v3.26.1
Segment Reporting
 6 Months Ended
Jun. 28, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company conducts business through the following three reportable segments:
•U.S.: Includes all Company-owned operations in the U.S., and W.K.S. Krispy Kreme through the date of deconsolidation;
•International: Includes Company-owned operations in the U.K., Ireland, Australia, New Zealand, Mexico, and Canada; as well as Japan through the date of disposition; and
•Market Development: Includes franchise operations across the globe, including Krispy Kreme Japan after March 2, 2026, W.K.S. Krispy Kreme after March 23, 2026, and also includes Company-owned operations in France through Krispy Kreme France after May 25, 2026.
Unallocated corporate costs are excluded from the Company’s measurement of segment performance. These costs include general corporate expenses.
Segment information is identified and prepared on the same basis that the CEO, the Company’s Chief Operating Decision Maker (“CODM”), evaluates financial results, allocates resources, and makes key operating decisions. The CODM allocates resources and assesses performance based on geography and line of business, which represents the Company’s operating segments.
The primary financial measures used by the CODM to evaluate the performance of its operating segments are net revenues and segment Adjusted EBITDA. Beginning in the first quarter of fiscal 2026, the Company updated its segment profitability measure from segment Adjusted EBIT to segment Adjusted EBITDA to align with how the CODM evaluates performance. For all of the segments, the CODM uses segment Adjusted EBITDA to monitor and evaluate operating performance and to provide a consistent benchmark for comparison across reporting periods. This measure is prepared on a non-GAAP basis and, as such, the expense captions underlying it are designated as “adjusted.” The adjustments made are explained in the footnotes to the table that follows, which presents the reconciliation of net loss to Adjusted EBITDA.
The following tables reconcile segment results to consolidated results reported in accordance with GAAP. The accounting policies used for internal management reporting at the operating segments are consistent with those described in Note 1, Description of Business and Summary of Significant Accounting Policies, to the Condensed Consolidated Financial Statements. The Company manages its assets on a total company basis and the CODM does not review asset information by segment when assessing performance or allocating resources. Consequently, the Company does not report total assets by reportable segment.
The reportable segment results are as follows:
Quarter Ended
Two Quarters Ended
June 28, 2026June 29, 2025June 28, 2026June 29, 2025
U.S.(1)
Net revenues$172,680 $230,099 $394,230 $466,643 
Less:
Product and distribution costs, adjusted42,924 56,756 96,272 114,586 
Operating expenses, adjusted96,662 139,224 216,486 274,746 
Selling, general and administrative expense, adjusted13,553 17,055 29,384 36,204 
Marketing expenses, adjusted5,437 7,408 11,844 14,242 
Other segment items(2)
352 (275)943 1,024 
Total U.S. Adjusted EBITDA
$13,752 $9,931 $39,301 $25,841 
International(1)
Net revenues$117,342 $132,755 $242,600 $252,390 
Less:
Product and distribution costs, adjusted26,225 30,624 54,857 57,726 
Operating expenses, adjusted61,032 67,063 126,157 129,061 
Selling, general and administrative expense, adjusted12,359 13,056 26,652 25,777 
Marketing expenses, adjusted3,547 3,234 6,482 5,878 
Other segment items(2)
(3)557 (202)830 
Total International Adjusted EBITDA
$14,182 $18,221 $28,654 $33,118 
Market Development(1)
Net revenues$40,973 $16,913 $61,199 $35,918 
Less:
Product and distribution costs, adjusted16,824 5,109 23,168 10,657 
Selling, general and administrative expense, adjusted1,582 1,122 2,739 2,436 
Other segment items(2)
3,181 1,734 4,272 2,830 
Total Market Development Adjusted EBITDA
$19,386 $8,948 $31,020 $19,995 
Total Reportable Segment
Total reportable segment net revenues$330,995 $379,767 $698,029 $754,951 
Total reportable segment Adjusted EBITDA
$47,320 $37,100 $98,975 $78,954 
(1)Refer to Note 3, Acquisitions and Divestitures, for more information on the impact of refranchising.
(2)The U.S. and International segments’ Other segment items consist of pre-opening costs and other income, net. The Market Development segment’s 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 to Adjusted EBITDA:
Quarter Ended Two Quarters Ended
June 28, 2026June 29, 2025June 28, 2026June 29, 2025
Net loss
$(19,831)$(441,118)$(42,504)$(474,523)
Interest expense, net13,375 16,696 28,999 32,892 
Income tax expense/(benefit)
(4,259)(20,453)(676)(23,120)
Share-based compensation3,287 4,634 7,926 7,237 
Employer payroll taxes related to share-based compensation55 91 72 257 
Loss on divestiture of Insomnia Cookies— 11,501 — 11,501 
Goodwill impairment— 355,958 — 355,958 
Other non-operating income, net (1)
(261)(1,177)(420)(1,570)
Strategic initiatives (2)
3,119 22,867 10,319 25,220 
Acquisition and integration expenses (3)
2,002 (182)2,002 (111)
New market penetration expenses (4)
— 245 — 320 
Shop closure expenses, net (5)
2,657 35,723 2,689 35,995 
Restructuring and severance expenses (6)
33 4,839 427 4,947 
Gain on sale-leaseback— (6,749)— (6,749)
Gain on refranchising (7)
— — (8,885)— 
Other (8)
1,622 1,454 2,831 6,154 
Amortization of acquisition related intangibles (9)
6,156 7,830 13,964 15,491 
Unallocated corporate expenses(10)
20,225 19,399 40,472 39,723 
Depreciation expense and amortization of right of use assets19,140 25,542 41,759 49,332 
Reportable segment adjusted EBITDA
$47,320 $37,100 $98,975 $78,954 
(1)Primarily foreign translation gains and losses in each period. The quarter and two quarters ended June 29, 2025 also consists of equity method income from Insomnia Cookies following the divestiture of a controlling interest in Insomnia Cookies during fiscal 2024 until the sale of our remaining interest in the second quarter of fiscal 2025.
(2)The quarter and two quarters ended June 28, 2026 consists primarily of $2.1 million and $6.3 million, respectively, of costs associated with the evaluation and execution of refranchising certain equity markets as well as $1.3 million and $4.2 million, respectively, in costs associated with the transition to third party logistics in the U.S.; of that amount $1.7 million and $3.3 million, respectively, is related to non-cash impairments. The quarter and two quarters ended June 29, 2025 consists primarily of $20.9 million and $23.3 million, respectively, of costs associated with preparing for and executing the U.S. national expansion (including McDonald’s).
(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’s brands had not previously operated, including Brazil and Spain.
(5)Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment.
(6)The quarter and two quarters ended June 28, 2026 consist primarily of costs associated with restructuring the Australia and New Zealand business. The quarter and two quarters ended June 29, 2025 consist primarily of costs associated with restructuring of the U.S. and U.K. businesses.
(7)Includes gains and losses on the deconsolidation of assets and liabilities associated with the refranchising of Krispy Kreme shops.
(8)The quarter and two quarters ended June 28, 2026 consists primarily of $0.8 million and $1.6 million, respectively, of legal fees primarily related to shareholder derivative litigation. Refer to Note 13, Commitments and Contingencies, to the Condensed Consolidated Financial Statements for more information on the Company’s pending litigation. The quarter and two quarters ended June 29, 2025 consists primarily of $0.9 million and $5.3 million, respectively, in costs related to remediation of the 2024 Cybersecurity Incident, including fees for cybersecurity experts and other advisors.
(9)Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statements of Operations.
(10)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 EBITDA and consolidated Adjusted EBITDA. In the quarter and two quarters ended June 28, 2026 corporate expenses consist primarily of $20.2 million and $40.5 million, respectively, and the quarter and two quarters ended June 29, 2025 consist of $19.4 million and $39.7 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.