Wall Street hammered Krispy Kreme stock on Monday, sending its share price to an all-time low after the company reported disappointing earnings and a lower-than-expected set of expectations for 2025.
The Charlotte-based doughnut chain said that organic revenue grew 1.8% in the fourth quarter, a number that was 280 basis points lower than it should have been thanks to a cyberattack that disrupted its online ordering system in December.
Those results fell below Wall Street expectations. So did the company’s expectations for organic revenue growth this year, of 5% to 7%. Executives on Monday acknowledged that 2025 has started out slowly.
“It has been a choppy start of the year in our traditional retail locations in the U.S.,” CEO Joshua Charlesworth told analysts, according to a transcript on the financial services site AlphaSense. “Those freezing temperatures and wildfires. But we also see the value-conscious consumer under pressure.”
The report, and the comments, hit the stock hard. Krispy Kreme stock plunged 24% on Tuesday, falling below $7 per share at one point and hitting a new all-time low. For the year, the company’s stock is down 30%.
Investors hit the stock even though Krispy Kreme said that it is making progress on its McDonald’s partnership. The fast-food giant on Monday said it has started selling doughnuts in New York City.
In addition, the company continues to expand its relationship with retailers such as Kroger, Publix and Target. Krispy Kreme makes doughnuts out of its shops and then ships them daily to retailers such as supermarkets and convenience stores, as well as McDonald’s.
Krispy Kreme expanded the number of access points for its doughnuts globally by 24%. Krispy Kreme expects to continue that expansion this year, thanks to deals with companies such as Costco. That expansion should increase sales per doughnut shop, or “hub.”
But the company also plans to stop selling its doughnuts in spots where there’s little demand.
“We’re making sure we’re continuously optimizing our network,” Charlesworth said. “And that means any low-performing doors we can optimize as we go. That means the system is strong for the long-term.”
Krispy Kreme had other positive news on Tuesday, notably Valentine’s Day. “Our Valentine’s Day collection led to the biggest U.S. retail sales day ever,” Charlesworth said.
Yet, despite that performance, company executives said they need to spend more time focusing attention on the chain’s signature product, its glazed doughnut. “The consumer remains highly engaged with the Krispy Kreme brand,” Charlesworth said. “We’re an indulgent purchase for special occasions. Valentine’s was our biggest sales day ever. But we are finding that we need to put the spotlight on our beloved and affordable Original Glazed brand.”
As for McDonald’s, Krispy Kreme is in 2,500 total of the burger chain’s locations. It expects to be in 6,000 by the end of the year and 12,000 by the end of 2026. “So that rollout is on track,” Charlesworth said.
“The feedback from McDonald’s is very positive,” he added. “With local marketing, the team at McDonald’s is able to raise awareness, make sure people know it’s on the menu, driving very strong demand and no visible cannibalization of our other sales channels.”
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