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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________

FORM 10-Q

_________________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 28, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission file number: 001-40573

Krispy Kreme, Inc.

(Exact name of registrant as specified in its charter)

_________________________


Delaware			37-1701311
(State or other jurisdiction of incorporation)			(IRS Employer Identification No.)

2116 Hawkins Street, Suite 101, Charlotte, North Carolina 28203

(Address of principal executive offices)

(800) 457-4779

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

_________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common stock, $0.01 par value per share

DNUT

Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

The registrant had outstanding 171.3 million shares of common stock as of October 31, 2025.

Table of Contents


PART I. FINANCIAL INFORMATION			Page
	Item 1.	Financial Statements (Unaudited)	1
		Condensed Consolidated Statements of Operations	1
		Condensed Consolidated Statements of Comprehensive (Loss)/Income	2
		Condensed Consolidated Balance Sheets	3
		Condensed Consolidated Statements of Changes in Shareholders’ Equity	4
		Condensed Consolidated Statements of Cash Flows	6
		Notes to Condensed Consolidated Financial Statements	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
	Item 4.	Controls and Procedures	54
PART II. OTHER INFORMATION
	Item 1.	Legal Proceedings	55
	Item 1A.	Risk Factors	55
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	55
	Item 3.	Defaults Upon Senior Securities	55
	Item 4.	Mine Safety Disclosures	55
	Item 5.	Other Information	55
	Item 6.	Exhibits	56

Signatures			57

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

Krispy Kreme, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share amounts)


	Quarter Ended				Three Quarters Ended
	September 28, 2025 (13 weeks)		September 29, 2024 (13 weeks)		September 28, 2025 (39 weeks)		September 29, 2024 (39 weeks)
Net revenues
Product sales	$	365,701	$	370,662	$	1,103,557	$	1,233,585
Royalties and other revenues	9,597		9,205		26,692		27,789
Total net revenues	375,298		379,867		1,130,249		1,261,374
Product and distribution costs	96,214		95,840		279,577		310,701
Operating expenses	195,939		192,027		605,494		609,726
Selling, general and administrative expense	49,393		71,110		171,718		207,150
Marketing expenses	11,796		10,680		34,220		35,211
Pre-opening costs	666		619		3,066		2,691
Goodwill and other asset impairments	4,805		—		411,899		448
Other income, net	(9,781)		(5,781)		(16,854)		(6,878)
Depreciation and amortization expense	33,446		31,376		103,129		99,562
Operating (loss)/income	(7,180)		(16,004)		(462,000)		2,763
Interest expense, net	16,358		16,280		49,250		44,468

(Gain)/loss on divestiture of Insomnia Cookies	—		(87,128)		11,501		(87,128)
Other non-operating (income)/expense, net	(591)		(407)		(2,161)		1,115
(Loss)/income before income taxes	(22,947)		55,251		(520,590)		44,308
Income tax (benefit)/expense	(2,816)		17,679		(25,936)		18,330
Net (loss)/income	(20,131)		37,572		(494,654)		25,978
Net (loss)/income attributable to noncontrolling interest	(687)		(1,991)		(6,666)		440
Net (loss)/income attributable to Krispy Kreme, Inc.	$	(19,444)	$	39,563	$	(487,988)	$	25,538
Net (loss)/income per share:
Common stock — Basic	$	(0.11)	$	0.23	$	(2.86)	$	0.15
Common stock — Diluted	$	(0.11)	$	0.23	$	(2.86)	$	0.15
Weighted average shares outstanding:
Basic	171,164		169,596		170,752		169,125
Diluted	171,164		171,486		170,752		171,384

See accompanying notes to Condensed Consolidated Financial Statements.

Table of Contents

Krispy Kreme, Inc.

Condensed Consolidated Statements of Comprehensive (Loss)/Income (Unaudited)

(in thousands)


	Quarter Ended				Three Quarters Ended
	September 28, 2025 (13 weeks)		September 29, 2024 (13 weeks)		September 28, 2025 (39 weeks)		September 29, 2024 (39 weeks)
Net (loss)/income	$	(20,131)	$	37,572	$	(494,654)	$	25,978
Other comprehensive (loss)/income, net of income taxes:
Foreign currency translation adjustment	(4,479)		13,118		29,804		(895)
Unrealized loss on cash flow hedges, net of income taxes (1)	(108)		(9,574)		(6,537)		(15,762)

Total other comprehensive (loss)/income	(4,587)		3,544		23,267		(16,657)
Comprehensive (loss)/income	(24,718)		41,116		(471,387)		9,321
Net (loss)/income attributable to noncontrolling interest	(687)		(1,991)		(6,666)		440
Foreign currency translation adjustment attributable to noncontrolling interest	(333)		226		408		(135)
Total comprehensive (loss)/income attributable to noncontrolling interest	(1,020)		(1,765)		(6,258)		305
Comprehensive (loss)/income attributable to Krispy Kreme, Inc.	$	(23,698)	$	42,881	$	(465,129)	$	9,016

(1)Net of income tax benefit of $0.1 million and $2.2 million for the quarter and three quarters ended September 28, 2025, respectively, and $3.2 million and $5.3 million for the quarter and three quarters ended September 29, 2024, respectively.

See accompanying notes to Condensed Consolidated Financial Statements.

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Krispy Kreme, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share amounts)


	As of
	(Unaudited) September 28, 2025		December 29, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	30,707	$	28,962
Restricted cash	445		353
Accounts receivable, net	53,837		67,722
Inventories	28,077		28,133
Taxes receivable	19,617		16,155
Prepaid expense and other current assets	29,107		31,615
Total current assets	161,790		172,940
Property and equipment, net	491,266		511,139
Goodwill, net	708,371		1,047,581
Other intangible assets, net	803,587		819,934
Operating lease right of use asset, net	410,106		409,869
Investments in unconsolidated entities	6,715		91,070
Other assets	18,010		19,497
Total assets	$	2,599,845	$	3,072,030
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	73,255	$	56,356
Current operating lease liabilities	47,744		46,620
Accounts payable	116,536		123,316
Accrued liabilities	103,671		124,212
Structured payables	107,727		135,668
Total current liabilities	448,933		486,172
Long-term debt, less current portion	906,208		844,547

Noncurrent operating lease liabilities	410,526		405,366
Deferred income taxes, net	92,895		130,745
Other long-term obligations and deferred credits	47,441		40,768
Total liabilities	1,906,003		1,907,598
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.01 par value; 300,000 shares authorized as of both September 28, 2025 and December 29, 2024; 171,244 and 170,060 shares issued and outstanding as of September 28, 2025 and December 29, 2024, respectively	1,713		1,701
Additional paid-in capital	1,473,218		1,466,508
Shareholder note receivable	(1,788)		(1,906)
Accumulated other comprehensive loss, net of income tax	(9,269)		(32,128)
Retained deficit	(793,608)		(299,638)
Total shareholders’ equity attributable to Krispy Kreme, Inc.	670,266		1,134,537
Noncontrolling interest	23,576		29,895
Total shareholders’ equity	693,842		1,164,432
Total liabilities and shareholders’ equity	$	2,599,845	$	3,072,030

See accompanying notes to Condensed Consolidated Financial Statements.

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Krispy Kreme, Inc.

Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

(in thousands, except per share amounts)


	Common Stock			Additional Paid-in Capital		Shareholder Note Receivable		Accumulated Other Comprehensive Income/(Loss) (“AOCI”)						Retained Deficit		Noncontrolling Interest		Total
	Shares Outstanding	Amount						Foreign Currency Translation Adjustment		Unrealized Income/(Loss) on Cash Flow Hedges		Unrealized Loss on Employee Benefit Plans
Balance at December 29, 2024	170,060	$	1,701	$	1,466,508	$	(1,906)	$	(32,065)	$	270	$	(333)	$	(299,638)	$	29,895	$	1,164,432
Net loss for the quarter ended March 30, 2025	—	—		—		—		—		—		—		(33,284)		(121)		(33,405)
Other comprehensive income/(loss) for the quarter ended March 30, 2025 before reclassifications	—	—		—		—		8,413		(4,280)		—		—		73		4,206
Reclassification from AOCI	—	—		—		—		—		(287)		—		—		—		(287)

Share-based compensation	—	—		2,603		—		—		—		—		—		—		2,603

Dividends declared on common stock and equivalents ($0.035 per share)	—	—		—		—		—		—		—		(5,969)		—		(5,969)

Distribution to noncontrolling interest	—	—		(103)		127		—		—		—		—		(60)		(36)
Issuance of common stock upon settlement of RSUs, net of shares withheld	240	2		(125)		—		—		—		—		—		—		(123)
Other	—	—		—		(3)		—		—		—		—		(1)		(4)
Balance at March 30, 2025	170,300	$	1,703	$	1,468,883	$	(1,782)	$	(23,652)	$	(4,297)	$	(333)	$	(338,891)	$	29,786	$	1,131,417
Net loss for the quarter ended June 29, 2025	—	—		—		—		—		—		—		(435,260)		(5,858)		(441,118)
Other comprehensive income/(loss) for the quarter ended June 29, 2025 before reclassifications	—	—		—		—		25,129		(1,526)		—		—		668		24,271
Reclassification from AOCI	—	—		—		—		—		(336)		—		—		—		(336)

Share-based compensation	—	—		4,634		—		—		—		—		—		—		4,634




Dividends declared on common stock and equivalents ($0.035 per share)	—	—		—		—		—		—		—		(13)		—		(13)
Issuance of common stock upon settlement of RSUs, net of shares withheld	664	7		(671)		—		—		—		—		—		—		(664)

Other	—	—		(1)		(3)		—		—		—		—		2		(2)
Balance at June 29, 2025	170,964	$	1,710	$	1,472,845	$	(1,785)	$	1,477	$	(6,159)	$	(333)	$	(774,164)	$	24,598	$	718,189
Net loss for the quarter ended September 28, 2025	—	—		—		—		—		—		—		(19,444)		(687)		(20,131)
Other comprehensive (loss)/income for the quarter ended September 28, 2025 before reclassifications	—	—		—		—		(4,146)		270		—		—		(333)		(4,209)
Reclassification from AOCI	—	—		—		—		—		(378)		—		—		—		(378)

Share-based compensation	—	—		774		—		—		—		—		—		—		774






Issuance of common stock upon settlement of RSUs, net of shares withheld	280	3		(400)		—		—		—		—		—		—		(397)

Other	—	—		(1)		(3)		—		—		—		—		(2)		(6)
Balance at September 28, 2025	171,244	$	1,713	$	1,473,218	$	(1,788)	$	(2,669)	$	(6,267)	$	(333)	$	(793,608)	$	23,576	$	693,842

See accompanying notes to Condensed Consolidated Financial Statements.

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Krispy Kreme, Inc.

Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

(in thousands, except per share amounts)


	Common Stock			Additional Paid-in Capital		Shareholder Note Receivable		Accumulated Other Comprehensive Income/(Loss)						Retained Deficit		Noncontrolling Interest		Total
	Shares Outstanding	Amount						Foreign Currency Translation Adjustment		Unrealized Income/(Loss) on Cash Flow Hedges		Unrealized Loss on Employee Benefit Plans
Balance at December 31, 2023	168,628	$	1,686	$	1,443,591	$	(3,850)	$	1,985	$	5,629	$	(368)	$	(278,990)	$	94,100	$	1,263,783
Net (loss)/income for the quarter ended March 31, 2024	—	—		—		—		—		—		—		(8,534)		1,871		(6,663)
Other comprehensive (loss)/income for the quarter ended March 31, 2024 before reclassifications	—	—		—		—		(5,770)		367		—		—		(299)		(5,702)
Reclassification from AOCI	—	—		—		—		—		(3,051)		—		—		—		(3,051)
Capital contribution by shareholders, net of loans issued	—	—		—		232		—		—		—		—		—		232
Share-based compensation	—	—		6,986		—		—		—		—		—		—		6,986

Dividends declared on common stock and equivalents ($0.035 per share)	—	—		—		—		—		—		—		(5,905)		—		(5,905)

Distribution to noncontrolling interest	—	—		—		—		—		—		—		—		(977)		(977)
Issuance of common stock upon settlement of RSUs, net of shares withheld	103	1		(805)		—		—		—		—		—		—		(804)
Other	—	—		1		(11)		—		—		—		(1)		(1)		(12)
Balance at March 31, 2024	168,731	$	1,687	$	1,449,773	$	(3,629)	$	(3,785)	$	2,945	$	(368)	$	(293,430)	$	94,694	$	1,247,887
Net (loss)/income for the quarter ended June 30, 2024	—	—		—		—		—		—		—		(5,491)		560		(4,931)
Other comprehensive loss for the quarter ended June 30, 2024 before reclassifications	—	—		—		—		(7,882)		(488)		—		—		(62)		(8,432)
Reclassification from AOCI	—	—		—		—		—		(3,016)		—		—		—		(3,016)
Capital contribution by shareholders, net of loans issued	—	—		—		687		—		—		—		—		—		687
Share-based compensation	—	—		7,648		—		—		—		—		—		—		7,648

Dividends declared on common stock and equivalents ($0.035 per share)	—	—		—		—		—		—		—		(5,919)		—		(5,919)
Distribution to noncontrolling interest	—	—		—		105		—		—		—		—		(1,274)		(1,169)
Issuance of common stock upon settlement of RSUs, net of shares withheld	626	6		(3,477)		—		—		—		—		—		—		(3,471)
Other	—	1		—		(28)		—		—		—		—		—		(27)
Balance at June 30, 2024	169,357	$	1,694	$	1,453,944	$	(2,865)	$	(11,667)	$	(559)	$	(368)	$	(304,840)	$	93,918	$	1,229,257
Net income/(loss) for the quarter ended September 29, 2024	—	—		—		—		—		—		—		39,563		(1,991)		37,572
Other comprehensive income/(loss) for the quarter ended September 29, 2024 before reclassifications	—	—		—		—		12,892		(8,671)		—		—		226		4,447
Reclassification from AOCI	—	—		—		—		—		(903)		—		—		—		(903)

Share-based compensation	—	—		9,969		—		—		—		—		—		—		9,969
Purchase of shares by noncontrolling interest	—	—		—		—		—		—		—		—		364		364
Dividends declared on common stock and equivalents ($0.035 per share)	—	—		—		—		—		—		—		(5,960)		—		(5,960)

Noncontrolling interest from divestiture of Insomnia Cookies	—	—		—		945		—		—		—		—		(33,579)		(32,634)
Distribution to noncontrolling interest	—	—		(3,414)		—		—		—		—		—		(29,475)		(32,889)
Issuance of common stock upon settlement of RSUs, net of shares withheld	442	4		(95)		—		—		—		—		—		—		(91)

Other	—	—		12		(4)		—		—		—		(1)		1		8
Balance at September 29, 2024	169,799	$	1,698	$	1,460,416	$	(1,924)	$	1,225	$	(10,133)	$	(368)	$	(271,238)	$	29,464	$	1,209,140

See accompanying notes to Condensed Consolidated Financial Statements.

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Krispy Kreme, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)


	Three Quarters Ended
	September 28, 2025 (39 weeks)		September 29, 2024 (39 weeks)
CASH FLOWS (USED FOR)/PROVIDED BY OPERATING ACTIVITIES:
Net (loss)/income	$	(494,654)	$	25,978
Adjustments to reconcile net (loss)/income to net cash (used for)/provided by operating activities:
Depreciation and amortization expense	103,129		99,562
Deferred and other income taxes	(37,396)		(22)
Goodwill impairment	355,958		—
Other asset impairments and lease termination charges	55,941		368
Loss on disposal of property and equipment	1,466		470
Loss/(gain) on divestiture of Insomnia Cookies	11,501		(87,128)
Gain on refranchising	(1,063)		—
Gain on remeasurement of equity method investment	—		(5,579)
Gain on sale-leaseback	(6,749)		—
Share-based compensation	8,011		24,603
Change in accounts and notes receivable allowances	1,080		433
Inventory write-off	6,418		1,731

Amortization related to settlement of interest rate swap derivatives	—		(5,910)
Other	317		263
Change in operating assets and liabilities, excluding business acquisitions and divestitures, and foreign currency translation adjustments	(15,054)		(35,982)
Net cash (used for)/provided by operating activities	(11,095)		18,787
CASH FLOWS PROVIDED BY INVESTING ACTIVITIES:
Purchase of property and equipment	(80,844)		(86,877)

Proceeds from sale-leaseback	10,882		—
Acquisition of shops and franchise rights from franchisees, net of cash acquired	—		(26,612)
Purchase of equity method investment	(2,998)		(3,506)
Net proceeds from divestiture of Insomnia Cookies	75,000		117,646
Principal payment received from loan to Insomnia Cookies	—		45,000
Principal payments received from loans to franchisees	1,202		—
Disbursement for loan receivable	—		(1,086)


Other investing activities	177		180
Net cash provided by investing activities	3,419		44,745
CASH FLOWS PROVIDED BY/(USED FOR) FINANCING ACTIVITIES:
Proceeds from the issuance of debt	661,026		490,000
Repayment of long-term debt and lease obligations	(606,581)		(545,692)
Payment of financing costs	(825)		—
Proceeds from structured payables	242,350		298,551
Payments on structured payables	(270,418)		(264,346)

Capital contribution by shareholders, net of loans issued	—		919

Proceeds from sale of noncontrolling interest in subsidiary	—		364
Distribution to shareholders	(11,934)		(17,743)
Payments for repurchase and retirement of common stock	(1,184)		(4,366)
Distribution to noncontrolling interest	(36)		(35,035)
Net cash provided by/(used for) financing activities	12,398		(77,348)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2,885)		1,086
Net increase/(decrease) in cash, cash equivalents and restricted cash	1,837		(12,730)
Cash, cash equivalents and restricted cash at beginning of period	29,315		38,614
Cash, cash equivalents and restricted cash at end of period	$	31,152	$	25,884
Supplemental schedule of non-cash investing and financing activities:
(Decrease)/increase in accrual for property and equipment	$	(12,363)	$	12,362


Accrual for distribution to shareholders	—		(5,943)

Reconciliation of cash, cash equivalents and restricted cash at end of period:
Cash and cash equivalents	$	30,707	$	25,410
Restricted cash	445		474
Total cash, cash equivalents and restricted cash	$	31,152	$	25,884

See accompanying notes to Condensed Consolidated Financial Statements.

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Krispy Kreme, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(dollars in thousands, unless otherwise specified)

Note 1 — Description of Business and Summary of Significant Accounting Policies

Description of Business

Krispy Kreme, Inc. (“KKI”) and its subsidiaries (collectively, the “Company” or “Krispy Kreme”) operates through its omni-channel business model to produce doughnuts and deliver fresh doughnut experiences for Doughnut Shops, Delivered Fresh Daily (“DFD”) Doors, and digital channels, expanding consumer access to the Krispy Kreme brand.

The Company has three reportable operating segments: 1) U.S., which includes all Krispy Kreme Company-owned operations in the U.S., and Insomnia Cookies Bakeries globally through the date of deconsolidation; 2) International, which includes all Krispy Kreme Company-owned operations in the U.K., Ireland, Australia, New Zealand, Mexico, Canada, and Japan; and 3) Market Development, which includes franchise operations across the globe. Unallocated corporate costs are excluded from the Company’s measurement of segment performance.

Basis of Presentation and Consolidation

The Company operates and reports financial information on a 52 or 53-week year with the fiscal year ending on the Sunday closest to December 31. The quarters ended September 28, 2025 and September 29, 2024 were both 13-week periods.

The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of KKI and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, these interim financial statements do not include all information and footnotes required under GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of results of operations, balance sheet, cash flows, and shareholders’ equity for the periods presented. All significant intercompany balances and transactions among KKI and its subsidiaries have been eliminated in consolidation. Investments in entities over which the Company has the ability to exercise significant influence but which it does not control and whose financial statements are not otherwise required to be consolidated, are accounted for using the equity method.

The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto as of and for the year ended December 29, 2024, included in the Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of December 29, 2024 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The results of operations for the quarter and three quarters ended September 28, 2025 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending December 28, 2025.

Noncontrolling interest in the Company’s Condensed Consolidated Financial Statements represents the interest in subsidiaries held by joint venture partners and employee shareholders. The joint venture partners hold noncontrolling interests in the Company’s consolidated subsidiaries W.K.S. Krispy Kreme, LLC (“WKS Krispy Kreme”) and Krispy K Canada, Inc. (“KK Canada”). Employee shareholders hold noncontrolling interests in the consolidated subsidiaries Krispy Kreme Holdings Pty Ltd. (“KK Australia”), Krispy Kreme Mexico Holding S.A.P.I. de C.V. (“KK Mexico”), and Krispy Kreme Doughnut Japan Co., Ltd. Since the Company consolidates the financial statements of these subsidiaries, the noncontrolling owners’ share of each subsidiary’s net assets and results of operations are deducted and reported as noncontrolling interest in the Condensed Consolidated Balance Sheets and as net income attributable to noncontrolling interest in the Condensed Consolidated Statements of Operations and comprehensive income attributable to noncontrolling interest in the Condensed Consolidated Statements of Comprehensive (Loss)/Income.

Summary of Significant Accounting Policies

The Company’s significant accounting policies are described in Note 1, “Description of Business and Summary of Significant Accounting Policies” to the Consolidated Financial Statements for the year ended December 29, 2024 included in the Annual Report on Form 10-K. There were no material changes to the significant accounting policies during the quarter ended September 28, 2025.

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Termination of the Business Relationship Agreement with McDonald’s USA

On June 24, 2025, the Company and McDonald’s USA, LLC (“McDonald’s USA”) announced that the companies had jointly decided to terminate the Business Relationship Agreement between Krispy Kreme Doughnut Corporation and McDonald’s USA (the “Business Relationship Agreement”) effective July 2, 2025 (the “Termination Effective Date”). Effective as of the Termination Effective Date, neither party has any further obligations to the other party under the Business Relationship Agreement except for obligations related to confidentiality, indemnification, and certain other miscellaneous provisions that expressly survive termination.

Goodwill and Other Asset Impairments

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. For each reporting unit, the Company assesses goodwill for impairment annually at the beginning of the fourth quarter or more frequently when impairment indicators are present. If the carrying value of the reporting unit exceeds its fair value, the Company recognizes an impairment charge for the difference up to the carrying value of the allocated goodwill.

In the quarter ended June 29, 2025, management identified impairment indicators that required a quantitative assessment of goodwill outside of management’s routine annual assessment. These indicators included that during the two quarters ended June 29, 2025, the Company experienced a decline in its stock price and market capitalization, which became significant and sustained during the quarter ended June 29, 2025. In addition, the Company’s operating results for the quarter were below previous forecasts. Lastly, the Company updated its forecasts for the full year following termination of the Business Relationship Agreement with McDonald’s USA during the quarter, and the updated forecasts were below previous forecasts. After completing the quantitative impairment test, management concluded that the estimated fair values of the U.S., Krispy Kreme Holding U.K. Ltd. (“KK U.K.”), and KK Australia reporting units had declined below their carrying values, and management recognized a cumulative, non-cash, partial goodwill impairment charge of $356.0 million (gross of income taxes) in the quarter ended June 29, 2025.

The estimated fair values of the reporting units were based on estimates and assumptions that are considered Level 3 inputs under the fair value hierarchy. In estimating the fair values of the reporting units, management reconciled the fair value of the Company to the Company’s market capitalization. Consistent with the most recent quantitative assessment for the fiscal year ended December 29, 2024, management utilized a discounted cash flow approach and a market approach to determine fair values, allocating 50% to each approach. These calculations require management to make assumptions and to apply judgment when estimating future cash flows and asset fair values, including projected revenue growth and operating expenses related to existing businesses, product innovation, and new shop concepts, as well as selecting valuation multiples of similar publicly traded companies and an appropriate discount rate. Estimates of revenue growth and operating expenses were based on internal projections considering the reporting unit’s past performance and forecasted growth, strategic initiatives, local market economics, and the local business environment impacting the reporting unit’s performance. The discount rate was selected based on the estimated cost of capital for a market participant to operate the reporting unit in the region. These estimates, as well as the selection of comparable companies and valuation multiples used in the market approaches, are highly subjective, and the Company’s ability to realize the future cash flows used in management’s fair value calculations may be affected by factors such as the success of strategic initiatives, changes in economic conditions, changes in operating performance, and changes in business strategies, including retail initiatives and international expansion. For the discounted cash flow approach, management applied discount rates to management’s projected cash flows of approximately 10.0%, 12.0%, and 12.0% for the U.S., KK U.K., and KK Australia reporting units, respectively.

If the Company’s future performance varies from current expectations, assumptions, or estimates this may impact the impairment analysis and could reduce the underlying cash flows used to estimate fair values, resulting in a decline in fair value that may result in future impairment charges. Management will continue to monitor developments, including updates to forecasts and the Company’s market capitalization. Goodwill impairment assessment may be required in the future which could result in updates to goodwill and related estimates in the future. Refer to Note 4, Goodwill and Other Intangible Assets, net for additional information.

Additionally, in response to management’s updated forecasts and the termination of the Business Relationship Agreement with McDonald’s USA during the three quarters ended September 28, 2025, the Company recorded non-cash long-lived asset impairment charges of $26.7 million and non-cash lease impairment and termination costs of $29.2 million. These impairment charges, along with the goodwill impairment, are included in Goodwill and other asset impairments in the Condensed Consolidated Statements of Operations.

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The goodwill and other asset impairments do not have an impact on the Company’s compliance with the financial covenants under the Company’s debt arrangements.

Reclassifications

In the Condensed Consolidated Statements of Operations, Goodwill and other asset impairments in the comparative period have been reclassified (formerly presented within Other income, net) to be consistent with current quarter presentation.

Recent Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which focuses on the rate reconciliation and income taxes paid disclosures. The ASU requires a public business entity (“PBE”) to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further disaggregated by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state, and foreign and by individual jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. For PBEs, the ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. An entity should apply the amendments in this ASU prospectively, with retrospective application permitted. The Company expects this ASU to impact its annual income tax disclosures, but with no impacts to its results of operations, cash flows, and financial condition.

In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires a PBE to disclose in the notes to the financial statements, at each interim and annual reporting period, specified information about certain costs and expenses, including (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil and gas-producing activities, for each income statement line item that contains those expenses. For PBEs, the ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. An entity may apply the amendments in this ASU prospectively or retrospectively. The Company expects this ASU to impact its expense disclosures, but with no impacts to its results of operations, cash flows, and financial condition.

In September 2025, the FASB issued ASU 2025-06, Intangibles (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which clarifies and modernizes the accounting for costs related to internal-use software. The guidance removes all references to project stages in Accounting Standards Codification (“ASC”) 350-40, Intangibles — Goodwill and Other — Internal-Use Software and clarifies the threshold entities apply to begin capitalizing costs. The new guidance requires an entity to start capitalizing software costs when (a) management has authorized and committed to funding the software project, and (b) it is probable that the project will be completed and the software will be used to perform the function intended. For PBEs, the ASU is effective for annual periods beginning after December 15, 2027, and interim periods within those annual periods, with early adoption permitted. Entities may apply the amendments in this ASU using a prospective, retrospective, or modified transition approach. The Company does not expect this ASU to materially impact its results of operations, cash flows, and financial condition.

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Note 2 — 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.

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	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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Acquisition of Additional Units in Consolidated Subsidiary Awesome Doughnut

In the quarter ended September 29, 2024, the Company purchased all units held by the noncontrolling interest holders in the consolidated subsidiary Awesome Doughnut, LLC (“Awesome Doughnut”) for $32.9 million in cash. The purchase increased the Company’s ownership interest in Awesome Doughnut from 70.0% to 100.0%. The Company financed the purchase via an existing structured payables program whereby the structured payable matured and was paid in the quarter ended March 30, 2025.

Divestiture of Insomnia Cookies

On July 17, 2024, the Company entered into an agreement to sell a portion of its shares of Insomnia Cookies for cash proceeds of $120.9 million. On August 1, 2024, the Company received additional cash of $45.0 million from Insomnia Cookies related to the settlement of an intercompany loan. The transaction resulted in the Company’s ownership of Insomnia Cookies declining from 75.0% to 34.7% with a loss of control. Accordingly, the Company deconsolidated Insomnia Cookies from the Company’s Condensed Consolidated Financial Statements and recorded a gain on divestiture of $87.1 million (gross of income taxes) which is included within (Gain)/loss on divestiture of Insomnia Cookies in the Condensed Consolidated Statements of Operations. The gain was calculated as follows:


	July 17, 2024
Cash proceeds	$	120,870
Fair value of retained noncontrolling interest in Insomnia Cookies	85,086
Carrying value of former noncontrolling interest in Insomnia Cookies	33,579
Less: Carrying value of net assets of Insomnia Cookies, including cash and cash equivalents	(152,407)
Gain on divestiture of Insomnia Cookies	$	87,128

As the Company had the ability to exercise significant influence over Insomnia Cookies, but did not have the ability to exercise control, the investment was accounted for using the equity method until the Company sold the remainder of its ownership interest in Insomnia Cookies in the quarter ended June 29, 2025. The initial fair value of the equity method investment of $85.1 million was estimated using a Monte Carlo simulation in a risk-neutral framework to model the likelihood of the Company’s potential future sale of its noncontrolling interest in Insomnia Cookies. The valuation methodology included assumptions and judgments regarding probability weighting, discount rates, operating results of Insomnia Cookies, and expected timing of a future exit by the investors. Equity method earnings were recognized within Other non-operating (income)/expense, net in the Condensed Consolidated Statements of Operations.

Note 3 — Inventories

The components of Inventories are as follows:


	September 28, 2025		December 29, 2024
Raw materials	$	19,052	$	20,698
Work in progress	178		328
Finished goods and purchased merchandise	8,847		7,107
Total inventories	$	28,077	$	28,133

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Note 4 — Goodwill and Other Intangible Assets, net

Goodwill, net

Changes in the carrying amount of goodwill by reportable segment are as follows:


	U.S.		International		Market Development		Total
Balance as of December 29, 2024	$	652,784	$	283,018	$	111,779	$	1,047,581


Adjustments related to deferred taxes	(516)		—		—		(516)
Goodwill impairment (1)	(270,162)		(85,796)		—		(355,958)
Foreign currency impact	—		17,264		—		17,264
Balance as of September 28, 2025	$	382,106	$	214,486	$	111,779	$	708,371

(1)Refer to Note 1, Description of Business and Summary of Significant Accounting Policies for more information on the goodwill impairment.

Other Intangible Assets, net

Other intangible assets consist of the following:


	September 28, 2025						December 29, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Amount		Gross Carrying Amount		Accumulated Amortization		Net Amount
Intangible assets with indefinite lives
Trade names and trademarks	$	553,400	$	—	$	553,400	$	553,400	$	—	$	553,400
Intangible assets with definite lives
Franchise agreements	27,154		(12,035)		15,119		27,154		(11,050)		16,104
Customer relationships	15,000		(7,926)		7,074		15,000		(7,277)		7,723
Reacquired franchise rights (1)	416,263		(188,269)		227,994		402,894		(160,187)		242,707

Total intangible assets with definite lives	458,417		(208,230)		250,187		445,048		(178,514)		266,534
Total intangible assets	$	1,011,817	$	(208,230)	$	803,587	$	998,448	$	(178,514)	$	819,934

(1)Reacquired franchise rights include the impact of foreign currency fluctuations associated with the respective countries.

Amortization expense related to intangible assets included in Depreciation and amortization expense was $7.9 million and $23.4 million for the quarter and three quarters ended September 28, 2025, respectively, and $7.8 million and $22.6 million for the quarter and three quarters ended September 29, 2024, respectively.

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Note 5 — Leases

The Company included the following amounts related to operating and finance lease assets and liabilities within the Condensed Consolidated Balance Sheets:


		As of
		September 28, 2025		December 29, 2024
Assets	Classification
Operating lease	Operating lease right of use asset, net	$	410,106	$	409,869
Finance lease	Property and equipment, net	57,108		72,221
Total lease assets		$	467,214	$	482,090
Liabilities
Current
Operating lease	Current operating lease liabilities	$	47,744	$	46,620
Finance lease	Current portion of long-term debt	20,929		16,356
Noncurrent
Operating lease	Noncurrent operating lease liabilities	410,526		405,366
Finance lease	Long-term debt, less current portion	68,009		63,369
Total lease liabilities		$	547,208	$	531,711

Lease costs were as follows:


		Quarter Ended				Three Quarters Ended
		September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Lease cost	Classification
Operating lease cost	Selling, general and administrative expense	$	581	$	838	$	2,118	$	2,652
Operating lease cost	Operating expenses	22,557		22,227		67,658		70,615
Short-term lease cost	Operating expenses	818		1,478		3,563		3,828
Variable lease costs	Operating expenses	7,069		6,553		22,144		21,384
Sublease income	Royalties and other revenues	(103)		(85)		(279)		(155)
Finance lease cost:
Amortization of right of use assets	Depreciation and amortization expense	$	4,067	$	3,051	$	15,109	$	8,839
Interest on lease liabilities	Interest expense, net	1,433		873		4,421		2,615

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Supplemental disclosures of cash flow information related to leases were as follows:


	Three Quarters Ended
	September 28, 2025		September 29, 2024
Other information
Cash paid for leases:
Operating cash flows for operating leases (1)	$	90,079	$	83,956
Operating cash flows for finance leases	4,413		2,607
Financing cash flows for finance leases	14,819		8,442
Right of use assets obtained in exchange for new lease liabilities:
Operating leases	$	38,207	$	40,182
Finance leases	24,774		15,019

(1)Operating cash flows for operating leases include variable rent payments, which are not included in the measurement of lease liabilities. Variable rent payments were $22.1 million for the three quarters ended September 28, 2025 and $21.4 million for the three quarters ended September 29, 2024.

In the three quarters ended September 28, 2025, the Company completed two sale-leaseback transactions whereby it disposed of real estate at two properties for cumulative proceeds of $10.9 million. The Company subsequently leased back the properties, which are accounted for as operating leases. The Company recognized net gains on sale of $6.7 million, which are included in Other income, net on the Condensed Consolidated Statement of Operations. There were no sale-leaseback transactions completed in the three quarters ended September 29, 2024.

In the three quarters ended September 28, 2025, the Company recorded lease impairment and termination costs of $29.2 million. Refer to Note 1, Description of Business and Summary of Significant Accounting Policies for more information.

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Note 6 — Fair Value Measurements

The following table presents assets and liabilities that are measured at fair value on a recurring basis as of September 28, 2025 and December 29, 2024:


	September 28, 2025
	Level 2
Assets:


Foreign currency derivatives	$	237
Commodity derivatives	193
Total Assets	$	430

Liabilities:
Interest rate derivatives	$	8,356


Total Liabilities	$	8,356


	December 29, 2024
	Level 2
Assets:

Interest rate derivatives	$	362

Total Assets	$	362

Liabilities:
Foreign currency derivatives	$	749
Commodity derivatives	6
Total Liabilities	$	755

There were no assets or liabilities measured using Level 1 or Level 3 inputs and no transfers of financial assets or liabilities among the levels within the fair value hierarchy during the three quarters ended September 28, 2025 and fiscal year ended December 29, 2024. The Company’s derivatives are valued using discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves and currency rates.

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Note 7 — Derivative Instruments

Commodity Price Risk

The Company uses forward contracts to protect against the effects of commodity price fluctuations in the cost of ingredients of its products, of which flour, sugar, and shortening are the most significant, and the cost of gasoline used by its delivery vehicles. Management has not designated these forward contracts as hedges. As of September 28, 2025 and December 29, 2024, the total notional amount of commodity derivatives was 0.9 million and 1.5 million gallons of fuel, respectively. They are scheduled to mature between October 2025 and March 2026 and January 2025 and October 2025, respectively. As of September 28, 2025 and December 29, 2024, the Company recorded an asset of $0.2 million and a liability of less than $0.1 million, respectively, related to the fair market values of its commodity derivatives. The settlement of commodity derivative contracts is reported in the Condensed Consolidated Statements of Cash Flows as a cash flow from operating activities.

Interest Rate Risk

The Company uses interest rate swaps to manage its exposure to interest rate volatility from its debt arrangements. Management has designated the swap agreements as cash flow hedges and recognized the changes in the fair value of these swaps in other comprehensive income. As of September 28, 2025 and December 29, 2024, the aggregate notional amount hedged by the swap agreements was $550.0 million and $500.0 million of term loan principal, respectively. As of September 28, 2025 and December 29, 2024, the Company has recorded a liability of $8.4 million and an asset of $0.4 million, respectively, related to the fair market values of its interest rate derivatives. The cash flows associated with the interest rate swaps are reflected in operating activities in the Condensed Consolidated Statements of Cash Flows, which is consistent with the classification as operating activities of the interest payments on the term loan.

The net effect of the interest rate swap arrangements is to fix the variable interest rate on the term loan under the 2023 Facility (as defined in Note 9, Long-Term Debt) up to the notional amount outstanding at the rates payable under the swap agreements plus the Applicable Rate (as defined by the 2023 Facility), through the swap maturity dates in March 2028.

Foreign Currency Exchange Rate Risk

The Company is exposed to foreign currency exchange rate risk primarily from its investments in consolidated subsidiaries that operate in Canada, the U.K., Ireland, Australia, New Zealand, Mexico, and Japan. In order to mitigate foreign exchange fluctuations, the Company enters into foreign exchange forward contracts. Management has not designated these forward contracts as hedges. As of September 28, 2025 and December 29, 2024, the total notional amount of foreign exchange derivatives was $72.0 million and $152.6 million, respectively. The majority matured in October 2025 and January 2025, respectively. The Company recorded an asset of $0.2 million and a liability of $0.7 million as of September 28, 2025 and December 29, 2024, respectively, related to the fair market values of its foreign exchange derivatives.

Quantitative Summary of Derivative Positions and Their Effect on Results of Operations

The following tables present the fair values of derivative instruments included in the Condensed Consolidated Balance Sheets as of September 28, 2025 and December 29, 2024, for derivatives not designated as hedging instruments and derivatives designated as hedging instruments, respectively. The Company only has cash flow hedges that are designated as hedging instruments.


	Derivatives Fair Value
Derivatives Not Designated as Hedging Instruments	September 28, 2025		December 29, 2024		Balance Sheet Location
Foreign currency derivatives	$	237	$	—	Prepaid expense and other current assets
Commodity derivatives	193		—		Prepaid expense and other current assets
Total Assets	$	430	$	—
Foreign currency derivatives	$	—	$	749	Accrued liabilities
Commodity derivatives	—		6		Accrued liabilities
Total Liabilities	$	—	$	755

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	Derivatives Fair Value
Derivatives Designated as Hedging Instruments	September 28, 2025		December 29, 2024		Balance Sheet Location
Interest rate derivatives (current)	$	—	$	112	Prepaid expense and other current assets
Interest rate derivatives (noncurrent)	—		250		Other assets
Total Assets	$	—	$	362
Interest rate derivatives (current)	$	3,372	$	—	Accrued liabilities
Interest rate derivatives (noncurrent)	4,984		—		Other long-term obligations and deferred credits

Total Liabilities	$	8,356	$	—

The effect of derivative instruments in the Condensed Consolidated Statements of Operations for the quarter and three quarters ended September 28, 2025 and September 29, 2024 is as follows:


	Derivative Gain Recognized in Income for the Quarter Ended				Derivative Gain Recognized in Income for the Three Quarters Ended
Derivatives Designated as Hedging Instruments	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024		Location of Derivative Gain Recognized in Income
Gain on interest rate derivatives	$	378	$	903	$	1,001	$	6,970	Interest expense, net
	$	378	$	903	$	1,001	$	6,970


	Derivative Gain/(Loss) Recognized in Income for the Quarter Ended				Derivative Gain Recognized in Income for the Three Quarters Ended
Derivatives Not Designated as Hedging Instruments	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024		Location of Derivative (Loss)/Gain Recognized in Income
Gain on foreign currency derivatives	$	1,103	$	700	$	986	$	637	Other non-operating (income)/expense, net
Gain/(loss) on commodity derivatives	59		(263)		199		3		Other non-operating (income)/expense, net
	$	1,162	$	437	$	1,185	$	640

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Note 8 — Vendor Finance Programs

The following table presents liabilities as of September 28, 2025 and December 29, 2024 related to vendor finance programs in which the Company participates as a buyer:


	September 28, 2025		December 29, 2024		Balance Sheet Location
Supply chain financing programs	$	3,997	$	6,912	Accounts payable
Structured payables programs	107,727		135,668		Structured payables
Total Liabilities	$	111,724	$	142,580

Supply Chain Financing (“SCF”) Programs

The Company has an agreement with a third-party administrator which allows participating vendors to track the Company’s payments, and if voluntarily elected by the vendor, to sell payment obligations from the Company to financial institutions as part of the SCF program. When participating vendors elect to sell one or more of the Company’s payment obligations, the Company’s rights and obligations to settle the payables on their contractual due date are not impacted. The Company agrees on commercial terms with vendors for the goods and services procured, which are consistent with payment terms observed at other peer companies in the industry. The Company has historically prioritized negotiating longer payment terms with some of its largest vendors, and certain of these vendors have also elected to participate in the SCF program. Payment terms and pricing negotiations are independent of, and not conditioned upon, a vendor’s participation in the SCF program. The financial institutions do not provide the Company with incentives such as rebates or profit sharing under the SCF program. As the terms are not impacted by the SCF program, such obligations are classified as Accounts payable in the Condensed Consolidated Balance Sheets and the associated cash flows are included in operating activities in the Condensed Consolidated Statements of Cash Flows.

Structured Payables Programs

The Company utilizes various card products issued by financial institutions to facilitate purchases of goods and services. By using these products, the Company may receive differing levels of rebates based on timing of repayment. The payment obligations under these card products are classified as Structured payables in the Condensed Consolidated Balance Sheets and the associated cash flows are included in financing activities in the Condensed Consolidated Statements of Cash Flows.

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Note 9 — Long-Term Debt

The Company’s long-term debt obligations consist of the following:


	September 28, 2025		December 29, 2024
2023 Facility — term loan	$	753,288	$	647,500
2023 Facility — revolving credit facility	130,000		172,000
Short-term lines of credit	10,476		5,000
Less: Debt issuance costs	(3,239)		(3,322)
Finance lease obligations	88,938		79,725
Total long-term debt	979,463		900,903
Less: Current portion of long-term debt	(73,255)		(56,356)
Long-term debt, less current portion	$	906,208	$	844,547

2023 Secured Credit Facility

The Company is party to a credit agreement (the “2023 Facility”) consisting of a $300.0 million senior secured revolving credit facility and a term loan with an original principal amount of $700.0 million. During the quarter ended June 29, 2025, the Company amended the 2023 Facility (referred to herein as the “2025 Amendment”) to, among other things, establish additional, incremental term loan commitments in an aggregate principal amount of $125.0 million. During the quarter ended June 29, 2025, the Company capitalized $0.8 million of debt issuance costs related to the 2025 Amendment.

Borrowings under the 2023 Facility are generally subject to an interest rate of adjusted term Secured Overnight Financing Rate (“SOFR”) plus a credit spread adjustment of 0.10% plus (i) 2.25% if the Company’s leverage ratio (as defined in the 2023 Facility) equals or exceeds 4.00 to 1.00, (ii) 2.00% if the Company’s leverage ratio is less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00, or (iii) 1.75% if the Company’s leverage ratio is less than 3.00 to 1.00. As of September 28, 2025 and December 29, 2024, the unhedged interest rates were 6.42% and 6.48% under the 2023 Facility, respectively. As of September 28, 2025 and December 29, 2024, $550.0 million and $500.0 million, respectively, of the outstanding term loan balance was hedged, with the interest rate swap agreements scheduled to mature in March 2028. As of September 28, 2025 and December 29, 2024, the effective interest rates on the term loan were approximately 6.17% and 6.20%, respectively. The Company is required to make installment payments equal to 1.25% of the aggregate closing date principal amounts of the term loan on the last day of each fiscal quarter. All remaining term loan and revolving loan balances are to be due at maturity in March 2028.

The 2023 Facility is secured by a first priority lien on substantially all of the Company’s personal property assets, certain real estate properties, and all of the Company’s U.S. wholly owned subsidiaries. Loans made pursuant to the 2023 Facility may be used for general corporate purposes of the Company (including, but not limited to, financing working capital needs, capital expenditures, acquisitions, and other investments) and for any other purpose not prohibited under the related loan documents. The 2025 Amendment imposed certain restrictions on the ability to make restricted payments, including dividends, if the leverage ratio under the 2023 Facility exceeds 3.00 to 1.00.

Short-Term Lines of Credit

The Company is party to two agreements with existing lenders providing for short-term, uncommitted lines of credit up to an aggregate of $25.0 million. Borrowings under these short-term lines of credit are payable to the lenders on a revolving basis for tenors up to three months and are subject to an interest rate of adjusted term SOFR plus a credit spread adjustment of 0.10% plus a margin of 1.75%.

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Note 10 — Share-based Compensation

Restricted Stock Units (“RSUs”) and Performance Stock Units (“PSUs”)

KKI issues time-vested RSUs and PSUs under the Krispy Kreme, Inc. 2021 Omnibus Incentive Plan (“Omnibus Plan”). Certain subsidiaries issue time-vested RSUs under their respective executive ownership plans and long-term incentive plans.

RSU and PSU activity under these plans during the periods presented is as follows:


(in thousands, except per share amounts)	Non-vested shares outstanding at December 29, 2024		Granted	Vested	Forfeited	Non-vested shares outstanding at September 28, 2025
KKI
RSUs and PSUs	5,984		8,406	1,451	1,986	10,953
Weighted Average Grant Date Fair Value	$	14.29	3.80	14.88	12.61	$	6.46
KK U.K.
RSUs	7		—	3	4	—
Weighted Average Grant Date Fair Value	$	29.80	—	29.80	29.80	$	—



KK Australia
RSUs	137		—	63	—	74
Weighted Average Grant Date Fair Value	$	1.39	—	1.67	—	$	1.53
KK Mexico
RSUs	18		—	17	—	1
Weighted Average Grant Date Fair Value	$	30.01	—	29.21	—	$	40.14

The Company recorded total non-cash compensation expense related to the RSUs and PSUs under the plans of $2.0 million and $8.4 million for the quarter and three quarters ended September 28, 2025, respectively, and $9.2 million and $22.1 million for the quarter and three quarters ended September 29, 2024, respectively, which is included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.

The unrecognized compensation cost related to the unvested RSUs and PSUs and the weighted average period over which such cost is expected to be recognized are as follows:


	As of September 28, 2025
	Unrecognized Compensation Cost		Recognized Over a Weighted Average Period of
KKI	$	43,630	2.6 years


KK Australia	8		0.3 years
KK Mexico	13		1.0 year

The estimated fair value of restricted stock is calculated using a market approach whereby an agreed-upon EBITDA buyout multiple is used for KK Australia and KK Mexico plans.

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Time-Vested Stock Options

KKI issues time-vested stock options under the Omnibus Plan. The fair value of time-vested stock options was estimated on the date of grant using the Black-Scholes option pricing model.

The status of the time-vested stock options as of December 29, 2024 and changes during the first three quarters of fiscal 2025 are presented below:


	Share options outstanding at					Share options outstanding at
(in thousands, except per share amounts)	December 29, 2024		Granted	Exercised	Forfeited or Expired	September 28, 2025
KKI
Options	2,662		2,060	—	789	3,933
Weighted Average Grant Date Fair Value	$	5.88	1.58	—	5.36	$	3.73
Weighted Average Exercise Price	$	14.27	3.22	—	13.45	$	8.64

The Company recorded total non-cash compensation (benefit)/expense related to the time-vested stock options of ($1.3 million) and ($0.5 million) for the quarter and three quarters ended September 28, 2025, respectively, and $0.8 million and $2.6 million for the quarter and three quarters ended September 29, 2024, respectively, which is included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.

The unrecognized compensation cost related to the stock options and the weighted average period over which such cost is expected to be recognized are as follows:


	As of September 28, 2025
	Unrecognized Compensation Cost		Recognized Over a Weighted Average Period of
KKI	$	3,362	2.5 years

No time-vested stock options vested during the quarter and three quarters ended September 28, 2025. During the three quarters ended September 29, 2024, 1.5 million time-vested stock options vested. No time-vested stock options vested during the quarter ended September 29, 2024.

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Note 11 — Income Taxes

For interim tax reporting, the Company estimates a worldwide annual effective tax rate and applies that rate to the year-to-date ordinary (loss)/income. The tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. The Company establishes valuation allowances for deferred income tax assets in accordance with GAAP, which provides that such valuation allowances shall be established unless realization of the income tax benefits is more likely than not. Due to significant estimates used to establish the valuation allowances and the potential for changes in facts and circumstances, it is reasonably possible that the Company will be required to record adjustments to the valuation allowances in future reporting periods that could have a material effect on its results of operations.

The Company’s effective income tax rates were 12.3% and 5.0% for the quarter and three quarters ended September 28, 2025, respectively, and 32.0% and 41.4% for the quarter and three quarters ended September 29, 2024, respectively. The Company’s effective income tax rate for the quarter and three quarters ended September 28, 2025 differed from the respective statutory rates primarily due to the tax effects of goodwill impairment charges, the mix of income and taxes attributable to foreign jurisdictions, disallowed executive compensation expense, and the sale of the Company’s investment in Insomnia Cookies. The Company’s effective income tax rate for the quarter and three quarters ended September 29, 2024 differed from the respective statutory rates primarily due to disallowed executive compensation expense, the mix of income and taxes attributable to foreign jurisdictions, and noncontrolling interest in domestic joint ventures. Additionally, the Company recorded an income tax benefit in the quarter ended September 29, 2024 related to the release of valuation allowances on state net operating losses associated with the divestiture of Insomnia Cookies.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the U.S. The legislation permanently extends certain expiring provisions of the Tax Cuts and Jobs Act, alters aspects of the U.S. international tax regime, and reinstates certain business tax provisions, among other changes. The OBBBA has multiple effective dates, with provisions becoming effective in 2025 through 2027. The impact of the OBBBA enactment was immaterial to the Company’s Condensed Consolidated Financial Statements for the quarter ended September 28, 2025.

Note 12 — Commitments and Contingencies

Pending Litigation

Securities Litigation

On May 16, 2025, a shareholder of the Company filed a putative federal securities class action in the Western District of North Carolina against the Company, its Chief Executive Officer (“CEO”), and its former Chief Financial Officer (“CFO”). On June 30, 2025, a shareholder of the Company filed a similar putative federal securities class action in the Western District of North Carolina against the Company, its CEO, and its former CFO. Both actions allege that, throughout the proposed putative class periods, defendants made materially false and/or misleading statements and/or failed to disclose materially adverse facts concerning the Company’s business, operations, and prospects related to the Business Relationship Agreement with McDonald’s USA. Motions to consolidate the actions and appoint lead plaintiff were filed on June 15, 2025. On November 3, 2025, the court consolidated the actions.

Data Breach Litigation

On June 16, 2025, the Company released a Notice of Data Breach stating that on November 29, 2024, the Company became aware of the 2024 Cybersecurity Incident (defined below) and on May 22, 2025, the Company’s investigation determined that personal information of certain individuals was affected. Beginning on June 20, 2025, several putative class actions lawsuits were filed against the Company in the Middle District of North Carolina, the Western District of North Carolina, and in California state court. The complaints assert claims of negligence, negligence per se, unjust enrichment, breach of implied contract, breach of the implied covenant of good faith and fair dealing, breach of confidence, breach of fiduciary duty, breach of bailment, invasion of privacy, declaratory judgment, and violations of California and North Carolina statutory law, arising from the Company’s alleged failure to secure and safeguard the personally identifiable information and private health information of plaintiffs and purported class members. On August 19, 2025, plaintiffs in the California action voluntarily dismissed their case. On August 26, 2025, a hearing was held in the Western District of North Carolina on plaintiffs’ motion to consolidate the cases. Following the hearing, plaintiffs voluntarily dismissed the few cases remaining in the Middle District of North Carolina. On September 18, 2025, all cases were consolidated in the Western District of North Carolina. On October 17, 2025, plaintiffs filed an amended consolidated complaint.

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The securities litigation and data breach litigation are currently in the pleading phase. The Company has engaged external counsel with respect to these matters and intends to vigorously defend against them. It is too soon to predict with any certainty what, if any, damages could be awarded if liability were found.

Shareholder Derivative Litigation

On June 13, 2025, June 25, 2025, and August 19, 2025 purported shareholders of the Company filed shareholder derivative actions in the Western District of North Carolina against its CEO, its former CFO, and current and former members of its Board of Directors. The actions allege that the derivative defendants breached their fiduciary duties by allowing the Company to issue materially false and misleading statements and failed to maintain adequate internal controls. On September 4, 2025, the court consolidated the derivative actions and designated co-lead counsel representing plaintiffs. On October 31, 2025, the court granted the parties’ joint motion to stay the consolidated derivative action until a decision is rendered on the motion to dismiss in the related securities class action or upon motion of one of the parties following 30 days notice. This matter is currently in the pleading phase, and the Company has engaged external counsel with respect to this matter.

Other Legal Matters

The Company also is engaged in various legal proceedings arising in the normal course of business. The Company maintains insurance policies against certain kinds of such claims and suits, including insurance policies for workers’ compensation and personal injury, all of which are subject to deductibles. While the ultimate outcome of these matters could differ from management’s expectations, management currently does not believe their resolution will have a material adverse effect on the Company’s Condensed Consolidated Financial Statements.

Other Commitments and Contingencies

The Company had outstanding letters of credit and surety bonds totaling $24.6 million as of September 28, 2025 and $20.8 million as of December 29, 2024, a majority of which secure the Company’s reimbursement obligations to insurers under its self-insurance arrangements. The Company expects that its performance and payment obligations secured by these letters of credit and surety bonds will be completed in the ordinary course of business and in accordance with the applicable contractual terms.

Note 13 — Related Party Transactions

As of September 28, 2025 the Company held minority equity interests in three entities, Krispy Kreme Doughnuts France SAS (“KK France”) (33.0% ownership), KK Brazil (45.0% ownership), and KK Spain (25.0% ownership) with an aggregate carrying value of $6.7 million. As of December 29, 2024 the company held minority equity interests in four entities, KK France (33.0% ownership), KK Brazil (45.0% ownership), KK Spain (25.0% ownership), and Insomnia Cookies (34.8% ownership), with an aggregate carrying value of $91.1 million.

In the quarter ended June 29, 2025, the Company sold its remaining ownership interest in Insomnia Cookies. In connection with this transaction, the Company incurred $0.5 million of financial advisory fees with an affiliate of BNP Paribas, SA, which beneficially owns greater than 5% of the Company’s common stock. Refer to Note 2, Acquisitions and Divestitures for further information.

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Note 14 — Revenue Recognition

Disaggregation of Revenues

Revenues are disaggregated as follows:


	Quarter Ended				Three Quarters Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Company Shops and DFD	$	355,350	$	358,110	$	1,073,222	$	1,192,071
Mix and equipment revenue from franchisees	10,351		12,552		30,335		41,514
Franchise royalties and other	9,597		9,205		26,692		27,789
Total net revenues	$	375,298	$	379,867	$	1,130,249	$	1,261,374

Other revenues include advertising fund contributions from franchisees, rental income, development and franchise fees, and licensing royalties from customers for use of the Krispy Kreme brand, such as Keurig coffee cups.

Contract Balances

Deferred revenue and related receivables are as follows:


	September 28, 2025		December 29, 2024		Balance Sheet Location
Trade receivables, net of allowances of $899 and $1,060, respectively	$	49,685	$	57,439	Accounts receivables, net
Deferred revenue:
Current	$	14,655	$	16,506	Accrued liabilities
Noncurrent	9,302		8,569		Other long-term obligations and deferred credits
Total deferred revenue	$	23,957	$	25,075

Trade receivables relate primarily to payments due for royalties, franchise fees, advertising fees, sale of products, and licensing fees. Deferred revenue primarily represents the Company’s remaining performance obligations under gift cards and franchise and development agreements for which consideration has been received or is receivable and is generally recognized on a straight-line basis over the remaining term of the related agreement. The noncurrent portion of deferred revenue primarily relates to the remaining performance obligations in the franchise and development agreements.

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Note 15 — Net (Loss)/Earnings per Share

The following table presents the calculations of basic and diluted EPS:


	Quarter Ended				Three Quarters Ended
(in thousands, except per share amounts)	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Net (loss)/income attributable to Krispy Kreme, Inc.	$	(19,444)	$	39,563	$	(487,988)	$	25,538


Additional income attributed to noncontrolling interest due to subsidiary potential common shares	(6)		(4)		(3)		(28)
Net (loss)/income attributable to common shareholders - Diluted	$	(19,450)	$	39,559	$	(487,991)	$	25,510
Basic weighted average common shares outstanding	171,164		169,596		170,752		169,125
Dilutive effect of outstanding common stock options, RSUs, and PSUs	—		1,890		—		2,259
Diluted weighted average common shares outstanding	171,164		171,486		170,752		171,384
(Loss)/earnings per share attributable to common shareholders:
Basic	$	(0.11)	$	0.23	$	(2.86)	$	0.15
Diluted	$	(0.11)	$	0.23	$	(2.86)	$	0.15

Potential dilutive shares consist of unvested RSUs and PSUs, calculated using the treasury stock method. The calculation of dilutive shares outstanding excludes certain unvested RSUs granted under certain subsidiaries’ executive ownership plans and long-term incentive plans, because their inclusion would have been antidilutive. Refer to Note 10, Share-based Compensation for further information about the plans.

The following table summarizes the gross number of potential dilutive unvested RSUs and PSUs excluded due to antidilution (unadjusted for the treasury stock method):


	Quarter Ended		Three Quarters Ended
(in thousands)	September 28, 2025	September 29, 2024	September 28, 2025	September 29, 2024
KKI	10,953	2,807	10,953	2,807
KK U.K.	—	7	—	7

KK Australia	—	—	74	—
KK Mexico	—	—	—	—

For the quarter and three quarters ended September 28, 2025 and September 29, 2024, all 3.9 million and 2.8 million time-vested stock options, respectively, were excluded from the computation of diluted weighted average common shares outstanding based on application of the treasury stock method.

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Note 16 — 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.

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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.

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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.

(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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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited Condensed Consolidated Financial Statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as our audited Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the year ended December 29, 2024, and in other reports filed subsequently with the SEC.

Cautionary Note Regarding Forward-Looking Statements

Certain information included in this Quarterly Report on Form 10-Q is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, and involves risks, assumptions, and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements. Forward-looking statements can be identified by use of forward-looking terminology, including terms such as “plan,” “believe,” “may,” “continue,” “could,” “will,” “should,” “would,” “anticipate,” “attempt,” “estimate,” “expect,” “intend,” “objective,” “seek,” “pursue,” “strive,” or, in each case, the negative of these words, comparable terminology, or other references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included herein. We consider the assumptions and estimates on which forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross-contamination; impacts from the 2024 Cybersecurity Incident or any other material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents; any harm to our reputation or brand image; negative impacts on our business due to changes in consumer spending habits, consumer preferences, or demographic trends; changes in the cost of raw materials and other commodities, including due to import and export requirements (including tariffs), inflation, or foreign exchange rates; our ability to execute on our omni-channel business strategy; our significant indebtedness and our ability to meet the financial and other covenants under our credit facilities; regulatory investigations, enforcement actions, or material litigation; and other risks and uncertainties described under the heading “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 29, 2024, filed by us with the SEC and described in the other filings we make from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law.

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Overview

We believe Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Krispy Kreme operates in more than 40 countries with its omni-channel strategy, which focuses on delivering fresh doughnuts such as our iconic Original Glazed® doughnut, recognized for its hot-off-the-line, melt-in-your-mouth experience, to where consumers are located and want to have access to them. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day.

The following table presents a summary of our financial results for the periods presented:


	Quarter Ended						Three Quarters Ended
(in thousands, except percentages)	September 28, 2025		September 29, 2024		% Change		September 28, 2025		September 29, 2024		% Change
Net Revenues (1)	$	375,298	$	379,867	-1.2	%	$	1,130,249	$	1,261,374	-10.4	%
Net (Loss)/Income (2)	(20,131)		37,572		nm		(494,654)		25,978		nm
Net (Loss)/Income Attributable to Krispy Kreme, Inc. (2)	(19,444)		39,563		nm		(487,988)		25,538		nm
Adjusted Net Income/(Loss), Diluted (2) (3)	1,428		(2,498)		nm		(32,714)		17,937		nm
Adjusted EBIT (3)	15,052		11,103		35.6	%	4,951		70,648		-93.0	%
Adjusted EBITDA (3)	40,597		34,699		17.0	%	84,688		147,613		-42.6	%

(1)Organic revenue growth/(decline) was 0.6% and (0.4)% in the quarter and three quarters ended September 28, 2025, respectively. Refer to “Results of Operations” below for more information on and the calculation of organic revenue growth/(decline).

(2)“nm” as used here and within “Results of Operations” means “not meaningful.”

(3)Refer to “Key Performance Indicators and Non-GAAP Measures” below for more information as to how we define and calculate Adjusted EBITDA, Adjusted EBIT, and Adjusted Net Income/(Loss), Diluted and for a reconciliation of Adjusted EBITDA, Adjusted EBIT, and Adjusted Net Income/(Loss), Diluted to the most comparable measure calculated under GAAP.

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Significant Events and Transactions

Our Turnaround Plan

We have implemented a comprehensive turnaround plan to deleverage the balance sheet and deliver sustainable, profitable growth through a focus on the following components:

•Refranchising: Improve financial flexibility through pursuit of opportunities to refranchise certain international equity markets, and to restructure our consolidated subsidiary in the western U.S., WKS Krispy Kreme, which accounts for approximately 15% of revenues in the U.S. segment, to a minority ownership interest;

•Improving return on invested capital: Reduce capital intensity by using existing assets and focusing on franchise development. We expect full year fiscal 2025 capital expenditures to be below full year fiscal 2024 capital expenditures, and we expect to continue to reduce capital investment in fiscal 2026 compared to fiscal 2025;

•Expanding profit margins: Expand profit margins through greater operational efficiency. During the third quarter of fiscal 2025, we focused on making doughnuts more efficiently through optimizing production, streamlining Hub activities, and improving labor productivity. In addition, we are focused on delivering fresh doughnuts more efficiently through outsourcing U.S. logistics and improving route management and demand planning, and through testing adjusted production and delivery schedules to support cost-effective expansion. During the third quarter, we continued to outsource some of our U.S. DFD deliveries to third-party logistics (“3PL”) carriers, and expect to outsource deliveries in additional U.S. locations to additional 3PL carriers through fiscal 2026; and

•Driving sustainable, profitable growth: Pursue U.S. growth based upon sustainable and profitable revenue streams. During the third quarter of fiscal 2025, we added more than 200 profitable DFD Doors with strategic partners. At the same time, we are also focused on the strategic closure of underperforming DFD Doors, with our Global Points of Access of 14,851 representing a decrease of 6.1% compared to the third quarter of fiscal 2024.

Growing our Global Presence

A key strategic initiative on our journey to become the most loved sweet treat brand in the world is to increase our global presence in new and existing markets. For example, through franchisees and minority joint ventures, we opened our first Hot Light Theater Shop in Spain in October 2025, and expect to open our first shop in Uzbekistan during the fourth quarter of fiscal 2025.

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Digital, Brand, and Innovation

We continue to prioritize expanding our digital channel sales, which grew in the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024. Growth in our digital channel is due to improvements in our branded digital platform as well as increasing product availability through third party platforms. Innovation is also a significant driver of frequency as we create and introduce premium and buzz-worthy offerings to consumers across our Global Points of Access. During the third quarter of fiscal 2025, we delivered the joy that is Krispy Kreme by spotlighting our core offerings such as the Original Glazed doughnut, supplemented by specialty doughnut offerings and seasonal activations, including Harry Potter, Pumpkin Spice, and many others around the world. In addition, we recently announced a refresh of our everyday doughnut menu to focus on trending flavors, fan favorites requested on social media, and returning popular doughnuts.

Termination of the Business Relationship Agreement with McDonald’s USA

On June 24, 2025, we and McDonald’s USA announced that our companies jointly decided to terminate the Business Relationship Agreement effective July 2, 2025, resulting in the reduction of approximately 2,400 DFD Doors in the third quarter of fiscal 2025. Although our two companies partnered to support execution, marketing, and training, our efforts to bring operating costs in line with unit demand were unsuccessful, making the partnership unsustainable for us. We have worked to quickly remove costs related to the McDonald’s USA partnership which we expect to continue positively impacting profitability trends for our U.S. segment in the fourth quarter of fiscal 2025 and the first half of fiscal 2026. Refer to Note 1, Description of Business and Summary of Significant Accounting Policies to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for further information.

2024 Cybersecurity Incident

As previously disclosed, during the fourth quarter of fiscal 2024, unauthorized activity on a portion of our information technology systems resulted in our experiencing certain operational disruptions, including with online ordering in parts of the U.S. (the “2024 Cybersecurity Incident”). The investigation of the 2024 Cybersecurity Incident was substantially completed in the second quarter of fiscal 2025. As previously disclosed, our online ordering, retail shops, and core business functions are now fully operational. We incurred losses and costs from the incident, primarily in the fourth quarter of fiscal 2024 and early in the first quarter of fiscal 2025, which were estimated to have had an approximately $15 million aggregate impact on Adjusted EBITDA in those periods (includes margin on lost revenues, as well as operational inefficiencies). We hold cybersecurity insurance which has offset a portion of the losses and costs from the incident. We received $9.3 million business interruption insurance proceeds during the third quarter of fiscal 2025, and expect to receive additional insurance proceeds.

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Geopolitical Uncertainty and Tariffs

Recent actions by the U.S., including the imposition of significant tariffs on imports from certain countries, have heightened uncertainty in the global trade environment. These tariffs, along with potential retaliatory measures by other countries, may increase inflationary pressure and raise the costs of our imported commodities, including, but not limited to, vegetable oil. Additionally, the broader implications of tariff-driven price increases could influence consumer spending habits and negatively affect our business. While several tariff announcements have been followed by announcements of limited exemptions and temporary pauses, these actions have caused substantial uncertainty and volatility in financial markets, and may result in further retaliatory measures. We may be unable to fully offset the impacts of tariffs by adjusting the pricing of our products.

Goodwill and Other Asset Impairments

We assess goodwill for impairment at least annually during the fourth quarter and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. During the second quarter of fiscal 2025, we identified events and conditions that required a quantitative assessment of goodwill, as well as other long-lived fixed assets and leases. Refer to Note 1, Description of Business and Summary of Significant Accounting Policies to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for further information.

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Key Performance Indicators and Non-GAAP Measures

We monitor the key business metrics and non-GAAP metrics set forth below to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. The calculation of the key business metrics discussed below may differ from other similarly titled metrics used by other companies, securities analysts, or investors.

Throughout this Quarterly Report on Form 10-Q, we utilize “Global Points of Access” as a key performance indicator. Global Points of Access reflect all locations at which fresh doughnuts can be purchased. We define Global Points of Access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors, Cookie Bakeries (through the date of the Insomnia Cookies deconsolidation in fiscal 2024), and other points at which fresh doughnuts can be purchased, at both Company-owned and franchise locations as of the end of the respective reporting period. We monitor Global Points of Access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type.

The following table presents our Global Points of Access, by segment and type, as of the end of the third quarter of fiscal 2025, the third quarter of fiscal 2024, and fiscal 2024, respectively:


	Global Points of Access
	Quarter Ended		Fiscal Year Ended
	September 28, 2025	September 29, 2024	December 29, 2024
U.S.:
Hot Light Theater Shops	235	236	237
Fresh Shops	69	71	70


DFD Doors (1)	6,971	7,711	9,644
Total	7,275	8,018	9,951
International:
Hot Light Theater Shops	52	48	49
Fresh Shops	524	508	519
Carts, Food Trucks, and Other (2)	17	17	17
DFD Doors	4,292	4,867	4,583
Total	4,885	5,440	5,168
Market Development:
Hot Light Theater Shops	111	110	108
Fresh Shops	1,125	1,059	1,095

Carts, Food Trucks, and Other (2)	31	30	30
DFD Doors	1,424	1,154	1,205
Total	2,691	2,353	2,438
Total Global Points of Access (as defined)	14,851	15,811	17,557
Total Hot Light Theater Shops	398	394	394
Total Fresh Shops	1,718	1,638	1,684

Total Shops	2,116	2,032	2,078
Total Carts, Food Trucks, and Other	48	47	47
Total DFD Doors (1)	12,687	13,732	15,432
Total Global Points of Access (as defined)	14,851	15,811	17,557

(1)During the third quarter of fiscal 2025 we exited approximately 2,400 McDonald’s USA DFD Doors related to termination of the Business Relationship Agreement with McDonald’s USA.

(2)Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of Access in this category are primarily found in international locations in airports and train stations.

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As of September 28, 2025, we had 14,851 Global Points of Access, with 2,116 Krispy Kreme branded shops, 48 Carts and Food Trucks, and 12,687 DFD Doors. During the third quarter of fiscal 2025, we added a net 14 additional Krispy Kreme branded Doughnut Shops globally, in countries such as Brazil, Canada, and France, among many others. The decrease to the total Global Points of Access compared to the end of the second quarter of fiscal 2025 primarily relates to the exit of DFD Doors related to termination of the Business Relationship Agreement with McDonald’s USA, as well as the strategic closure of underperforming DFD Doors.

We also utilize “Hubs” as a key performance indicator. We have an omni-channel strategy to reach more consumers where they are and drive sustainable, profitable growth, and this strategy is supported by a capital-efficient Hub and Spoke distribution model that provides a route to market and powers profitability. Our Hot Light Theater Shops and Doughnut Factories serve as centralized production facilities (“Hubs”). From these Hubs, we deliver doughnuts to our Fresh Shops, Carts and Food Trucks, and DFD Doors (“Spokes”) primarily through an integrated network of Company-operated delivery routes, designed to ensure quality and freshness. During the third quarter of fiscal 2025, we continued to outsource some of our U.S. DFD deliveries to 3PL carriers, and expect to outsource deliveries in additional U.S. locations to additional 3PL carriers through the middle of fiscal 2026. Specific to the U.S. segment, certain legacy Hubs have not historically had Spokes. Many Hubs in the U.S. segment are being converted to add Spokes while certain legacy Hubs do not currently have the ability or need to add Spokes.

The following table presents our Hubs, by segment and type, as of the end of the third quarter of fiscal 2025, the third quarter of fiscal 2024, and fiscal 2024, respectively:


	Hubs
	Quarter Ended		Fiscal Year Ended
	September 28, 2025	September 29, 2024	December 29, 2024
U.S.:
Hot Light Theater Shops (1)	223	230	232
Doughnut Factories	6	6	6
Total	229	236	238
Hubs with Spokes	157	152	158
Hubs without Spokes	72	84	80
International:
Hot Light Theater Shops (1)	43	39	40
Doughnut Factories	14	14	14
Total	57	53	54
Hubs with Spokes	57	53	54
Market Development:
Hot Light Theater Shops (1)	109	108	106
Doughnut Factories	26	26	27
Total	135	134	133
Total Hubs	421	423	425

(1)Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a Spoke location that produces some doughnuts for itself and also receives doughnuts from another producing location.

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Non-GAAP Measures

We report our financial results in accordance with GAAP; however, management evaluates our results of operations using, among other measures, organic revenue growth, Sales per Hub, adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), Adjusted EBIT, Adjusted Net Income/(Loss), Diluted, and Adjusted EPS as we believe these non-GAAP measures are useful in evaluating our operating performance.

Non-GAAP financial measures are not standardized and it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance under GAAP or a substitute for results reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAP financial measures in conjunction with our historical Condensed Consolidated Financial Statements and notes thereto included in this Quarterly Report on Form 10-Q and not to rely on any single financial measure.

Organic Revenue Growth/(Decline)

Organic revenue growth/(decline) measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define “organic revenue growth/(decline)” as the growth/(decline) in revenues, excluding (i) acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs, (iv) the impact of the divestiture of a controlling interest in Insomnia Cookies, (v) the impact of the divestiture of shops through refranchising, and (vi) revenues generated during the 53rd week for those fiscal years that have a 53rd week based on our fiscal calendar defined in Note 1, Description of Business and Summary of Significant Accounting Policies to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q. See “Results of Operations” for our organic growth/(decline) calculations for the periods presented.

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Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income/(Loss), Diluted, and Adjusted EPS

We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBITDA is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. “Adjusted EBITDA margin” reflects Adjusted EBITDA as a percentage of net revenues.

We define “Adjusted EBIT” as earnings before interest expense, net and income tax expense, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBIT is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods.

We define “Adjusted Net Income/(Loss), Diluted” as net (loss)/income attributable to common shareholders, adjusted for share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent, or non-core income and expense items. “Adjusted EPS” is Adjusted Net Income/(Loss), Diluted converted to a per share amount.

Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income/(Loss), Diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP measures supplementally.

The following tables present a reconciliation of net loss/(income) to Adjusted EBIT and Adjusted EBITDA, and net loss/(income) to Adjusted Net Income/(Loss), Diluted and Adjusted EPS for the periods presented:


	Quarter Ended				Three Quarters Ended
(in thousands)	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
Depreciation expense and amortization of right of use assets	25,545		23,596		79,737		76,965
Adjusted EBITDA	$	40,597	$	34,699	$	84,688	$	147,613

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	Quarter Ended				Three Quarters Ended
(in thousands, except per share amounts)	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Net (loss)/income	$	(20,131)	$	37,572	$	(494,654)	$	25,978
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
Tax impact of adjustments (11)	(763)		20,766		(21,014)		13,765
Tax specific adjustments (12)	—		(2,395)		—		(3,210)
Net loss/(income) attributable to noncontrolling interest	687		1,991		6,666		(440)

Adjusted net income/(loss) attributable to common shareholders - Basic	$	1,434	$	(2,494)	$	(32,711)	$	17,965
Additional income attributed to noncontrolling interest due to subsidiary potential common shares	(6)		(4)		(3)		(28)
Adjusted net income/(loss) attributable to common shareholders - Diluted	$	1,428	$	(2,498)	$	(32,714)	$	17,937
Basic weighted average common shares outstanding	171,164		169,596		170,752		169,125
Dilutive effect of outstanding common stock options, RSUs, and PSUs	1,402		—		—		2,259
Diluted weighted average common shares outstanding	172,566		169,596		170,752		171,384
Adjusted net income/(loss) per share attributable to common shareholders:
Basic	$	0.01	$	(0.01)	$	(0.19)	$	0.11
Diluted	$	0.01	$	(0.01)	$	(0.19)	$	0.10

(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.

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(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 to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for further information.

(8)Includes gains and losses on the deconsolidation of assets and liabilities associated with the refranchising of Krispy Kreme shops.

(10)Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statements of Operations.

(11)Tax impact of adjustments calculated applying the applicable statutory rates. The quarter and three quarters ended September 28, 2025 and September 29, 2024 also include the impact of disallowed executive compensation expense.

(12)The quarter and three quarters ended September 29, 2024 consist of the recognition of previously unrecognized tax benefits unrelated to ongoing operations, a discrete tax benefit unrelated to ongoing operations, the release of valuation allowances on state net operating losses associated with the divestiture of Insomnia Cookies, and the effect of various tax law changes on existing temporary differences.

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Sales Per Hub

In order to measure the effectiveness of our Hub and Spoke model, we use “Sales per Hub” on a trailing four-quarter basis, which includes all revenue generated from a Hub and its associated Spokes. Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes for the period. Fresh Revenues include product sales generated from our Doughnut Shop business (including digital channels), as well as DFD sales, but exclude all Insomnia Cookies revenues as the measure is focused on the Krispy Kreme business. The average number of Hubs with Spokes for a period is calculated as the average of the number of Hubs with Spokes at the end of the five most recent quarters. The Sales per Hub performance measure allows us and investors to measure our effectiveness at leveraging the Hubs in the Hub and Spoke model to distribute product and generate cost efficiencies and profitability.

Sales per Hub was as follows for each of the periods below:


	Trailing Four Quarters Ended		Fiscal Year Ended
(in thousands, unless otherwise stated)	September 28, 2025		December 29, 2024		December 31, 2023
U.S.:
Revenues	$	927,951	$	1,058,736	$	1,104,944
Non-Fresh Revenues (1)	(2,861)		(3,161)		(9,416)
Fresh Revenues from Insomnia Cookies and Hubs without Spokes (2)	(165,624)		(307,665)		(399,061)
Fresh Revenues from Hubs with Spokes	759,466		747,910		696,467
Sales per Hub (millions)	4.8		4.9		4.9

International:
Fresh Revenues from Hubs with Spokes (3)	$	531,013	$	519,102	$	489,631
Sales per Hub (millions) (4)	9.8		9.9		9.8

(1)Includes the exited Branded Sweet Treats business revenues as well as licensing royalties from customers for use of the Krispy Kreme brand.

(2)Includes Insomnia Cookies revenues (through the date of deconsolidation) and Fresh Revenues generated by Hubs without Spokes.

(3)Total International net revenues is equal to Fresh Revenues from Hubs with Spokes for that business segment.

(4)International Sales per Hub comparative data has been restated in constant currency based on current exchange rates.

In our International segment, where the Hub and Spoke model originated, we had Sales per Hub of $9.8 million during the trailing four quarters ended September 28, 2025, largely consistent with the $9.9 million generated in the full fiscal year 2024 and the $9.8 million generated in the full fiscal year 2023. The International segment illustrates the benefits of leveraging our Hub and Spoke model as the most efficient way to grow the business, as shown by the consistent Sales per Hub and higher Adjusted EBITDA margins despite elevated commodity costs and macroeconomic conditions. In the U.S. segment, we had Sales per Hub of $4.8 million during the trailing four quarters ended September 28, 2025, largely consistent with the $4.9 million generated in the full fiscal year 2024 and the full fiscal year 2023. In the U.S. we continue our efforts to increase the number of quality Spokes served by our Hubs, while exiting underperforming Spokes, as we work towards optimizing the segment in line with our International segment. We expect to increase the number of quality Spokes through growth with DFD partners across the U.S. coupled with strategic closure of underperforming DFD Doors.

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Results of Operations

The following comparisons are historical results and are not indicative of future results, which could differ materially from the historical financial information presented.

Quarter ended September 28, 2025 compared to the Quarter ended September 29, 2024

The following table presents our unaudited condensed consolidated results of operations for the quarter ended September 28, 2025 and the quarter ended September 29, 2024:


	Quarter Ended
	September 28, 2025				September 29, 2024				Change
(in thousands, except percentages)	Amount		% of Revenue		Amount		% of Revenue		$		%
Net revenues
Product sales	$	365,701	97.4	%	$	370,662	97.6	%	$	(4,961)	-1.3	%
Royalties and other revenues	9,597		2.6	%	9,205		2.4	%	392		4.3	%
Total net revenues	375,298		100.0	%	379,867		100.0	%	(4,569)		-1.2	%
Product and distribution costs	96,214

Krispy Kreme, Inc. 10-Q