Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 02, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 02, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-04321 | |
Entity Registrant Name | Krispy Kreme, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 37-1701311 | |
Entity Address, Address Line One | 2116 Hawkins Street | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28203 | |
City Area Code | 800 | |
Local Phone Number | 457-4779 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Entity Trading Symbol | DNUT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 167,437,123 | |
Entity Central Index Key | 0001857154 | |
Current Fiscal Year End Date | --01-01 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Total net revenues | $ 377,522 | $ 342,799 | $ 1,125,299 | $ 1,013,794 |
Product and distribution costs | 102,870 | 92,152 | 299,539 | 257,166 |
Operating expenses | 177,592 | 157,315 | 520,260 | 462,733 |
Selling, general and administrative expense | 54,801 | 52,950 | 160,266 | 163,417 |
Marketing expenses | 10,995 | 12,062 | 32,369 | 31,621 |
Pre-opening costs | 1,200 | 1,192 | 3,514 | 4,335 |
Other expenses/(income), net | 2,964 | (359) | 1,800 | (4,365) |
Depreciation and amortization expense | 28,127 | 25,663 | 83,782 | 74,258 |
Operating (loss)/income | (1,027) | 1,824 | 23,769 | 24,629 |
Interest expense, net | 8,871 | 7,186 | 23,808 | 25,228 |
Interest expense — related party | 0 | 0 | 0 | 10,387 |
Other non-operating expense/(income), net | 1,648 | 732 | 2,083 | (126) |
Loss before income taxes | (11,546) | (6,094) | (2,122) | (10,860) |
Income tax expense/(benefit) | 294 | (2,342) | 5,668 | 8,266 |
Net loss | (11,840) | (3,752) | (7,790) | (19,126) |
Net income attributable to noncontrolling interest | 1,216 | 1,907 | 5,113 | 6,736 |
Net loss attributable to Krispy Kreme, Inc. | $ (13,056) | $ (5,659) | $ (12,903) | $ (25,862) |
Net loss per share: | ||||
Common stock — Basic (in dollars per share) | $ (0.08) | $ (0.04) | $ (0.08) | $ (0.20) |
Common stock — Diluted (in dollars per share) | $ (0.08) | $ (0.04) | $ (0.08) | $ (0.20) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 167,431 | 166,034 | 167,353 | 141,124 |
Diluted (in shares) | 167,431 | 166,034 | 167,353 | 141,124 |
Product sales | ||||
Total net revenues | $ 370,216 | $ 334,324 | $ 1,102,045 | $ 989,132 |
Royalties and other revenues | ||||
Total net revenues | $ 7,306 | $ 8,475 | $ 23,254 | $ 24,662 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net loss | $ (11,840) | $ (3,752) | $ (7,790) | $ (19,126) | |
Other comprehensive (loss)/income, net of income taxes: | |||||
Foreign currency translation adjustment | (25,708) | (9,823) | (61,887) | (13,544) | |
Unrealized income on cash flow hedges, net of income taxes | [1] | 7,692 | 1,398 | 24,798 | 7,631 |
Total other comprehensive loss, net of income taxes | (18,016) | (8,425) | (37,089) | (5,913) | |
Comprehensive loss | (29,856) | (12,177) | (44,879) | (25,039) | |
Net income attributable to noncontrolling interest | 1,216 | 1,907 | 5,113 | 6,736 | |
Foreign currency translation adjustment attributable to noncontrolling interest | (1,283) | (414) | (2,186) | (414) | |
Total comprehensive (loss)/income attributable to noncontrolling interest | (67) | 1,493 | 2,927 | 6,322 | |
Comprehensive loss attributable to Krispy Kreme, Inc. | $ (29,789) | $ (13,670) | $ (47,806) | $ (31,361) | |
[1]Net of income tax expense of $2.6 million and $8.3 million for the quarter and three quarters ended October 2, 2022, respectively, and $0.5 million and $2.6 million for the quarter and three quarters ended October 3, 2021, respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized income on cash flow hedges, tax expense | $ 2.6 | $ 0.5 | $ 8.3 | $ 2.6 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 02, 2022 | Jan. 02, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 28,096 | $ 38,562 |
Restricted cash | 403 | 630 |
Accounts receivable, net | 46,941 | 47,491 |
Inventories | 49,406 | 34,851 |
Taxes receivable | 16,537 | 14,662 |
Prepaid expense and other current assets | 33,126 | 20,701 |
Total current assets | 174,509 | 156,897 |
Property and equipment, net | 450,954 | 438,918 |
Goodwill | 1,074,241 | 1,105,322 |
Other intangible assets, net | 966,358 | 992,520 |
Operating lease right of use asset, net | 410,001 | 435,168 |
Other assets | 25,788 | 16,429 |
Total assets | 3,101,851 | 3,145,254 |
Current liabilities: | ||
Current portion of long-term debt | 40,243 | 36,583 |
Current operating lease liabilities | 45,551 | 50,359 |
Accounts payable | 188,059 | 182,104 |
Accrued liabilities | 111,818 | 140,750 |
Structured payables | 123,331 | 116,361 |
Total current liabilities | 509,002 | 526,157 |
Long-term debt, less current portion | 738,504 | 680,307 |
Noncurrent operating lease liabilities | 400,594 | 415,208 |
Deferred income taxes, net | 140,244 | 145,418 |
Other long-term obligations and deferred credits | 39,784 | 42,509 |
Total liabilities | 1,828,128 | 1,809,599 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, $0.01 par value; 300,000 shares authorized as of both October 2, 2022 and January 2, 2022; 167,437 and 167,251 shares issued and outstanding as of October 2, 2022 and January 2, 2022, respectively | 1,674 | 1,673 |
Additional paid-in capital | 1,422,850 | 1,415,185 |
Shareholder note receivable | (4,812) | (4,382) |
Accumulated other comprehensive loss, net of income tax | (37,380) | (2,478) |
Retained deficit | (208,886) | (178,409) |
Total shareholders’ equity attributable to Krispy Kreme, Inc. | 1,173,446 | 1,231,589 |
Noncontrolling interest | 100,277 | 104,066 |
Total shareholders’ equity | 1,273,723 | 1,335,655 |
Total liabilities and shareholders’ equity | $ 3,101,851 | $ 3,145,254 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Oct. 02, 2022 | Jan. 02, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000 | 300,000 |
Common stock, shares issued (in shares) | 167,437 | 167,251 |
Common stock, shares outstanding (in shares) | 167,437 | 167,251 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Shareholder Note Receivable | Foreign Currency Translation Adjustment | Unrealized (Loss)/Income on Cash Flow Hedges | Unrealized Loss on Employee Benefit Plans | Retained (Deficit)/Earnings | Noncontrolling Interest | Subscription Receivable | ||
Beginning balance (in shares) at Jan. 03, 2021 | 124,987,000 | |||||||||||
Beginning balance at Jan. 03, 2021 | $ 848,359 | $ 1,250 | $ 845,499 | $ (18,660) | $ 23,508 | $ (24,610) | $ (106) | $ (142,197) | $ 163,675 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (loss) income | (378) | (3,061) | 2,683 | |||||||||
Other comprehensive income/(loss), before reclassifications | 308 | (2,264) | 2,572 | |||||||||
Reclassification from AOCI | 2,530 | 2,530 | ||||||||||
Share-based compensation | 2,368 | 2,368 | ||||||||||
Purchase of shares by noncontrolling interest | 12,187 | 139 | 12,048 | |||||||||
Distribution to noncontrolling interest | (1,876) | 363 | (2,239) | |||||||||
Other | (95) | (26) | (70) | 2 | (1) | |||||||
Ending balance (in shares) at Apr. 04, 2021 | 124,987,000 | |||||||||||
Ending balance at Apr. 04, 2021 | 863,403 | $ 1,250 | 847,841 | (18,228) | 21,244 | (19,508) | (106) | (145,256) | 176,166 | 0 | ||
Beginning balance (in shares) at Jan. 03, 2021 | 124,987,000 | |||||||||||
Beginning balance at Jan. 03, 2021 | 848,359 | $ 1,250 | 845,499 | (18,660) | 23,508 | (24,610) | (106) | (142,197) | 163,675 | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (loss) income | (19,126) | |||||||||||
Ending balance (in shares) at Oct. 03, 2021 | 167,113,000 | |||||||||||
Ending balance at Oct. 03, 2021 | 1,319,720 | $ 1,671 | 1,410,724 | (4,216) | 10,378 | (16,979) | (106) | (173,911) | 92,159 | 0 | ||
Beginning balance (in shares) at Apr. 04, 2021 | 124,987,000 | |||||||||||
Beginning balance at Apr. 04, 2021 | 863,403 | $ 1,250 | 847,841 | (18,228) | 21,244 | (19,508) | (106) | (145,256) | 176,166 | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (loss) income | (14,996) | (17,142) | 2,146 | |||||||||
Other comprehensive income/(loss), before reclassifications | (2,887) | (1,457) | (1,430) | |||||||||
Reclassification from AOCI | 2,561 | 2,561 | ||||||||||
Capital contribution from shareholders (in shares) | 6,997,000 | |||||||||||
Capital contribution from shareholders | 120,932 | $ 70 | 120,862 | |||||||||
Share-based compensation | 8,290 | 8,290 | ||||||||||
Purchase of shares by noncontrolling interest | 41,069 | 14,421 | 26,648 | |||||||||
Accrual for distribution to shareholders | 42,334 | (42,334) | ||||||||||
Distribution to noncontrolling interest | (4,142) | 0 | (4,142) | |||||||||
Conversion of noncontrolling interest to additional paid-in capital in connection with the Merger (in shares) | 9,371,000 | |||||||||||
Conversion of noncontrolling interest to additional paid-in capital in connection with the Merger | 0 | $ 93 | 107,258 | (107,351) | ||||||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs | (11,565) | $ 294 | 459,391 | (471,250) | ||||||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs (in shares) | 29,412,000 | |||||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld (in shares) | 1,267,000 | |||||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld | (15,494) | $ 13 | (15,507) | |||||||||
Repurchase of common stock | (123,006) | $ (84) | (122,922) | |||||||||
Stock Repurchased and Retired During Period, Shares | (8,438,000) | |||||||||||
Other | (25) | (4) | (20) | (1) | ||||||||
Ending balance (in shares) at Jul. 04, 2021 | 163,596,000 | |||||||||||
Ending balance at Jul. 04, 2021 | 821,806 | $ 1,636 | 1,362,875 | (3,827) | 19,787 | (18,377) | (106) | (162,399) | 93,467 | (471,250) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (loss) income | (3,752) | (5,659) | 1,907 | |||||||||
Other comprehensive income/(loss), before reclassifications | (11,038) | (9,409) | (1,215) | (414) | ||||||||
Reclassification from AOCI | 2,613 | 2,613 | ||||||||||
Capital contribution from shareholders | (400) | (17) | (383) | |||||||||
Share-based compensation | 6,315 | 6,315 | ||||||||||
Purchase of shares by noncontrolling interest | $ 81 | 81 | ||||||||||
Dividends declared on common stock and equivalents (in dollars per share) | $ 0.035 | |||||||||||
Dividends declared on common stock and equivalents | $ (5,853) | (5,853) | ||||||||||
Distribution to noncontrolling interest | (16,295) | 13,413 | (2,882) | |||||||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs | 526,436 | $ 35 | 55,151 | 471,250 | ||||||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs (in shares) | 3,500,000 | |||||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld (in shares) | 17,000 | |||||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld | (188) | (188) | ||||||||||
Other | (5) | 1 | (6) | |||||||||
Ending balance (in shares) at Oct. 03, 2021 | 167,113,000 | |||||||||||
Ending balance at Oct. 03, 2021 | $ 1,319,720 | $ 1,671 | 1,410,724 | (4,216) | 10,378 | (16,979) | (106) | (173,911) | 92,159 | 0 | ||
Beginning balance (in shares) at Jan. 02, 2022 | 167,251,000 | 167,251,000 | ||||||||||
Beginning balance at Jan. 02, 2022 | $ 1,335,655 | $ 1,673 | 1,415,185 | (4,382) | 8,967 | (11,001) | (444) | (178,409) | 104,066 | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (loss) income | 6,458 | 4,002 | 2,456 | |||||||||
Other comprehensive income/(loss), before reclassifications | 13,058 | 1,334 | 11,724 | |||||||||
Reclassification from AOCI | 2,510 | 2,510 | ||||||||||
Capital contribution from shareholders | 240 | (3) | 243 | |||||||||
Share-based compensation | 5,041 | 5,041 | ||||||||||
Purchase of shares by noncontrolling interest | $ 52 | (58) | 110 | |||||||||
Dividends declared on common stock and equivalents (in dollars per share) | $ 0.035 | |||||||||||
Dividends declared on common stock and equivalents | $ (5,855) | (5,855) | ||||||||||
Distribution to noncontrolling interest | (1,362) | 21 | (1,383) | |||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld (in shares) | 46,000 | |||||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld | (390) | (390) | ||||||||||
Other | (15) | (2) | (14) | 1 | 0 | |||||||
Ending balance (in shares) at Apr. 03, 2022 | 167,297,000 | |||||||||||
Ending balance at Apr. 03, 2022 | $ 1,355,392 | $ 1,673 | 1,419,831 | (4,190) | 10,301 | 3,233 | (444) | (180,261) | 105,249 | 0 | ||
Beginning balance (in shares) at Jan. 02, 2022 | 167,251,000 | 167,251,000 | ||||||||||
Beginning balance at Jan. 02, 2022 | $ 1,335,655 | $ 1,673 | 1,415,185 | (4,382) | 8,967 | (11,001) | (444) | (178,409) | 104,066 | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (loss) income | $ (7,790) | |||||||||||
Ending balance (in shares) at Oct. 02, 2022 | 167,437,000 | 167,437,000 | ||||||||||
Ending balance at Oct. 02, 2022 | $ 1,273,723 | $ 1,674 | 1,422,850 | (4,812) | (50,734) | 13,798 | (444) | (208,886) | 100,277 | 0 | ||
Beginning balance (in shares) at Apr. 03, 2022 | 167,297,000 | |||||||||||
Beginning balance at Apr. 03, 2022 | 1,355,392 | $ 1,673 | 1,419,831 | (4,190) | 10,301 | 3,233 | (444) | (180,261) | 105,249 | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (loss) income | (2,408) | (3,849) | 1,441 | |||||||||
Other comprehensive income/(loss), before reclassifications | (36,502) | (36,610) | 1,011 | (903) | ||||||||
Reclassification from AOCI | 1,861 | 1,861 | ||||||||||
Capital contribution from shareholders | (267) | (31) | (236) | |||||||||
Share-based compensation | 5,452 | 5,452 | ||||||||||
Purchase of shares by noncontrolling interest | $ 358 | (133) | 491 | |||||||||
Dividends declared on common stock and equivalents (in dollars per share) | $ 0.035 | |||||||||||
Dividends declared on common stock and equivalents | $ (5,860) | (5,860) | [1] | |||||||||
Distribution to noncontrolling interest | (8,134) | 3,944 | (4,190) | |||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld (in shares) | 131,000 | |||||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld | (897) | $ 1 | (898) | |||||||||
Other | (13) | (14) | (1) | |||||||||
Ending balance (in shares) at Jul. 03, 2022 | 167,428,000 | |||||||||||
Ending balance at Jul. 03, 2022 | 1,308,982 | $ 1,674 | 1,420,410 | (4,573) | (26,309) | 6,106 | (444) | (189,970) | 102,088 | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (loss) income | (11,840) | (13,056) | 1,216 | |||||||||
Other comprehensive income/(loss), before reclassifications | (18,123) | (24,425) | 7,585 | (1,283) | ||||||||
Reclassification from AOCI | 107 | 107 | ||||||||||
Capital contribution from shareholders | (261) | (38) | (223) | |||||||||
Share-based compensation | $ 2,825 | 2,825 | ||||||||||
Dividends declared on common stock and equivalents (in dollars per share) | $ 0.035 | |||||||||||
Dividends declared on common stock and equivalents | [1] | $ (5,860) | (5,860) | |||||||||
Distribution to noncontrolling interest | (2,029) | (285) | (1,744) | |||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld (in shares) | 9,000 | |||||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld | (62) | (62) | ||||||||||
Other | $ (16) | (16) | ||||||||||
Ending balance (in shares) at Oct. 02, 2022 | 167,437,000 | 167,437,000 | ||||||||||
Ending balance at Oct. 02, 2022 | $ 1,273,723 | $ 1,674 | $ 1,422,850 | $ (4,812) | $ (50,734) | $ 13,798 | $ (444) | $ (208,886) | $ 100,277 | $ 0 | ||
[1] Includes a $0.035 cash dividend per common share declared in the third quarter of fiscal 2022 and expected to be paid in the fourth quarter of fiscal 2022. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | |||
Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Oct. 03, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared on common stock and equivalents (in dollars per share) | $ 0.035 | $ 0.035 | $ 0.035 | $ 0.035 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (7,790) | $ (19,126) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expense | 83,782 | 74,258 |
Deferred income taxes | (10,259) | 9,168 |
Loss on extinguishment of debt | 0 | 1,700 |
Impairment and lease termination charges | 7,255 | 854 |
(Gain)/loss on disposal of property and equipment | (244) | 157 |
Gain on sale-leaseback | (4,311) | 0 |
Share-based compensation | 13,318 | 16,973 |
Change in accounts and notes receivable allowances | 378 | 133 |
Inventory write-off | 388 | 2,983 |
Other | 804 | (315) |
Change in operating assets and liabilities, excluding business acquisitions and foreign currency translation adjustments | (12,591) | 12,003 |
Net cash provided by operating activities | 70,730 | 98,788 |
CASH FLOWS USED FOR INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (75,002) | (83,485) |
Proceeds from disposals of assets | 856 | 202 |
Proceeds from sale-leaseback | 5,700 | 0 |
Acquisition of shops and franchise rights from franchisees, net of cash acquired | (17,335) | (33,888) |
Purchase of equity method investment | (989) | 0 |
Other investing activities | (931) | 455 |
Net cash used for investing activities | (87,701) | (116,716) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from the issuance of debt | 121,500 | 670,000 |
Repayment of long-term debt and lease obligations | (70,180) | (1,115,910) |
Payment of financing costs | 0 | 1,700 |
Proceeds from structured payables | 219,459 | 194,927 |
Payments on structured payables | (211,778) | (223,063) |
Payment of contingent consideration related to a business combination | (900) | 0 |
Capital contribution by shareholders, net of loans issued | (288) | 120,532 |
Proceeds from IPO, net of underwriting discounts (excluding unpaid issuance costs) | 0 | 527,329 |
Payments of issuance costs in connection with IPO | (12,458) | 0 |
Proceeds from sale of noncontrolling interest in subsidiary | 410 | 53,337 |
Distribution to shareholders | (17,570) | (42,334) |
Payments for repurchase and retirement of common stock | (2,425) | (138,501) |
Distribution to noncontrolling interest | (11,525) | (17,257) |
Net cash provided by financing activities | 14,245 | 27,360 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7,967) | (1,827) |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (10,693) | 7,605 |
Cash, cash equivalents and restricted cash at beginning of period | 39,192 | 37,483 |
Cash, cash equivalents and restricted cash at end of period | 28,499 | 45,088 |
Supplemental schedule of non-cash investing and financing activities: | ||
Increase in accrual for property and equipment | 16,272 | 3,137 |
Stock issuance under shareholder notes | 547 | 446 |
Accrual for distribution to shareholders | (5,860) | (5,853) |
Accrual for repurchase and retirement of common stock | 0 | (188) |
Accrual for distribution to noncontrolling interest | 0 | (5,056) |
Reconciliation of cash, cash equivalents and restricted cash at end of period: | ||
Cash and cash equivalents | 28,096 | 44,895 |
Restricted cash | 403 | 193 |
Total cash, cash equivalents and restricted cash | $ 28,499 | $ 45,088 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 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”) operate through their omni-channel business model to provide doughnut experiences and produce doughnuts for Doughnut Shops, Delivered Fresh Daily (“DFD”) outlets, Ecommerce and delivery, and Krispy Kreme branded sweet treats (“Branded Sweet Treat Line”) channels, expanding consumer access to the Krispy Kreme brand. The Company has three reportable operating segments: 1) U.S. and Canada, which includes all Krispy Kreme Company-owned operations in the U.S. and Canada, Insomnia Cookies shops and the Branded Sweet Treat Line; 2) International, which includes all Krispy Kreme Company-owned operations in the U.K., Ireland, Australia, New Zealand and Mexico; and 3) Market Development, which includes worldwide franchise operations, as well as Krispy Kreme Company-owned shops in Japan. 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 data periods contained within fiscal years 2021 and 2022 will reflect the results of operations for the 52-week periods ended January 2, 2022 and January 1, 2023, respectively. The quarters ended October 2, 2022 and October 3, 2021 were both 13-week periods. The unaudited Condensed Consolidated Financial Statements include the accounts of KKI and subsidiaries and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the 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 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. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto as of and for the year ended January 2, 2022, included in the Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of January 2, 2022 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 October 2, 2022 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending January 1, 2023. 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, Awesome Doughnut, LLC (“Awesome Doughnut”), 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 Holding U.K. Ltd. (“KKUK”), Krispy Kreme Holdings Pty Ltd. (“KK Australia”), Krispy Kreme Mexico S. de R.L. de C.V. (“KK Mexico”) and Insomnia Cookies Holdings, LLC (“Insomnia Cookies”). 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 on 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 Income/(Loss). 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 January 2, 2022 included in the Annual Report on Form 10-K. There have been no material changes to the significant accounting policies during the quarter ended October 2, 2022. Recent Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. It is effective for all entities as of March 12, 2020 through December 31, 2022. A company may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The Company is currently evaluating the effect of the new guidance on its Condensed Consolidated Financial Statements and related disclosures. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which prescribes the measurement of acquired contract assets and contract liabilities arising from revenue contracts with customers recognized in a business combination. It is effective for public business entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the effect of the new guidance on its Condensed Consolidated Financial Statements and related disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance , which requires certain disclosures be made when an entity receives government assistance, including the types of assistance, an entity’s accounting for the assistance, and the effect of the assistance on an entity’s financial statements. It is effective for all entities for financial statements issued for annual periods beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the effect of the new guidance on its annual disclosures. In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations , which requires certain disclosures be made by a buyer in a supplier finance program, including the key terms of the program and, for the obligations that the buyer has confirmed as valid to the finance provider, the amount outstanding that remains unpaid by the buyer as of the end of the fiscal period, a description of where those obligations are presented in the balance sheet, and a rollforward of those obligations during the fiscal period. It is effective for all entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the effect of the new guidance on its annual and interim disclosures. |
Acquisitions
Acquisitions | 9 Months Ended |
Oct. 02, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions 2022 Acquisitions In the third quarter of fiscal 2022, the Company acquired the business and operating assets of one franchisee, consisting of seven Krispy Kreme shops in the U.S. (with one shop under construction). The Company paid total consideration of $19.4 million, consisting of $17.3 million of cash, $1.2 million of consideration payable to the sellers, and $0.9 million settlement of amounts related to pre-existing relationships, to acquire substantially all of the shops’ assets. Consideration payable of $1.2 million was withheld primarily to cover indemnification claims that could arise after closing. Absent any claims, these amounts are payable within 12 months of the acquisition date. The settlement of pre-existing relationships included in the purchase consideration includes the write-off of accounts and notes receivable, net of deferred revenue, of $0.3 million. It also includes the disposal of the franchise intangible asset related to the franchisee recorded at time of the acquisition of Krispy Kreme by JAB Holding Company (“JAB”). The cumulative net book value of the franchise intangible asset was $0.6 million at the acquisition date. The Company accounted for the transaction as a business combination. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition for the acquisition above. KK U.S. Shops Assets acquired: Cash and cash equivalents $ 7 Prepaid expense and other current assets 138 Property and equipment, net 895 Other intangible assets, net 11,652 Operating lease right of use asset, net 4,702 Other assets 20 Total identified assets acquired 17,414 Liabilities assumed: Accrued liabilities (106) Current operating lease liabilities (221) Noncurrent operating lease liabilities (4,481) Total liabilities assumed (4,808) Goodwill 6,842 Purchase consideration, net $ 19,448 Transaction costs in 2022 $ 589 Transaction costs in 2021 6 Reportable segment U.S. and Canada During the measurement period, the Company will continue to obtain information to assist in determining the fair value of net assets acquired, which may differ materially from these preliminary estimates. Measurement period adjustments, if applicable, will be applied in the reporting period in which the adjustment amounts are determined. Equity Method Investment in KK France In the third quarter of fiscal 2022, the Company acquired a 33% noncontrolling ownership interest in the newly formed entity Krispy Kreme Doughnuts France SAS (“KK France”), for approximately $1.0 million in cash. As the Company has the ability to exercise significant influence over KK France, but it does not exercise control, the investment will be accounted for using the equity method, and equity method earnings will be recognized within Other expenses/(income), net on the Condensed Consolidated Statements of Operations. 2021 Acquisitions In the first quarter of fiscal 2021, the Company acquired the business and operating assets of two franchisees, collectively consisting of 17 Krispy Kreme shops in the U.S. On October 4, 2021, the Company acquired a 60% controlling ownership interest in ten franchise shops in Canada (KK Canada). The valuation for the acquisitions requires significant estimates and assumptions. The estimates are inherently uncertain and subject to revision as additional information is obtained during the measurement period for the acquisitions. Measurement period adjustments for the 2021 acquisitions did not have a material impact to the Condensed Consolidated Financial Statements for the three quarters ended October 2, 2022. |
Inventories
Inventories | 9 Months Ended |
Oct. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of Inventories are as follows: October 2, 2022 January 2, 2022 Raw materials $ 18,282 $ 15,278 Work in progress 394 700 Finished goods and purchased merchandise 30,730 18,873 Total inventories $ 49,406 $ 34,851 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 9 Months Ended |
Oct. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Goodwill Changes in the carrying amount of goodwill by reportable segment are as follows: U.S. and Canada International Market Development Total Balance as of January 2, 2022 $ 688,048 $ 283,342 $ 133,932 $ 1,105,322 Acquisitions 11,259 — (4,417) 6,842 Foreign currency impact (1,283) (36,640) — (37,923) Balance as of October 2, 2022 $ 698,024 $ 246,702 $ 129,515 $ 1,074,241 Other Intangible Assets, net Other intangible assets consist of the following: October 2, 2022 January 2, 2022 Gross Accumulated Net Amount Gross Accumulated Net Amount Intangible assets with indefinite lives Trade name $ 657,900 $ — $ 657,900 $ 657,900 $ — $ 657,900 Intangible assets with definite lives Franchise agreements 30,632 (9,006) 21,626 32,545 (8,369) 24,176 Customer relationships 15,000 (5,332) 9,668 15,000 (4,684) 10,316 Reacquired franchise rights 371,989 (94,825) 277,164 384,305 (84,177) 300,128 Website development costs 6,500 (6,500) — 6,500 (6,500) — Total intangible assets with definite lives 424,121 (115,663) 308,458 438,350 (103,730) 334,620 Total intangible assets $ 1,082,021 $ (115,663) $ 966,358 $ 1,096,250 $ (103,730) $ 992,520 |
Leases
Leases | 9 Months Ended |
Oct. 02, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company included the following amounts related to operating and finance lease assets and liabilities within the Condensed Consolidated Balance Sheets: As of October 2, 2022 January 2, 2022 Assets Classification Operating lease Operating lease right of use asset, net $ 410,001 $ 435,168 Finance lease Property and equipment, net 25,604 19,298 Total leased assets $ 435,605 $ 454,466 Liabilities Current Operating lease Current operating lease liabilities $ 45,551 $ 50,359 Finance lease Current portion of long-term debt 5,243 1,583 Noncurrent Operating lease Noncurrent operating lease liabilities 400,594 415,208 Finance lease Long-term debt, less current portion 25,648 22,890 Total leased liabilities $ 477,036 $ 490,040 Lease costs were as follows: Quarter Ended Three Quarters Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Lease cost Classification Operating lease cost Selling, general and administrative expense $ 666 $ 648 $ 1,643 $ 1,967 Operating lease cost Operating expenses 20,605 21,201 64,262 62,910 Short-term lease cost Operating expenses 1,555 233 3,841 1,797 Variable lease costs Operating expenses 6,032 4,015 17,367 11,309 Sublease income Royalties and other revenues (35) (108) (175) (285) Finance lease cost: Amortization of right of use assets Depreciation and amortization expense $ 1,405 $ 727 $ 3,348 $ 2,375 Interest on lease liabilities Interest expense, net 489 466 1,430 1,540 Supplemental disclosures of cash flow information related to leases were as follows: Three Quarters Ended October 2, 2022 October 3, 2021 Other information Cash paid for leases: Operating cash flows for operating leases (1) $ 77,122 $ 67,129 Operating cash flows for finance leases 1,441 1,458 Financing cash flows for finance leases 2,930 2,512 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 31,246 $ 48,770 Finance leases 4,549 1,788 (1) Operating cash flows for operating leases include variable rent payments which are not included in the measurement of lease liabilities. For the three quarters ended October 2, 2022 and October 3, 2021, variable rent payments were $17.4 million and $11.3 million, respectively. The Company recognized $3.0 million and $4.4 million of lease termination charges in the quarter and three quarters ended October 2, 2022 , respectively, related to the decision to exit certain Krispy Kreme shops in the U.S . There were no lease termination charges in the three quarters ended October 3, 2021. In March 2022, the Company completed a sale-leaseback transaction whereby it disposed of the land at one real estate property for proceeds of $3.0 million. The Company subsequently leased back the property, which is accounted for as an operating lease. The Company recognized a gain on sale of $2.6 million, which is included in Other expenses/(income), net on the Condensed Consolidated Statement of Operations for the three quarters ended October 2, 2022. In September 2022, the Company completed a sale-leaseback transaction whereby it disposed of the land at one real estate property for proceeds of $2.7 million. The Company subsequently leased back the property, which is accounted for as an operating lease. The Company recognized a gain on sale of $1.9 million, which is included in Other expenses/(income), net on the Condensed Consolidated Statement of Operations for the quarter ended October 2, 2022. There were no sale-leaseback transactions completed in the three quarters ended October 3, 2021. |
Leases | Leases The Company included the following amounts related to operating and finance lease assets and liabilities within the Condensed Consolidated Balance Sheets: As of October 2, 2022 January 2, 2022 Assets Classification Operating lease Operating lease right of use asset, net $ 410,001 $ 435,168 Finance lease Property and equipment, net 25,604 19,298 Total leased assets $ 435,605 $ 454,466 Liabilities Current Operating lease Current operating lease liabilities $ 45,551 $ 50,359 Finance lease Current portion of long-term debt 5,243 1,583 Noncurrent Operating lease Noncurrent operating lease liabilities 400,594 415,208 Finance lease Long-term debt, less current portion 25,648 22,890 Total leased liabilities $ 477,036 $ 490,040 Lease costs were as follows: Quarter Ended Three Quarters Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Lease cost Classification Operating lease cost Selling, general and administrative expense $ 666 $ 648 $ 1,643 $ 1,967 Operating lease cost Operating expenses 20,605 21,201 64,262 62,910 Short-term lease cost Operating expenses 1,555 233 3,841 1,797 Variable lease costs Operating expenses 6,032 4,015 17,367 11,309 Sublease income Royalties and other revenues (35) (108) (175) (285) Finance lease cost: Amortization of right of use assets Depreciation and amortization expense $ 1,405 $ 727 $ 3,348 $ 2,375 Interest on lease liabilities Interest expense, net 489 466 1,430 1,540 Supplemental disclosures of cash flow information related to leases were as follows: Three Quarters Ended October 2, 2022 October 3, 2021 Other information Cash paid for leases: Operating cash flows for operating leases (1) $ 77,122 $ 67,129 Operating cash flows for finance leases 1,441 1,458 Financing cash flows for finance leases 2,930 2,512 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 31,246 $ 48,770 Finance leases 4,549 1,788 (1) Operating cash flows for operating leases include variable rent payments which are not included in the measurement of lease liabilities. For the three quarters ended October 2, 2022 and October 3, 2021, variable rent payments were $17.4 million and $11.3 million, respectively. The Company recognized $3.0 million and $4.4 million of lease termination charges in the quarter and three quarters ended October 2, 2022 , respectively, related to the decision to exit certain Krispy Kreme shops in the U.S . There were no lease termination charges in the three quarters ended October 3, 2021. In March 2022, the Company completed a sale-leaseback transaction whereby it disposed of the land at one real estate property for proceeds of $3.0 million. The Company subsequently leased back the property, which is accounted for as an operating lease. The Company recognized a gain on sale of $2.6 million, which is included in Other expenses/(income), net on the Condensed Consolidated Statement of Operations for the three quarters ended October 2, 2022. In September 2022, the Company completed a sale-leaseback transaction whereby it disposed of the land at one real estate property for proceeds of $2.7 million. The Company subsequently leased back the property, which is accounted for as an operating lease. The Company recognized a gain on sale of $1.9 million, which is included in Other expenses/(income), net on the Condensed Consolidated Statement of Operations for the quarter ended October 2, 2022. There were no sale-leaseback transactions completed in the three quarters ended October 3, 2021. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents assets and liabilities that are measured at fair value on a recurring basis as of October 2, 2022 and January 2, 2022: October 2, 2022 Level 1 Level 2 Assets: 401(k) mirror plan assets $ 6 $ — Interest rate derivatives — 18,397 Commodity derivatives — 570 Foreign currency derivatives — 562 Total Assets $ 6 $ 19,529 Liabilities: Foreign currency derivatives $ — $ 219 Total Liabilities $ — $ 219 January 2, 2022 Level 1 Level 2 Assets: 401(k) mirror plan assets $ 111 $ — Commodity derivatives — 1,486 Total Assets $ 111 $ 1,486 Liabilities: Foreign currency derivatives $ — $ 80 Interest rate derivatives — 14,667 Total Liabilities $ — $ 14,747 There were no assets nor liabilities measured using Level 3 inputs and no transfers of financial assets or liabilities among the levels within the fair value hierarchy during the quarter ended October 2, 2022 and fiscal year ended January 2, 2022. 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. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Oct. 02, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 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 October 2, 2022 and January 2, 2022, the total notional amount of commodity derivatives was 2.1 million and 1.9 million gallons of gasoline, respectively. They were scheduled to mature between October 3, 2022 and December 1, 2024 and January 3, 2022 and March 31, 2023, respectively. As of October 2, 2022 and January 2, 2022, the Company recorded an asset of $0.6 million and $1.5 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 October 2, 2022 and January 2, 2022, the Company has recorded assets of $18.4 million and liabilities of $14.7 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. Foreign Currency Exchange Rate Risk The Company is exposed to foreign currency 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 the impact of foreign exchange fluctuations on commercial and financial transactions with these subsidiaries, the Company enters into foreign exchange forward contracts. Management has not designated these forward contracts as hedges. As of October 2, 2022 and January 2, 2022, the total notional amount of foreign exchange derivatives was $59.3 million and $51.8 million, respectively. They were scheduled to mature between October 2022 and November 2022 and between January 2022 and February 2022, respectively. The Company recorded an asset (net of liabilities) of $0.3 million and a liability of $0.1 million as of October 2, 2022 and January 2, 2022, 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 October 2, 2022 and January 2, 2022, 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 October 2, January 2, Balance Sheet Location Commodity derivatives $ 570 $ 1,486 Prepaid expense and other current assets Foreign currency derivatives 562 — Prepaid expense and other current assets Total Assets $ 1,132 $ 1,486 Foreign currency derivatives $ 219 $ 80 Accrued liabilities Total Liabilities $ 219 $ 80 Derivatives Fair Value Derivatives Designated as Hedging Instruments October 2, January 2, Balance Sheet Location Interest rate derivatives (current) $ 11,623 $ — Prepaid expense and other current assets Interest rate derivatives (noncurrent) 6,774 — Other assets Total Assets $ 18,397 $ — Interest rate derivatives (current) $ — $ 8,535 Accrued liabilities Interest rate derivatives (noncurrent) — 6,132 Other long-term obligations and deferred credits Total Liabilities $ — $ 14,667 The effect of derivative instruments on the Condensed Consolidated Statements of Operations for the quarter and three quarters ended October 2, 2022 and October 3, 2021 is as follows: Derivative Gain/(Loss) Recognized in Income for the Quarter Ended Derivative Gain/(Loss) Recognized in Income for the Three Quarters Ended Derivatives Designated as Hedging Instruments October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Location of Derivative Gain/(Loss) Recognized in Income Loss on interest rate derivatives $ (107) $ (2,613) $ (4,478) $ (7,704) Interest expense, net $ (107) $ (2,613) $ (4,478) $ (7,704) Derivative Gain/(Loss) Recognized in Income for the Quarter Ended Derivative Gain/(Loss) Recognized in Income for the Three Quarters Ended Derivatives Not Designated as Hedging Instruments October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Location of Derivative Gain/(Loss) Recognized in Income Gain on foreign currency derivatives $ 678 $ 632 $ 423 $ 256 Other non-operating expense/(income), net (Loss)/gain on commodity derivatives (1,589) (114) (917) 1,356 Other non-operating expense/(income), net $ (911) $ 518 $ (494) $ 1,612 |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Oct. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Restricted Stock Units (“RSUs”) The Company and certain of its subsidiaries issue time-vested RSUs under their respective executive ownership plans and long-term incentive plans. RSU activity under the Company’s various plans during the periods presented is as follows: (in thousands, except per share amounts) Non-vested shares outstanding at January 2, Granted Vested Forfeited Non-vested shares outstanding at October 2, KKI RSUs 5,866 995 281 801 5,779 Weighted Average Grant Date Fair Value $ 13.78 14.34 9.54 14.18 $ 14.03 KKUK RSUs 60 — — — 60 Weighted Average Grant Date Fair Value $ 15.77 — — — $ 15.77 Insomnia Cookies RSUs 33 10 1 5 37 Weighted Average Grant Date Fair Value $ 79.66 169.70 74.12 102.67 $ 100.67 KK Australia RSUs 1,897 21 1,564 — 354 Weighted Average Grant Date Fair Value $ 1.48 1.73 1.49 — $ 1.47 KK Mexico RSUs 58 2 — — 60 Weighted Average Grant Date Fair Value $ 32.86 40.14 — — $ 33.08 The Company recorded total non-cash compensation expense related to RSUs under the plans of $2.5 million and $11.4 million for the quarter and three quarters ended October 2, 2022, respectively, and $5.1 million and $14.9 million for the quarter and three quarters ended October 3, 2021, respectively. The unrecognized compensation cost related to the unvested RSUs and the weighted-average period over which such cost is expected to be recognized are as follows: As of October 2, 2022 Unrecognized Compensation Cost Recognized Over a KKI $ 49,955 3.0 years KKUK 222 1.2 years Insomnia Cookies 2,502 3.0 years KK Australia 192 1.8 years KK Mexico 1,431 3.2 years The estimated fair value of restricted stock is calculated using a market approach (i.e., market multiple is used for the KKUK and Insomnia Cookies plans and an agreed-upon EBITDA buyout multiple is used for KK Australia and KK Mexico plans). Time-Vested Stock Options KKI issues time-vested stock options under its Omnibus Incentive Plan. The fair value of time-vested stock options was estimated on the date of grant using the Black-Scholes option pricing model. Share Options Outstanding At Share Options Outstanding At (in thousands, except per share amounts) January 2, Granted Exercised Forfeited or Expired October 2, KKI Options 2,817 — — 248 2,569 Weighted Average Grant Date Fair Value $ 6.10 — — 6.10 $ 6.10 Weighted Average Exercise Price $ 14.61 — — 14.61 $ 14.61 The Company recorded total non-cash compensation expense related to the time-vested stock options of $0.3 million and $1.9 million for the quarter and three quarters ended October 2, 2022, respectively, and $1.2 million and $2.1 million for the quarter and three quarters ended October 3, 2021, respectively. The unrecognized compensation cost related to the unvested stock options and the weighted-average period over which such cost is expected to be recognized are as follows: As of October 2, 2022 Unrecognized Compensation Cost Recognized Over a KKI $ 10,429 3.6 years |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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 income/(loss). 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’s effective income tax rates were (2.5)% and (267.1)% for the quarter and three quarters ended October 2, 2022, respectively, and 38.4% and (76.1)% for the quarter and three quarters ended October 3, 2021, respectively. The Company’s effective income tax rate for the quarter and three quarters ended October 2, 2022 differed from the respective statutory rates primarily due to disallowed executive compensation expense, the mix of income and taxes attributable to foreign jurisdictions, the recognition of previously unrecognized tax benefits, and a discrete tax benefit related to a litigation settlement. The Company’s effective income tax rate for the quarter and three quarters ended October 3, 2021 differed from the respective statutory rates primarily due to the revaluation of U.K. deferred taxes as a result of the increase in the corporate tax rate from 19.0% to 25.0% beginning in 2023 and disallowed executive compensation in connection with the IPO. The Company’s effective income tax rates were also impacted by the mix of income and taxes attributable to foreign jurisdictions. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company 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 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Oct. 02, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of October 2, 2022, the Company had an equity ownership in three franchisees, KremeWorks USA, LLC (20% ownership), KremeWorks Canada, L.P. (25% ownership), and KK France (33% ownership), with an aggregate carrying value of $1.9 million. As of January 2, 2022, the Company had an equity ownership in two franchisees, KremeWorks USA, LLC (20% ownership) and KremeWorks Canada, L.P. (25% ownership), with an aggregate carrying value of $1.1 million. The Company was party to a senior unsecured note agreement with Krispy Kreme, G.P. (“KK GP”) for an aggregate principal amount of $283.1 million. In April 2019, the Company entered into an additional unsecured note with KK GP for $54.0 million (such notes together, the “Related Party Notes”). As of January 3, 2021, the outstanding amount of principal and interest was $344.6 million. The Related Party Notes were paid off in full during the second quarter of fiscal 2021. The interest expense was $10.4 million for the three quarters ended October 3, 2021. No interest expense was incurred for the three quarters ended October 2, 2022. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenues Revenues are disaggregated as follows: Quarter Ended Three Quarters Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Company Shops, DFD and Branded Sweet Treat Line $ 353,979 $ 322,410 $ 1,060,364 $ 952,680 Mix and equipment revenue from franchisees 16,237 11,914 41,681 36,452 Franchise royalties and other 7,306 8,475 23,254 24,662 Total net revenues $ 377,522 $ 342,799 $ 1,125,299 $ 1,013,794 Other revenues include advertising fund contributions from franchisees, rental income, development and franchise fees, and licensing royalties from Keurig related to Krispy Kreme brands coffee sales. Contract Balances Deferred revenue subject to Accounting Standards Codification Topic 606, Revenue from Contracts with Customers , and related receivables are as follows: October 2, 2022 January 2, 2022 Balance Sheet Location Trade receivables, net of allowances of $216 and $896, respectively $ 41,154 $ 41,132 Accounts receivables, net Deferred revenue: Current $ 14,878 $ 17,458 Accrued liabilities Noncurrent 3,615 2,981 Other long-term obligations and deferred credits Total deferred revenue $ 18,493 $ 20,439 |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Oct. 02, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share The following table presents the calculations of basic and diluted EPS: Quarter Ended Three Quarters Ended (in thousands, except per share amounts) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Net loss attributable to Krispy Kreme, Inc. $ (13,056) $ (5,659) $ (12,903) $ (25,862) Adjustment to net loss attributable to common shareholders — (522) (374) (1,815) Net loss attributable to common shareholders - Basic $ (13,056) $ (6,181) $ (13,277) $ (27,677) Additional income attributed to noncontrolling interest due to subsidiary potential common shares (76) (88) (174) (237) Net loss attributable to common shareholders - Diluted $ (13,132) $ (6,269) $ (13,451) $ (27,914) Basic weighted average common shares outstanding 167,431 166,034 167,353 141,124 Dilutive effect of outstanding common stock options and RSUs — — — — Diluted weighted average common shares outstanding 167,431 166,034 167,353 141,124 Loss per share attributable to common shareholders: Basic $ (0.08) $ (0.04) $ (0.08) $ (0.20) Diluted $ (0.08) $ (0.04) $ (0.08) $ (0.20) Potential dilutive shares consist of unvested RSUs and stock options, 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. The following table summarizes the gross number of potential dilutive unvested RSUs excluded due to antidilution (unadjusted for the treasury stock method): Quarter Ended Three Quarters Ended (in thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 KKI 5,779 6,207 5,779 6,207 KKUK 60 — 2 — Insomnia Cookies 10 — 3 — KK Australia — — — — KK Mexico 60 — — — For the quarter and three quarters ended October 2, 2022, as well as the quarter and three quarters ended October 3, 2021, all 2.6 million time-vested stock options were excluded from the computation of diluted weighted average common shares outstanding based on application of the treasury stock method. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Oct. 02, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company conducts business through the three reportable segments: U.S. and Canada, International, and Market Development. Unallocated corporate costs are excluded from the Company’s measurement of segment performance. These costs include general corporate expenses. The reportable segment results are as follows: Quarter Ended Three Quarters Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Net revenues: U.S. and Canada $ 252,609 $ 225,807 $ 756,196 $ 679,195 International 91,934 87,262 272,988 243,005 Market Development 32,979 29,730 96,115 91,594 Total net revenues $ 377,522 $ 342,799 $ 1,125,299 $ 1,013,794 Quarter Ended Three Quarters Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Segment Adjusted EBITDA: U.S. and Canada $ 21,896 $ 19,912 $ 81,521 $ 75,760 International 18,254 21,655 55,033 60,676 Market Development 10,353 9,033 32,135 29,782 Corporate (11,961) (9,183) (33,879) (26,005) 38,542 41,417 134,810 140,213 Interest expense, net 8,871 7,186 23,808 25,228 Interest expense — related party (1) — — — 10,387 Income tax expense/(benefit) 294 (2,342) 5,668 8,266 Depreciation and amortization expense 28,127 25,663 83,782 74,258 Share-based compensation 2,825 6,315 13,318 16,973 Employer payroll taxes related to share-based compensation 2 1,171 92 2,012 Other non-operating expense/(income), net (2) 1,648 732 2,083 (126) Acquisition and integration expenses (3) 790 1,288 1,389 3,663 Shop closure expenses (4) 5,735 — 7,859 — Restructuring and severance expenses (5) 2,328 57 2,804 1,393 IPO-related expenses (6) — 4,018 — 14,221 Gain on sale-leaseback (1,937) — (4,311) — Other (7) 1,699 1,081 6,108 3,064 Net loss $ (11,840) $ (3,752) $ (7,790) $ (19,126) (1) Consists of interest expense related to the Related Party Notes which were paid off in full during the quarter ended July 4, 2021. (2) Primarily foreign translation gains and losses in each period. (3) Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, consulting and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period. (4) Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment. (5) The quarter and three quarters ended October 2, 2022 consist of costs associated with restructuring of the global executive team. The quarter and three quarters ended October 3, 2021 consist of severance and related benefits costs associated with the Company’s realignment of the Company shop organizational structure to better support the DFD and Branded Sweet Treat Line businesses. (6) Includes consulting and advisory fees incurred in connection with preparation for and execution of the Company’s IPO. (7) The quarter and three quarters ended October 2, 2022 and October 3, 2021 consist primarily of legal expenses incurred outside the ordinary course of business, including the net settlement of approximately $3.3 million negotiated with TSW Foods, LLC. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 02, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company evaluated subsequent events and transactions for potential recognition or disclosure in the Condensed Consolidated Financial Statements through November 15, 2022, the date the Condensed Consolidated Financial Statements were available to be issued. All subsequent events requiring recognition and disclosure have been incorporated into these Condensed Consolidated Financial Statements. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 data periods contained within fiscal years 2021 and 2022 will reflect the results of operations for the 52-week periods ended January 2, 2022 and January 1, 2023, respectively. The quarters ended October 2, 2022 and October 3, 2021 were both 13-week periods.The unaudited Condensed Consolidated Financial Statements include the accounts of KKI and subsidiaries and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the 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 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. |
Consolidation | These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto as of and for the year ended January 2, 2022, included in the Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of January 2, 2022 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 October 2, 2022 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending January 1, 2023. 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, Awesome Doughnut, LLC (“Awesome Doughnut”), 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 Holding U.K. Ltd. (“KKUK”), Krispy Kreme Holdings Pty Ltd. (“KK Australia”), Krispy Kreme Mexico S. de R.L. de C.V. (“KK Mexico”) and Insomnia Cookies Holdings, LLC (“Insomnia Cookies”). 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 on 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 Income/(Loss). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. It is effective for all entities as of March 12, 2020 through December 31, 2022. A company may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The Company is currently evaluating the effect of the new guidance on its Condensed Consolidated Financial Statements and related disclosures. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which prescribes the measurement of acquired contract assets and contract liabilities arising from revenue contracts with customers recognized in a business combination. It is effective for public business entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the effect of the new guidance on its Condensed Consolidated Financial Statements and related disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance , which requires certain disclosures be made when an entity receives government assistance, including the types of assistance, an entity’s accounting for the assistance, and the effect of the assistance on an entity’s financial statements. It is effective for all entities for financial statements issued for annual periods beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the effect of the new guidance on its annual disclosures. In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations , which requires certain disclosures be made by a buyer in a supplier finance program, including the key terms of the program and, for the obligations that the buyer has confirmed as valid to the finance provider, the amount outstanding that remains unpaid by the buyer as of the end of the fiscal period, a description of where those obligations are presented in the balance sheet, and a rollforward of those obligations during the fiscal period. It is effective for all entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the effect of the new guidance on its annual and interim disclosures. |
Business Combinations and Asset
Business Combinations and Asset Acquisitions (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition for the acquisition above. KK U.S. Shops Assets acquired: Cash and cash equivalents $ 7 Prepaid expense and other current assets 138 Property and equipment, net 895 Other intangible assets, net 11,652 Operating lease right of use asset, net 4,702 Other assets 20 Total identified assets acquired 17,414 Liabilities assumed: Accrued liabilities (106) Current operating lease liabilities (221) Noncurrent operating lease liabilities (4,481) Total liabilities assumed (4,808) Goodwill 6,842 Purchase consideration, net $ 19,448 Transaction costs in 2022 $ 589 Transaction costs in 2021 6 Reportable segment U.S. and Canada |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of Inventories are as follows: October 2, 2022 January 2, 2022 Raw materials $ 18,282 $ 15,278 Work in progress 394 700 Finished goods and purchased merchandise 30,730 18,873 Total inventories $ 49,406 $ 34,851 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Reportable Segment | Changes in the carrying amount of goodwill by reportable segment are as follows: U.S. and Canada International Market Development Total Balance as of January 2, 2022 $ 688,048 $ 283,342 $ 133,932 $ 1,105,322 Acquisitions 11,259 — (4,417) 6,842 Foreign currency impact (1,283) (36,640) — (37,923) Balance as of October 2, 2022 $ 698,024 $ 246,702 $ 129,515 $ 1,074,241 |
Schedule of Indefinite-Lived Intangible Assets | Other intangible assets consist of the following: October 2, 2022 January 2, 2022 Gross Accumulated Net Amount Gross Accumulated Net Amount Intangible assets with indefinite lives Trade name $ 657,900 $ — $ 657,900 $ 657,900 $ — $ 657,900 Intangible assets with definite lives Franchise agreements 30,632 (9,006) 21,626 32,545 (8,369) 24,176 Customer relationships 15,000 (5,332) 9,668 15,000 (4,684) 10,316 Reacquired franchise rights 371,989 (94,825) 277,164 384,305 (84,177) 300,128 Website development costs 6,500 (6,500) — 6,500 (6,500) — Total intangible assets with definite lives 424,121 (115,663) 308,458 438,350 (103,730) 334,620 Total intangible assets $ 1,082,021 $ (115,663) $ 966,358 $ 1,096,250 $ (103,730) $ 992,520 |
Schedule of Finite-Lived Intangible Assets | Other intangible assets consist of the following: October 2, 2022 January 2, 2022 Gross Accumulated Net Amount Gross Accumulated Net Amount Intangible assets with indefinite lives Trade name $ 657,900 $ — $ 657,900 $ 657,900 $ — $ 657,900 Intangible assets with definite lives Franchise agreements 30,632 (9,006) 21,626 32,545 (8,369) 24,176 Customer relationships 15,000 (5,332) 9,668 15,000 (4,684) 10,316 Reacquired franchise rights 371,989 (94,825) 277,164 384,305 (84,177) 300,128 Website development costs 6,500 (6,500) — 6,500 (6,500) — Total intangible assets with definite lives 424,121 (115,663) 308,458 438,350 (103,730) 334,620 Total intangible assets $ 1,082,021 $ (115,663) $ 966,358 $ 1,096,250 $ (103,730) $ 992,520 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases | The Company included the following amounts related to operating and finance lease assets and liabilities within the Condensed Consolidated Balance Sheets: As of October 2, 2022 January 2, 2022 Assets Classification Operating lease Operating lease right of use asset, net $ 410,001 $ 435,168 Finance lease Property and equipment, net 25,604 19,298 Total leased assets $ 435,605 $ 454,466 Liabilities Current Operating lease Current operating lease liabilities $ 45,551 $ 50,359 Finance lease Current portion of long-term debt 5,243 1,583 Noncurrent Operating lease Noncurrent operating lease liabilities 400,594 415,208 Finance lease Long-term debt, less current portion 25,648 22,890 Total leased liabilities $ 477,036 $ 490,040 |
Schedule of Lease Costs and Supplemental Cash Flow Information Related to Leases | Lease costs were as follows: Quarter Ended Three Quarters Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Lease cost Classification Operating lease cost Selling, general and administrative expense $ 666 $ 648 $ 1,643 $ 1,967 Operating lease cost Operating expenses 20,605 21,201 64,262 62,910 Short-term lease cost Operating expenses 1,555 233 3,841 1,797 Variable lease costs Operating expenses 6,032 4,015 17,367 11,309 Sublease income Royalties and other revenues (35) (108) (175) (285) Finance lease cost: Amortization of right of use assets Depreciation and amortization expense $ 1,405 $ 727 $ 3,348 $ 2,375 Interest on lease liabilities Interest expense, net 489 466 1,430 1,540 Supplemental disclosures of cash flow information related to leases were as follows: Three Quarters Ended October 2, 2022 October 3, 2021 Other information Cash paid for leases: Operating cash flows for operating leases (1) $ 77,122 $ 67,129 Operating cash flows for finance leases 1,441 1,458 Financing cash flows for finance leases 2,930 2,512 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 31,246 $ 48,770 Finance leases 4,549 1,788 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents assets and liabilities that are measured at fair value on a recurring basis as of October 2, 2022 and January 2, 2022: October 2, 2022 Level 1 Level 2 Assets: 401(k) mirror plan assets $ 6 $ — Interest rate derivatives — 18,397 Commodity derivatives — 570 Foreign currency derivatives — 562 Total Assets $ 6 $ 19,529 Liabilities: Foreign currency derivatives $ — $ 219 Total Liabilities $ — $ 219 January 2, 2022 Level 1 Level 2 Assets: 401(k) mirror plan assets $ 111 $ — Commodity derivatives — 1,486 Total Assets $ 111 $ 1,486 Liabilities: Foreign currency derivatives $ — $ 80 Interest rate derivatives — 14,667 Total Liabilities $ — $ 14,747 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Condensed Consolidated Balance Sheets, Fair Value | The following tables present the fair values of derivative instruments included in the Condensed Consolidated Balance Sheets as of October 2, 2022 and January 2, 2022, 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 October 2, January 2, Balance Sheet Location Commodity derivatives $ 570 $ 1,486 Prepaid expense and other current assets Foreign currency derivatives 562 — Prepaid expense and other current assets Total Assets $ 1,132 $ 1,486 Foreign currency derivatives $ 219 $ 80 Accrued liabilities Total Liabilities $ 219 $ 80 Derivatives Fair Value Derivatives Designated as Hedging Instruments October 2, January 2, Balance Sheet Location Interest rate derivatives (current) $ 11,623 $ — Prepaid expense and other current assets Interest rate derivatives (noncurrent) 6,774 — Other assets Total Assets $ 18,397 $ — Interest rate derivatives (current) $ — $ 8,535 Accrued liabilities Interest rate derivatives (noncurrent) — 6,132 Other long-term obligations and deferred credits Total Liabilities $ — $ 14,667 |
Schedule of Derivative Instruments in Condensed Consolidated Statements of Operations, Gain (Loss) | The effect of derivative instruments on the Condensed Consolidated Statements of Operations for the quarter and three quarters ended October 2, 2022 and October 3, 2021 is as follows: Derivative Gain/(Loss) Recognized in Income for the Quarter Ended Derivative Gain/(Loss) Recognized in Income for the Three Quarters Ended Derivatives Designated as Hedging Instruments October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Location of Derivative Gain/(Loss) Recognized in Income Loss on interest rate derivatives $ (107) $ (2,613) $ (4,478) $ (7,704) Interest expense, net $ (107) $ (2,613) $ (4,478) $ (7,704) Derivative Gain/(Loss) Recognized in Income for the Quarter Ended Derivative Gain/(Loss) Recognized in Income for the Three Quarters Ended Derivatives Not Designated as Hedging Instruments October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Location of Derivative Gain/(Loss) Recognized in Income Gain on foreign currency derivatives $ 678 $ 632 $ 423 $ 256 Other non-operating expense/(income), net (Loss)/gain on commodity derivatives (1,589) (114) (917) 1,356 Other non-operating expense/(income), net $ (911) $ 518 $ (494) $ 1,612 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | RSU activity under the Company’s various plans during the periods presented is as follows: (in thousands, except per share amounts) Non-vested shares outstanding at January 2, Granted Vested Forfeited Non-vested shares outstanding at October 2, KKI RSUs 5,866 995 281 801 5,779 Weighted Average Grant Date Fair Value $ 13.78 14.34 9.54 14.18 $ 14.03 KKUK RSUs 60 — — — 60 Weighted Average Grant Date Fair Value $ 15.77 — — — $ 15.77 Insomnia Cookies RSUs 33 10 1 5 37 Weighted Average Grant Date Fair Value $ 79.66 169.70 74.12 102.67 $ 100.67 KK Australia RSUs 1,897 21 1,564 — 354 Weighted Average Grant Date Fair Value $ 1.48 1.73 1.49 — $ 1.47 KK Mexico RSUs 58 2 — — 60 Weighted Average Grant Date Fair Value $ 32.86 40.14 — — $ 33.08 |
Share-based Payment Arrangement, Nonvested Award, Cost | The unrecognized compensation cost related to the unvested RSUs and the weighted-average period over which such cost is expected to be recognized are as follows: As of October 2, 2022 Unrecognized Compensation Cost Recognized Over a KKI $ 49,955 3.0 years KKUK 222 1.2 years Insomnia Cookies 2,502 3.0 years KK Australia 192 1.8 years KK Mexico 1,431 3.2 years The unrecognized compensation cost related to the unvested stock options and the weighted-average period over which such cost is expected to be recognized are as follows: As of October 2, 2022 Unrecognized Compensation Cost Recognized Over a KKI $ 10,429 3.6 years |
Share-based Payment Arrangement, Option, Activity | A summary of the status of the time-vested stock options as of January 2, 2022 and changes during the first three quarters of fiscal 2022 is presented below: Share Options Outstanding At Share Options Outstanding At (in thousands, except per share amounts) January 2, Granted Exercised Forfeited or Expired October 2, KKI Options 2,817 — — 248 2,569 Weighted Average Grant Date Fair Value $ 6.10 — — 6.10 $ 6.10 Weighted Average Exercise Price $ 14.61 — — 14.61 $ 14.61 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenues are disaggregated as follows: Quarter Ended Three Quarters Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Company Shops, DFD and Branded Sweet Treat Line $ 353,979 $ 322,410 $ 1,060,364 $ 952,680 Mix and equipment revenue from franchisees 16,237 11,914 41,681 36,452 Franchise royalties and other 7,306 8,475 23,254 24,662 Total net revenues $ 377,522 $ 342,799 $ 1,125,299 $ 1,013,794 |
Summary of Contract Balances with Customers | Deferred revenue subject to Accounting Standards Codification Topic 606, Revenue from Contracts with Customers , and related receivables are as follows: October 2, 2022 January 2, 2022 Balance Sheet Location Trade receivables, net of allowances of $216 and $896, respectively $ 41,154 $ 41,132 Accounts receivables, net Deferred revenue: Current $ 14,878 $ 17,458 Accrued liabilities Noncurrent 3,615 2,981 Other long-term obligations and deferred credits Total deferred revenue $ 18,493 $ 20,439 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Net Loss Per Share, Basic and Diluted | The following table presents the calculations of basic and diluted EPS: Quarter Ended Three Quarters Ended (in thousands, except per share amounts) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Net loss attributable to Krispy Kreme, Inc. $ (13,056) $ (5,659) $ (12,903) $ (25,862) Adjustment to net loss attributable to common shareholders — (522) (374) (1,815) Net loss attributable to common shareholders - Basic $ (13,056) $ (6,181) $ (13,277) $ (27,677) Additional income attributed to noncontrolling interest due to subsidiary potential common shares (76) (88) (174) (237) Net loss attributable to common shareholders - Diluted $ (13,132) $ (6,269) $ (13,451) $ (27,914) Basic weighted average common shares outstanding 167,431 166,034 167,353 141,124 Dilutive effect of outstanding common stock options and RSUs — — — — Diluted weighted average common shares outstanding 167,431 166,034 167,353 141,124 Loss per share attributable to common shareholders: Basic $ (0.08) $ (0.04) $ (0.08) $ (0.20) Diluted $ (0.08) $ (0.04) $ (0.08) $ (0.20) |
Schedule of Antidilutive Unvested RSUs Excluded from Computation of Net Loss per Share | The following table summarizes the gross number of potential dilutive unvested RSUs excluded due to antidilution (unadjusted for the treasury stock method): Quarter Ended Three Quarters Ended (in thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 KKI 5,779 6,207 5,779 6,207 KKUK 60 — 2 — Insomnia Cookies 10 — 3 — KK Australia — — — — KK Mexico 60 — — — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The reportable segment results are as follows: Quarter Ended Three Quarters Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Net revenues: U.S. and Canada $ 252,609 $ 225,807 $ 756,196 $ 679,195 International 91,934 87,262 272,988 243,005 Market Development 32,979 29,730 96,115 91,594 Total net revenues $ 377,522 $ 342,799 $ 1,125,299 $ 1,013,794 Quarter Ended Three Quarters Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Segment Adjusted EBITDA: U.S. and Canada $ 21,896 $ 19,912 $ 81,521 $ 75,760 International 18,254 21,655 55,033 60,676 Market Development 10,353 9,033 32,135 29,782 Corporate (11,961) (9,183) (33,879) (26,005) 38,542 41,417 134,810 140,213 Interest expense, net 8,871 7,186 23,808 25,228 Interest expense — related party (1) — — — 10,387 Income tax expense/(benefit) 294 (2,342) 5,668 8,266 Depreciation and amortization expense 28,127 25,663 83,782 74,258 Share-based compensation 2,825 6,315 13,318 16,973 Employer payroll taxes related to share-based compensation 2 1,171 92 2,012 Other non-operating expense/(income), net (2) 1,648 732 2,083 (126) Acquisition and integration expenses (3) 790 1,288 1,389 3,663 Shop closure expenses (4) 5,735 — 7,859 — Restructuring and severance expenses (5) 2,328 57 2,804 1,393 IPO-related expenses (6) — 4,018 — 14,221 Gain on sale-leaseback (1,937) — (4,311) — Other (7) 1,699 1,081 6,108 3,064 Net loss $ (11,840) $ (3,752) $ (7,790) $ (19,126) (1) Consists of interest expense related to the Related Party Notes which were paid off in full during the quarter ended July 4, 2021. (2) Primarily foreign translation gains and losses in each period. (3) Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, consulting and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period. (4) Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment. (5) The quarter and three quarters ended October 2, 2022 consist of costs associated with restructuring of the global executive team. The quarter and three quarters ended October 3, 2021 consist of severance and related benefits costs associated with the Company’s realignment of the Company shop organizational structure to better support the DFD and Branded Sweet Treat Line businesses. (6) Includes consulting and advisory fees incurred in connection with preparation for and execution of the Company’s IPO. (7) The quarter and three quarters ended October 2, 2022 and October 3, 2021 consist primarily of legal expenses incurred outside the ordinary course of business, including the net settlement of approximately $3.3 million negotiated with TSW Foods, LLC. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Oct. 02, 2022 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 USD ($) acquiredBusiness store | Jul. 04, 2021 acquiredBusiness store | Oct. 02, 2022 USD ($) store | Oct. 03, 2021 USD ($) | Oct. 04, 2021 store | |
Business Acquisition [Line Items] | |||||
Purchase of equity method investment | $ 989 | $ 0 | |||
Krispy Kreme France | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 33% | 33% | |||
Krispy Kreme Shops Acquired 2022 | |||||
Business Acquisition [Line Items] | |||||
Number of businesses acquired | acquiredBusiness | 1 | ||||
Number of stores | store | 7 | 7 | |||
Number of stores under construction | store | 1 | 1 | |||
Consideration transferred | $ 19,400 | ||||
Consideration transferred, cash | 17,300 | ||||
Consideration transferred, amount withheld to cover indemnification claims | 1,200 | ||||
Consideration transferred, settlement of liabilities | $ 900 | ||||
Consideration payable, payment period | 12 months | ||||
Write-off | $ 300 | ||||
Intangible assets, cumulative net book value | 600 | $ 600 | |||
Krispy Kreme France | |||||
Business Acquisition [Line Items] | |||||
Purchase of equity method investment | $ 1,000 | ||||
Krispy Kreme France | Krispy Kreme France | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 33% | 33% | |||
Krispy Kreme United States Shops 2021 | |||||
Business Acquisition [Line Items] | |||||
Number of businesses acquired | acquiredBusiness | 2 | ||||
Number of stores | store | 17 | ||||
Krispy Kreme Canada Shops 2021 | |||||
Business Acquisition [Line Items] | |||||
Number of stores | store | 10 | ||||
Percentage of voting interests acquired | 60% |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jan. 02, 2022 | Oct. 03, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,074,241 | $ 1,105,322 | |
Krispy Kreme Shops Acquired 2022 | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 7 | ||
Prepaid expense and other current assets | 138 | ||
Property and equipment, net | 895 | ||
Other intangible assets, net | 11,652 | ||
Operating lease right of use asset, net | 4,702 | ||
Other assets | 20 | ||
Total identified assets acquired | 17,414 | ||
Accrued liabilities | 106 | ||
Current operating lease liabilities | 221 | ||
Noncurrent operating lease liabilities | 4,481 | ||
Total liabilities assumed | 4,808 | ||
Goodwill | 6,842 | ||
Purchase consideration, net | 19,448 | ||
Transaction costs | $ 589 | $ 6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jan. 02, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 18,282 | $ 15,278 |
Work in progress | 394 | 700 |
Finished goods and purchased merchandise | 30,730 | 18,873 |
Inventories | $ 49,406 | $ 34,851 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Oct. 02, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,105,322 |
Acquisitions | 6,842 |
Foreign currency impact | (37,923) |
Ending balance | 1,074,241 |
U.S. and Canada | |
Goodwill [Roll Forward] | |
Beginning balance | 688,048 |
Acquisitions | 11,259 |
Foreign currency impact | (1,283) |
Ending balance | 698,024 |
International | |
Goodwill [Roll Forward] | |
Beginning balance | 283,342 |
Acquisitions | 0 |
Foreign currency impact | (36,640) |
Ending balance | 246,702 |
Market Development | |
Goodwill [Roll Forward] | |
Beginning balance | 133,932 |
Acquisitions | (4,417) |
Foreign currency impact | 0 |
Ending balance | $ 129,515 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Jan. 02, 2022 | |
Intangible assets with definite lives | |||||
Gross Carrying Amount | $ 424,121 | $ 424,121 | $ 438,350 | ||
Accumulated Amortization | (115,663) | (115,663) | (103,730) | ||
Net Amount | 308,458 | 308,458 | 334,620 | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Gross Carrying Amount | 1,082,021 | 1,082,021 | 1,096,250 | ||
Accumulated Amortization | (115,663) | (115,663) | (103,730) | ||
Net Amount | 966,358 | 966,358 | 992,520 | ||
Amortization of intangible assets | 7,100 | $ 7,500 | 21,300 | $ 22,600 | |
Trade name | |||||
Intangible assets with indefinite lives | |||||
Trade name | 657,900 | 657,900 | 657,900 | ||
Franchise agreements | |||||
Intangible assets with definite lives | |||||
Gross Carrying Amount | 30,632 | 30,632 | 32,545 | ||
Accumulated Amortization | (9,006) | (9,006) | (8,369) | ||
Net Amount | 21,626 | 21,626 | 24,176 | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Accumulated Amortization | (9,006) | (9,006) | (8,369) | ||
Customer relationships | |||||
Intangible assets with definite lives | |||||
Gross Carrying Amount | 15,000 | 15,000 | 15,000 | ||
Accumulated Amortization | (5,332) | (5,332) | (4,684) | ||
Net Amount | 9,668 | 9,668 | 10,316 | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Accumulated Amortization | (5,332) | (5,332) | (4,684) | ||
Reacquired franchise rights | |||||
Intangible assets with definite lives | |||||
Gross Carrying Amount | 371,989 | 371,989 | 384,305 | ||
Accumulated Amortization | (94,825) | (94,825) | (84,177) | ||
Net Amount | 277,164 | 277,164 | 300,128 | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Accumulated Amortization | (94,825) | (94,825) | (84,177) | ||
Website development costs | |||||
Intangible assets with definite lives | |||||
Gross Carrying Amount | 6,500 | 6,500 | 6,500 | ||
Accumulated Amortization | (6,500) | (6,500) | (6,500) | ||
Net Amount | 0 | 0 | 0 | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Accumulated Amortization | $ (6,500) | $ (6,500) | $ (6,500) |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jan. 02, 2022 |
Assets | ||
Operating lease | $ 410,001 | $ 435,168 |
Finance lease | $ 25,604 | $ 19,298 |
Finance lease assets, statement of financial position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Total leased assets | $ 435,605 | $ 454,466 |
Current | ||
Current operating lease liabilities | 45,551 | 50,359 |
Current finance lease liabilities | $ 5,243 | $ 1,583 |
Finance lease liabilities, current, statement of financial position [Extensible Enumeration] | Current portion of long-term debt | Current portion of long-term debt |
Noncurrent | ||
Noncurrent operating lease liabilities | $ 400,594 | $ 415,208 |
Noncurrent finance lease liabilities | $ 25,648 | $ 22,890 |
Finance lease liabilities, noncurrent, statement of financial position [Extensible Enumeration] | Long-term debt, less current portion | Long-term debt, less current portion |
Total leased liabilities | $ 477,036 | $ 490,040 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Operating lease cost | ||||
Short-term lease cost | $ 1,555 | $ 233 | $ 3,841 | $ 1,797 |
Variable lease costs | 6,032 | 4,015 | 17,367 | 11,309 |
Sublease income | (35) | (108) | (175) | (285) |
Amortization of right of use assets | 1,405 | 727 | 3,348 | 2,375 |
Interest on lease liabilities | 489 | 466 | 1,430 | 1,540 |
Selling, general and administrative expense | ||||
Operating lease cost | ||||
Operating lease cost | 666 | 648 | 1,643 | 1,967 |
Operating expenses | ||||
Operating lease cost | ||||
Operating lease cost | $ 20,605 | $ 21,201 | $ 64,262 | $ 62,910 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Cash paid for leases: | ||
Operating cash flows for operating leases | $ 77,122 | $ 67,129 |
Operating cash flows for finance leases | 1,441 | 1,458 |
Financing cash flows for finance leases | 2,930 | 2,512 |
Right-of-use assets obtained in exchange for new lease liabilities: | ||
Operating leases | 31,246 | 48,770 |
Finance leases | 4,549 | 1,788 |
Variable lease, payment | $ 17,400 | $ 11,300 |
Leases - Additional Information
Leases - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) property | Mar. 31, 2022 USD ($) property | Oct. 02, 2022 USD ($) | Oct. 03, 2021 USD ($) | Oct. 02, 2022 USD ($) | Oct. 03, 2021 USD ($) | |
Leases [Abstract] | ||||||
Leases, termination costs | $ 3,000,000 | $ 0 | $ 4,400,000 | $ 0 | ||
Number of real estate properties | property | 1 | 1 | ||||
Proceeds from sale-leaseback | $ 2,700,000 | $ 3,000,000 | 5,700,000 | 0 | ||
Gain on sale-leaseback | $ 1,900,000 | $ 2,600,000 | $ 1,937,000 | $ 0 | $ 4,311,000 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair value, recurring - USD ($) | Oct. 02, 2022 | Jan. 02, 2022 |
Level 1 | ||
Assets: | ||
401(k) mirror plan assets | $ 6,000 | $ 111,000 |
Total Assets | 6,000 | 111,000 |
Liabilities: | ||
Total Liabilities | 0 | 0 |
Level 1 | Interest rate derivatives | ||
Assets: | ||
Derivative assets | 0 | |
Liabilities: | ||
Derivative liabilities | 0 | |
Level 1 | Commodity derivatives | ||
Assets: | ||
Derivative assets | 0 | 0 |
Level 1 | Foreign currency derivatives | ||
Assets: | ||
Derivative assets | 0 | |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 2 | ||
Assets: | ||
401(k) mirror plan assets | 0 | 0 |
Total Assets | 19,529,000 | 1,486,000 |
Liabilities: | ||
Total Liabilities | 219,000 | 14,747,000 |
Level 2 | Interest rate derivatives | ||
Assets: | ||
Derivative assets | 18,397,000 | |
Liabilities: | ||
Derivative liabilities | 14,667,000 | |
Level 2 | Commodity derivatives | ||
Assets: | ||
Derivative assets | 570,000 | 1,486,000 |
Level 2 | Foreign currency derivatives | ||
Assets: | ||
Derivative assets | 562,000 | |
Liabilities: | ||
Derivative liabilities | 219,000 | $ 80,000 |
Level 3 | ||
Assets: | ||
Total Assets | $ 0 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) $ in Thousands, gal in Millions | Oct. 02, 2022 USD ($) gal | Jan. 02, 2022 USD ($) gal |
Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative asset, fair value | $ 1,132 | $ 1,486 |
Derivative liability, fair value | 219 | 80 |
Derivatives Designated as Hedging Instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative asset, fair value | 18,397 | 0 |
Derivative liability, fair value | $ 0 | $ 14,667 |
Commodity derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, notional amount (in gallon) | gal | 2.1 | 1.9 |
Derivative asset, fair value | $ 600 | $ 1,500 |
Interest rate derivatives | Derivatives Designated as Hedging Instruments | Cash Flow Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative liability, fair value | 18,400 | 14,700 |
Foreign currency derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative asset, fair value | 300 | 100 |
Derivative, notional amount | $ 59,300 | $ 51,800 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments in Condensed Consolidated Balance Sheets, Fair Value (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jan. 02, 2022 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 1,132 | $ 1,486 |
Derivative liability, fair value | 219 | 80 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 18,397 | 0 |
Derivative liability, fair value | 0 | 14,667 |
Commodity derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 600 | 1,500 |
Foreign currency derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 300 | 100 |
Prepaid expense and other current assets | Commodity derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 570 | 1,486 |
Prepaid expense and other current assets | Foreign currency derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 562 | 0 |
Prepaid expense and other current assets | Interest rate derivatives | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 11,623 | 0 |
Accrued liabilities | Foreign currency derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 219 | 80 |
Accrued liabilities | Interest rate derivatives | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 0 | 8,535 |
Other assets | Interest rate derivatives | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 6,774 | 0 |
Other long-term obligations and deferred credits | Interest rate derivatives | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 0 | $ 6,132 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Derivative Instruments in Condensed Consolidated Statements of Operations, Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gain (loss) recognised in income, derivatives designated as hedging instruments | $ (107) | $ (2,613) | $ (4,478) | $ (7,704) |
Derivative gain (loss) recognised in income, derivatives not designated as hedging instruments | (911) | 518 | (494) | 1,612 |
Interest rate derivatives | Interest expense, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gain (loss) recognised in income, derivatives designated as hedging instruments | (107) | (2,613) | (4,478) | (7,704) |
Foreign currency derivatives | Other non-operating expense/(income), net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gain (loss) recognised in income, derivatives not designated as hedging instruments | 678 | 632 | 423 | 256 |
Commodity derivatives | Other non-operating expense/(income), net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gain (loss) recognised in income, derivatives not designated as hedging instruments | $ (1,589) | $ (114) | $ (917) | $ 1,356 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock unit expense | $ 11.4 | $ 14.9 | ||
Stock option plan expense | $ 0.3 | $ 1.2 | $ 1.9 | $ 2.1 |
KKI | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vested (in shares) | 0 | 0 | ||
Stock option exercised (in shares) | 0 | 0 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock unit expense | $ 2.5 | $ 5.1 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of RSU Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands | 9 Months Ended |
Oct. 02, 2022 $ / shares shares | |
KKI | |
RSUs | |
Beginning balance, non-vested shares outstanding (in shares) | shares | 5,866 |
Granted (in shares) | shares | 995 |
Vested (in shares) | shares | 281 |
Forfeited (in shares) | shares | 801 |
Ending balance, non-vested shares outstanding (in shares) | shares | 5,779 |
Weighted Average Grant Date Fair Value | |
Beginning balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 13.78 |
Granted, weighted average grant date fair value (in USD per share) | $ / shares | 14.34 |
Vested, weighted average grant date fair value (in USD per share) | $ / shares | 9.54 |
Forfeited, weighted average grant date fair value (in USD per share) | $ / shares | 14.18 |
Ending balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 14.03 |
KKUK | |
RSUs | |
Beginning balance, non-vested shares outstanding (in shares) | shares | 60 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending balance, non-vested shares outstanding (in shares) | shares | 60 |
Weighted Average Grant Date Fair Value | |
Beginning balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 15.77 |
Granted, weighted average grant date fair value (in USD per share) | $ / shares | 0 |
Vested, weighted average grant date fair value (in USD per share) | $ / shares | 0 |
Forfeited, weighted average grant date fair value (in USD per share) | $ / shares | 0 |
Ending balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 15.77 |
Insomnia Cookies | |
RSUs | |
Beginning balance, non-vested shares outstanding (in shares) | shares | 33 |
Granted (in shares) | shares | 10 |
Vested (in shares) | shares | 1 |
Forfeited (in shares) | shares | 5 |
Ending balance, non-vested shares outstanding (in shares) | shares | 37 |
Weighted Average Grant Date Fair Value | |
Beginning balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 79.66 |
Granted, weighted average grant date fair value (in USD per share) | $ / shares | 169.70 |
Vested, weighted average grant date fair value (in USD per share) | $ / shares | 74.12 |
Forfeited, weighted average grant date fair value (in USD per share) | $ / shares | 102.67 |
Ending balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 100.67 |
KK Australia | |
RSUs | |
Beginning balance, non-vested shares outstanding (in shares) | shares | 1,897 |
Granted (in shares) | shares | 21 |
Vested (in shares) | shares | 1,564 |
Forfeited (in shares) | shares | 0 |
Ending balance, non-vested shares outstanding (in shares) | shares | 354 |
Weighted Average Grant Date Fair Value | |
Beginning balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 1.48 |
Granted, weighted average grant date fair value (in USD per share) | $ / shares | 1.73 |
Vested, weighted average grant date fair value (in USD per share) | $ / shares | 1.49 |
Forfeited, weighted average grant date fair value (in USD per share) | $ / shares | 0 |
Ending balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 1.47 |
KK Mexico | |
RSUs | |
Beginning balance, non-vested shares outstanding (in shares) | shares | 58 |
Granted (in shares) | shares | 2 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending balance, non-vested shares outstanding (in shares) | shares | 60 |
Weighted Average Grant Date Fair Value | |
Beginning balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 32.86 |
Granted, weighted average grant date fair value (in USD per share) | $ / shares | 40.14 |
Vested, weighted average grant date fair value (in USD per share) | $ / shares | 0 |
Forfeited, weighted average grant date fair value (in USD per share) | $ / shares | 0 |
Ending balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 33.08 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of RSU Unrecognized Compensation Expense (Details) - Restricted Stock Units (RSUs) $ in Thousands | 9 Months Ended |
Oct. 02, 2022 USD ($) | |
KKI | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 49,955 |
Recognized Over a Weighted-Average Period of | 3 years |
KKUK | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 222 |
Recognized Over a Weighted-Average Period of | 1 year 2 months 12 days |
Insomnia Cookies | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 2,502 |
Recognized Over a Weighted-Average Period of | 3 years |
KK Australia | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 192 |
Recognized Over a Weighted-Average Period of | 1 year 9 months 18 days |
KK Mexico | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 1,431 |
Recognized Over a Weighted-Average Period of | 3 years 2 months 12 days |
Share-based Compensation - Sc_3
Share-based Compensation - Schedule of Stock Option Activity (Details) - KKI - $ / shares | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Options | ||
Beginning balance, share options outstanding (in shares) | 2,817,000 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | 0 |
Forfeited or expired (in shares) | 248,000 | |
Ending balance, share options outstanding (in shares) | 2,569,000 | |
Weighted Average Grant Date Fair Value | ||
Beginning balance, share options outstanding (in USD per share) | $ 6.10 | |
Granted (in USD per share) | 0 | |
Exercised (in USD per share) | 0 | |
Forfeited or expired (in USD per share) | 6.10 | |
Ending balance, share options outstanding (in USD per share) | 6.10 | |
Weighted Average Exercise Price | ||
Beginning balance, share options outstanding (in USD per share) | 14.61 | |
Granted (in USD per share) | 0 | |
Exercised (in USD per share) | 0 | |
Forfeited or expired (in USD per share) | 14.61 | |
Ending balance, share options outstanding (in USD per share) | $ 14.61 |
Share-based Compensation - Sc_4
Share-based Compensation - Schedule of Stock Option Unrecognized Compensation Expense (Details) - Share-based Payment Arrangement, Option - KKI $ in Thousands | 9 Months Ended |
Oct. 02, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 10,429 |
Recognized Over a Weighted-Average Period of | 3 years 7 months 6 days |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | (2.50%) | 38.40% | (267.10%) | (76.10%) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Oct. 02, 2022 | Jan. 02, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding | $ 12.2 | $ 8.5 |
Related Party Transactions (Det
Related Party Transactions (Details) | 3 Months Ended | 9 Months Ended | ||||||
Oct. 02, 2022 USD ($) equityMethodInvestment | Oct. 03, 2021 USD ($) | Oct. 02, 2022 USD ($) equityMethodInvestment | Oct. 03, 2021 USD ($) | Jan. 02, 2022 USD ($) equityMethodInvestment | Jan. 03, 2021 USD ($) | Apr. 30, 2019 USD ($) | Dec. 31, 2017 USD ($) | |
Related Party Transaction [Line Items] | ||||||||
Number of franchisees | equityMethodInvestment | 3,000,000 | 3,000,000 | 2,000,000 | |||||
Interest expense, related party | $ 0 | $ 0 | $ 0 | $ 10,387,000 | ||||
Equity Method Investee | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity method investments | $ 1,900,000 | 1,900,000 | $ 1,100,000 | |||||
Affiliated Entity | Krispy Kreme, G.P. (“KK GP”) | Unsecured Debt | ||||||||
Related Party Transaction [Line Items] | ||||||||
Long-term debt | $ 344,600,000 | |||||||
Interest expense, related party | $ 0 | $ 10,400,000 | ||||||
Affiliated Entity | Krispy Kreme, G.P. (“KK GP”) | Unsecured Debt | Senior Unsecured Note (The Original Agreement) | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt instrument, face amount | $ 283,100,000 | |||||||
Affiliated Entity | Krispy Kreme, G.P. (“KK GP”) | Unsecured Debt | Senior Unsecured Note (The Additional Agreement) | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt instrument, face amount | $ 54,000,000 | |||||||
KremeWorks USA, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 20% | 20% | 20% | |||||
KremeWorks Canada, L.P. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 25% | 25% | 25% | |||||
Krispy Kreme France | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 33% | 33% |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 377,522 | $ 342,799 | $ 1,125,299 | $ 1,013,794 |
Company Shops, DFD and Branded Sweet Treat Line | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 353,979 | 322,410 | 1,060,364 | 952,680 |
Mix and equipment revenue from franchisees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 16,237 | 11,914 | 41,681 | 36,452 |
Franchise royalties and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 7,306 | $ 8,475 | $ 23,254 | $ 24,662 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Contract Balances with Customers (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jan. 02, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Trade receivables, net of allowances of $216 and $896, respectively | $ 41,154 | $ 41,132 |
Trade receivables, allowance for credit loss | 216 | 896 |
Deferred revenue: | ||
Current | 14,878 | 17,458 |
Noncurrent | 3,615 | 2,981 |
Total deferred revenue | $ 18,493 | $ 20,439 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Net Loss Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to Krispy Kreme, Inc. | $ (13,056) | $ (5,659) | $ (12,903) | $ (25,862) |
Adjustment to net loss attributable to common shareholders | 0 | (522) | (374) | (1,815) |
Net loss attributable to common shareholders - Basic | (13,056) | (6,181) | (13,277) | (27,677) |
Additional income attributed to noncontrolling interest due to subsidiary potential common shares | (76) | (88) | (174) | (237) |
Net loss attributable to common shareholders - Diluted | $ (13,132) | $ (6,269) | $ (13,451) | $ (27,914) |
Basic weighted average common shares outstanding (in shares) | 167,431 | 166,034 | 167,353 | 141,124 |
Dilutive effect of outstanding common stock options and RSUs (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted average common shares outstanding (in shares) | 167,431 | 166,034 | 167,353 | 141,124 |
Net loss per share: | ||||
Basic earnings/(loss) per share (in dollars per shares) | $ (0.08) | $ (0.04) | $ (0.08) | $ (0.20) |
Diluted earnings/(loss) per share (in dollars per shares) | $ (0.08) | $ (0.04) | $ (0.08) | $ (0.20) |
Net Loss per Share - Schedule_2
Net Loss per Share - Schedule of Antidilutive Unvested RSUs Excluded from Computation of Net Loss per Share (Details) - Restricted Stock Units (RSUs) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
KKI | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net loss per share | 5,779 | 6,207 | 5,779 | 6,207 |
KKUK | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net loss per share | 60 | 0 | 2 | 0 |
Insomnia Cookies | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net loss per share | 10 | 0 | 3 | 0 |
KK Australia | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net loss per share | 0 | 0 | 0 | 0 |
KK Mexico | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net loss per share | 60 | 0 | 0 | 0 |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Details) shares in Millions | 9 Months Ended |
Oct. 02, 2022 shares | |
Share-based Payment Arrangement, Option | KKI | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities excluded from computation of net loss per share | 2.6 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Oct. 02, 2022 USD ($) | Jul. 03, 2022 USD ($) | Apr. 03, 2022 USD ($) | Oct. 03, 2021 USD ($) | Jul. 04, 2021 USD ($) | Apr. 04, 2021 USD ($) | Oct. 02, 2022 USD ($) segment | Oct. 03, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||
Number of reportable segments | segment | 3 | |||||||||
Total net revenues | $ 377,522 | $ 342,799 | $ 1,125,299 | $ 1,013,794 | ||||||
Segment adjusted EBITDA | 38,542 | 41,417 | 134,810 | 140,213 | ||||||
Interest expense, net | 8,871 | 7,186 | 23,808 | 25,228 | ||||||
Interest expense — related party | 0 | 0 | 0 | 10,387 | ||||||
Income tax expense/(benefit) | 294 | (2,342) | 5,668 | 8,266 | ||||||
Depreciation and amortization expense | 28,127 | 25,663 | 83,782 | 74,258 | ||||||
Share-based compensation | 2,825 | 6,315 | 13,318 | 16,973 | ||||||
Employer payroll taxes related to share-based compensation | 2 | 1,171 | 92 | 2,012 | ||||||
Other non-operating expense/(income), net | 1,648 | 732 | 2,083 | (126) | ||||||
Acquisition and integration expenses | 790 | 1,288 | 1,389 | 3,663 | ||||||
Shop closure expenses | 5,735 | 0 | 7,859 | 0 | ||||||
Restructuring and severance expenses | 2,328 | 57 | 2,804 | 1,393 | ||||||
IPO-related expenses | 0 | 4,018 | 0 | 14,221 | ||||||
Gain on sale-leaseback | $ (1,900) | $ (2,600) | (1,937) | 0 | (4,311) | 0 | ||||
Other | 1,699 | 1,081 | 6,108 | 3,064 | ||||||
Net loss | (11,840) | $ (2,408) | $ 6,458 | (3,752) | $ (14,996) | $ (378) | (7,790) | (19,126) | ||
Litigation settlement, amount awarded to other party | 3,300 | 3,300 | ||||||||
Corporate | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Segment adjusted EBITDA | (11,961) | (9,183) | (33,879) | (26,005) | ||||||
U.S. and Canada | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total net revenues | 252,609 | 225,807 | 756,196 | 679,195 | ||||||
U.S. and Canada | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Segment adjusted EBITDA | 21,896 | 19,912 | 81,521 | 75,760 | ||||||
International | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total net revenues | 91,934 | 87,262 | 272,988 | 243,005 | ||||||
International | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Segment adjusted EBITDA | 18,254 | 21,655 | 55,033 | 60,676 | ||||||
Market Development | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total net revenues | 32,979 | 29,730 | 96,115 | 91,594 | ||||||
Market Development | Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Segment adjusted EBITDA | $ 10,353 | $ 9,033 | $ 32,135 | $ 29,782 |