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Acquisitions and Divestitures
 9 Months Ended
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 ShopTotal Purchase
Price Allocation
for Acquisitions
Assets acquired:
Cash and cash equivalents$5 $1 $6 
Prepaid expense and other current assets308 63 371 
Property and equipment, net10,358 971 11,329 
Other intangible assets, net10,248 6,871 17,119 
Operating lease right of use asset, net10,308 322 10,630 
Deferred income taxes, net—2323 
Total identified assets acquired31,227 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)
Goodwill6,258 3,625 9,883 
Net assets acquired26,548 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 segmentU.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.