Shares of Krispy Kreme declined about 7.5% in early Thursday trading after the company reported a loss and said it would earn less this year than previously expected.
CEO Josh Charlesworth said the company plans to maximize profitable expansion in the U.S. and focus more on its franchise model overseas.
The Charlotte-based doughnut retailer reported an adjusted $2.5 million loss, or 1 cent per share, after including a $40 million profit from the sale of its majority stake in Insomnia Cookies. The company reported an adjusted profit of $4.4 million, or 3 cents, in the same quarter last year. Sales declined 6.8% to $380 million.
For the 2024 year ending Dec. 31, Krispy Kreme expects to earn 18 cents to 22 cents per share, compared with previous guidance of 24 cents to 28 cents. It expects annual revenue of about $1.65 billion to $1.69 billion.
The company is restructuring its management team to “better align our talent,” the CEO said.
“With our resources prioritized to the things that matter most, I believe that these changes will result in a bigger and better Krispy Kreme,” Charlesworth said.
Krispy Kreme shares were trading around $11.50 early Thursday. They have traded between $9 and $18 over the past year. The market cap is about $1.9 billion.
