Krispy Kreme’s sales fell again. Here’s why it was good for the stock this time.

MarketWatch

by Tomi Kilgore

February 26, 2026

AI-Generated Deep Dive Summary

Krispy Kreme’s stock surged Thursday despite another decline in sales, signaling potential positive developments for the company’s turnaround efforts. While same-store sales dropped by 5% during the fourth quarter, this figure was an improvement from previous quarters, suggesting that Krispy Kreme may be on the path to recovery. Investors viewed these results as encouraging signs of a possible long-term rebound, driving up the stock price. The company has been working on several initiatives to revitalize its brand, including menu innovation and cost-cutting measures. These efforts appear to be paying off, with管理层 highlighting progress in areas like supply chain efficiency and digital engagement. The introduction of new products, such as plant-based doughnuts, has also helped attract health-conscious consumers. Additionally, Krispy Kreme’s focus on expanding its international presence and investing in e-commerce platforms contributed to the positive stock reaction. Analysts believe that these strategic moves are positioning the company for sustained growth. While challenges remain, the fourth-quarter results suggest that Krispy Kreme is making strides toward building a more resilient business model. For investors, this news matters because it indicates that Krispy Kreme’s turnaround strategy may be gaining traction. The improving financial performance, despite ongoing sales declines, signals potential long-term value for shareholders. As the company continues to execute its transformation plans, stakeholders will closely monitor whether these positive trends can be sustained in future quarters. In summary, Krispy Kreme’s stock rally reflects investor confidence in the company’s ability to turn around its business. While challenges remain, the fourth-quarter results suggest that the brand is moving in the right direction, with initiatives like cost management, menu innovation, and digital expansion contributing to its progress. This makes Krispy Kreme an intriguing option for investors looking for opportunities in the food and beverage sector.

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Originally published on MarketWatch on 2/26/2026