Krispy Kreme UK saw sales and earnings fall in 2025 as it closed 19 stores and continued its multi-year turnaround programme.

Revenue dropped 1.76 per cent to £117.8 million in the 52 weeks to December 28, while adjusted EBITDA fell 44.11 per cent to £4.8 million.

The doughnut chain ended the year with 122 UK shops, having reduced its estate by a net 19 locations as it sought to improve the performance of its retail network.

Krispy Kreme also reviewed its Fresh Delivery Door network, which supplies its products through third-party retail partners, as part of efforts to strengthen returns across the business.

The company began a multi-year turnaround in 2024 and spent the following year addressing operational challenges and resetting the foundations of the UK business.

Its strategy focused on optimising shops and Fresh Delivery Doors, building deeper relationships with retail partners and reducing overhead costs.

Krispy Kreme said measures introduced during the year had moved the business forward and put it “on the path to sustainable, profitable growth”.

However, it said trading conditions remained difficult as cost-of-living pressures continued to weigh on discretionary spending and reduce shopper footfall.

The company was also hit by higher food and ingredient costs linked to geopolitical tensions in the Middle East, alongside increased labour costs.

Krispy Kreme continued to use product innovation and brand partnerships to drive demand during the year, including teaming up with Nestlé to launch two Quality Street-inspired doughnuts.

The business said its brand strength, innovation and retail partnerships would remain important as it continued the turnaround programme throughout 2026.

The UK performance came as parent company Krispy Kreme continued a wider global restructuring focused on reducing debt, improving margins and moving towards a more capital-light model.

The group reported second-quarter 2026 revenue of $331 million, down 12.8 per cent following refranchising activity and the closure of underperforming locations, while adjusted EBITDA rose 43.2 per cent to $28.8 million.

Sign up here to get the latest grocery and food news each morning