Krispy Kreme's Lower 2Q Revenue Partly Due to McDonald's Exit

Dow Jones08-07 01:47

1347 ET - Krispy Kreme's turnaround strategy is progressing, as the company narrows its 2Q loss and expands margins, CEO Josh Charlesworth says on a call with analysts. Revenue falls 13% to $331 million, but Charlesworth notes the decrease is due largely to the company's decision last year to exit weaker sales locations and end its partnership with McDonald's, instead prioritizing sales in higher-traffic locations. System-wide sales ticked up 1.1% in constant currency to $497.3 million, and remain on track to grow between 2% and 4% in constant currency this year. "We are pleased to have delivered another consecutive quarter of significant progress on our turnaround to strengthen the balance sheet, reduce leverage and drive sustainable, profitable growth," Charlesworth says. Krispy Kreme climbs 2.4%.

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