Krispy Kreme Expands Internationally Amid Market Challenges

CHARLOTTE, N.C. — Krispy Kreme shares rose 2.6% on Tuesday following an optimistic report from Morgan Stanley highlighting the doughnut chain’s performance in the restaurant sector. The investment bank noted that Krispy Kreme outperformed many of its U.S. competitors, even as the overall restaurant industry faced challenges.

The positive sentiment surrounding Krispy Kreme was further bolstered by news of its sponsorship deal with NASCAR for the 2025 season, alongside Procter and Gamble‘s Tide. Analysts believe this partnership could enhance the company’s brand visibility.

Despite the afternoon gains, Krispy Kreme’s stock is down significantly, trading at $3.34, 73.1% below its 52-week high of $12.42. The shares have shown volatility, with 39 fluctuations greater than 5% over the past year. Some investors remain cautious, as the stock experienced a 4.2% drop just 11 days ago following trade war fears prompted by President Trump’s tariff threats.

Krispy Kreme has faced difficulties, witnessing a 65.7% loss in value since the beginning of the year. Recently, the company reported a 21% drop in U.S. revenue for its second quarter, attributed to a decline in consumer demand and the end of partnerships with Insomnia Cookies and McDonald's. However, international revenue saw a 6% increase, with growth in markets like Canada and Japan.

In its effort to rebound, Krispy Kreme opened its first shop in Madrid, Spain, in October, with plans to launch two more in the city this year. The company aims to open over 50 locations across Spain in the next four years. CEO Josh Charlesworth expressed enthusiasm about strengthening Krispy Kreme’s international presence through an efficient franchise model.

Additionally, the company plans openings in Sao Paulo, Brazil, and its first location in Tashkent, Uzbekistan, before the end of 2025. Charlesworth noted, “We’re thrilled to introduce Krispy Kreme’s iconic, fresh-made doughnuts to Spain,” emphasizing the company’s commitment to sharing its brand globally.

Despite recent struggles, Krispy Kreme continues to pursue aggressive international expansion strategies, hoping to win over new customers and revive its market standing.