Cover Page
Cover Page - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40573 | |
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, $0.01 par value per share | |
Entity Trading Symbol | DNUT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 169.6 | |
Entity Central Index Key | 0001857154 | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Total net revenues | $ 438,809 | $ 408,882 | $ 881,507 | $ 827,832 |
Product and distribution costs | 107,846 | 111,106 | 214,861 | 228,939 |
Operating expenses | 212,504 | 189,165 | 417,699 | 380,573 |
Selling, general and administrative expense | 64,466 | 62,582 | 136,040 | 124,050 |
Marketing expenses | 12,416 | 9,770 | 24,531 | 19,623 |
Pre-opening costs | 967 | 1,104 | 2,072 | 1,868 |
Other (income)/expenses, net | (849) | 314 | (649) | (4,949) |
Depreciation and amortization expense | 34,600 | 29,196 | 68,186 | 57,135 |
Operating income | 6,859 | 5,645 | 18,767 | 20,593 |
Interest expense, net | 14,452 | 12,063 | 28,188 | 24,051 |
Other non-operating expense, net | 949 | 1,061 | 1,522 | 2,060 |
Loss before income taxes | (8,542) | (7,479) | (10,943) | (5,518) |
Income tax (benefit)/expense | (3,611) | (7,563) | 651 | (7,246) |
Net (loss)/income | (4,931) | 84 | (11,594) | 1,728 |
Net income/(loss) attributable to noncontrolling interest | 560 | (139) | 2,431 | 1,806 |
Net (loss)/income attributable to Krispy Kreme, Inc. | $ (5,491) | $ 223 | $ (14,025) | $ (78) |
Net (loss)/income per share: | ||||
Common stock — Basic (in dollars per share) | $ (0.03) | $ 0 | $ (0.08) | $ 0 |
Common stock — Diluted (in dollars per share) | $ (0.03) | $ 0 | $ (0.08) | $ 0 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 169,095,000 | 168,184,000 | 168,890,000 | 168,162,000 |
Diluted (in shares) | 169,095,000 | 170,659,000 | 168,890,000 | 168,162,000 |
Product sales | ||||
Total net revenues | $ 429,411 | $ 400,348 | $ 862,923 | $ 811,022 |
Royalties and other revenues | ||||
Total net revenues | $ 9,398 | $ 8,534 | $ 18,584 | $ 16,810 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net (loss)/income | $ (4,931) | $ 84 | $ (11,594) | $ 1,728 | |
Other comprehensive (loss)/income, net of income taxes: | |||||
Foreign currency translation adjustment | (7,944) | 9,294 | (14,013) | 20,386 | |
Unrealized (loss)/income on cash flow hedges, net of income taxes (1) | [1] | (3,504) | 472 | (6,188) | (2,495) |
Total other comprehensive (loss)/income | (11,448) | 9,766 | (20,201) | 17,891 | |
Comprehensive (loss)/income | (16,379) | 9,850 | (31,795) | 19,619 | |
Net income/(loss) attributable to noncontrolling interest | 560 | (139) | 2,431 | 1,806 | |
Foreign currency translation adjustment attributable to noncontrolling interest | (62) | 1,063 | (361) | 955 | |
Total comprehensive income attributable to noncontrolling interest | 498 | 924 | 2,070 | 2,761 | |
Comprehensive (loss)/income attributable to Krispy Kreme, Inc. | $ (16,877) | $ 8,926 | $ (33,865) | $ 16,858 | |
[1] Net of income tax benefit/(expense) of $1.2 million and $2.1 million for the quarter and two quarters ended June 30, 2024, respectively, and ($0.2 million) and $0.8 million for the quarter and two quarters ended July 2, 2023, respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized income on cash flow hedges, tax expense (benefit) | $ 1.2 | $ (0.2) | $ 2.1 | $ 0.8 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 28,625 | $ 38,185 |
Restricted cash | 483 | 429 |
Accounts receivable, net | 57,348 | 59,362 |
Inventories | 39,461 | 34,716 |
Taxes receivable | 18,143 | 15,526 |
Prepaid expense and other current assets | 24,110 | 25,363 |
Total current assets | 168,170 | 173,581 |
Property and equipment, net | 551,406 | 538,220 |
Goodwill | 1,096,249 | 1,101,939 |
Other intangible assets, net | 927,714 | 946,349 |
Operating lease right of use asset, net | 456,124 | 456,964 |
Other assets | 23,823 | 23,539 |
Total assets | 3,223,486 | 3,240,592 |
Current liabilities: | ||
Current portion of long-term debt | 59,827 | 54,631 |
Current operating lease liabilities | 54,937 | 50,365 |
Accounts payable | 135,197 | 156,488 |
Accrued liabilities | 114,269 | 134,005 |
Structured payables | 129,344 | 130,104 |
Total current liabilities | 493,574 | 525,593 |
Long-term debt, less current portion | 894,979 | 836,615 |
Noncurrent operating lease liabilities | 453,338 | 454,583 |
Deferred income taxes, net | 115,800 | 123,925 |
Other long-term obligations and deferred credits | 36,538 | 36,093 |
Total liabilities | 1,994,229 | 1,976,809 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, $0.01 par value; 300,000 shares authorized as of both June 30, 2024 and December 31, 2023; 169,357 and 168,628 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 1,694 | 1,686 |
Additional paid-in capital | 1,453,944 | 1,443,591 |
Shareholder note receivable | (2,865) | (3,850) |
Accumulated other comprehensive (loss)/income, net of income tax | (12,594) | 7,246 |
Retained deficit | (304,840) | (278,990) |
Total shareholders’ equity attributable to Krispy Kreme, Inc. | 1,135,339 | 1,169,683 |
Noncontrolling interest | 93,918 | 94,100 |
Total shareholders’ equity | 1,229,257 | 1,263,783 |
Total liabilities and shareholders’ equity | $ 3,223,486 | $ 3,240,592 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
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) | 169,357 | 168,628 |
Common stock, shares outstanding (in shares) | 169,357 | 168,628 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) shares in Thousands, $ 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 | |
Beginning balance (in shares) at Jan. 01, 2023 | 168,137 | |||||||||
Beginning balance at Jan. 01, 2023 | $ 1,298,875 | $ 1,681 | $ 1,426,105 | $ (4,813) | $ (23,028) | $ 14,251 | $ (374) | $ (217,490) | $ 102,543 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 1,644 | (301) | 1,945 | |||||||
Other comprehensive income/(loss), before reclassifications | 10,311 | 11,200 | (781) | (108) | ||||||
Reclassification from AOCI | (2,186) | (2,186) | ||||||||
Share-based compensation | 5,545 | 5,545 | ||||||||
Dividends declared on common stock and equivalents | (5,884) | (5,884) | ||||||||
Distribution to noncontrolling interest | (1,139) | 0 | (1,139) | |||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld (in shares) | 39 | |||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld | 0 | $ 1 | (1) | |||||||
Other | (16) | 0 | (17) | 1 | ||||||
Ending balance (in shares) at Apr. 02, 2023 | 168,176 | |||||||||
Ending balance at Apr. 02, 2023 | $ 1,307,150 | $ 1,682 | 1,431,649 | (4,830) | (11,828) | 11,284 | (374) | (223,674) | 103,241 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividends declared on common stock and equivalents (in dollars per share) | $ 0.035 | |||||||||
Beginning balance (in shares) at Jan. 01, 2023 | 168,137 | |||||||||
Beginning balance at Jan. 01, 2023 | $ 1,298,875 | $ 1,681 | 1,426,105 | (4,813) | (23,028) | 14,251 | (374) | (217,490) | 102,543 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 1,728 | |||||||||
Ending balance (in shares) at Jul. 02, 2023 | 168,184 | |||||||||
Ending balance at Jul. 02, 2023 | 1,306,275 | $ 1,682 | 1,432,150 | (3,809) | (3,598) | 11,756 | (374) | (229,340) | 97,808 | |
Beginning balance (in shares) at Apr. 02, 2023 | 168,176 | |||||||||
Beginning balance at Apr. 02, 2023 | 1,307,150 | $ 1,682 | 1,431,649 | (4,830) | (11,828) | 11,284 | (374) | (223,674) | 103,241 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 84 | 223 | (139) | |||||||
Other comprehensive income/(loss), before reclassifications | 10,212 | 8,231 | 918 | 1,063 | ||||||
Reclassification from AOCI | (446) | (446) | ||||||||
Capital contribution from shareholders, net of loans issued | 631 | 0 | 631 | |||||||
Share-based compensation | 4,824 | 4,824 | ||||||||
Dividends declared on common stock and equivalents | (5,889) | (5,889) | ||||||||
Distribution to noncontrolling interest | (10,107) | (4,176) | 426 | (6,357) | ||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld (in shares) | 8 | |||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld | (147) | $ 0 | (147) | |||||||
Other | (37) | (36) | (1) | 0 | ||||||
Ending balance (in shares) at Jul. 02, 2023 | 168,184 | |||||||||
Ending balance at Jul. 02, 2023 | $ 1,306,275 | $ 1,682 | 1,432,150 | (3,809) | (3,598) | 11,756 | (374) | (229,340) | 97,808 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividends declared on common stock and equivalents (in dollars per share) | $ 0.035 | |||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 168,628 | 168,628 | ||||||||
Beginning balance at Dec. 31, 2023 | $ 1,263,783 | $ 1,686 | 1,443,591 | (3,850) | 1,985 | 5,629 | (368) | (278,990) | 94,100 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | (6,663) | (8,534) | 1,871 | |||||||
Other comprehensive income/(loss), before reclassifications | (5,702) | (5,770) | 367 | (299) | ||||||
Reclassification from AOCI | (3,051) | (3,051) | ||||||||
Capital contribution from shareholders, net of loans issued | 232 | 0 | 232 | |||||||
Share-based compensation | 6,986 | 6,986 | ||||||||
Dividends declared on common stock and equivalents | [1] | (5,905) | (5,905) | |||||||
Distribution to noncontrolling interest | (977) | (977) | ||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld (in shares) | 103 | |||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld | (804) | $ 1 | (805) | |||||||
Other | (12) | 1 | (11) | (1) | (1) | |||||
Ending balance (in shares) at Mar. 31, 2024 | 168,731 | |||||||||
Ending balance at Mar. 31, 2024 | $ 1,247,887 | $ 1,687 | 1,449,773 | (3,629) | (3,785) | 2,945 | (368) | (293,430) | 94,694 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividends declared on common stock and equivalents (in dollars per share) | $ 0.035 | |||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 168,628 | 168,628 | ||||||||
Beginning balance at Dec. 31, 2023 | $ 1,263,783 | $ 1,686 | 1,443,591 | (3,850) | 1,985 | 5,629 | (368) | (278,990) | 94,100 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | $ (11,594) | |||||||||
Ending balance (in shares) at Jun. 30, 2024 | 169,357 | 169,357 | ||||||||
Ending balance at Jun. 30, 2024 | $ 1,229,257 | $ 1,694 | 1,453,944 | (2,865) | (11,667) | (559) | (368) | (304,840) | 93,918 | |
Beginning balance (in shares) at Mar. 31, 2024 | 168,731 | |||||||||
Beginning balance at Mar. 31, 2024 | 1,247,887 | $ 1,687 | 1,449,773 | (3,629) | (3,785) | 2,945 | (368) | (293,430) | 94,694 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | (4,931) | (5,491) | 560 | |||||||
Other comprehensive income/(loss), before reclassifications | (8,432) | (7,882) | (488) | (62) | ||||||
Reclassification from AOCI | (3,016) | (3,016) | ||||||||
Capital contribution from shareholders, net of loans issued | 687 | 0 | 687 | |||||||
Share-based compensation | 7,648 | 7,648 | ||||||||
Dividends declared on common stock and equivalents | (5,919) | (5,919) | ||||||||
Distribution to noncontrolling interest | (1,169) | 0 | 105 | (1,274) | ||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld (in shares) | 626 | |||||||||
Issuance of common stock upon settlement of RSUs, net of shares withheld | (3,471) | $ 6 | (3,477) | |||||||
Other | $ (27) | $ 1 | (28) | |||||||
Ending balance (in shares) at Jun. 30, 2024 | 169,357 | 169,357 | ||||||||
Ending balance at Jun. 30, 2024 | $ 1,229,257 | $ 1,694 | $ 1,453,944 | $ (2,865) | $ (11,667) | $ (559) | $ (368) | $ (304,840) | $ 93,918 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividends declared on common stock and equivalents (in dollars per share) | $ 0.035 | |||||||||
[1] Includes a $0.035 cash dividend per common share declared in the second quarter of fiscal 2024 and expected to be paid in the third quarter of fiscal 2024. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jul. 02, 2023 | Apr. 02, 2023 | |
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 | 6 Months Ended | |
Jun. 30, 2024 | Jul. 02, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss)/income | $ (11,594) | $ 1,728 |
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 68,186 | 57,135 |
Deferred and other income taxes | (5,338) | (11,743) |
Loss on extinguishment of debt | 0 | 472 |
Impairment and lease termination charges | 448 | 7,808 |
Gain on disposal of property and equipment | (3) | (151) |
Gain on sale-leaseback | 0 | (9,646) |
Share-based compensation | 14,634 | 10,369 |
Change in accounts and notes receivable allowances | 327 | 372 |
Inventory write-off | 1,038 | 10,244 |
Settlement of interest rate swap derivatives | 0 | 7,657 |
Amortization related to settlement of interest rate swap derivatives | (5,910) | (4,379) |
Other | 858 | 996 |
Change in operating assets and liabilities, excluding foreign currency translation adjustments | (47,121) | (24,609) |
Net cash provided by operating activities | 15,525 | 46,253 |
CASH FLOWS USED FOR INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (60,735) | (54,290) |
Proceeds from sale-leaseback | 0 | 10,025 |
Purchase of equity method investment | (3,506) | 0 |
Disbursement for loan receivable | (1,086) | 0 |
Other investing activities | 166 | 163 |
Net cash used for investing activities | (65,161) | (44,102) |
CASH FLOWS FROM/(USED FOR) FINANCING ACTIVITIES: | ||
Proceeds from the issuance of debt | 365,000 | 989,198 |
Repayment of long-term debt and lease obligations | (306,797) | (916,580) |
Payment of financing costs | 0 | (5,000) |
Proceeds from structured payables | 190,162 | 73,939 |
Payments on structured payables | (190,811) | (126,920) |
Capital contribution by shareholders, net of loans issued | 919 | 631 |
Distribution to shareholders | (11,807) | (11,771) |
Payments for repurchase and retirement of common stock | (4,275) | (147) |
Distribution to noncontrolling interest | (2,146) | (11,246) |
Net cash provided by/(used for) financing activities | 40,245 | (7,896) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (115) | (3,011) |
Net decrease in cash, cash equivalents and restricted cash | (9,506) | (8,756) |
Cash, cash equivalents and restricted cash at beginning of period | 38,614 | 35,730 |
Cash, cash equivalents and restricted cash at end of period | 29,108 | 26,974 |
Supplemental schedule of non-cash investing and financing activities: | ||
Increase in accrual for property and equipment | 12,176 | 10,636 |
Accrual for distribution to shareholders | (5,919) | (5,886) |
Reconciliation of cash, cash equivalents and restricted cash at end of period: | ||
Cash and cash equivalents | 28,625 | 26,635 |
Restricted cash | 483 | 339 |
Total cash, cash equivalents and restricted cash | $ 29,108 | $ 26,974 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
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”) operates through its omni-channel business model to deliver fresh doughnut experiences and produce doughnuts for Doughnut Shops, Delivered Fresh Daily (“DFD”) outlets, and digital channels, expanding consumer access to the Krispy Kreme brand. The Company has three reportable operating segments: 1) U.S., which includes all Krispy Kreme Company-owned operations in the U.S. and Insomnia Cookies Bakeries globally; 2) International, which includes all Krispy Kreme Company-owned operations in the U.K., Ireland, Australia, New Zealand, Mexico, Canada, and Japan; and 3) Market Development, which includes franchise operations across the globe. Unallocated corporate costs are excluded from the Company’s measurement of segment performance. Basis of Presentation and Consolidation The Company operates and reports financial information on a 52 or 53-week year with the fiscal year ending on the Sunday closest to December 31. The data periods contained within fiscal years 2023 and 2024 will reflect the results of operations for the 52-week periods ended December 31, 2023 and December 29, 2024, respectively. The quarters ended June 30, 2024 and July 2, 2023 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 accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, these interim financial statements do not include all information and footnotes required under GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of results of operations, balance sheet, cash flows, and shareholders’ equity for the periods presented. All significant intercompany balances and transactions among KKI and 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 December 31, 2023, included in the Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of December 31, 2023 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 ended June 30, 2024 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending December 29, 2024. 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. (“KK U.K.”), Krispy Kreme Holdings Pty Ltd. (“KK Australia”), Krispy Kreme Mexico Holding S.A.P.I. 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 (Loss)/Income. Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 1, “Description of Business and Summary of Significant Accounting Policies” to the Consolidated Financial Statements for the year ended December 31, 2023 included in the Annual Report on Form 10-K. There have been no material changes to the significant accounting policies during the quarter ended June 30, 2024. Reclassifications Segment information is prepared on the same basis that the Company’s management reviews financial information for operational decision-making purposes. Effective January 1, 2024, the Company realigned its segment reporting structure such that the Company-owned Canada and Japan businesses have moved from the Market Development reportable operating segment to the International reportable operating segment. All segment information has been restated to be consistent with current presentation. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisitions | Acquisitions 2024 Acquisitions Equity Method Investments In the quarter ended June 30, 2024, the Company acquired a 45% noncontrolling ownership interest in the newly formed entity Krispy Kreme Doughnuts Brasil S.A. (“KK Brazil”), for approximately $2.7 million in cash, and a 25% noncontrolling ownership interest in the newly formed entity Glaseadas Originales S.L. (“KK Spain”), for approximately $0.8 million in cash. As the Company has the ability to exercise significant influence over both KK Brazil and KK Spain, but does not exercise control, the investments will be accounted for using the equity method, and equity method earnings will be recognized within Other (income)/expenses, net on the Condensed Consolidated Statements of Operations. 2023 Acquisitions |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of Inventories are as follows: June 30, 2024 December 31, 2023 Raw materials $ 23,335 $ 21,000 Work in progress 458 211 Finished goods and purchased merchandise 15,668 13,505 Total inventories $ 39,461 $ 34,716 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 6 Months Ended |
Jun. 30, 2024 | |
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. International Market Development Total Balance as of December 31, 2023 $ 677,956 $ 294,468 $ 129,515 $ 1,101,939 Foreign currency impact — (5,690) — (5,690) Balance as of June 30, 2024 $ 677,956 $ 288,778 $ 129,515 $ 1,096,249 Other Intangible Assets, net Other intangible assets consist of the following: June 30, 2024 December 31, 2023 Gross Accumulated Net Amount Gross Accumulated Net Amount Intangible assets with indefinite lives Trade names and trademarks $ 658,033 $ — $ 658,033 $ 657,980 $ — $ 657,980 Intangible assets with definite lives Franchise agreements 30,390 (11,471) 18,919 30,390 (10,744) 19,646 Customer relationships 15,000 (6,845) 8,155 15,000 (6,413) 8,587 Reacquired franchise rights (1) 391,537 (148,930) 242,607 397,279 (137,143) 260,136 Total intangible assets with definite lives 436,927 (167,246) 269,681 442,669 (154,300) 288,369 Total intangible assets $ 1,094,960 $ (167,246) $ 927,714 $ 1,100,649 $ (154,300) $ 946,349 (1) Reacquired franchise rights include the impact of foreign currency fluctuations associated with the respective countries. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 December 31, 2023 Assets Classification Operating lease Operating lease right of use asset, net $ 456,124 $ 456,964 Finance lease Property and equipment, net 40,599 41,411 Total leased assets $ 496,723 $ 498,375 Liabilities Current Operating lease Current operating lease liabilities $ 54,937 $ 50,365 Finance lease Current portion of long-term debt 7,827 8,631 Noncurrent Operating lease Noncurrent operating lease liabilities 453,338 454,583 Finance lease Long-term debt, less current portion 38,825 38,486 Total leased liabilities $ 554,927 $ 552,065 Lease costs were as follows: Quarter Ended Two Quarters Ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Lease cost Classification Operating lease cost Selling, general and administrative expense $ 879 $ 986 $ 1,814 $ 1,877 Operating lease cost Operating expenses 24,365 22,185 48,388 44,575 Short-term lease cost Operating expenses 1,265 1,264 2,350 2,545 Variable lease costs Operating expenses 7,398 6,886 14,831 16,231 Sublease income Royalties and other revenues (35) (35) (70) (70) Finance lease cost: Amortization of right of use assets Depreciation and amortization expense $ 2,867 $ 1,781 $ 5,788 $ 3,365 Interest on lease liabilities Interest expense, net 865 491 1,742 1,064 Supplemental disclosures of cash flow information related to leases were as follows: Two Quarters Ended June 30, 2024 July 2, 2023 Other information Cash paid for leases: Operating cash flows for operating leases (1) $ 58,406 $ 57,968 Operating cash flows for finance leases 1,728 1,121 Financing cash flows for finance leases 5,297 3,632 Right of use assets obtained in exchange for new lease liabilities: Operating leases $ 26,909 $ 43,895 Finance leases 4,594 5,931 (1) Operating cash flows from operating leases include variable rent payments which are not included in the measurement of lease liabilities. Variable rent payments were $14.8 million and $16.2 million for the two quarters ended June 30, 2024 and July 2, 2023, respectively. There were no lease termination charges in the two quarters ended June 30, 2024. The Company recognized a net gain of $0.6 million included in Other (income)/expenses, net on the Condensed Consolidated Statement of Operations in the two quarters ended July 2, 2023, related to the termination of leases at certain Krispy Kreme shops in the U.S. where the Company had already recognized impairment of the corresponding right of use assets in a prior period. There were no sale-leaseback transactions completed in the two quarters ended June 30, 2024. In the two quarters ended July 2, 2023, the Company completed a sale-leaseback transaction whereby it disposed of the land at one real estate property for proceeds of $10.0 million. The Company subsequently leased back the property, which is accounted for as an operating lease. The Company recognized a gain on sale of $9.6 million, which is included in Other (income)/expenses, net on the Condensed Consolidated Statement of Operations. |
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 June 30, 2024 December 31, 2023 Assets Classification Operating lease Operating lease right of use asset, net $ 456,124 $ 456,964 Finance lease Property and equipment, net 40,599 41,411 Total leased assets $ 496,723 $ 498,375 Liabilities Current Operating lease Current operating lease liabilities $ 54,937 $ 50,365 Finance lease Current portion of long-term debt 7,827 8,631 Noncurrent Operating lease Noncurrent operating lease liabilities 453,338 454,583 Finance lease Long-term debt, less current portion 38,825 38,486 Total leased liabilities $ 554,927 $ 552,065 Lease costs were as follows: Quarter Ended Two Quarters Ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Lease cost Classification Operating lease cost Selling, general and administrative expense $ 879 $ 986 $ 1,814 $ 1,877 Operating lease cost Operating expenses 24,365 22,185 48,388 44,575 Short-term lease cost Operating expenses 1,265 1,264 2,350 2,545 Variable lease costs Operating expenses 7,398 6,886 14,831 16,231 Sublease income Royalties and other revenues (35) (35) (70) (70) Finance lease cost: Amortization of right of use assets Depreciation and amortization expense $ 2,867 $ 1,781 $ 5,788 $ 3,365 Interest on lease liabilities Interest expense, net 865 491 1,742 1,064 Supplemental disclosures of cash flow information related to leases were as follows: Two Quarters Ended June 30, 2024 July 2, 2023 Other information Cash paid for leases: Operating cash flows for operating leases (1) $ 58,406 $ 57,968 Operating cash flows for finance leases 1,728 1,121 Financing cash flows for finance leases 5,297 3,632 Right of use assets obtained in exchange for new lease liabilities: Operating leases $ 26,909 $ 43,895 Finance leases 4,594 5,931 (1) Operating cash flows from operating leases include variable rent payments which are not included in the measurement of lease liabilities. Variable rent payments were $14.8 million and $16.2 million for the two quarters ended June 30, 2024 and July 2, 2023, respectively. There were no lease termination charges in the two quarters ended June 30, 2024. The Company recognized a net gain of $0.6 million included in Other (income)/expenses, net on the Condensed Consolidated Statement of Operations in the two quarters ended July 2, 2023, related to the termination of leases at certain Krispy Kreme shops in the U.S. where the Company had already recognized impairment of the corresponding right of use assets in a prior period. There were no sale-leaseback transactions completed in the two quarters ended June 30, 2024. In the two quarters ended July 2, 2023, the Company completed a sale-leaseback transaction whereby it disposed of the land at one real estate property for proceeds of $10.0 million. The Company subsequently leased back the property, which is accounted for as an operating lease. The Company recognized a gain on sale of $9.6 million, which is included in Other (income)/expenses, net on the Condensed Consolidated Statement of Operations. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023: June 30, 2024 Level 2 Assets: Commodity derivatives $ 154 Total Assets $ 154 Liabilities: Interest rate derivatives $ 745 Foreign currency derivatives 408 Total Liabilities $ 1,153 December 31, 2023 Level 2 Assets: Interest rate derivatives $ 1,596 Total Assets $ 1,596 Liabilities: Foreign currency derivatives $ 345 Commodity derivatives 113 Total Liabilities $ 458 There were no assets or liabilities measured using Level 1 and Level 3 inputs and no transfers of financial assets or liabilities among the levels within the fair value hierarchy during the two quarters ended June 30, 2024 and fiscal year ended December 31, 2023. 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023, the total notional amount of commodity derivatives was 1.0 million and 1.8 million gallons of fuel, respectively. They are scheduled to mature between July 2024 and December 2024 and January 2024 and December 2024, respectively. As of June 30, 2024 and December 31, 2023, the Company recorded an asset of $0.2 million and a liability of $0.1 million, respectively, related to the fair market values of its commodity derivatives. The settlement of commodity derivative contracts is reported in the Condensed Consolidated Statements of Cash Flows as a cash flow from operating activities. Interest Rate Risk The Company uses interest rate swaps to manage its exposure to interest rate volatility from its debt arrangements. Management has designated the swap agreements as cash flow hedges and recognized the changes in the fair value of these swaps in other comprehensive income. As of June 30, 2024 and December 31, 2023, the Company has recorded a liability of $0.7 million and an asset of $1.6 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. In the quarter ended June 30, 2024, existing interest rate swap agreements (the “prior agreements”) with an aggregate notional amount of $505.0 million matured. The Company then entered into new interest rate swap agreements (the “new agreements”) with an aggregate notional amount of $200.0 million as of June 30, 2024. The primary difference between the new agreements and the prior agreements included the setting of a new rate on the fixed component of the swaps (approximately 4.2%). The new agreements have a benchmark rate on the floating component of the swaps of one-month SOFR and are scheduled to mature in March 2028. The Company expects to increase the ratio of hedged to unhedged debt during the second half of fiscal 2024, which decreased following the maturity of the prior agreements, and entered into interest rate swap agreements with an additional aggregate notional amount of $250.0 million subsequent to the end of the quarter ended June 30, 2024. The net effect of the interest rate swap arrangements will be to fix the interest rate on the term loan under the 2023 Facility (as defined in Note 9 , Long-Term Debt) up to the notional amount outstanding at the rates payable under the swap agreements plus the Applicable Rate (as defined by the 2023 Facility), through the swap maturity dates in March 2028. In the two quarters ended July 2, 2023, the Company cancelled certain interest rate swap agreements with an aggregate notional amount of $265.0 million, collecting $7.7 million in cash proceeds, and entered into new agreements with the same counterparties. The cash flows are reflected in operating activities in the Condensed Consolidated Statements of Cash Flows. 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 June 30, 2024 and December 31, 2023, the total notional amount of foreign exchange derivatives was $75.8 million and $49.8 million, respectively. The majority matured in July 2024 and January 2024, respectively. The Company recorded liabilities of $0.4 million and $0.3 million as of June 30, 2024 and December 31, 2023, 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 June 30, 2024 and December 31, 2023, 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 June 30, December 31, Balance Sheet Location Commodity derivatives $ 154 $ — Prepaid expense and other current assets Total Assets $ 154 $ — Foreign currency derivatives $ 408 $ 345 Accrued liabilities Commodity derivatives — 113 Accrued liabilities Total Liabilities $ 408 $ 458 Derivatives Fair Value Derivatives Designated as Hedging Instruments June 30, December 31, Balance Sheet Location Interest rate derivatives (current) $ — $ 1,596 Prepaid expense and other current assets Total Assets $ — $ 1,596 Interest rate derivatives (current) $ 200 — Accrued liabilities Interest rate derivatives (noncurrent) 545 — Other long-term obligations and deferred credits Total Liabilities $ 745 $ — The effect of derivative instruments on the Condensed Consolidated Statements of Operations for the quarters and two quarters ended June 30, 2024 and July 2, 2023 is as follows: Derivative Gain Recognized in Income for the Quarter Ended Derivative Gain Recognized in Income for the Two Quarters Ended Derivatives Designated as Hedging Instruments June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Location of Derivative Gain Recognized in Income Gain on interest rate derivatives $ 3,016 $ 446 $ 6,067 $ 2,632 Interest expense, net $ 3,016 $ 446 $ 6,067 $ 2,632 Derivative Gain/(Loss) Recognized in Income for the Quarter Ended Derivative Gain/(Loss) Recognized in Income for the Two Quarters Ended Derivatives Not Designated as Hedging Instruments June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Location of Derivative Gain/(Loss) Recognized in Income Gain/(loss) on foreign currency derivatives $ 191 $ 986 $ (63) $ 62 Other non-operating expense, net (Loss)/gain on commodity derivatives (87) (266) 367 (384) Other non-operating expense, net $ 104 $ 720 $ 304 $ (322) |
Vendor Finance Programs
Vendor Finance Programs | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Vendor Finance Programs | Vendor Finance Programs The following table presents liabilities related to vendor finance programs which the Company participates in as a buyer as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Balance Sheet Location Supply chain financing programs $ 33,253 $ 51,239 Accounts payable Structured payables programs 129,344 130,104 Structured payables Total Liabilities $ 162,597 $ 181,343 Supply Chain Financing (“SCF”) Programs The Company has an agreement with a third-party administrator which allows participating vendors to track its payments, and if voluntarily elected by the vendor, to sell payment obligations from the Company to financial institutions as part of the SCF program. The Company’s typical payment terms for trade payables range up to 180 days outside of the SCF program, depending on the type of vendors and the nature of the supplies or services. For vendors under the SCF Program, the Company has established payable terms ranging up to, but not exceeding, 360 days. When participating vendors elect to sell one or more of the Company’s payment obligations, the Company’s rights and obligations to settle the payables on their contractual due date are not impacted. The Company has no economic or commercial interest in a vendor’s decision to enter into these agreements and the financial institutions do not provide the Company with incentives such as rebates or profit sharing under the SCF program. The Company agrees on commercial terms with vendors for the goods and services procured, which are consistent with payment terms observed at other peer companies in the industry, and as the terms are not impacted by the SCF program, such obligations are classified as Accounts payable on the Condensed Consolidated Balance Sheets and the associated cash flows are included in operating activities in the Condensed Consolidated Statements of Cash Flows. Structured Payables Programs The Company utilizes various card products issued by financial institutions to facilitate purchases of goods and services. By using these products, the Company may receive differing levels of rebates based on timing of repayment. The payment obligations under these card products are classified as Structured payables on the Condensed Consolidated Balance Sheets and the associated cash flows are included in financing activities in the Condensed Consolidated Statements of Cash Flows. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The Company’s long-term debt obligations consists of the following: June 30, 2024 December 31, 2023 2023 Facility — term loan $ 665,000 $ 682,500 2023 Facility — revolving credit facility 230,000 155,000 Short-term lines of credit 17,000 11,000 Less: Debt issuance costs (3,847) (4,371) Finance lease obligations 46,653 47,117 Total long-term debt 954,806 891,246 Less: Current portion of long-term debt (59,827) (54,631) Long-term debt, less current portion $ 894,979 $ 836,615 2023 Secured Credit Facility The Company is party to a credit agreement (the “2023 Facility”) consisting of a $300.0 million senior secured revolving credit facility and a term loan with an original principal amount of $700.0 million. The 2023 Facility is secured by a first priority lien on substantially all of the Company’s personal property assets, certain real properties, and all of the Company’s domestic wholly owned subsidiaries. Loans made pursuant to the 2023 Facility may be used for general corporate purposes of the Company (including, but not limited to, financing working capital needs, capital expenditures, acquisitions, other investments, dividends, and stock repurchases) and for any other purpose not prohibited under the related loan documents. Borrowings under the 2023 Facility are generally subject to an interest rate of adjusted term SOFR plus a credit spread adjustment of 0.10% plus (i) 2.25% if the Company’s leverage ratio (as defined in the 2023 Facility) equals or exceeds 4.00 to 1.00, (ii) 2.00% if the Company’s leverage ratio is less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00, or (iii) 1.75% if the Company’s leverage ratio is less than 3.00 to 1.00. As of June 30, 2024 and December 31, 2023, the unhedged interest rate was 7.43% and 7.46% under the 2023 Facility, respectively. As of June 30, 2024 and December 31, 2023, $200.0 million out of the $665.0 million term loan balance and $505.0 million out of the $682.5 million term loan balance, respectively, was hedged. As of June 30, 2024 and December 31, 2023, the effective interest rate on the term loan was approximately 7.10% and 6.80%, respectively. The Company is required to make equal installments of 1.25% of the aggregate closing date principal amount of the term loan on the last day of each fiscal quarter. All remaining term loan and revolving loan balances are to be due at maturity in March 2028. Short-Term Lines of Credit The Company is party to two agreements with existing lenders providing for short-term, uncommitted lines of credit up to $25.0 million. Borrowings under these short-term lines of credit are payable to the lenders on a revolving basis for tenors up to a maximum of three months and are subject to an interest rate of adjusted term SOFR plus a credit spread adjustment of 0.10% plus a margin of 1.75%. |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Restricted Stock Units (“RSUs”) and Performance Stock Units (“PSUs”) The Company and certain of its subsidiaries issue time-vested RSUs and PSUs under their respective executive ownership plans and long-term incentive plans. RSU and PSU 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 December 31, Granted Vested Forfeited Non-vested shares outstanding at June 30, KKI RSUs and PSUs 6,785 1,587 1,073 298 7,001 Weighted Average Grant Date Fair Value $ 14.54 14.89 15.03 14.97 $ 14.53 KK U.K. RSUs 7 — — — 7 Weighted Average Grant Date Fair Value $ 29.80 — — — $ 29.80 Insomnia Cookies RSUs 47 — 6 — 41 Weighted Average Grant Date Fair Value $ 120.21 — 74.12 — $ 122.42 KK Australia RSUs 185 — 22 — 163 Weighted Average Grant Date Fair Value $ 1.57 — 1.61 — $ 1.57 KK Mexico RSUs 20 — 2 — 18 Weighted Average Grant Date Fair Value $ 30.18 — 29.21 — $ 30.01 The Company recorded total non-cash compensation expense related to RSUs and PSUs under the plans of $6.8 million and $12.9 million for the quarter and two quarters ended June 30, 2024, respectively, and $3.9 million and $8.6 million for the quarter and two quarters ended July 2, 2023, respectively, which is included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The unrecognized compensation cost related to the unvested RSUs and PSUs and the weighted average period over which such cost is expected to be recognized are as follows: As of June 30, 2024 Unrecognized Compensation Cost Recognized Over a KKI $ 66,241 3.2 years KK U.K. 83 2.0 years Insomnia Cookies 3,056 0.8 years KK Australia 63 1.2 years KK Mexico 148 1.1 years The estimated fair value of restricted stock is calculated using a market approach (i.e., market multiple is used for the KK U.K. 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. A summary of the status of the time-vested stock options as of December 31, 2023 and changes during the first two quarters of fiscal 2024 is presented below: Share options outstanding at Share options outstanding at (in thousands, except per share amounts) December 31, Granted Exercised Forfeited or Expired June 30, KKI Options 2,993 — — 67 2,926 Weighted Average Grant Date Fair Value $ 5.90 — — 6.10 $ 5.90 Weighted Average Exercise Price $ 14.30 — — 14.61 $ 14.30 The Company recorded total non-cash compensation expense related to the time-vested stock options of $0.9 million and $1.8 million for the quarter and two quarters ended June 30, 2024, respectively, and $0.9 million and $1.8 million for the quarter and two quarters ended July 2, 2023, respectively, which is included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The unrecognized compensation cost related to the stock options and the weighted average period over which such cost is expected to be recognized are as follows: As of June 30, 2024 Unrecognized Compensation Cost Recognized Over a KKI $ 5,845 1.8 years During the quarter and two quarters ended June 30, 2024 1.5 million time-vested stock options vested. No time-vested stock options vested during the quarter and two quarters ended July 2, 2023. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
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 (loss)/income. The tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. The Company’s effective income tax rates were 42.3% and -5.9% |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Pending Litigation In March 2023, an employee filed a lawsuit on behalf of himself and all others similarly situated against the Company, alleging violations of the Illinois Biometric Information Privacy Act. In May 2023, the Company moved for a stay pending resolution of a similar case before the Illinois Supreme Court. The Company believes that it has meritorious defenses to the complaint and will vigorously defend against these claims. The Company has accrued an immaterial amount and management does not believe that this matter will have a material adverse effect on the Company’s financial results. Other Legal Matters The Company also is engaged in various legal proceedings arising in the normal course of business. The Company maintains insurance policies against certain kinds of such claims and suits, including insurance policies for workers’ compensation and personal injury, all of which are subject to deductibles. While the ultimate outcome of these matters could differ from management’s expectations, management currently does not believe their resolution will have a material adverse effect on the Company’s Condensed Consolidated Financial Statements. Other Commitments and Contingencies |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of June 30, 2024 the Company held an equity ownership in five franchisees, KremeWorks USA, LLC (20% ownership), KremeWorks Canada, L.P. (25% ownership), Krispy Kreme Doughnuts France SAS (“KK France”) (33% ownership), KK Brazil (45% ownership), and KK Spain (25% ownership), with an aggregate carrying value of $5.6 million. As of December 31, 2023 the Company held 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 $2.8 million |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenues Revenues are disaggregated as follows: Quarter Ended Two Quarters Ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Company Shops, DFD and Branded Sweet Treats $ 413,748 $ 387,428 $ 833,961 $ 780,242 Mix and equipment revenue from franchisees 15,663 12,920 28,962 30,780 Franchise royalties and other 9,398 8,534 18,584 16,810 Total net revenues $ 438,809 $ 408,882 $ 881,507 $ 827,832 Other revenues include advertising fund contributions from franchisees, rental income, development and franchise fees, and licensing royalties from customers for use of the Krispy Kreme brand, such as Keurig coffee cups. Contract Balances Deferred revenue and related receivables are as follows: June 30, 2024 December 31, 2023 Balance Sheet Location Trade receivables, net of allowances of $539 and $564, respectively $ 49,181 $ 45,858 Accounts receivables, net Deferred revenue: Current $ 20,299 $ 22,066 Accrued liabilities Noncurrent 8,461 6,005 Other long-term obligations and deferred credits Total deferred revenue $ 28,760 $ 28,071 Trade receivables relate primarily to payments due for royalties, franchise fees, advertising fees, sale of products, and licensing fees. Deferred revenue primarily represents the Company’s remaining performance obligations under gift cards and franchise and development agreements for which consideration has been received or is receivable and is generally recognized on a straight-line basis over the remaining term of the related agreement. The noncurrent portion of deferred revenue primarily relates to the remaining performance obligations in the franchise and development agreements. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net (Loss)/Earnings per Share The following table presents the calculations of basic and diluted EPS: Quarter Ended Two Quarters Ended (in thousands, except per share amounts) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Net (loss)/income attributable to Krispy Kreme, Inc. $ (5,491) $ 223 $ (14,025) $ (78) Additional income attributed to noncontrolling interest due to subsidiary potential common shares (11) (4) (30) (7) Net (loss)/income attributable to common shareholders - Diluted $ (5,502) $ 219 $ (14,055) $ (85) Basic weighted average common shares outstanding 169,095 168,184 168,890 168,162 Dilutive effect of outstanding common stock options, RSUs, and PSUs — 2,475 — — Diluted weighted average common shares outstanding 169,095 170,659 168,890 168,162 (Loss)/earnings per share attributable to common shareholders: Basic $ (0.03) $ 0.00 $ (0.08) $ 0.00 Diluted $ (0.03) $ 0.00 $ (0.08) $ 0.00 Potential dilutive shares consist of unvested RSUs and PSUs, calculated using the treasury stock method. The calculation of dilutive shares outstanding excludes certain unvested RSUs granted under certain subsidiaries’ executive ownership plans and long-term incentive plans, because their inclusion would have been antidilutive. The following table summarizes the gross number of potential dilutive unvested RSUs and PSUs excluded due to antidilution (unadjusted for the treasury stock method): Quarter Ended Two Quarters Ended (in thousands) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 KKI 7,001 224 7,001 7,074 KK U.K. 7 7 7 7 Insomnia Cookies — 37 — 37 KK Australia — — — 185 KK Mexico 18 — — — For the quarter and two quarters ended June 30, 2024 and July 2, 2023, all 2.9 million and 3.0 million time-vested stock options, respectively, were excluded from the computation of diluted weighted average common shares outstanding based on application of the treasury stock method. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company conducts business through the three reportable segments: U.S., International, and Market Development. Unallocated corporate costs are excluded from the Company’s measurement of segment performance. These costs include general corporate expenses. As discussed in Note 1 , Description of Business and Summary of Significant Accounting Policies, effective January 1, 2024, the Company realigned its segment reporting structure such that the Company-owned Canada and Japan businesses have moved from the Market Development reportable operating segment to the International reportable operating segment. All segment information has been restated to be consistent with current presentation. The reportable segment results are as follows: Quarter Ended Two Quarters Ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Net revenues: U.S. $ 289,304 $ 267,417 $ 585,239 $ 548,761 International 125,269 120,588 250,019 232,576 Market Development 24,236 20,877 46,249 46,495 Total net revenues $ 438,809 $ 408,882 $ 881,507 $ 827,832 Quarter Ended Two Quarters Ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Segment Adjusted EBITDA: U.S. $ 32,668 $ 28,085 $ 75,284 $ 66,620 International 21,655 24,702 42,191 43,684 Market Development 12,875 10,495 24,775 22,046 Corporate (12,472) (14,468) (29,336) (28,608) Adjusted EBITDA 54,726 48,814 112,914 103,742 Interest expense, net 14,452 12,063 28,188 24,051 Income tax (benefit)/expense (3,611) (7,563) 651 (7,246) Depreciation and amortization expense 34,600 29,196 68,186 57,135 Share-based compensation 7,648 4,824 14,634 10,369 Employer payroll taxes related to share-based compensation 207 189 250 214 Other non-operating expense, net (1) 949 1,061 1,522 2,060 Strategic initiatives (2) 4,187 4,477 9,008 17,946 Acquisition and integration expenses (3) 851 339 1,099 430 New market penetration expenses (4) 572 241 1,038 335 Shop closure expenses, net (5) 628 1,484 767 805 Restructuring and severance expenses (6) 132 1,667 138 2,247 Gain on sale-leaseback — 15 — (9,646) Other (7) (958) 737 (973) 3,314 Net (loss)/income $ (4,931) $ 84 $ (11,594) $ 1,728 (1) Primarily foreign translation gains and losses in each period. (2) The quarter and two quarters ended June 30, 2024 consist primarily of costs associated with global transformation, exploring strategic alternatives for the Insomnia Cookies business, and preparing for the McDonald’s U.S. expansion (with these three specific initiatives aggregating to approximately $3.9 million and $8.5 million for the quarter and two quarters ended June 30, 2024, respectively). The quarter and two quarters ended July 2, 2023 consists primarily of costs associated with the decision to exit the Branded Sweet Treats business, including property, plant and equipment impairments, inventory write-offs, employee severance, and other related costs. (3) Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period. (4) Consists of start-up costs associated with entry into new countries for which the Company’s brands have not previously operated, including Brazil, Spain, and the Insomnia Cookies brand entering Canada and the U.K. (5) Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment. (6) The quarter and two quarters ended July 2, 2023 consist primarily of costs associated with restructuring of the global executive team. (7) The quarter and two quarters ended June 30, 2024 consist primarily of a gain from insurance proceeds received related to a shop in the U.S. that was destroyed and subsequently rebuilt. The quarter and two quarters ended July 2, 2023 consist primarily of legal and other regulatory expenses incurred outside the ordinary course of business. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
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 August 8, 2024, 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. On July 15, 2024, the Company acquired the business and operating assets of nine franchise shops in the U.S. (located in Washington, Oregon, and Hawaii) and one franchise shop in Canada (located in Vancouver). The Company was a minority investor in the shops via its equity method investments in KremeWorks USA, LLC and KremeWorks Canada, L.P. prior to the acquisition. The Company paid consideration of approximately $31.6 million, consisting of $26.8 million of cash (exclusive of $6.7 million proceeds for the Company’s equity method investments), $2.1 million of consideration payable to the sellers, and $2.7 million settlement of amounts related to pre-existing relationships, to acquire substantially all of the shops’ assets. The acquisition provides the opportunity to expand the Company’s omni-channel strategy in the U.S. and Canada, and will be accounted for as a business combination. The results of the acquired franchise business were reported within the Market Development segment through the quarter ended June 30, 2024 and will be reported within the U.S. segment for the nine U.S. shops and the International segment for the one Canada shop following the acquisition date. As of the date of issuance of this Quarterly Report on Form 10-Q, the Company has not completed the initial accounting for this business combination. On July 17, 2024, the Company entered into an agreement to sell shares in Insomnia Cookies in exchange for cash proceeds of approximately $127.4 million. On August 1, 2024 the Company received additional cash of approximately $45 million from Insomnia Cookies related to the settlement of an intercompany loan. The Company intends to use these proceeds to further strengthen its fresh doughnut business and expand availability, as well as pay down debt. Following the redemption, the Company owns approximately 34% of Insomnia Cookies. As of the date of issuance of this Quarterly Report on Form 10-Q, the Company has not completed the initial accounting for this transaction. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 2023 and 2024 will reflect the results of operations for the 52-week periods ended December 31, 2023 and December 29, 2024, respectively. The quarters ended June 30, 2024 and July 2, 2023 were both 13-week periods. |
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 December 31, 2023, included in the Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of December 31, 2023 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 ended June 30, 2024 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending December 29, 2024. |
Reclassifications | Reclassifications Segment information is prepared on the same basis that the Company’s management reviews financial information for operational decision-making purposes. Effective January 1, 2024, the Company realigned its segment reporting structure such that the Company-owned Canada and Japan businesses have moved from the Market Development reportable operating segment to the International reportable operating segment. All segment information has been restated to be consistent with current presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, it requires a public entity to disclose the title and position of the Chief Operating Decision Maker. The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A public entity should apply the amendments in this standard retrospectively to all prior periods presented in the financial statements. We expect this standard to impact our segment disclosures, but with no impacts to our results of operations, cash flows, and financial condition. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which focuses on the rate reconciliation and income taxes paid disclosures. The standard requires a public business entity (“PBE”) to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further disaggregated by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state, and foreign and by individual jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. For PBEs, the standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. An entity should apply the amendments in this standard prospectively, with retrospective application permitted. We expect this standard to impact our income tax disclosures, but with no impacts to our results of operations, cash flows, and financial condition. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of Inventories are as follows: June 30, 2024 December 31, 2023 Raw materials $ 23,335 $ 21,000 Work in progress 458 211 Finished goods and purchased merchandise 15,668 13,505 Total inventories $ 39,461 $ 34,716 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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. International Market Development Total Balance as of December 31, 2023 $ 677,956 $ 294,468 $ 129,515 $ 1,101,939 Foreign currency impact — (5,690) — (5,690) Balance as of June 30, 2024 $ 677,956 $ 288,778 $ 129,515 $ 1,096,249 |
Schedule of Indefinite-Lived Intangible Assets | Other intangible assets consist of the following: June 30, 2024 December 31, 2023 Gross Accumulated Net Amount Gross Accumulated Net Amount Intangible assets with indefinite lives Trade names and trademarks $ 658,033 $ — $ 658,033 $ 657,980 $ — $ 657,980 Intangible assets with definite lives Franchise agreements 30,390 (11,471) 18,919 30,390 (10,744) 19,646 Customer relationships 15,000 (6,845) 8,155 15,000 (6,413) 8,587 Reacquired franchise rights (1) 391,537 (148,930) 242,607 397,279 (137,143) 260,136 Total intangible assets with definite lives 436,927 (167,246) 269,681 442,669 (154,300) 288,369 Total intangible assets $ 1,094,960 $ (167,246) $ 927,714 $ 1,100,649 $ (154,300) $ 946,349 |
Schedule of Finite-Lived Intangible Assets | Other intangible assets consist of the following: June 30, 2024 December 31, 2023 Gross Accumulated Net Amount Gross Accumulated Net Amount Intangible assets with indefinite lives Trade names and trademarks $ 658,033 $ — $ 658,033 $ 657,980 $ — $ 657,980 Intangible assets with definite lives Franchise agreements 30,390 (11,471) 18,919 30,390 (10,744) 19,646 Customer relationships 15,000 (6,845) 8,155 15,000 (6,413) 8,587 Reacquired franchise rights (1) 391,537 (148,930) 242,607 397,279 (137,143) 260,136 Total intangible assets with definite lives 436,927 (167,246) 269,681 442,669 (154,300) 288,369 Total intangible assets $ 1,094,960 $ (167,246) $ 927,714 $ 1,100,649 $ (154,300) $ 946,349 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 December 31, 2023 Assets Classification Operating lease Operating lease right of use asset, net $ 456,124 $ 456,964 Finance lease Property and equipment, net 40,599 41,411 Total leased assets $ 496,723 $ 498,375 Liabilities Current Operating lease Current operating lease liabilities $ 54,937 $ 50,365 Finance lease Current portion of long-term debt 7,827 8,631 Noncurrent Operating lease Noncurrent operating lease liabilities 453,338 454,583 Finance lease Long-term debt, less current portion 38,825 38,486 Total leased liabilities $ 554,927 $ 552,065 |
Schedule of Lease Costs and Supplemental Cash Flow Information Related to Leases | Lease costs were as follows: Quarter Ended Two Quarters Ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Lease cost Classification Operating lease cost Selling, general and administrative expense $ 879 $ 986 $ 1,814 $ 1,877 Operating lease cost Operating expenses 24,365 22,185 48,388 44,575 Short-term lease cost Operating expenses 1,265 1,264 2,350 2,545 Variable lease costs Operating expenses 7,398 6,886 14,831 16,231 Sublease income Royalties and other revenues (35) (35) (70) (70) Finance lease cost: Amortization of right of use assets Depreciation and amortization expense $ 2,867 $ 1,781 $ 5,788 $ 3,365 Interest on lease liabilities Interest expense, net 865 491 1,742 1,064 Supplemental disclosures of cash flow information related to leases were as follows: Two Quarters Ended June 30, 2024 July 2, 2023 Other information Cash paid for leases: Operating cash flows for operating leases (1) $ 58,406 $ 57,968 Operating cash flows for finance leases 1,728 1,121 Financing cash flows for finance leases 5,297 3,632 Right of use assets obtained in exchange for new lease liabilities: Operating leases $ 26,909 $ 43,895 Finance leases 4,594 5,931 (1) Operating cash flows from operating leases include variable rent payments which are not included in the measurement of lease liabilities. Variable rent payments were $14.8 million and $16.2 million for the two quarters ended June 30, 2024 and July 2, 2023, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023: June 30, 2024 Level 2 Assets: Commodity derivatives $ 154 Total Assets $ 154 Liabilities: Interest rate derivatives $ 745 Foreign currency derivatives 408 Total Liabilities $ 1,153 December 31, 2023 Level 2 Assets: Interest rate derivatives $ 1,596 Total Assets $ 1,596 Liabilities: Foreign currency derivatives $ 345 Commodity derivatives 113 Total Liabilities $ 458 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023, 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 June 30, December 31, Balance Sheet Location Commodity derivatives $ 154 $ — Prepaid expense and other current assets Total Assets $ 154 $ — Foreign currency derivatives $ 408 $ 345 Accrued liabilities Commodity derivatives — 113 Accrued liabilities Total Liabilities $ 408 $ 458 Derivatives Fair Value Derivatives Designated as Hedging Instruments June 30, December 31, Balance Sheet Location Interest rate derivatives (current) $ — $ 1,596 Prepaid expense and other current assets Total Assets $ — $ 1,596 Interest rate derivatives (current) $ 200 — Accrued liabilities Interest rate derivatives (noncurrent) 545 — Other long-term obligations and deferred credits Total Liabilities $ 745 $ — |
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 quarters and two quarters ended June 30, 2024 and July 2, 2023 is as follows: Derivative Gain Recognized in Income for the Quarter Ended Derivative Gain Recognized in Income for the Two Quarters Ended Derivatives Designated as Hedging Instruments June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Location of Derivative Gain Recognized in Income Gain on interest rate derivatives $ 3,016 $ 446 $ 6,067 $ 2,632 Interest expense, net $ 3,016 $ 446 $ 6,067 $ 2,632 Derivative Gain/(Loss) Recognized in Income for the Quarter Ended Derivative Gain/(Loss) Recognized in Income for the Two Quarters Ended Derivatives Not Designated as Hedging Instruments June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Location of Derivative Gain/(Loss) Recognized in Income Gain/(loss) on foreign currency derivatives $ 191 $ 986 $ (63) $ 62 Other non-operating expense, net (Loss)/gain on commodity derivatives (87) (266) 367 (384) Other non-operating expense, net $ 104 $ 720 $ 304 $ (322) |
Vendor Finance Programs (Tables
Vendor Finance Programs (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Liabilities Related to Vendor Finance Programs | The following table presents liabilities related to vendor finance programs which the Company participates in as a buyer as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Balance Sheet Location Supply chain financing programs $ 33,253 $ 51,239 Accounts payable Structured payables programs 129,344 130,104 Structured payables Total Liabilities $ 162,597 $ 181,343 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The Company’s long-term debt obligations consists of the following: June 30, 2024 December 31, 2023 2023 Facility — term loan $ 665,000 $ 682,500 2023 Facility — revolving credit facility 230,000 155,000 Short-term lines of credit 17,000 11,000 Less: Debt issuance costs (3,847) (4,371) Finance lease obligations 46,653 47,117 Total long-term debt 954,806 891,246 Less: Current portion of long-term debt (59,827) (54,631) Long-term debt, less current portion $ 894,979 $ 836,615 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | RSU and PSU 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 December 31, Granted Vested Forfeited Non-vested shares outstanding at June 30, KKI RSUs and PSUs 6,785 1,587 1,073 298 7,001 Weighted Average Grant Date Fair Value $ 14.54 14.89 15.03 14.97 $ 14.53 KK U.K. RSUs 7 — — — 7 Weighted Average Grant Date Fair Value $ 29.80 — — — $ 29.80 Insomnia Cookies RSUs 47 — 6 — 41 Weighted Average Grant Date Fair Value $ 120.21 — 74.12 — $ 122.42 KK Australia RSUs 185 — 22 — 163 Weighted Average Grant Date Fair Value $ 1.57 — 1.61 — $ 1.57 KK Mexico RSUs 20 — 2 — 18 Weighted Average Grant Date Fair Value $ 30.18 — 29.21 — $ 30.01 |
Share-based Payment Arrangement, Nonvested Award, Cost | The unrecognized compensation cost related to the unvested RSUs and PSUs and the weighted average period over which such cost is expected to be recognized are as follows: As of June 30, 2024 Unrecognized Compensation Cost Recognized Over a KKI $ 66,241 3.2 years KK U.K. 83 2.0 years Insomnia Cookies 3,056 0.8 years KK Australia 63 1.2 years KK Mexico 148 1.1 years The unrecognized compensation cost related to the stock options and the weighted average period over which such cost is expected to be recognized are as follows: As of June 30, 2024 Unrecognized Compensation Cost Recognized Over a KKI $ 5,845 1.8 years |
Share-based Payment Arrangement, Option, Activity | A summary of the status of the time-vested stock options as of December 31, 2023 and changes during the first two quarters of fiscal 2024 is presented below: Share options outstanding at Share options outstanding at (in thousands, except per share amounts) December 31, Granted Exercised Forfeited or Expired June 30, KKI Options 2,993 — — 67 2,926 Weighted Average Grant Date Fair Value $ 5.90 — — 6.10 $ 5.90 Weighted Average Exercise Price $ 14.30 — — 14.61 $ 14.30 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenues are disaggregated as follows: Quarter Ended Two Quarters Ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Company Shops, DFD and Branded Sweet Treats $ 413,748 $ 387,428 $ 833,961 $ 780,242 Mix and equipment revenue from franchisees 15,663 12,920 28,962 30,780 Franchise royalties and other 9,398 8,534 18,584 16,810 Total net revenues $ 438,809 $ 408,882 $ 881,507 $ 827,832 |
Summary of Contract Balances with Customers | Deferred revenue and related receivables are as follows: June 30, 2024 December 31, 2023 Balance Sheet Location Trade receivables, net of allowances of $539 and $564, respectively $ 49,181 $ 45,858 Accounts receivables, net Deferred revenue: Current $ 20,299 $ 22,066 Accrued liabilities Noncurrent 8,461 6,005 Other long-term obligations and deferred credits Total deferred revenue $ 28,760 $ 28,071 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Two Quarters Ended (in thousands, except per share amounts) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Net (loss)/income attributable to Krispy Kreme, Inc. $ (5,491) $ 223 $ (14,025) $ (78) Additional income attributed to noncontrolling interest due to subsidiary potential common shares (11) (4) (30) (7) Net (loss)/income attributable to common shareholders - Diluted $ (5,502) $ 219 $ (14,055) $ (85) Basic weighted average common shares outstanding 169,095 168,184 168,890 168,162 Dilutive effect of outstanding common stock options, RSUs, and PSUs — 2,475 — — Diluted weighted average common shares outstanding 169,095 170,659 168,890 168,162 (Loss)/earnings per share attributable to common shareholders: Basic $ (0.03) $ 0.00 $ (0.08) $ 0.00 Diluted $ (0.03) $ 0.00 $ (0.08) $ 0.00 |
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 and PSUs excluded due to antidilution (unadjusted for the treasury stock method): Quarter Ended Two Quarters Ended (in thousands) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 KKI 7,001 224 7,001 7,074 KK U.K. 7 7 7 7 Insomnia Cookies — 37 — 37 KK Australia — — — 185 KK Mexico 18 — — — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The reportable segment results are as follows: Quarter Ended Two Quarters Ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Net revenues: U.S. $ 289,304 $ 267,417 $ 585,239 $ 548,761 International 125,269 120,588 250,019 232,576 Market Development 24,236 20,877 46,249 46,495 Total net revenues $ 438,809 $ 408,882 $ 881,507 $ 827,832 Quarter Ended Two Quarters Ended June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Segment Adjusted EBITDA: U.S. $ 32,668 $ 28,085 $ 75,284 $ 66,620 International 21,655 24,702 42,191 43,684 Market Development 12,875 10,495 24,775 22,046 Corporate (12,472) (14,468) (29,336) (28,608) Adjusted EBITDA 54,726 48,814 112,914 103,742 Interest expense, net 14,452 12,063 28,188 24,051 Income tax (benefit)/expense (3,611) (7,563) 651 (7,246) Depreciation and amortization expense 34,600 29,196 68,186 57,135 Share-based compensation 7,648 4,824 14,634 10,369 Employer payroll taxes related to share-based compensation 207 189 250 214 Other non-operating expense, net (1) 949 1,061 1,522 2,060 Strategic initiatives (2) 4,187 4,477 9,008 17,946 Acquisition and integration expenses (3) 851 339 1,099 430 New market penetration expenses (4) 572 241 1,038 335 Shop closure expenses, net (5) 628 1,484 767 805 Restructuring and severance expenses (6) 132 1,667 138 2,247 Gain on sale-leaseback — 15 — (9,646) Other (7) (958) 737 (973) 3,314 Net (loss)/income $ (4,931) $ 84 $ (11,594) $ 1,728 (1) Primarily foreign translation gains and losses in each period. (2) The quarter and two quarters ended June 30, 2024 consist primarily of costs associated with global transformation, exploring strategic alternatives for the Insomnia Cookies business, and preparing for the McDonald’s U.S. expansion (with these three specific initiatives aggregating to approximately $3.9 million and $8.5 million for the quarter and two quarters ended June 30, 2024, respectively). The quarter and two quarters ended July 2, 2023 consists primarily of costs associated with the decision to exit the Branded Sweet Treats business, including property, plant and equipment impairments, inventory write-offs, employee severance, and other related costs. (3) Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period. (4) Consists of start-up costs associated with entry into new countries for which the Company’s brands have not previously operated, including Brazil, Spain, and the Insomnia Cookies brand entering Canada and the U.K. (5) Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment. (6) The quarter and two quarters ended July 2, 2023 consist primarily of costs associated with restructuring of the global executive team. (7) The quarter and two quarters ended June 30, 2024 consist primarily of a gain from insurance proceeds received related to a shop in the U.S. that was destroyed and subsequently rebuilt. The quarter and two quarters ended July 2, 2023 consist primarily of legal and other regulatory expenses incurred outside the ordinary course of business. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2024 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 | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jul. 02, 2023 franchisee | Jun. 30, 2024 USD ($) | Jul. 02, 2023 USD ($) franchisee | |
Business Acquisition [Line Items] | ||||
Purchase of equity method investment | $ 3,506 | $ 0 | ||
Number of businesses acquired | franchisee | 0 | 0 | ||
Krispy Kreme Brazil | ||||
Business Acquisition [Line Items] | ||||
Purchase of equity method investment | $ 2,700 | |||
Krispy Kreme Brazil | Krispy Kreme Brazil | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage | 45% | 45% | ||
Krispy Kreme Spain | ||||
Business Acquisition [Line Items] | ||||
Purchase of equity method investment | $ 800 | |||
Krispy Kreme Spain | Krispy Kreme Spain | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage | 25% | 25% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 23,335 | $ 21,000 |
Work in progress | 458 | 211 |
Finished goods and purchased merchandise | 15,668 | 13,505 |
Inventories | $ 39,461 | $ 34,716 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jul. 02, 2023 | |
Inventory Disclosure [Abstract] | ||
Inventory write-off | $ 1,038 | $ 10,244 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,101,939 |
Foreign currency impact | (5,690) |
Ending balance | 1,096,249 |
U.S. | |
Goodwill [Roll Forward] | |
Beginning balance | 677,956 |
Foreign currency impact | 0 |
Ending balance | 677,956 |
International | |
Goodwill [Roll Forward] | |
Beginning balance | 294,468 |
Foreign currency impact | (5,690) |
Ending balance | 288,778 |
Market Development | |
Goodwill [Roll Forward] | |
Beginning balance | 129,515 |
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 | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | Dec. 31, 2023 | |
Intangible assets with definite lives | |||||
Gross Carrying Amount | $ 436,927 | $ 436,927 | $ 442,669 | ||
Accumulated Amortization | (167,246) | (167,246) | (154,300) | ||
Net Amount | 269,681 | 269,681 | 288,369 | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Gross Carrying Amount | 1,094,960 | 1,094,960 | 1,100,649 | ||
Accumulated Amortization | (167,246) | (167,246) | (154,300) | ||
Net Amount | 927,714 | 927,714 | 946,349 | ||
Amortization of intangible assets | 7,400 | $ 7,300 | 14,800 | $ 14,600 | |
Trade names and trademarks | |||||
Intangible assets with indefinite lives | |||||
Trade names and trademarks | 658,033 | 658,033 | 657,980 | ||
Franchise agreements | |||||
Intangible assets with definite lives | |||||
Gross Carrying Amount | 30,390 | 30,390 | 30,390 | ||
Accumulated Amortization | (11,471) | (11,471) | (10,744) | ||
Net Amount | 18,919 | 18,919 | 19,646 | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Accumulated Amortization | (11,471) | (11,471) | (10,744) | ||
Customer relationships | |||||
Intangible assets with definite lives | |||||
Gross Carrying Amount | 15,000 | 15,000 | 15,000 | ||
Accumulated Amortization | (6,845) | (6,845) | (6,413) | ||
Net Amount | 8,155 | 8,155 | 8,587 | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Accumulated Amortization | (6,845) | (6,845) | (6,413) | ||
Reacquired franchise rights (1) | |||||
Intangible assets with definite lives | |||||
Gross Carrying Amount | 391,537 | 391,537 | 397,279 | ||
Accumulated Amortization | (148,930) | (148,930) | (137,143) | ||
Net Amount | 242,607 | 242,607 | 260,136 | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Accumulated Amortization | $ (148,930) | $ (148,930) | $ (137,143) |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Operating lease | $ 456,124 | $ 456,964 |
Finance lease | $ 40,599 | $ 41,411 |
Finance lease assets, statement of financial position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Total leased assets | $ 496,723 | $ 498,375 |
Current | ||
Current operating lease liabilities | 54,937 | 50,365 |
Current finance lease liabilities | $ 7,827 | $ 8,631 |
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 | $ 453,338 | $ 454,583 |
Noncurrent finance lease liabilities | $ 38,825 | $ 38,486 |
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 | $ 554,927 | $ 552,065 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Operating lease cost | ||||
Short-term lease cost | $ 1,265 | $ 1,264 | $ 2,350 | $ 2,545 |
Variable lease costs | 7,398 | 6,886 | 14,831 | 16,231 |
Sublease income | (35) | (35) | (70) | (70) |
Amortization of right of use assets | 2,867 | 1,781 | 5,788 | 3,365 |
Interest on lease liabilities | 865 | 491 | 1,742 | 1,064 |
Selling, general and administrative expense | ||||
Operating lease cost | ||||
Operating lease cost | 879 | 986 | 1,814 | 1,877 |
Operating expenses | ||||
Operating lease cost | ||||
Operating lease cost | $ 24,365 | $ 22,185 | $ 48,388 | $ 44,575 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jul. 02, 2023 | |
Cash paid for leases: | ||
Operating cash flows for operating leases | $ 58,406 | $ 57,968 |
Operating cash flows for finance leases | 1,728 | 1,121 |
Financing cash flows for finance leases | 5,297 | 3,632 |
Right of use assets obtained in exchange for new lease liabilities: | ||
Operating leases | 26,909 | 43,895 |
Finance leases | 4,594 | 5,931 |
Variable lease, payment | $ 14,800 | $ 16,200 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) property | Jul. 02, 2023 USD ($) property | Jun. 30, 2024 USD ($) property | Jul. 02, 2023 USD ($) property | |
Leases [Abstract] | ||||
Leases, termination costs | $ 0 | $ 600 | ||
Number of real estate properties | property | 0 | 1 | 0 | 1 |
Proceeds from sale-leaseback | $ 0 | $ 10,025 | ||
Gain on sale-leaseback | $ 0 | $ (15) | $ 0 | $ 9,646 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair value, recurring - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Level 2 | ||
Assets: | ||
Total Assets | $ 154,000 | $ 1,596,000 |
Liabilities: | ||
Total Liabilities | 1,153,000 | 458,000 |
Level 2 | Interest rate derivatives | ||
Assets: | ||
Derivative assets | 1,596,000 | |
Liabilities: | ||
Derivative liabilities | 745,000 | 113,000 |
Level 2 | Commodity derivatives | ||
Assets: | ||
Derivative assets | 154,000 | |
Level 2 | Foreign currency derivatives | ||
Liabilities: | ||
Derivative liabilities | 408,000 | 345,000 |
Level 3 | ||
Assets: | ||
Total Assets | 0 | 0 |
Level 1 | ||
Assets: | ||
Total Assets | $ 0 | $ 0 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) $ in Thousands, gal in Millions | 6 Months Ended | ||||
Jul. 02, 2023 USD ($) gal | Jan. 01, 2023 gal | Jun. 30, 2024 USD ($) | Jul. 02, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Settlement of interest rate swap derivatives | $ 0 | $ 7,657 | |||
2023 Facility | Term Loan | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, amount of hedged item | 200,000 | $ 505,000 | |||
Derivatives Not Designated as Hedging Instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative asset, fair value | 154 | 0 | |||
Derivative liability, fair value | 408 | 458 | |||
Derivatives Designated as Hedging Instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative asset, fair value | 0 | 1,596 | |||
Derivative liability, fair value | 745 | 0 | |||
Commodity derivatives | Derivatives Not Designated as Hedging Instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount (in gallon) | gal | 1 | 1.8 | |||
Derivative asset, fair value | 200 | 100 | |||
Interest rate derivatives | Derivatives Designated as Hedging Instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 265,000 | $ 265,000 | |||
Interest rate derivatives | Derivatives Designated as Hedging Instruments | Prior debt agreements | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | 505,000 | ||||
Interest rate derivatives | Derivatives Designated as Hedging Instruments | New interest rate swap agreements | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | 250,000 | ||||
Interest rate derivatives | Derivatives Designated as Hedging Instruments | Interest Rate Contract, New Interest Rate Swap Agreement | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | 200,000 | ||||
Interest rate derivatives | Derivatives Designated as Hedging Instruments | Cash Flow Hedging | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative asset, fair value | 700 | 1,600 | |||
Foreign currency derivatives | Derivatives Not Designated as Hedging Instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | 75,800 | 49,800 | |||
Derivative liability, fair value | $ 400 | $ 300 | |||
Interest Rate Contract, New Interest Rate Swap Agreement | Derivatives Designated as Hedging Instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, fixed interest rate | 4.20% |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments in Condensed Consolidated Balance Sheets, Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 154 | $ 0 |
Derivative liability, fair value | 408 | 458 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 0 | 1,596 |
Derivative liability, fair value | 745 | 0 |
Commodity derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 200 | 100 |
Foreign currency derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 400 | 300 |
Prepaid expense and other current assets | Commodity derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 154 | 0 |
Prepaid expense and other current assets | Interest rate derivatives | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 0 | 1,596 |
Accrued liabilities | Commodity derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 0 | 113 |
Accrued liabilities | Foreign currency derivatives | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 408 | 345 |
Accrued liabilities | Interest rate derivatives | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 200 | 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 | $ 545 | $ 0 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gain (loss) recognised in income, derivatives designated as hedging instruments | $ 3,016 | $ 446 | $ 6,067 | $ 2,632 |
Derivative gain (loss) recognised in income, derivatives not designated as hedging instruments | 104 | 720 | 304 | (322) |
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 | 3,016 | 446 | 6,067 | 2,632 |
Foreign currency derivatives | Other non-operating expense, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gain (loss) recognised in income, derivatives not designated as hedging instruments | 191 | 986 | (63) | 62 |
Commodity derivatives | Other non-operating expense, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gain (loss) recognised in income, derivatives not designated as hedging instruments | $ (87) | $ (266) | $ 367 | $ (384) |
Vendor Finance Programs (Detail
Vendor Finance Programs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Supplier Finance Program [Line Items] | ||
Vendor finance program | $ 162,597 | $ 181,343 |
Accounts Payable | ||
Supplier Finance Program [Line Items] | ||
Vendor finance program | 33,253 | 51,239 |
Structured Payables | ||
Supplier Finance Program [Line Items] | ||
Vendor finance program | $ 129,344 | $ 130,104 |
Supply Chain Financing Programs | KKI | ||
Supplier Finance Program [Line Items] | ||
Period of trade payables payment | 180 days | |
Supply Chain Financing Programs | Vendors Under SCF Program | ||
Supplier Finance Program [Line Items] | ||
Period of trade payables payment | 360 days |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Less: Debt issuance costs | $ (3,847) | $ (4,371) |
Finance lease obligations | 46,653 | 47,117 |
Total long-term debt | 954,806 | 891,246 |
Less: Current portion of long-term debt | (59,827) | (54,631) |
Long-term debt, less current portion | 894,979 | 836,615 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Short-term lines of credit | 17,000 | 11,000 |
Term Loan | 2023 Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 665,000 | 682,500 |
Credit Facility | 2023 Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 230,000 | $ 155,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 USD ($) agreement | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | |
Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 25 | |||
Debt instrument, basis spread on variable rate | 1.75% | |||
Number of agreements | agreement | 2 | |||
Secured Overnight Financing Rate (SOFR) | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.10% | |||
2023 Facility | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 7.43% | 7.46% | ||
2023 Facility | Credit Spread Adjustment | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.10% | |||
2023 Facility | Leverage Ratio equal to or exceeds 4.00 to 1.00 | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.25% | |||
2023 Facility | Leverage Ratio less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00 | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2% | |||
2023 Facility | Leverage Ratio less than 3.00 to 1.00 | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.75% | |||
2023 Facility | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 700 | |||
Derivative, amount of hedged item | $ 200 | $ 505 | ||
Debt instrument, interest rate, effective percentage | 7.10% | 6.80% | ||
Revolving Credit Facility | 2023 Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 300 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option plan expense | $ 0.9 | $ 0.9 | $ 1.8 | $ 1.8 |
KKI | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vested (in shares) | 1,500,000 | 0 | 1,500,000 | 0 |
Stock option exercised (in shares) | 0 | |||
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock unit expense | $ 6.8 | $ 3.9 | $ 12.9 | $ 8.6 |
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) | KKI | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 1,587,000 | |||
Granted (in shares) | 1,587,000 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of RSU Activity (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Restricted Stock Units (RSUs) | KK U.K. | |
RSUs and PSUs | |
Beginning balance, non-vested shares outstanding (in shares) | shares | 7 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending balance, non-vested shares outstanding (in shares) | shares | 7 |
Weighted Average Grant Date Fair Value | |
Beginning balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 29.80 |
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 | $ 29.80 |
Restricted Stock Units (RSUs) | Insomnia Cookies | |
RSUs and PSUs | |
Beginning balance, non-vested shares outstanding (in shares) | shares | 47 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 6 |
Forfeited (in shares) | shares | 0 |
Ending balance, non-vested shares outstanding (in shares) | shares | 41 |
Weighted Average Grant Date Fair Value | |
Beginning balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 120.21 |
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 | 74.12 |
Forfeited, weighted average grant date fair value (in USD per share) | $ / shares | 0 |
Ending balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 122.42 |
Restricted Stock Units (RSUs) | KK Australia | |
RSUs and PSUs | |
Beginning balance, non-vested shares outstanding (in shares) | shares | 185 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 22 |
Forfeited (in shares) | shares | 0 |
Ending balance, non-vested shares outstanding (in shares) | shares | 163 |
Weighted Average Grant Date Fair Value | |
Beginning balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 1.57 |
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 | 1.61 |
Forfeited, weighted average grant date fair value (in USD per share) | $ / shares | 0 |
Ending balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 1.57 |
Restricted Stock Units (RSUs) | KK Mexico | |
RSUs and PSUs | |
Beginning balance, non-vested shares outstanding (in shares) | shares | 20 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 2 |
Forfeited (in shares) | shares | 0 |
Ending balance, non-vested shares outstanding (in shares) | shares | 18 |
Weighted Average Grant Date Fair Value | |
Beginning balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 30.18 |
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 | 29.21 |
Forfeited, weighted average grant date fair value (in USD per share) | $ / shares | 0 |
Ending balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 30.01 |
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) | KKI | |
RSUs and PSUs | |
Beginning balance, non-vested shares outstanding (in shares) | shares | 6,785 |
Granted (in shares) | shares | 1,587 |
Vested (in shares) | shares | 1,073 |
Forfeited (in shares) | shares | 298 |
Ending balance, non-vested shares outstanding (in shares) | shares | 7,001 |
Weighted Average Grant Date Fair Value | |
Beginning balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 14.54 |
Granted, weighted average grant date fair value (in USD per share) | $ / shares | 14.89 |
Vested, weighted average grant date fair value (in USD per share) | $ / shares | 15.03 |
Forfeited, weighted average grant date fair value (in USD per share) | $ / shares | 14.97 |
Ending balance, non-vested shares outstanding (in USD per share) | $ / shares | $ 14.53 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of RSU Unrecognized Compensation Expense (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Restricted Stock Units (RSUs) | KK U.K. | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 83 |
Recognized Over a Weighted-Average Period of | 2 years |
Restricted Stock Units (RSUs) | Insomnia Cookies | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 3,056 |
Recognized Over a Weighted-Average Period of | 9 months 18 days |
Restricted Stock Units (RSUs) | KK Australia | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 63 |
Recognized Over a Weighted-Average Period of | 1 year 2 months 12 days |
Restricted Stock Units (RSUs) | KK Mexico | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 148 |
Recognized Over a Weighted-Average Period of | 1 year 1 month 6 days |
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) | KKI | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 66,241 |
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 | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Options | |
Beginning balance, share options outstanding (in shares) | shares | 2,993,000 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited or expired (in shares) | shares | 67,000 |
Ending balance, share options outstanding (in shares) | shares | 2,926,000 |
Forfeited or expired (in USD per share) | $ 6.10 |
Exercised (in USD per share) | 0 |
Granted (in USD per share) | 0 |
Weighted Average Grant Date Fair Value | |
Beginning balance, share options outstanding (in USD per share) | 5.90 |
Ending balance, share options outstanding (in USD per share) | 5.90 |
Forfeited or expired (in USD per share) | 14.61 |
Exercised (in USD per share) | 0 |
Granted (in USD per share) | 0 |
Weighted Average Exercise Price | |
Beginning balance, share options outstanding (in USD per share) | 14.30 |
Ending balance, share options outstanding (in USD per share) | $ 14.30 |
Share-based Compensation - Sc_4
Share-based Compensation - Schedule of Stock Option Unrecognized Compensation Expense (Details) - Share-based Payment Arrangement, Option - KKI $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 5,845 |
Recognized Over a Weighted-Average Period of | 1 year 9 months 18 days |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 42.30% | 101.10% | (5.90%) | 131.30% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 15.4 | $ 15.4 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | Jun. 30, 2024 USD ($) equity_method_investment | Dec. 31, 2023 USD ($) |
Related Party Transaction [Line Items] | ||
Number of franchisees | equity_method_investment | 5,000,000 | |
Equity Method Investee | ||
Related Party Transaction [Line Items] | ||
Equity method investments | $ | $ 5.6 | $ 2.8 |
KremeWorks USA, LLC | ||
Related Party Transaction [Line Items] | ||
Ownership percentage | 20% | |
KremeWorks Canada, L.P. | ||
Related Party Transaction [Line Items] | ||
Ownership percentage | 25% | |
Krispy Kreme France | ||
Related Party Transaction [Line Items] | ||
Ownership percentage | 33% |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 438,809 | $ 408,882 | $ 881,507 | $ 827,832 |
Company Shops, DFD and Branded Sweet Treats | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 413,748 | 387,428 | 833,961 | 780,242 |
Mix and equipment revenue from franchisees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | 15,663 | 12,920 | 28,962 | 30,780 |
Franchise royalties and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 9,398 | $ 8,534 | $ 18,584 | $ 16,810 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Contract Balances with Customers (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Trade receivables, net of allowances of $539 and $564, respectively | $ 49,181 | $ 45,858 |
Trade receivables, allowance for credit loss | 539 | 564 |
Deferred revenue: | ||
Current | 20,299 | 22,066 |
Noncurrent | 8,461 | 6,005 |
Total deferred revenue | $ 28,760 | $ 28,071 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Net Loss Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Earnings Per Share [Abstract] | ||||
Net (loss)/income attributable to Krispy Kreme, Inc. | $ (5,491) | $ 223 | $ (14,025) | $ (78) |
Additional income attributed to noncontrolling interest due to subsidiary potential common shares | (11) | (4) | (30) | (7) |
Net (loss)/income attributable to common shareholders - Diluted | $ (5,502) | $ 219 | $ (14,055) | $ (85) |
Basic weighted average common shares outstanding (in shares) | 169,095,000 | 168,184,000 | 168,890,000 | 168,162,000 |
Dilutive effect of outstanding common stock options and RSUs (in shares) | 0 | 2,475,000 | 0 | 0 |
Diluted weighted average common shares outstanding (in shares) | 169,095,000 | 170,659,000 | 168,890,000 | 168,162,000 |
Net (loss)/income per share: | ||||
Basic earnings/(loss) per share (in dollars per shares) | $ (0.03) | $ 0 | $ (0.08) | $ 0 |
Diluted earnings/(loss) per share (in dollars per shares) | $ (0.03) | $ 0 | $ (0.08) | $ 0 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
KKI | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net loss per share | 7,001,000 | 224,000 | 7,001,000 | 7,074,000 |
KK U.K. | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net loss per share | 7,000 | 7,000 | 7,000 | 7,000 |
Insomnia Cookies | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net loss per share | 0 | 37,000 | 0 | 37,000 |
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 | 185,000 |
KK Mexico | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net loss per share | 18,000 | 0 | 0 | 0 |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
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 | 2.9 | 3 | 2.9 | 3 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) | Jul. 02, 2023 USD ($) | Apr. 02, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jul. 02, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 3 | |||||
Total net revenues | $ 438,809 | $ 408,882 | $ 881,507 | $ 827,832 | ||
Segment adjusted EBITDA | 54,726 | 48,814 | 112,914 | 103,742 | ||
Interest expense, net | 14,452 | 12,063 | 28,188 | 24,051 | ||
Income tax (benefit)/expense | (3,611) | (7,563) | 651 | (7,246) | ||
Depreciation and amortization expense | 34,600 | 29,196 | 68,186 | 57,135 | ||
Share-based compensation | 7,648 | 4,824 | 14,634 | 10,369 | ||
Employer payroll taxes related to share-based compensation | 207 | 189 | 250 | 214 | ||
Other non-operating expense, net | 949 | 1,061 | 1,522 | 2,060 | ||
Strategic initiatives | 4,187 | 4,477 | 9,008 | 17,946 | ||
Acquisition and integration expenses | 851 | 339 | 1,099 | 430 | ||
New market penetration expenses | 572 | 241 | 1,038 | 335 | ||
Shop closure expenses | 628 | 1,484 | 767 | 805 | ||
Restructuring and severance expenses | 132 | 1,667 | 138 | 2,247 | ||
Gain on sale-leaseback | 0 | 15 | 0 | (9,646) | ||
Other | (958) | 737 | (973) | 3,314 | ||
Net (loss)/income | (4,931) | $ (6,663) | 84 | $ 1,644 | (11,594) | 1,728 |
Strategic Initiatives | ||||||
Segment Reporting Information [Line Items] | ||||||
Global transformation, strategic alternatives, and McDonald's expansion | 3,900 | 8,500 | ||||
Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment adjusted EBITDA | (12,472) | (14,468) | (29,336) | (28,608) | ||
U.S. | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 289,304 | 267,417 | 585,239 | 548,761 | ||
U.S. | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment adjusted EBITDA | 32,668 | 28,085 | 75,284 | 66,620 | ||
International | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 125,269 | 120,588 | 250,019 | 232,576 | ||
International | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment adjusted EBITDA | 21,655 | 24,702 | 42,191 | 43,684 | ||
Market Development | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 24,236 | 20,877 | 46,249 | 46,495 | ||
Market Development | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment adjusted EBITDA | $ 12,875 | $ 10,495 | $ 24,775 | $ 22,046 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Jul. 17, 2024 USD ($) | Jul. 15, 2024 USD ($) store | Jun. 30, 2024 |
Krispy Kreme France | |||
Subsequent Event [Line Items] | |||
Ownership percentage | 33% | ||
Subsequent Event | Insomnia Cookies | |||
Subsequent Event [Line Items] | |||
Ownership percentage | 34% | ||
Subsequent Event | Krispy Kreme US Shops 2024 | |||
Subsequent Event [Line Items] | |||
Consideration transferred | $ 31.6 | ||
Consideration transferred, cash | 26.8 | ||
Proceeds from equity method investment, distribution | 6.7 | ||
Consideration transferred, amount withheld to cover indemnification claims | 2.1 | ||
Consideration transferred, settlement of liabilities | $ 2.7 | ||
Subsequent Event | Krispy Kreme Canada Shops 2024 | |||
Subsequent Event [Line Items] | |||
Number of stores | store | 1 | ||
Subsequent Event | Krispy Kreme US Shops 2024 | |||
Subsequent Event [Line Items] | |||
Number of stores | store | 9 | ||
Subsequent Event | Insomnia Cookies | |||
Subsequent Event [Line Items] | |||
Consideration transferred | $ 127.4 | ||
Settlement of intercompany loan | $ 45 |