Question · Q4 2025
Daniel Guglielmi of Capital One Securities inquired about Krispy Kreme's strategy for U.S. hub growth, specifically whether the company is identifying new expansion opportunities that offer strong returns, or if it's still too early for such considerations. He also asked about the significance of shop closure expenses in the recent quarter and future expectations for such costs in 2026.
Answer
President and CEO Josh Charlesworth explained that Krispy Kreme sees significant growth potential in under-penetrated strategic partners like Walmart, Target, Costco, and Sam's, having added over 200 new doors in Q4. He highlighted that current capacity utilization is only around 25%, allowing for expansion without substantial new production investment, which is reflected in the expected 50% reduction in 2026 CapEx compared to 2025. Regarding closures, Mr. Charlesworth clarified that the program of underperforming door rationalization is complete, and the company is now focused on optimizing existing production hubs and retail shops to improve productivity and efficiency, rather than making new closures, with expected EBITDA growth in Q1 2026.
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