Krispy Kreme Raises Revenue Outlook, Expands to Pakistan
The doughnut chain lifted its full-year net revenue forecast and agreed to open 120 shops in Pakistan over five years.
Updated on Nov. 5, 2026 in Retail
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Krispy Kreme raised its full-year net revenue outlook to $1.35 billion to $1.40 billion, up from $1.25 billion to $1.35 billion. The company also entered a development agreement to open 120 shops in Pakistan over the next five years.
Why it matters
The raised outlook is being driven by overseas markets, internet orders and U.S. sales through its fresh delivery channel, reflecting a shift toward locations with more foot traffic. The expansion highlights the company's push toward a franchise-led model.
Third-quarter GAAP net loss narrowed to $13.3 million and adjusted EBITDA reached $35.3 million, while the net leverage ratio fell to 5.5x, down 1.2x from the end of fiscal 2025. Franchised locations generated 42% of third-quarter systemwide sales, compared with 25% in fiscal 2025.
The players
Krispy Kreme
A global doughnut chain founded in 1937 in Winston-Salem, North Carolina, known for its hot original glazed doughnuts and largely franchised store network.
The details
Krispy Kreme opened 98 new doughnut shops globally in the first nine months of 2026, with franchisees operating nearly all of them. The company also pulled out of weaker fresh delivery locations roughly a year ago and now concentrates on sites that draw more foot traffic.
Timeline
2025: Systemwide sales totaled $1.96 billion for the year.
Roughly 12 months before the report: Krispy Kreme withdrew from weaker fresh delivery locations.
First nine months of 2026: 98 new shops opened globally.
November 5, 2026: Third-quarter results were reported and revenue outlook raised.
Market Landscape
Krispy Kreme's move to a majority-franchised model mirrors a broader restaurant-industry pattern in which chains shift capital-intensive store operations to franchisees. Its expansion into Pakistan extends that strategy into a new international market.
Customers in the U.S. may see more Krispy Kreme locations through fresh delivery channels and internet ordering as the company leans on those sales. International shoppers in markets like Pakistan can expect new shops as franchise agreements roll out over the coming years.
The takeaway
Franchise-heavy growth can expand a brand's reach quickly while shifting day-to-day operating risk to owners, a model Krispy Kreme is accelerating toward its 50% franchised goal beginning in fiscal 2027.
Further reading
For more on how chains are reshaping store footprints, see Retail.
Source note: This article includes information reported by Quartz.
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