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Segment Reporting | 9 Months Ended
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Sep. 28, 2025
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company conducts business through the following three reportable segments: •U.S.: Includes all Krispy Kreme Company-owned operations in the U.S., and Insomnia Cookies Bakeries globally through the date of deconsolidation; •International: Includes all Krispy Kreme Company-owned operations in the U.K., Ireland, Australia, New Zealand, Mexico, Canada, and Japan; and •Market Development: Includes franchise operations across the globe. 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 EBIT. For all of the segments, the CODM uses segment Adjusted EBIT to monitor and evaluate operating performance and to provide a consistent benchmark for comparison across reporting periods. 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 |  | Three Quarters Ended
| September 28, 2025 |  | September 29, 2024 |  | September 28, 2025 |  | September 29, 2024
U.S. |  |  |  |  |  |  |
Net revenues | $ | 216,187 |  |  | $ | 228,376 |  |  | $ | 682,830 |  |  | $ | 813,615 |
Less: |  |  |  |  |  |  |
Product and distribution costs, adjusted | 53,574 |  |  | 56,837 |  |  | 168,160 |  |  | 192,807 |
Operating expenses, adjusted | 126,175 |  |  | 129,402 |  |  | 400,921 |  |  | 428,971 |
Selling, general and administrative expense, adjusted | 16,622 |  |  | 21,436 |  |  | 52,826 |  |  | 77,512 |
Marketing expenses, adjusted | 7,343 |  |  | 6,860 |  |  | 21,585 |  |  | 23,493 |
Other segment items (1) | (8,537) |  |  | (82) |  |  | (7,513) |  |  | 1,626 |
Depreciation expense and amortization of right of use assets, adjusted | 14,886 |  |  | 12,974 |  |  | 48,405 |  |  | 45,074 |
Total U.S. Adjusted EBIT | $ | 6,124 |  |  | $ | 949 |  |  | $ | (1,554) |  |  | $ | 44,132 |
International |  |  |  |  |  |  |
Net revenues | $ | 140,237 |  |  | $ | 130,697 |  |  | $ | 392,627 |  |  | $ | 380,716 |
Less: |  |  |  |  |  |  |
Product and distribution costs, adjusted | 32,021 |  |  | 31,352 |  |  | 89,747 |  |  | 92,417 |
Operating expenses, adjusted | 67,961 |  |  | 61,535 |  |  | 197,022 |  |  | 177,359 |
Selling, general and administrative expense, adjusted | 13,100 |  |  | 12,196 |  |  | 38,877 |  |  | 36,888 |
Marketing expenses, adjusted | 4,284 |  |  | 2,786 |  |  | 10,162 |  |  | 8,793 |
Other segment items (1) | (286) |  |  | 50 |  |  | 544 |  |  | 289 |
Depreciation expense and amortization of right of use assets, adjusted | 8,280 |  |  | 7,783 |  |  | 24,016 |  |  | 23,024 |
Total International Adjusted EBIT | $ | 14,877 |  |  | $ | 14,995 |  |  | $ | 32,259 |  |  | $ | 41,946 |
Market Development |  |  |  |  |  |  |
Net revenues | $ | 18,874 |  |  | $ | 20,794 |  |  | $ | 54,792 |  |  | $ | 67,043 |
Less: |  |  |  |  |  |  |
Product and distribution costs, adjusted | 5,746 |  |  | 7,603 |  |  | 16,403 |  |  | 25,265 |
Selling, general and administrative expense, adjusted | 756 |  |  | 1,097 |  |  | 3,192 |  |  | 3,449 |
Other segment items (1) | 378 |  |  | 823 |  |  | 3,208 |  |  | 2,283 |
Depreciation expense and amortization of right of use assets, adjusted | 35 |  |  | 39 |  |  | 112 |  |  | 116 |
Total Market Development Adjusted EBIT | $ | 11,959 |  |  | $ | 11,232 |  |  | $ | 31,877 |  |  | $ | 35,930 |
Corporate |  |  |  |  |  |  |
Total Corporate expenses within Adjusted EBIT | $ | (17,908) |  |  | $ | (16,073) |  |  | $ | (57,631) |  |  | $ | (51,360) |
Total Reportable Segment |  |  |  |  |  |  |
Total reportable segment net revenues | $ | 375,298 |  |  | $ | 379,867 |  |  | $ | 1,130,249 |  |  | $ | 1,261,374 |
Total reportable segment Adjusted EBIT | $ | 15,052 |  |  | $ | 11,103 |  |  | $ | 4,951 |  |  | $ | 70,648 |
(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:
| Quarter Ended |  | Three Quarters Ended
| September 28, 2025 |  | September 29, 2024 |  | September 28, 2025 |  | September 29, 2024
Net (loss)/income | $ | (20,131) |  |  | $ | 37,572 |  |  | $ | (494,654) |  |  | $ | 25,978 |
Interest expense, net | 16,358 |  |  | 16,280 |  |  | 49,250 |  |  | 44,468 |
Income tax (benefit)/expense | (2,816) |  |  | 17,679 |  |  | (25,936) |  |  | 18,330 |
Share-based compensation | 774 |  |  | 9,969 |  |  | 8,011 |  |  | 24,603 |
Employer payroll taxes related to share-based compensation | 26 |  |  | 49 |  |  | 283 |  |  | 299 |
(Gain)/loss on divestiture of Insomnia Cookies | — |  |  | (87,128) |  |  | 11,501 |  |  | (87,128) |
Goodwill impairment | — |  |  | — |  |  | 355,958 |  |  | — |
Other non-operating (income)/expense, net (1) | (591) |  |  | (407) |  |  | (2,161) |  |  | 1,115 |
Strategic initiatives (2) | 11,858 |  |  | 11,426 |  |  | 37,078 |  |  | 20,434 |
Acquisition and integration expenses (3) | — |  |  | 1,938 |  |  | (111) |  |  | 3,037 |
New market penetration expenses (4) | 208 |  |  | 156 |  |  | 528 |  |  | 1,194 |
Shop closure expenses, net (5) | 502 |  |  | 21 |  |  | 36,497 |  |  | 788 |
Restructuring and severance expenses (6) | 522 |  |  | 631 |  |  | 5,469 |  |  | 769 |
Gain on remeasurement of equity method investment (7) | — |  |  | (5,579) |  |  | — |  |  | (5,579) |
Gain on sale-leaseback | — |  |  | — |  |  | (6,749) |  |  | — |
Gain on refranchising (8) | (1,063) |  |  | — |  |  | (1,063) |  |  | — |
Other (9) | 1,504 |  |  | 716 |  |  | 7,658 |  |  | (257) |
Amortization of acquisition related intangibles (10) | 7,901 |  |  | 7,780 |  |  | 23,392 |  |  | 22,597 |
Adjusted EBIT | $ | 15,052 |  |  | $ | 11,103 |  |  | $ | 4,951 |  |  | $ | 70,648 |
(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 in Insomnia Cookies during fiscal 2024. (2)The quarter and three quarters ended September 28, 2025 consist primarily of costs associated with the U.S. national expansion, including exit costs associated with termination of the Business Relationship Agreement with McDonald’s USA, and the evaluation of potential opportunities to refranchise certain equity markets. The quarter and three quarters ended September 29, 2024 consist primarily of costs associated with the divestiture of the Insomnia Cookies business, preparing for the U.S. national expansion (including McDonald’s USA), and global transformation. (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 have 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 three quarters ended September 28, 2025 consist primarily of costs associated with restructuring of the U.S. and U.K. businesses. The quarter and three quarters ended September 29, 2024 consist primarily of costs associated with the restructuring of the U.K. 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 2, Acquisitions and Divestitures for further information. (8)Includes gains and losses on the deconsolidation of assets and liabilities associated with the refranchising of Krispy Kreme shops. (9)The quarter and three quarters ended September 28, 2025 consist primarily of $1.5 million and $6.8 million, respectively, in costs related to remediation of the 2024 Cybersecurity Incident, including fees for cybersecurity experts and other advisors. The quarter and three quarters ended September 29, 2024 consist primarily of legal and other regulatory expenses incurred outside the ordinary course of business, as well as a gain from insurance proceeds received related to a shop in the U.S. that was destroyed and subsequently rebuilt. (10)Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statements of Operations.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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