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Acquisitions and Divestitures
 12 Months Ended
Dec. 28, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions and Divestitures Acquisitions and Divestitures
The Company strategically acquires companies in order to increase its footprint. These acquisitions are accounted for as business combinations using the acquisition method, whereby the purchase price is allocated to the assets acquired and liabilities assumed, based on their estimated fair values as of the date of the acquisition.
Transaction-related expenses as a result of these acquisitions, which exclude costs incurred to integrate the acquired entities, were recorded within Operating (loss)/income in the Consolidated Statements of Operations (primarily Selling, general and administrative expenses) during the fiscal year such costs were incurred.
Goodwill recognized for these acquisitions represents the intangible assets that do not qualify for separate recognition and primarily includes the acquired customer base, the acquired workforce including shop partners in the region that have strong relationships with these customers, and the existing geographic shop and digital presence.
2025 Acquisitions and Divestitures
Agreement to sell KK Japan
On December 18, 2025, the Company entered into an agreement to sell its operations in Japan (the “Japan Share Purchase Agreement”), which transaction subsequently closed on March 2, 2026. The decision to sell these operations was based on management’s ongoing strategic refranchising initiative to support greater financial flexibility and reduce debt. The sale is expected to result in an after-tax gain. The sale does not represent a strategic shift that will have a major effect on operations and financial results and, therefore, did not qualify for presentation as a discontinued operation as of December 28, 2025.
The Japan assets and liabilities that were previously reported in the International reporting segment and reclassified as “assets held for sale” and “liabilities held for sale” are as follows:
As of
December 28, 2025
Assets held for sale:
Cash and cash equivalents$2,854 
Accounts receivable, net6,939 
Inventories676 
Prepaid expense and other current assets349 
Total current assets classified as held for sale10,818 
Property and equipment, net11,301 
Operating lease right of use asset, net12,451 
Other assets7,304 
Total assets classified as held for sale$41,874 
Liabilities held for sale:
Current portion of long-term debt4 
Current operating lease liabilities4,204 
Accounts payable2,908 
Accrued liabilities6,419 
Total current liabilities classified as held for sale13,535 
Long-term debt, less current portion3 
Noncurrent operating lease liabilities7,868 
Other long-term obligations and deferred credits3,945 
Total liabilities classified as held for sale25,351 
Net assets classified as held for sale$16,523 
Equity Method Investments in KK Brazil and KK Spain
In the second and third quarters of fiscal 2025, respectively, the Company invested approximately $2.1 million in cash to maintain a 45.0% noncontrolling ownership interest in Krispy Kreme Doughnuts Brasil S.A. (“KK Brazil”) and approximately $0.9 million in cash to maintain a 25.0% noncontrolling ownership interest in Glaseadas Originales S.L. (“KK Spain”). As the Company has the ability to exercise significant influence over KK Spain and KK Brazil, but does not have the ability to exercise control, both investments are accounted for using the equity method, and equity method earnings are recognized within Other income, net in the Consolidated Statements of Operations.
Divestiture of Insomnia Cookies
In the second quarter of fiscal 2025, the Company sold the remainder of its ownership interest in Insomnia Cookies Holdings, LLC (“Insomnia Cookies”) for aggregate cash proceeds of $75.0 million. Insomnia Cookies was previously accounted for using the equity method, and the Company recognized a loss on divestiture of $11.5 million (gross of income taxes) which is included within Loss/(gain) on divestiture of Insomnia Cookies in the Consolidated Statements of Operations.
2024 Acquisitions and Divestitures
Acquisition of Krispy Kreme U.S. and Canada Shops
In the third and fourth quarters of fiscal 2024, the Company acquired the business and operating assets of three franchisees, consisting of ten Krispy Kreme shops in the U.S. and one Krispy Kreme shop in Canada. Prior to one of the acquisitions, the Company was a minority investor in the shops via its equity method investments in KremeWorks USA, LLC and KremeWorks Canada, L.P. The Company paid cumulative consideration of $37.7 million, consisting of $31.9 million of cash (exclusive of $6.7 million proceeds for the Company’s equity method investments), $2.8 million of consideration payable to the sellers, and $3.0 million settlement of amounts related to pre-existing relationships, to acquire substantially all of the shops’ assets. Consideration payable of $2.8 million was withheld primarily to cover indemnification claims that could arise after closing. The settlement of pre-existing relationships included in the purchase consideration includes the settlement of accounts and notes receivable, net of deferred revenue, of $0.7 million. It also includes the disposal of the franchise intangible asset related to the franchisees with a cumulative net book value of $2.3 million at the respective acquisition dates. The Company accounted for the transactions as business combinations. Within the measurement period, there was an adjustment to goodwill of $0.5 million related to an adjustment to accrued liabilities and prepaid expense and other current assets.
Immediately prior to one of the acquisitions, the Company recognized a gain of $5.6 million related to remeasurement of its equity method investments to a cumulative fair value of $6.7 million. The gain is recorded within Other income, net in the Consolidated Statements of Operations.
The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition for the acquisitions above.
KK U.S. Shops
KK Canada Shop
Total Purchase
Price Allocation
for Acquisitions
Assets acquired:
Cash and cash equivalents$8 $1 $9 
Prepaid expense and other current assets771 63 834 
Property and equipment, net13,649 971 14,620 
Other intangible assets, net12,928 6,871 19,799 
Operating lease right of use asset, net10,308 322 10,630 
Deferred income taxes, net—2323 
Total identified assets acquired37,664 8,251 45,915 
Liabilities assumed:
Current operating lease liabilities(1,153)(61)(1,214)
Noncurrent operating lease liabilities(9,155)(261)(9,416)
Deferred income taxes, net(514)— (514)
Total liabilities assumed(10,822)(322)(11,144)
Goodwill5,996 3,625 9,621 
Net assets acquired32,838 11,554 44,392 
Less: Fair value of former equity method investments (4,254)(2,460)(6,714)
Purchase consideration, net$28,584 $9,094 $37,678 
Transaction costs in 2024 $1,933 $589 $2,522 
Transaction costs in 2023 102 — 102 
Reportable segmentU.S.International
Other intangible assets, net consist of reacquired franchise rights with an estimated useful life equal to the weighted average remaining franchise agreement term, which was ten years for these acquired shops. The results of operations of the aforementioned acquired shops were consolidated by the Company from the respective dates of acquisition and include $18.4 million of total revenue and $2.4 million of net income attributable to the Company for fiscal year 2024. The amounts do not reflect adjustments for franchise royalties and related expenses that the Company could have generated as revenue and expenses from the acquired franchisees during the fiscal year had the transaction not been completed.
The results of the acquired franchise businesses were reported within the Market Development segment prior to the respective dates of acquisition and are reported within the segments noted above following the respective dates of acquisition.
Equity Method Investments in KK Brazil and KK Spain
In the second quarter of fiscal 2024, the Company acquired a 45% noncontrolling ownership interest in KK Brazil, for approximately $2.7 million in cash, and a 25% noncontrolling ownership interest in KK Spain, for approximately $0.8 million in cash. As the Company has the ability to exercise significant influence over both KK Brazil and KK Spain, but does not have the ability to exercise control, the investments are accounted for using the equity method, and equity method earnings are recognized within Other income, net in the Consolidated Statements of Operations.
Acquisition of Additional Units in Consolidated Subsidiary Awesome Doughnut
In the third quarter of fiscal 2024, the Company purchased all units held by the noncontrolling interest holders in the consolidated subsidiary Awesome Doughnut, LLC (“Awesome Doughnut”) for $32.9 million in cash. The purchase increased the Company’s ownership interest in Awesome Doughnut from 70% to 100%. The Company financed the purchase via an existing structured payables program whereby the structured payable matured and was paid in the first quarter of fiscal 2025.
Divestiture of Insomnia Cookies
In the third quarter of fiscal 2024, the Company entered into an agreement to sell a portion of its shares of Insomnia Cookies for cash proceeds of $127.4 million. Also in the third quarter of fiscal 2024, the Company received additional cash of $45.0 million from Insomnia Cookies related to the settlement of an intercompany loan. The transaction resulted in the Company’s ownership of Insomnia Cookies declining from 75.0% to 34.7% with a loss of control. Accordingly, the Company deconsolidated Insomnia Cookies from the Company’s Consolidated Financial Statements and recorded a gain on divestiture of $90.5 million (gross of income taxes) which is included within Loss/(gain) on divestiture of Insomnia Cookies in the Consolidated Statements of Operations. The gain recognized in fiscal 2024 was calculated as follows:
July 17, 2024
Cash proceeds$127,350 
Fair value of retained noncontrolling interest in Insomnia Cookies85,086 
Carrying value of former noncontrolling interest in Insomnia Cookies30,427 
Less: Carrying value of net assets of Insomnia Cookies, including cash and cash equivalents(152,408)
Gain on divestiture of Insomnia Cookies$90,455 
As the Company had the ability to exercise significant influence over Insomnia Cookies, but does not have the ability to exercise control, the investment was accounted for using the equity method. The fair value of the equity method investment of $85.1 million was estimated using a Monte Carlo simulation in a risk-neutral framework to model the likelihood of the Company’s potential future sale of its noncontrolling interest in Insomnia Cookies. The valuation methodology included assumptions and judgments regarding probability weighting, discount rates, operating results of Insomnia Cookies, and expected timing of a future exit by the investors. Equity method earnings were recognized within Other non-operating (income)/expense, net in the Consolidated Statements of Operations.
2023 Acquisitions
In the fiscal year ended December 31, 2023, there were no acquisitions accounted for as business combinations.
Equity Method Investment in KK France
In the fourth quarter of fiscal 2023, the Company invested approximately $1.4 million in cash to maintain a 33% noncontrolling ownership interest in Krispy Kreme Doughnuts France SAS (“KK France”). As the Company has the ability to exercise significant influence over KK France, but it does not exercise control, the investment is accounted for using the equity method, and equity method earnings are recognized within Other income, net on the Consolidated Statements of Operations.