Krispy Kreme Inc (DNUT)

[eastunder]

Krispy Kreme closes nearly 1,000 points of access in Q3 profitability push

Joanna Fantozzi
Thu, November 6, 2025 at 1:48 PM MST 3 min read

https://finance.yahoo.com/news/krispy-kreme-closes-nearly-1-204833539.html

The Krispy Kreme partnership with McDonald’s did not work out, but CEO Josh Charlesworth is not worried. In fact, the company has “trimmed the fat” of 3,500 underperforming points of access (including hot doughnut shops and DFDs—or Delivered Fresh Daily locations) over the past year, including the 2,400 McDonald’s units. Last quarter alone, Krispy Kreme exited nearly 1,000 locations, the company confirmed in its earnings report for the third quarter ended Sept. 28.

The goal? Focus on partnerships that work (like Kroger, Publix, Costco, and Walmart), and close access points with low foot traffic as the company’s turnaround process continues.  

“We are looking for how many people go to that location, because most people don't have donuts on their shopping list,” Charlesworth told Nation’s Restaurant News. “It's often an impulse purchase — an infrequent, special moment. The doughnuts have to be visible and prominent. … That obviously requires close partnerships and commitment from them to the program.”

That might mean that in other markets, QSR partnerships work, like Krispy Kreme’s collaboration with KFC in the United Arab Emirates, which is now in more than 200 locations, with room to grow. However, the company has no intention of adding a new QSR partnership in the U.S. anytime soon.

“The QSR channel didn't work out with McDonald's because the conditions weren't right, but it’s working out with KFC in the Middle East because the conditions are right,” Charlesworth said. “We're also trying this out in some other international markets. It's not that QSR would never be an opportunity in the U.S., But we're focused on what's right in front of us: a turnaround that allows us to grow sustainably and profitably with the partners we already have.”

In addition to refining DFD partnerships, Krispy Kreme is also focusing on refranchising, particularly in select international markets. The company is moving to a more capital-light franchise model to drive sales growth and accelerate unit development. 

Krispy Kreme also recently announced a new menu revamp, as the company had not updated its core doughnut offerings for “many years,” Charlesworth said. The company listened to what consumers want more of and even brought back previously discontinued doughnuts like the maple glaze flavor.

“We heard from the consumer that they like to see some variation, not just in the specialty one-offs for Halloween or Valentine's Day, but on an ongoing basis,” he said. 

For the third quarter ended Sept. 28, Krispy Kreme reported net revenues of $375.3 million, down 1.2% from $379.9 million the same quarter the year prior. Krispy Kreme swung to a loss of $20.1 million, or 11 cents per share, compared to a profit of $37.6 million, or 23 cents per share, in the same quarter last year.