Key Takeaways
- Krispy Kreme has launched an international expansion strategy, starting with a new location in Madrid.
- The donut maker needs a win after two consecutive quarters of dismal earnings and as its stock trades near its all-time low.
Krispy Kreme is hoping international customers have the sweet tooth that helps revive the donut chain’s fortunes.
The maker of its eponymous donuts opened a shop in Madrid earlier this month and said Wednesday it plans to roll out two more in the Spanish city this year. It will open more than 50 new locations throughout the country over the next four years.
CEO Josh Charlesworth said the Madrid opening “strengthens our international presence,” and “reinforces our commitment to scaling efficiently through our franchise model that supports sustainable, profitable growth.”
The chain is also set to open two locations in São Paulo, Brazil, and make its debut in Uzbekistan, all before the end of 2025.
Why This Matters To Investors
Krispy Kreme was once a retail darling, but has stumbled in recent years. Shareholders hope a new strategy can reverse the stock’s slide.
Krispy Kreme (DNUT) shares have lost 65% of their value so far in 2025, as the company posted sales declines and net losses in both the first and second quarters. The stock was down about 2% in afternoon trading Wednesday.
In the second quarter, the company’s U.S. revenue dropped 21% compared with the prior year owing to the sale of its stake in Insomnia Cookies, the end of its partnership with McDonald’s (MCD), and overall softening consumer demand. At the same time, international revenue was up 6%, led by sales growth in Canada, Japan and Mexico.
Krispy Kreme, which is expected to report third-quarter results in early November, currently operates in 40 countries via shops and retailer partnerships.
