following the completion of two transactions earlier this year. Charlesworth expects that percentage to grow as the company pursues additional opportunities both domestically and internationally. The second pillar, improving returns on capital, has led to a 65% reduction in capital expenditure this year, executives said. Krispy Kreme also announced the opening of a “reimagined” shop prototype in Las Vegas that is designed to bring the brand’s signature Hot Light experience to a smaller format. “While we're in the initial phase of testing the new hotline express concept, we are encouraged by the interest we've already seen from franchisees as we focus on ways of improving capital returns within our hub-and-spoke model,” Charlesworth said. For the third pillar, expanding margins, he said the company has found efficiencies with enhanced production planning, labor optimization, and streamlined hub operations, as well as improved delivery route management and demand planning. Finally, for the fourth pillar of profitable growth, Charlesworth said the company has found traction through its expanded core menu and rotation of seasonal collections and limited-time offers to give customers new reasons to visit. Digital channels also contribute to this growth, and the company’s loyalty program now counts more than 18 million U.S. members. “Since announcing our turnaround plan just over a year ago, we have taken action to improve profitability and position our U.S. fresh delivery business for sustainable growth,” Charlesworth said. That includes the exit of about 1,500 underperforming doors within its fresh delivery network. “Since then, we have been adding more profitable, high-volume doors, and fresh delivery returned to growth in the third quarter.” Krispy Kreme added 715 net new doors year-over-year, which have generated higher average weekly sales than the ones the company exited. There are now approximately 7,700 fresh delivery doors across the U.S. “Sustainable profitable growth in fresh delivery depends on having the right conditions in place, namely high traffic locations and prominent in-store visibility,” Charlesworth said. In grocery stores, for example, more prominent front-of-store places bolsters sales, while in mass retailers like Walmart, planogram placement drives growth. “Those big-box retailers are an important part of our turnaround. We’ve been adding distribution with them because they have higher traffic and because the partners understand the importance of merchandising and prominence in stores,” Charlesworth said, adding that Krispy Kreme is still in less than half of Walmart and Target stores and is continuing to work with those companies to expand access. Notably, Krispy Kreme is reviewing its convenience store footprint to optimize door counts because those locations mostly sell loose doughnuts and increased fuel prices have led to reduced traffic. Finally, Krispy Kreme is growing its Minis category, featuring smaller doughnuts, to meet the increased demand for sharing and higher usage of GLP-1 weight loss medication. “We are pleased with our momentum,” Charlesworth said. “The actions we have taken are positioning Krispy Kreme for sustainable, profitable, long-term growth.” Contact Alicia Kelso at [email protected] Follow her on TikTok: @aliciakelso --- Originally reported by Alicia Kelso, Nation's Restaurant News (https://www.nrn.com/quick-service/krispy-kreme-raises-guidance-as-turnaround-plan-gains-steam). Summarized by Burnaze (https://burnaze.com/article/b93ebb48-d99c-4d87-bc63-bcdb95250bd8).