Krispy Kreme launches multi-year turnaround plan after £6m loss

Krispy Kreme has launched a multi-year turnaround plan in a bid to drive growth in the UK after posting a £6.4m loss last year.

Filings for the doughnut brand said management was reviewing its retail locations to ensure it was in the right place to reach customers.

Krispy Kreme saw adjusted EBITDA halve from £15.9m to £7.5m in 2024, which it blamed on margins being squeezed by a higher cost of sales and labour.

Turnover was flat at £119m while Krispy Kreme posted a pre-tax loss of £6.4m compared to a £6.1m profit the previous year.

Krispy Kreme’s chief financial officer Robert Napier-Fenning wrote in its results: “The company has now commenced a multi-year turnaround plan to drive more sustainable, profitable growth, with new management reviewing the company’s retail and DFD locations, with a view to being where the customer is and ensuring the company is set up for the future.”

Krispy Kreme was founded in North Carolina in 1937 and its first UK location launched in 2003. The group now operates over 120 UK stores and has a presence in over 1,100 in-store cabinets with retailers including Tesco and Morrisons.

Last year Krispy Kreme opened a flagship store on London’s Oxford Street featuring its ‘Hotlight theatre’, where customers can try fresh doughnuts straight off the production line.

It also launched the biggest update of its range in over a decade with eight new doughnut flavours, including the Cinnamon Swirl, and partnered with brands including Kit Kat, Aero and Barbie.

Krispy Kreme was acquired by German investment group JAB Holding Company for around $1.35b in 2016. JAB also owns Pret A Manger and US chain Panera Bread.

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