Krispy Kreme (DNUT) 10-Q 15 Nov 22 2022 Q3 Quarterly report Financial data

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