Krispy Kreme appoints Joseph J. Esposito as chief accounting officer

Krispy Kreme, Inc. (NASDAQ:DNUT), the $568 million market cap doughnut chain, announced the appointment of Joseph J. Esposito as its new chief accounting officer, effective September 15. The company, which generated $1.54 billion in revenue over the last twelve months, disclosed in a press release statement filed with the Securities and Exchange Commission that Esposito, age 41, will serve as principal accounting officer following the resignation of Kelly McBride. According to InvestingPro analysis, the company currently operates with a significant debt burden and faces cash burn challenges.

Esposito has been with Krispy Kreme since December 2020, most recently serving as vice president, global tax since April 2023. Before joining the company, he held various corporate tax consulting roles at PwC from 2011 to 2020, including international tax director. Esposito is a certified public accountant in North Carolina and South Carolina and holds a Master of Accountancy and a Bachelor of Science in Business Administration from the University of South Carolina.

In his new role, Esposito will receive an annual base salary of $300,000. He will be eligible for an annual cash bonus with a target opportunity equal to 45% of his base salary and a maximum bonus opportunity of up to 200% of his target bonus. He will also participate in the company’s long-term incentive program at a target level of $200,000 for fiscal year 2026, with annual grants typically split evenly between restricted stock units (RSUs) and performance stock units (PSUs). RSUs will vest in full on the third anniversary of the grant date, while PSUs will vest after a three-year performance period, subject to performance goals.

Additionally, Esposito will receive a one-time long-term incentive award consisting of 40,000 non-qualified stock options, 20,000 RSUs, and 20,000 PSUs. The stock options will vest on the third anniversary of the grant date and have a six-year term. The RSUs will vest on the second anniversary of the grant date, and the PSUs will be subject to performance goals set for the 2026–2028 period.

The company stated that Esposito is not involved in any related party transactions and has no family relationships with directors or executive officers. Krispy Kreme expects to enter into its standard indemnification agreement with him.

McBride’s resignation as chief accounting officer is effective September 12. The company noted that his departure is not due to any disagreement with management or the board.

In other recent news, Krispy Kreme reported its second-quarter earnings for 2025, which included a significant miss on earnings per share (EPS) expectations. The company posted an EPS of -$0.15, which was considerably lower than the anticipated -$0.04, marking a 275% surprise below expectations. However, revenue slightly exceeded projections, reaching $379.8 million compared to the forecasted $378.66 million. Additionally, JPMorgan has downgraded Krispy Kreme from Neutral to Underweight, expressing concerns about the high execution risks involved in the company’s proposed turnaround plan. The investment bank pointed out declining business trends and potential risks associated with refranchising multiple international assets. Meanwhile, Morgan Stanley reiterated its Underweight rating and maintained a $2.50 price target, highlighting uncertainties as Krispy Kreme attempts to free up cash through refranchising and cost reductions. The company was notably free cash flow negative in the second quarter, with proceeds from Insomnia Cookies helping to offset increased borrowing. These developments highlight ongoing challenges for Krispy Kreme amid its turnaround efforts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.