Krispy Kreme’s latest move to shed debt: Deals in Japan and US worth $160 million
Krispy Kreme is selling company-owned locations to franchise partners worth $160 million as the Charlotte-based doughnut giant pays down debt to create financial flexibility for growth.
As part of a corporate turnaround strategy, Krispy Kreme completed two major refranchising deals to drive “sustainable, profitable growth,” the company announced Tuesday. Krispy Kreme is focused on nationwide expansion and international franchise expansion.
The two transactions for debt repayment are:
- WKS Restaurant Group (Western U.S. Joint Venture) increased its ownership stake in the Western U.S. joint venture from 45% to 80%. Krispy Kreme received approximately $90 million, including $50 million in cash at closing. The joint venture added 23 former company-operated shops in California and Hawaii, and plans to expand its fresh delivery network over the next several years
- Unison Capital acquired Krispy Kreme’s operations in Japan on March 2 with nearly $70 million in cash.
Last year, about 75% of Krispy Kreme’s sales were from company-operated locations, according to its annual report filed this month. Krispy Kreme aims to have franchisees generate nearly 50% of systemwide sales starting in fiscal 2027 through refranchising efforts, the report said.
At the end of last year, Krispy Kreme had over $938 million in net debt, up about 7% from $875 million in 2024, according to the company’s fourth quarter and full year 2025 earnings report on Feb. 26.
As part of paying down debt, Krispy Kreme sold its remaining stake in Insomnia Cookies for $75 million last year. Krispy Kreme had sold its majority stake in 2024 for $127.4 million to Verlinvest and Mistral Equity Partners.
Krispy Kreme and McDonald’s also jointly ended their partnership in July 2025 after finding the venture financially unsustainable, leading to over $50 million in charges for the doughnut company. The partnership aimed for nationwide availability by 2026 but failed to reach profitability.
About Krispy Kreme
Founded in 1937 in Winston-Salem, the doughnut company is best known for its “Hot Now” glazed doughnuts. Krispy Kreme moved into its corporate offices and test kitchen in Charlotte’s South End at 2116 Hawkins St. in 2019.
The publicly-traded chain operates in 40 countries and has more than 20,000 employees worldwide.
This story was originally published March 26, 2026 at 5:08 AM.
