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Segment Reporting
 9 Months Ended
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, 2025September 29, 2024September 28, 2025September 29, 2024
U.S.
Net revenues$216,187 $228,376 $682,830 $813,615 
Less:
Product and distribution costs, adjusted53,574 56,837 168,160 192,807 
Operating expenses, adjusted126,175 129,402 400,921 428,971 
Selling, general and administrative expense, adjusted16,622 21,436 52,826 77,512 
Marketing expenses, adjusted7,343 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, adjusted14,886 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, adjusted32,021 31,352 89,747 92,417 
Operating expenses, adjusted67,961 61,535 197,022 177,359 
Selling, general and administrative expense, adjusted13,100 12,196 38,877 36,888 
Marketing expenses, adjusted4,284 2,786 10,162 8,793 
Other segment items (1)
(286)50 544 289 
Depreciation expense and amortization of right of use assets, adjusted8,280 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, adjusted5,746 7,603 16,403 25,265 
Selling, general and administrative expense, adjusted756 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, adjusted35 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 $70,648 
(1)The U.S. and International segments’ other segment items consist of pre-opening costs and other income, net. The Market Development segment other segment items consist of operating expenses, marketing expenses, pre-opening costs, and other income, net.
The following table presents a reconciliation of net loss/(income) to Adjusted EBIT:
Quarter Ended Three Quarters Ended
September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Net (loss)/income$(20,131)$37,572 $(494,654)$25,978 
Interest expense, net16,358 16,280 49,250 44,468 
Income tax (benefit)/expense(2,816)17,679 (25,936)18,330 
Share-based compensation774 9,969 8,011 24,603 
Employer payroll taxes related to share-based compensation26 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.