Losses at doughnut specialist Krispy Kreme UK deepened in 2025 as it faced a “challenging” operating environment which saw it reduce its estate by more than 10%.
Its latest accounts filed to Companies House reveal that loss after tax for the 52 weeks ended 28 December 2025 hit £8.3m – a 34% decline on the £6.2m losses reported for the year prior. It also faced a non-recurring charge of £4.7m made up of redundancy costs, asset impairments, costs for absorbed projects, loss on the disposal of fixed assets and staff vestment expenses.
This marks the second year of losses for the business following three years of successive profitability. To combat this, Krispy Kreme initiated a multi-year turnaround plan in 2024 to reset the foundations of the business and move it towards “sustainable, profitable growth”.
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Actions as part of the turnaround plan were focused on driving improvements in three core areas of the business – refining the company’s retail and Fresh Delivery Doors locations; developing deeper partner relationships; and intervening to reduce overhead costs.
This included reducing its estate which went from 141 stores at the end of 2024 to 122 at the end of 2025 – a net reduction of 19 stores.
Despite this, revenue remained relatively stable at £117.8m, a 1.8% decrease vs 2024. Gross margins also took a slight hit from 49.8% in 2024 to 48.6% in 2025 due to the higher costs of sales and labour.
Krispy Kreme noted that its external operating environment continued to be challenging in 2025 as cost-of-living pressures impacted consumers’ spending on discretionary items resulting in further reductions in footfall. High food and ingredient inflation also drove higher input costs while the cost of labour also rose as new regulations came into effect.
The company “acted decisively” to limit the impact of these challenges on the business, introducing operational efficiencies including reductions in material usage and overheads to place it on a “more sustainable footing for growth”.
There were some bright spots. Krispy Kreme it maintained its commitment to “innovation, valuable partnerships and brand investment to deliver more memorable experiences for customers”. While the consumer environment was “challenging”, particularly in the first half of the year, the programme helped sustain brand visibility and contributed to improved momentum as the year progressed.
NPD throughout the year included partnerships with confectionery brands, including Munchies and Quality Street, as well as on-trend flavours such as Cherry Bakewell and Pistachio. It also rolled out a Harry Potter range which included Krispy Kreme’s first gamified experience in the form of the Sorting Hat doughnut which revealed the Hogwarts house consumers were in based on the colour of the filling inside.
Krispy Kreme said the actions taken during 2025 have moved it forward in its turnaround plan which it will continue to implement for the year ahead.
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