Krispy Kreme UK sales and profits declined in 2025, but the business is “on the path to sustainable, profitable growth” as it pushes ahead with a multi-year turnaround.
For the 52 weeks to 28 December 2025, revenue dipped 1.76% to £117.8m as the company continued to refine its retail estate, reducing its net shop count by 19 retail locations to 122 across the UK.
Adjusted EBITDA declined by 44.11% to £4.8m due to reduced margins after higher labour and sales costs.
The doughnut chain initiated a multi-year turnaround plan in 2024, and in 2025 looked to address underlying operational issues and “reset the foundations of the business”.
Key actions focused on driving improvements in three core areas: refining the company’s retail and Fresh Delivery Door locations, developing deeper partner relationships, and intervening to reduce overhead costs.
Krispy Kreme said the changes put in place in 2025 have “moved the company forward” in its turnaround plan, with it now “on the path to sustainable, profitable growth”. The company added it will continue to implement the plan during 2026.
Alongside the turnaround, the brand noted the external operating environment “continued to be challenging” throughout the year.
“Cost of living pressures continued to impact consumers’ spending on discretionary items, resulting in further reductions in footfall,” Krispy Kreme said. “High food and ingredient inflation linked to geopolitical tension in the Middle East also drove higher input costs, while the cost of labour also rose during the year as new regulations came into effect.”
However, the business noted the success of several collaborations in the year, including a partnership with Nestlé to launch two Quality Street-inspired doughnuts. The company expects its “strong brand value, innovation capability and strength of partnerships” to be “key drivers of sustainable, profitable growth” as it pushes ahead with the turnaround plan throughout 2026.
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