v3.25.4
Segment Reporting (Tables)
 12 Months Ended
Dec. 28, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The reportable segment results are as follows:
Fiscal Years Ended
December 28, 2025December 29, 2024December 31, 2023
U.S.
Net revenues$913,050 $1,058,736 $1,104,944 
Less:
Product and distribution costs, adjusted222,686 251,417 274,828 
Operating expenses, adjusted524,847 563,033 556,283 
Selling, general and administrative expense, adjusted68,483 98,629 111,584 
Marketing expenses, adjusted28,816 31,395 31,407 
Other segment items (1)
(11,416)1,495 (137)
Depreciation expense and amortization of right of use assets, adjusted63,489 60,406 56,529 
Total U.S. Adjusted EBIT$16,145 $52,361 $74,450 
International
Net revenues$535,088 $519,102 $489,631 
Less:
Product and distribution costs, adjusted122,001 125,075 120,015 
Operating expenses, adjusted264,613 242,392 214,395 
Selling, general and administrative expense, adjusted52,761 48,441 47,013 
Marketing expenses, adjusted13,201 11,421 10,971 
Other segment items (1)
(559)1,057 705 
Depreciation expense and amortization of right of use assets, adjusted32,958 31,309 28,367 
Total International Adjusted EBIT$50,113 $59,407 $68,165 
Market Development
Net revenues$74,478 $87,559 $91,529 
Less:
Product and distribution costs, adjusted22,600 32,140 37,969 
Selling, general and administrative expense, adjusted4,527 4,449 7,213 
Other segment items (1)
3,259 3,066 3,381 
Depreciation expense and amortization of right of use assets, adjusted143 154 259 
Total Market Development Adjusted EBIT$43,949 $47,750 $42,707 
Total Reportable Segment
Total reportable segment net revenues$1,522,616 $1,665,397 $1,686,104 
Total reportable segment Adjusted EBIT$110,207 $159,518 $185,322 
(1)The U.S. and International segments’ other segment items consist of pre-opening costs and other income, net. The Market Development segment other segment items consist of operating expenses, marketing expenses, pre-opening costs, and other income, net.
The following table presents a reconciliation of net (loss)/income to Adjusted EBIT:
Fiscal Years Ended
December 28,
2025		December 29,
2024		December 31,
2023
Net (loss)/income$(523,779)$3,815 $(36,647)
Interest expense, net65,795 60,066 50,341 
Income tax (benefit)/expense(20,820)15,954 (4,347)
Share-based compensation12,865 35,149 24,196 
Employer payroll taxes related to share-based compensation307 358 395 
Loss/(gain) on divestiture of Insomnia Cookies11,501 (90,455)— 
Goodwill impairment355,958 — — 
Other non-operating (income)/expense, net (1)
(1,967)1,885 3,798 
Strategic initiatives (2)
39,847 19,993 29,057 
Acquisition and integration expenses (3)
(111)3,282 511 
New market penetration expenses (4)
560 1,407 1,380 
Shop closure expenses, net (5)
56,394 4,861 17,335 
Restructuring and severance expenses (6)
6,396 7,561 5,050 
Gain on remeasurement of equity method investment (7)
— (5,579)— 
Gain on sale-leaseback(6,749)(1,569)(9,646)
Gain on refranchising (8)
(1,358)— — 
Other (9)
8,340 3,203 4,307 
Amortization of acquisition related intangibles (10)
31,279 30,297 29,373 
Unallocated corporate costs (11)
75,749 69,290 70,219 
Reportable segment Adjusted EBIT
$110,207 $159,518 $185,322 
(1)Primarily foreign translation gains and losses in each period, as well as equity method income from Insomnia Cookies following the divestiture of a controlling interest during fiscal 2024 until the sale of our remaining interest in the second quarter of fiscal 2025. Refer to Note 3, Acquisitions and Divestitures, to the audited Consolidated Financial Statements for more information.
(2)Fiscal 2025 consists primarily of $33.6 million in costs associated with the U.S. national expansion (including McDonald’s USA), including exit costs associated with termination of the Business Relationship Agreement with McDonald’s USA, and $2.8 million in costs for the evaluation of potential opportunities to refranchise certain equity markets. Fiscal 2024 consists primarily of $8.2 million in costs associated with the divestiture of the Insomnia Cookies business, $7.3 million in costs preparing for the U.S. national expansion (including McDonald’s USA), and $4.0 million in costs associated with global transformation. Fiscal 2023 consists primarily of costs associated with global transformation of $5.9 million and U.S. initiatives such as the decision to exit the Branded Sweet Treats business, including property, plant and equipment impairments, inventory write-offs, employee severance, and other related costs of $17.8 million.
(3)Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period.
(4)Consists of start-up costs associated with entry into new countries in which the Company has not previously operated, including Brazil and Spain.
(5)Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment.
(6)Fiscal 2025 consists primarily of costs associated with restructuring of the U.S. and U.K. businesses. Fiscal 2024 consists primarily of costs associated with the restructuring of the U.S. and U.K. executive teams. Fiscal 2023 consists primarily of costs associated with restructuring of the global executive team.
(7)Consists of a gain related to the remeasurement of the equity method investments in KremeWorks USA, LLC and KremeWorks Canada, L.P. to fair value immediately prior to the acquisition of the shops. Refer to Note 3, Acquisitions and Divestitures, to the audited Consolidated Financial Statements for more information.
(8)Includes gains and losses on the deconsolidation of assets and liabilities associated with the refranchising of certain Krispy Kreme shops.
(9)Fiscal 2025 and fiscal 2024 consist primarily of $7.4 million and $3.1 million, respectively, related to remediation of the 2024 Cybersecurity Incident, including fees for cybersecurity experts and other advisors, net of $2.4 million of insurance proceeds received in fiscal 2025 relating to these costs. Fiscal 2023 consists primarily of legal and other regulatory expenses incurred outside the ordinary course of business.
(10)Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Consolidated Statements of Operations.
(11)Corporate expenses are not included in the CODM’s measure of segment profitability. These amounts are presented as a reconciling item between total reportable segment Adjusted EBIT and consolidated Adjusted EBIT. In fiscal 2025 and fiscal 2024, corporate expenses consist primarily of $63.8 million and $65.2 million, respectively, in selling, general and administrative expenses, which principally comprise payroll and benefits for corporate functions, professional fees, enterprise information technology, and other headquarters costs.
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas
Geographical information related to consolidated revenues and long-lived assets is as follows:
Fiscal Years Ended
December 28,
2025		December 29,
2024		December 31, 2023
Net revenues:
U.S.
$937,747 $1,091,597 $1,144,564 
U.K.
159,469 158,459 154,775 
Australia / New Zealand
117,876 122,737 117,328 
Mexico
125,163 127,230 120,072 
All other
182,361 165,374 149,365 
Total net revenues
$1,522,616 $1,665,397 $1,686,104 
Fiscal Years Ended
December 28,
2025		December 29,
2024		December 31,
2023
Long-lived assets:
U.S.
$600,729 $664,299 $735,955 
U.K.
71,627 82,140 79,039 
Australia / New Zealand
64,320 56,399 62,080 
Mexico
75,328 61,943 69,616 
All other
44,454 56,227 48,494 
Total long-lived assets
$856,458 $921,008 $995,184