Charlotte, N.C. — Krispy Kreme, Inc. is continuing progress on its turnaround plan to deleverage the balance sheet and drive sustainable, profitable growth through refranchising, a key component of the plan.
On March 23, 2026, Krispy Kreme completed a transaction with its joint venture partner, WKS Restaurant Group, to increase WKS’s ownership stake in the Western U.S. joint venture from 45% to 80% and expand the joint venture’s footprint. The total amount payable to the company in connection with the transaction is approximately $90 million with approximately $50 million of cash to the company at closing, which it expects to use to reduce debt, and a note payable over time.
Following the transaction, the joint venture added 23 shops in California and Hawaii that were previously operated by Krispy Kreme. This is in addition to the joint venture’s existing 50 shops across the Western U.S. and approximately 1,000 fresh delivery locations with strategic partners such as Kroger, Target and Walmart. The joint venture has further agreed to develop additional shops and plans to expand Krispy Kreme’s fresh delivery footprint over the next several years.
“Our long-standing partnership with WKS has been key to Krispy Kreme’s growth in the Western U.S. This transaction advances our strategy to drive sustainable, profitable growth through capital-light refranchising while further reducing our leverage,” says Josh Charlesworth, CEO of Krispy Kreme.
“We are excited to expand our partnership with Krispy Kreme. By increasing our ownership stake and meaningfully expanding the joint venture’s footprint, we are reinforcing our confidence in the brand and positioning the business to accelerate development across the Western U.S.,” says Roland Spongberg, president and chief executive officer of WKS Restaurant Group.
On March 2, 2026, Krispy Kreme also closed on its previously disclosed agreement for Unison Capital, Inc. to purchase its operations in Japan. Cash proceeds from this transaction were nearly $70 million and were used to pay down debt, after transaction-related fees and expenses.
Headquartered in Cypress, Calif., WKS Restaurant Group was founded by Roland Spongberg in 1987 with one restaurant and one brand. Today, WKS has grown to four brands (Wendy’s, Denny’s, El Pollo Loco and Krispy Kreme) operating in 19 states with 10,000+ employees. For more information, visit www.wksusa.com.
Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Krispy Kreme operates in more than 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers and a rapidly growing digital business. For more information, visit www.KrispyKreme.com.
SOURCE: Krispy Kreme