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Key Takeaways

• Krispy Kreme shares sank to a record low as results and guidance missed estimates following a cybersecurity incident and restructuring moves.

• The donut maker said the December hack had an $11 million impact on revenue.

• Krispy Kreme has shuffled its management teams and looks to outsource U.S. logistics and evaluate operations overseas.

Shares of Krispy Kreme (DNUT) sank more than 20% Tuesday to trade at an all-time low as the donut maker posted worse-than-expected results and guidance as it was hit with a cyberattack and continued its restructuring efforts.

The company reported fourth-quarter adjusted earnings per share (EPS) of $0.01 on revenue that slid 10% year-over-year to $404.0 million. Analysts surveyed by Visible Alpha were looking for $0.09 and $411.1 million, respectively.

Krispy Kreme said the drop in revenue was mostly the result of the sale of its majority stake in Insomnia Cookies in the third quarter, along with the December hacking that had a negative impact of about $11 million. The incident caused operational disruptions, including online ordering in the U.S. "Online ordering, retail shops, and core business functions are now fully operational," the company said.

CEO Josh Charlesworth explained that leaving out the cybersecurity issue, the performance was "largely in line with our expectations." Charlesworth added that the company has "restructured our management teams to maximize profitable U.S. expansion and capital-light international growth," and plans to outsource U.S. logistics. In addition, Krispy Kreme has "begun a process to evaluate refranchising certain international markets."

The company sees full-year revenue of $1.55 billion to $1.65 billion, and adjusted EBITDA of $180 million to $200 million. The Visible Alpha estimates were for $1.76 billion and $235 million, respectively.

Krispy Kreme shares dropped 23% to $7.01 in recent trading after touching an all-time low $6.35 soon after markets opened. They have lost nearly half their value in the last 12 months.

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