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Acquisitions and Divestitures | 9 Months Ended
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Sep. 28, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Acquisitions and Divestitures | Acquisitions and Divestitures 2025 Acquisitions and Divestitures Equity Method Investments in KK Brazil and KK Spain In the quarter ended September 28, 2025, the Company invested approximately $0.9 million in cash to maintain a 25.0% noncontrolling ownership interest in Glaseadas Originales S.L. (“KK Spain”). In the quarter ended June 29, 2025, 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”). 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 Condensed Consolidated Statements of Operations. Divestiture of Insomnia Cookies In the quarter ended June 29, 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 (Gain)/loss on divestiture of Insomnia Cookies in the Condensed Consolidated Statements of Operations. 2024 Acquisitions and Divestitures Acquisition of Krispy Kreme Shops In the quarter ended September 29, 2024, the Company acquired the business and operating assets of two franchisees, consisting of nine Krispy Kreme shops in the U.S. and one Krispy Kreme shop in Canada. Prior to the acquisition, 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 consideration of $31.4 million, consisting of $26.7 million of cash (exclusive of $6.7 million proceeds for the Company’s equity method investments), $2.1 million of consideration payable to the sellers, and $2.6 million settlement of amounts related to pre-existing relationships, to acquire substantially all of the shops’ assets. Consideration payable of $2.1 million was withheld primarily to cover indemnification claims that could arise after closing. Absent any claims, these amounts are payable quarterly over the 18 months following the acquisition date. The settlement of pre-existing relationships included in the purchase consideration includes the settlement of accounts and notes receivable, net of deferred revenue, of $0.6 million. It also includes the disposal of the franchise intangible asset related to the franchisees with a cumulative net book value of $2.0 million at the acquisition date. The Company accounted for the transaction as a business combination. Immediately prior to the acquisition, 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 Condensed 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 acquisition above.
| KK U.S. Shops |  | KK Canada Shop |  | Total Purchase Price Allocation for Acquisitions
Assets acquired: |  |  |  |  |
Cash and cash equivalents | $ | 5 |  |  | $ | 1 |  |  | $ | 6 |
Prepaid expense and other current assets | 308 |  |  | 63 |  |  | 371 |
Property and equipment, net | 10,358 |  |  | 971 |  |  | 11,329 |
Other intangible assets, net | 10,248 |  |  | 6,871 |  |  | 17,119 |
Operating lease right of use asset, net | 10,308 |  |  | 322 |  |  | 10,630 |
Deferred income taxes, net | — |  | 23 |  | 23 |
Total identified assets acquired | 31,227 |  |  | 8,251 |  |  | 39,478 |
Liabilities assumed: |  |  |  |  |
Accrued liabilities | (115) |  |  | — |  |  | (115) |
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 | (10,937) |  |  | (322) |  |  | (11,259) |
Goodwill | 6,258 |  |  | 3,625 |  |  | 9,883 |
Net assets acquired | 26,548 |  |  | 11,554 |  |  | 38,102 |
Less: Fair value of former equity method investments | (4,254) |  |  | (2,460) |  |  | (6,714) |
Purchase consideration, net | $ | 22,294 |  |  | $ | 9,094 |  |  | $ | 31,388 |
Transaction costs in 2024 | $ | 1,787 |  |  | $ | 589 |  |  | $ | 2,376 |
Transaction costs in 2023 | 102 |  |  | — |  |  | 102 |
Reportable segment | U.S. |  | International |  |
The results of the acquired franchise businesses were reported within the Market Development segment prior to the acquisition date and are reported within the U.S. and International segments, as noted above, following the acquisition date. Equity Method Investments in KK Brazil and KK Spain In the quarter ended June 30, 2024, the Company acquired a 45.0% noncontrolling ownership interest in the newly formed entity KK Brazil for approximately $2.7 million in cash, and a 25.0% noncontrolling ownership interest in the newly formed entity KK Spain for approximately $0.8 million in cash.

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