Krispy Kreme Stock Tumbles 25% Pre-Market After Company Ends Quarterly Cash Dividends, Withdraws Full-Year Outlook

Shares of Krispy Kreme Inc. (DNUT) tumbled 25% in Thursday’s pre-market after the company said it will no longer pay quarterly cash dividends and withdrew its full-year outlook.

CEO Josh Charlesworth said this will enable the firm to pay down debt, de-leverage the balance sheet, and drive sustainable, profitable growth.

Krispy Kreme also said it is reassessing its deployment schedule with McDonald’s and does not expect to launch in any additional restaurants in the second quarter of 2025.

For the second quarter, Krispy Kreme expects net revenue to be $370 million to $385 million and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $30 million to $35 million.

“While we expect the macro environment to remain challenging, we are focused on positive cash flow, higher returns on capital, and our two biggest opportunities: profitable U.S. expansion and capital-light international franchise growth,” Charlesworth said.

For the first quarter, the firm reported a 15.3% decline in revenue to $375.20 million, falling short of a Wall Street estimate of $384.38 million.

U.S. revenues declined 20.1%, primarily due to the $64.3 million reduction associated with the divestiture of a majority stake in Insomnia Cookies in the third quarter of fiscal 2024.

International revenue declined 4.1% due to foreign currency translation impacts of $8.4 million.

Adjusted earnings per share (EPS) came in at $0.05 compared to an earnings loss of $0.05 in the prior-year period. Net loss widened to $33.3 million compared to $8.5 million in the same quarter a year ago.

Shares of Krispy Kreme stock fell 55% in 2025 and 66% in the past 12 months.

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