Krispy Kreme rises as broad market falls on positive 3Q cash flow, turnaround news

Shares of doughnut maker Krispy Kreme climbed 3.7% after the company released its third-quarter results, reporting its first positive cash flow of the year and a narrower-than-expected loss per share.

Krispy Kreme rose 3.7% on the day yesterday, November 6, bucking a broader selloff in the U.S. market as the S&P 500 index fell more than 1%.

Investors were encouraged after the company posted its first positive operating cash flow in 2025, signaling progress in its turnaround plan following the end of its partnership with McDonald’s in the U.S. in June. The stock briefly surged as much as 30% to $4.50 per share in morning trading yesterday after the results were released.

Operating cash flow reached $42.3 million in the third quarter, while free cash flow totaled $15.5 million. By comparison, the company posted negative operating cash flow of $53.3 million and negative free cash flow of $107 million in the previous two quarters. The shift into positive territory suggests that Krispy Kreme has started to rein in capital expenditures and operating costs.

The adjusted loss per share came in at $0.01, beating analysts’ estimates of a $0.05 per share loss, StockStory writes. Adjusted EBITDA rose to $40.6 million, nearly double the previous quarter, despite lingering costs from the now-terminated McDonald’s deal.

Krispy Kreme guides for adjusted EBITDA to rise again in the fourth quarter, which the management also projects will be another period of positive free cash flow, CEO Josh Charlesworth told Bloomberg in an interview. The company remains unprofitable on a GAAP basis.

The improvement in U.S. adjusted EBITDA, which rose about 50% to $21 million, was primarily driven by a $9.3 million in insurance recovery, which shows that it will take time for Krispy Kreme to improve its U.S. profitability, Citi analyst Jon Tower wrote in a note. He has a "neutral" rating on the stock.

Krispy Kreme has lost more than 60% of its market value since the beginning of the year, though it has gained 6.3% over the past month. Analysts at Zacks Investment Research continue to rate the stock a "strong sell," expecting it to underperform the broader market in the near term.

Of the eight analysts covering Krispy Kreme, four recommend “hold,” two rate the stock a “sell,” and two a “buy,” MarketWatch data shows. Their average target price is $4.30 per share, about 10% above the November 6 closing price.

The AI translation of this story was reviewed by a human editor.