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Segment Reporting (Tables) | 9 Months Ended
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Sep. 28, 2025
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information, by 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 Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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