CHARLOTTE, N.C.--(BUSINESS WIRE)--As many Americans head into the New Year resolving to spend more time together and share more moments that matter, Krispy Kreme is resolving to make those moments sweeter with more fresh doughnuts and sweet deals that are perfect for sharing! Today through New Year's Day, Krispy Kreme is offering two deals to ring in the New Year: New Year's Double Dozen for $20.26 – Two Original Glazed® dozens or one Original Glazed® dozen paired with either a Classic Assorted. ...

Core Viewpoint - Krispy Kreme has agreed to sell its Japanese operations to Unison Capital for approximately $65 million, marking its first international refranchising agreement since initiating a turnaround plan in August 2023 [1][2]. Group 1: Transaction Details - The deal is expected to be completed in the first quarter of 2026 and involves Krispy Kreme's 89 outlets in Japan and around 300 fresh delivery points in major urban areas [1]. - The cash proceeds from the sale will be used to reduce the company's debt [2]. Group 2: Strategic Importance - The CEO of Krispy Kreme emphasized that this transaction represents meaningful progress in their turnaround strategy, which includes refranchising as a key component [2]. - The sale is seen as a significant step in advancing Krispy Kreme's refranchising initiative, aimed at enhancing financial flexibility [3]. Group 3: Buyer Profile - Unison Capital, founded in 1998, specializes in investments in consumer, healthcare, and B2B services, and has raised approximately $5 billion through various investment vehicles in Japan and South Korea [4]. - The firm has a diverse portfolio that includes food and beverage operators, indicating its capability to manage Krispy Kreme's operations effectively in Japan [4]. Group 4: Future Outlook - Unison Capital's co-founder expressed excitement about taking over Krispy Kreme's operations, highlighting the brand's iconic status and the intention to build on its legacy in Japan [5]. - The partnership is expected to align with Krispy Kreme's commitment to excellence and growth in the Japanese market [6].

Core Viewpoint - Krispy Kreme has established itself as a meme stock, experiencing a 54% decline this year but a nearly 70% rebound from its summer lows, with ongoing challenges in profitability and revenue growth [2][4]. Financial Performance - The company has faced negative net income for an extended period, with thin margins during the few profitable quarters over the past five years [3]. - In Q3, revenue decreased by 1.2% year-over-year, and the operating loss was $7.2 million, an improvement from the $16 million loss in the same period last year [6]. Strategic Initiatives - CEO Josh Charlesworth identified two key initiatives for returning to profitability: profitable U.S. expansion and capital-light international franchise growth [6]. - The company is focusing on profitable growth, indicating that a significant revenue drop could be acceptable if net margins turn positive [9]. Market Position and Challenges - Krispy Kreme's global points of access declined by 6.1% year-over-year, and the company ended an unprofitable partnership with McDonald's, which may hinder sales growth [8]. - The balance sheet is under pressure, with total current assets of $161.8 million against total current liabilities of $448.9 million, resulting in a low current ratio of 0.36 [13]. Interest Expenses and Financial Health - The Q3 operating loss of $7.2 million did not include $16.4 million in interest expenses, highlighting the financial strain [12]. - The company has a price-to-sales ratio of 0.5, indicating a lower valuation, but achieving profitability may require a prolonged period of revenue declines and balance sheet deleveraging [14]. Growth Potential - The U.S. fresh delivery model is reportedly profitable and expanding, although specific numbers were not disclosed [10]. - The company is lightly entering international markets and collaborating with local franchise operators to scale up in a capital-efficient manner [9].

Krispy Kreme has signed a deal to sell its operations in Japan to private-equity firm Unison Capital for cash proceeds of about $65 million, which the doughnut maker will use to pare its debt load. ...

CHARLOTTE, N.C.--(BUSINESS WIRE)--Krispy Kreme, Inc. (NASDAQ: DNUT) ("Krispy Kreme†, or the "Company†) today announced that it has reached an agreement for Unison Capital, Inc. ("Unison†) to purchase its operations in Japan. Cash proceeds from this transaction are estimated to be approximately $65 million dependent on the fiscal year 2025 financial results for Japan. Proceeds are expected to be used for debt pay down after transaction-related fees and expenses. The transaction is projected to c. ...

CHARLOTTE, N.C.--(BUSINESS WIRE)--Krispy Kreme, Inc. (NASDAQ: DNUT) ("Krispy Kreme†, or the "Company†) today announced that it has reached an agreement for Unison Capital, Inc. ("Unison†) to purchase its operations in Japan. Cash proceeds from this transaction are estimated to be approximately $65 million dependent on the fiscal year 2025 financial results for Japan. Proceeds are expected to be used for debt pay down after transaction-related fees and expenses. The transaction is projected to c. ...

Core Insights - Krispy Kreme has faced significant challenges in profitability over the past several years, with shares down more than 77% in the last five years compared to an S&P 500 return of over 85% [3] - Despite recent stock price recovery, the company reported a net loss of approximately $488 million in the first three quarters of 2025, a stark contrast to a profit of $25.5 million in the same period of fiscal 2024 [5][7] - The company is implementing a turnaround strategy that includes refranchising and improving return on invested capital, although the specifics of these initiatives appear vague [8][9] Financial Performance - Krispy Kreme's net revenue for the first three quarters of 2025 declined by 10.39% to $1.13 billion, with a net loss of $2.86 per diluted share [5] - The company had a small net income of $3.1 million in 2024, following several years of losses from 2020 to 2023 [4] - Total equity decreased by 41% year over year to $693.8 million, indicating a significant hit to the balance sheet [7] Market Position - The current market capitalization of Krispy Kreme is $754 million, with a current stock price of $4.40 [5] - The stock has shown a 46.8% increase over the last six months, despite the overall decline in profitability [3] - The company's gross margin stands at 13.91%, and it has a dividend yield of 1.59% [5] Strategic Initiatives - Krispy Kreme is focusing on refranchising to enhance financial flexibility and improve margins through outsourcing U.S. logistics [8] - The company aims to drive sustainable and profitable growth, although the details of this strategy are not clearly defined [9]

CHARLOTTE, N.C.--(BUSINESS WIRE)--Krispy Kreme® will help doughnut fans across the United States spread more holiday cheer this Friday for just $1. On Friday, 12/12 only, Krispy Kreme will return its annual "Day of the Dozens," offering guests a dozen Original Glazed® doughnuts for just $1 with the purchase of any dozen (or 16-ct Minis) at regular price. Krispy Kreme fans can treat themselves, loved ones, friends and co- workers to this sweet holiday deal in-shop, via drive-thru, or online for p. ...

Core Viewpoint - Krispy Kreme represents a high-risk, potentially high-reward turnaround story, with its brand recognition not translating into stock performance [1] Company Overview - Krispy Kreme has seen its shares lose more than half their value since its 2021 IPO, recently trading at $4.40 per share, near an all-time low [2] - The company operates in over 40 countries and sells millions of doughnuts daily, maintaining a strong emotional connection with customers [3] - Despite its visibility, Krispy Kreme's market capitalization is under $800 million, reflecting a business model that is still searching for consistency [4] Financial Performance - Krispy Kreme generated approximately $1.6 billion in annual revenue but reported operating losses, swinging from a profit of $13 million to a loss of $9 million in 2024 [6] - The company’s adjusted EBITDA margin improved to 10.8% from 9.1% year-over-year, but this margin is considered modest compared to competitors like Starbucks, which operates above 15% [7] Market Valuation - The company trades at a price-to-sales ratio of 0.5, which appears appealing, but the lack of profits and near-zero returns on invested capital raise skepticism about the valuation [8] Growth Potential - Optimists highlight early signs of a turnaround, including refranchising operations and closing unprofitable outlets, aiming for a more capital-light model [9] - There is potential for international growth, particularly in underpenetrated markets like Asia and Latin America, which could lead to mid-single-digit revenue growth and rising margins over time [10] Challenges and Risks - Skeptics point out that Krispy Kreme has faced multiple restructurings in the past without achieving sustainable profitability [11] - The company's "hub-and-spoke" distribution model is capital-heavy and operationally complex, posing challenges in maintaining profitability while closing unprofitable stores [12] - Execution risks are evident, as demonstrated by the termination of a partnership with McDonald's USA due to unprofitable unit economics [13] Investment Implications - The stock appears cheap, but only if the turnaround succeeds; the market is currently pricing in pessimism [14] - If margins improve and international growth accelerates, the stock could offer significant upside, but persistent inconsistency in profits could lead to a reevaluation of its valuation [14][15]

Core Viewpoint - Krispy Kreme is striving to achieve consistent profitability after experiencing significant stock value decline since its 2021 IPO, with shares dropping approximately 80% from an initial price of $17 to below $4 [1][6]. Financial Performance - In the first three quarters of 2025, Krispy Kreme generated over $1.1 billion in product sales but incurred a loss of about $100 million, even after adjusting for a $400 million non-cash impairment charge [3][4]. - The company's gross margin stands at 13.91%, and it has accrued $600 million in operating expenses in 2025, which exceeds half of its revenue [9]. Business Model Changes - To improve financial results, Krispy Kreme is focusing on reducing operating expenses, including plans to outsource U.S. logistics [9]. - The company is also looking to refranchise some locations and restructure joint venture agreements to alleviate capital-intensive operations [10]. - These strategic changes aim to enhance the business model and potentially improve stock performance in the future [11]. Future Outlook - Management acknowledges that significant changes are necessary for better financial outcomes, and while efforts are underway, it may take time to see substantial improvements [12].