Krispy Kreme Doughnuts Inc (NASDAQ:DNUT) shares jumped more than 34% on Thursday morning following the company's fourth-quarter earnings report, which topped Wall Street estimates and highlighted strong operational improvements.

The doughnut chain reported Q4 revenue of $392.4 million, slightly above analysts' expectations of $389.5 million but down 2.9% from a year earlier.

Adjusted earnings per share came in at $0.09, beating the $0.03 forecast, while adjusted EBITDA rose 21% to $55.6 million, pushing the EBITDA margin up 280 basis points to 14.2%.

Despite a 13.5% year-over-year decline in global points of access, Krispy Kreme noted that digital sales now account for 18.2% of retail sales, up 380 basis points from last year.

Looking ahead, the company expects full-year 2026 systemwide sales growth of 2% to 4% on a constant currency basis. Capital expenditures are projected between $50 million and $60 million, while free cash flow is expected to remain positive. Krispy Kreme also plans to open at least 100 new shops and maintain a net leverage ratio of 5.5 times or lower.

The company anticipates approximately $65 million in proceeds from its Japan refranchising, expected to close in the first quarter of 2026.

“We are pleased to have ended 2025 with positive momentum, driven by quality growth in the US with key strategic partners, higher digital sales, and international expansion,” CEO Josh Charlesworth said. “In 2026, we look forward to building on this momentum through systemwide sales growth, additional refranchising activity, disciplined capital expenditures, lower net leverage, and positive free cash flow generation.”