# Krispy Kreme raises guidance as turnaround plan gains steam

> Krispy Kreme boosts 2026 free cash flow guidance after refranchising and cutting capital spending.
- Title: Krispy Kreme raises guidance as turnaround plan gains steam
- Summary: Krispy Kreme boosts 2026 free cash flow guidance after refranchising and cutting capital spending.
- Keywords: krispy kreme, refranchising, free cash flow, turnaround plan, delivery doors, fresh delivery, minis category, glp-1 weight loss medication, walmart, target, Nation's Restaurant News
- Source: Nation's Restaurant News — https://nrn.com/quick-service/krispy-kreme-raises-guidance-as-turnaround-plan-gains-steam
- Read time: 1 min
- Topics: krispy kreme, refranchising, free cash flow, turnaround plan, delivery doors, fresh delivery, minis category, glp-1 weight loss medication, walmart, target, food, business
## Krispy Kreme raises guidance
Krispy Kreme reported a systemwide sales increase of 1% in Q3 and raised full-year free cash flow guidance to over $15 million.
## Turnaround plan progress
Krispy Kreme's refranchising has generated 42% of systemwide sales with 1,500 underperforming delivery doors exited.
## Capital expenditure cut
Krispy Kreme reduced capital expenditure by 65% this year as part of its turnaround plan.
## Las Vegas prototype shop
Krispy Kreme opened a 'reimagined' shop prototype in Las Vegas for Hot Light experience in smaller format.
## Margin improvements
Krispy Kreme improved margins through production planning, labor optimization, and delivery route management.
## Core menu growth
Krispy Kreme expanded core menu and seasonal collections to boost customer visits and digital channel growth.
## Loyalty program growth
Krispy Kreme's loyalty program now has over 18 million U.S. members.
## Fresh delivery expansion
Krispy Kreme added 715 net new fresh delivery doors with higher average weekly sales.
## Walmart and Target partnership
Krispy Kreme is expanding in Walmart and Target stores to improve visibility and traffic.
## Minis category growth
Krispy Kreme is growing its Minis category to meet demand for sharing and GLP-1 weight loss medication.
## CEO statement
CEO Josh Charlesworth called the turnaround plan 'a compelling growth story supported by sustained consumer demand'.
## 2026 free cash flow target
Krispy Kreme expects positive free cash flow of more than $15 million in 2026.
## Key takeaway

Krispy Kreme raised 2026 free cash flow guidance to over $15 million after refranchising and exiting 1,500 underperforming delivery doors.