Krispy Kreme Stock Hits All-Time Low on Weaker-Than-Expected Results

Core Insights - Krispy Kreme's shares fell over 20% to an all-time low following disappointing earnings and guidance, exacerbated by a cyberattack and ongoing restructuring efforts [1][5] - The company reported fourth-quarter adjusted EPS of $0.01 on revenue of$404 million, a 10% decline year-over-year, missing analyst expectations of $0.09 EPS and$411.1 million in revenue [1][2] Revenue Impact - The revenue decline was primarily due to the sale of its majority stake in Insomnia Cookies and an $11 million negative impact from a December cyberattack, which disrupted operations including online ordering [2][5] - The company stated that online ordering and core business functions are now fully operational [2] Management and Strategic Changes - CEO Josh Charlesworth indicated that excluding the cybersecurity issue, performance was largely in line with expectations [3] - The company has restructured management teams to focus on profitable U.S. expansion and capital-light international growth, and plans to outsource U.S. logistics [3][5] - Krispy Kreme is also evaluating refranchising certain international markets [3] Future Outlook - The company projects full-year revenue between$1.55 billion and $1.65 billion, with adjusted EBITDA of$180 million to $200 million, both below analyst estimates of$1.76 billion and $235 million respectively [3]