10-Q 1 dnut-20240331.htm 10-Q dnut-20240331
0001857154December 292024Q1FALSEhttp://fasb.org/us-gaap/2024#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2024#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2024#LongTermDebtCurrenthttp://fasb.org/us-gaap/2024#LongTermDebtCurrenthttp://fasb.org/us-gaap/2024#LongTermDebtNoncurrenthttp://fasb.org/us-gaap/2024#LongTermDebtNoncurrentxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesdnut:segmentdnut:propertyutr:galxbrli:purednut:agreementdnut:equity_method_investment00018571542024-01-012024-03-3100018571542024-04-300001857154us-gaap:ProductMember2024-01-012024-03-310001857154us-gaap:ProductMember2023-01-022023-04-020001857154us-gaap:RoyaltyMember2024-01-012024-03-310001857154us-gaap:RoyaltyMember2023-01-022023-04-0200018571542023-01-022023-04-0200018571542024-03-3100018571542023-12-310001857154us-gaap:CommonStockMember2023-12-310001857154us-gaap:AdditionalPaidInCapitalMember2023-12-310001857154dnut:ReceivablesFromStockholderNotesReceivableMember2023-12-310001857154us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310001857154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310001857154us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310001857154us-gaap:RetainedEarningsMember2023-12-310001857154us-gaap:NoncontrollingInterestMember2023-12-310001857154us-gaap:RetainedEarningsMember2024-01-012024-03-310001857154us-gaap:NoncontrollingInterestMember2024-01-012024-03-310001857154us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-03-310001857154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310001857154us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001857154dnut:ReceivablesFromStockholderNotesReceivableMember2024-01-012024-03-310001857154us-gaap:CommonStockMember2024-01-012024-03-310001857154us-gaap:CommonStockMember2024-03-310001857154us-gaap:AdditionalPaidInCapitalMember2024-03-310001857154dnut:ReceivablesFromStockholderNotesReceivableMember2024-03-310001857154us-gaap:AccumulatedTranslationAdjustmentMember2024-03-310001857154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-03-310001857154us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-03-310001857154us-gaap:RetainedEarningsMember2024-03-310001857154us-gaap:NoncontrollingInterestMember2024-03-310001857154us-gaap:CommonStockMember2023-01-010001857154us-gaap:AdditionalPaidInCapitalMember2023-01-010001857154dnut:ReceivablesFromStockholderNotesReceivableMember2023-01-010001857154us-gaap:AccumulatedTranslationAdjustmentMember2023-01-010001857154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-010001857154us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-010001857154us-gaap:RetainedEarningsMember2023-01-010001857154us-gaap:NoncontrollingInterestMember2023-01-0100018571542023-01-010001857154us-gaap:RetainedEarningsMember2023-01-022023-04-020001857154us-gaap:NoncontrollingInterestMember2023-01-022023-04-020001857154us-gaap:AccumulatedTranslationAdjustmentMember2023-01-022023-04-020001857154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-022023-04-020001857154us-gaap:AdditionalPaidInCapitalMember2023-01-022023-04-020001857154dnut:ReceivablesFromStockholderNotesReceivableMember2023-01-022023-04-020001857154us-gaap:CommonStockMember2023-01-022023-04-020001857154us-gaap:CommonStockMember2023-04-020001857154us-gaap:AdditionalPaidInCapitalMember2023-04-020001857154dnut:ReceivablesFromStockholderNotesReceivableMember2023-04-020001857154us-gaap:AccumulatedTranslationAdjustmentMember2023-04-020001857154us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-04-020001857154us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-04-020001857154us-gaap:RetainedEarningsMember2023-04-020001857154us-gaap:NoncontrollingInterestMember2023-04-0200018571542023-04-020001857154dnut:USSegmentMember2023-12-310001857154dnut:InternationalSegmentMember2023-12-310001857154dnut:MarketDevelopmentSegmentMember2023-12-310001857154dnut:USSegmentMember2024-01-012024-03-310001857154dnut:InternationalSegmentMember2024-01-012024-03-310001857154dnut:MarketDevelopmentSegmentMember2024-01-012024-03-310001857154dnut:USSegmentMember2024-03-310001857154dnut:InternationalSegmentMember2024-03-310001857154dnut:MarketDevelopmentSegmentMember2024-03-310001857154us-gaap:TradeNamesMember2024-03-310001857154us-gaap:TradeNamesMember2023-12-310001857154us-gaap:FranchiseRightsMember2024-03-310001857154us-gaap:FranchiseRightsMember2023-12-310001857154us-gaap:CustomerRelationshipsMember2024-03-310001857154us-gaap:CustomerRelationshipsMember2023-12-310001857154dnut:ReacquiredFranchiseRightsMember2024-03-310001857154dnut:ReacquiredFranchiseRightsMember2023-12-310001857154us-gaap:SellingGeneralAndAdministrativeExpensesMember2024-01-012024-03-310001857154us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-022023-04-020001857154us-gaap:OperatingExpenseMember2024-01-012024-03-310001857154us-gaap:OperatingExpenseMember2023-01-022023-04-020001857154us-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-03-310001857154us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel2Member2024-03-310001857154us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-03-310001857154us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2024-03-310001857154us-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001857154us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001857154us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2023-12-310001857154us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-03-310001857154us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310001857154us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310001857154us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-03-310001857154us-gaap:NondesignatedMemberus-gaap:CommodityContractMember2023-07-022023-07-020001857154us-gaap:NondesignatedMemberus-gaap:CommodityContractMember2023-01-012023-01-010001857154us-gaap:NondesignatedMemberus-gaap:CommodityContractMember2024-03-310001857154us-gaap:NondesignatedMemberus-gaap:CommodityContractMember2023-12-310001857154us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2024-03-310001857154us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2023-12-310001857154us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-03-310001857154us-gaap:DesignatedAsHedgingInstrumentMemberdnut:InterestRateContractNewInterestRateSwapAgreementMember2024-03-310001857154dnut:A2023FacilityMemberus-gaap:SecuredDebtMember2024-03-310001857154us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2024-03-310001857154us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2023-12-310001857154us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2024-03-310001857154us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2023-12-310001857154us-gaap:NondesignatedMember2024-03-310001857154us-gaap:NondesignatedMember2023-12-310001857154us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberdnut:AccruedLiabilitiesCurrentMember2024-03-310001857154us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberdnut:AccruedLiabilitiesCurrentMember2023-12-310001857154us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberdnut:AccruedLiabilitiesCurrentMember2024-03-310001857154us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberdnut:AccruedLiabilitiesCurrentMember2023-12-310001857154us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2024-03-310001857154us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2023-12-310001857154us-gaap:DesignatedAsHedgingInstrumentMember2024-03-310001857154us-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001857154us-gaap:InterestRateContractMemberdnut:InterestIncomeExpenseMember2024-01-012024-03-310001857154us-gaap:InterestRateContractMemberdnut:InterestIncomeExpenseMember2023-01-022023-04-020001857154us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2024-01-012024-03-310001857154us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2023-01-022023-04-020001857154us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CommodityContractMember2024-01-012024-03-310001857154us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:CommodityContractMember2023-01-022023-04-020001857154us-gaap:AccountsPayableMember2024-03-310001857154us-gaap:AccountsPayableMember2023-12-310001857154dnut:StructuredPayablesMember2024-03-310001857154dnut:StructuredPayablesMember2023-12-310001857154dnut:KrispyKremeIncKKIMemberdnut:SupplyChainFinancingProgramsMember2024-01-012024-03-310001857154dnut:VendorsUnderSCFProgramMemberdnut:SupplyChainFinancingProgramsMember2024-01-012024-03-310001857154dnut:A2023FacilityMemberus-gaap:SecuredDebtMember2023-12-310001857154dnut:A2023FacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-03-310001857154dnut:A2023FacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2023-12-310001857154us-gaap:LineOfCreditMember2024-03-310001857154us-gaap:LineOfCreditMember2023-12-310001857154dnut:A2023FacilityMemberus-gaap:RevolvingCreditFacilityMember2023-03-310001857154dnut:A2023FacilityMemberus-gaap:SecuredDebtMember2023-03-310001857154dnut:A2023FacilityMemberdnut:CreditSpreadAdjustmentMember2024-01-012024-03-310001857154dnut:A2023FacilityMemberdnut:SecuredOvernightFinancingRateSOFRMemberdnut:LeverageRatioEqualToOrExceeds400To100Member2024-01-012024-03-310001857154dnut:A2023FacilityMemberdnut:SecuredOvernightFinancingRateSOFRMemberdnut:LeverageRatioLessThan400To100ButGreaterThanOrEqualTo300To100Member2024-01-012024-03-310001857154dnut:A2023FacilityMemberdnut:LeverageRatioLessThan300To100Memberdnut:SecuredOvernightFinancingRateSOFRMember2024-01-012024-03-310001857154dnut:A2023FacilityMemberdnut:SecuredOvernightFinancingRateSOFRMember2024-03-310001857154dnut:A2023FacilityMemberdnut:SecuredOvernightFinancingRateSOFRMember2023-12-310001857154us-gaap:LineOfCreditMember2023-09-012023-09-300001857154us-gaap:LineOfCreditMember2023-09-300001857154us-gaap:LineOfCreditMemberdnut:SecuredOvernightFinancingRateSOFRMember2023-09-012023-09-300001857154dnut:KrispyKremeIncKKIMemberdnut:RestrictedStockUnitsRSUsAndPerformanceStockUnitsPSUsMember2023-12-310001857154dnut:KrispyKremeIncKKIMemberdnut:RestrictedStockUnitsRSUsAndPerformanceStockUnitsPSUsMember2024-01-012024-03-310001857154dnut:KrispyKremeIncKKIMemberdnut:RestrictedStockUnitsRSUsAndPerformanceStockUnitsPSUsMember2024-03-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeHoldingUKLtdKKUKMember2023-12-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeHoldingUKLtdKKUKMember2024-01-012024-03-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeHoldingUKLtdKKUKMember2024-03-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:InsomniaCookiesHoldingsLLCInsomniaCookiesMember2023-12-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:InsomniaCookiesHoldingsLLCInsomniaCookiesMember2024-01-012024-03-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:InsomniaCookiesHoldingsLLCInsomniaCookiesMember2024-03-310001857154dnut:KrispyKremeHoldingsPtyLtdKKAustraliaMemberus-gaap:RestrictedStockUnitsRSUMember2023-12-310001857154dnut:KrispyKremeHoldingsPtyLtdKKAustraliaMemberus-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001857154dnut:KrispyKremeHoldingsPtyLtdKKAustraliaMemberus-gaap:RestrictedStockUnitsRSUMember2024-03-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeMexicoSDeRLDeCVKKMexicoMember2023-12-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeMexicoSDeRLDeCVKKMexicoMember2024-01-012024-03-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeMexicoSDeRLDeCVKKMexicoMember2024-03-310001857154dnut:RestrictedStockUnitsRSUsAndPerformanceStockUnitsPSUsMember2024-01-012024-03-310001857154dnut:RestrictedStockUnitsRSUsAndPerformanceStockUnitsPSUsMember2023-01-022023-04-020001857154dnut:KrispyKremeIncKKIMember2024-01-012024-03-310001857154dnut:KrispyKremeIncKKIMember2024-03-310001857154dnut:KrispyKremeIncKKIMemberus-gaap:EmployeeStockOptionMember2024-03-310001857154dnut:KrispyKremeIncKKIMemberus-gaap:EmployeeStockOptionMember2024-01-012024-03-310001857154dnut:KrispyKremeIncKKIMember2023-01-022023-04-020001857154dnut:KremeWorksUSALLCMember2024-03-310001857154dnut:KremeWorksCanadaLPMember2024-03-310001857154dnut:KrispyKremeFranceMember2024-03-310001857154us-gaap:EquityMethodInvesteeMember2024-03-310001857154us-gaap:EquityMethodInvesteeMember2023-12-310001857154dnut:CompanyShopsDFDAndBrandedSweetTreatLineMember2024-01-012024-03-310001857154dnut:CompanyShopsDFDAndBrandedSweetTreatLineMember2023-01-022023-04-020001857154dnut:MixAndEquipmentRevenueFromFranchiseesMember2024-01-012024-03-310001857154dnut:MixAndEquipmentRevenueFromFranchiseesMember2023-01-022023-04-020001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeIncKKIMember2024-01-012024-03-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeIncKKIMember2023-01-022023-04-020001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeHoldingUKLtdKKUKMember2024-01-012024-03-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeHoldingUKLtdKKUKMember2023-01-022023-04-020001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:InsomniaCookiesHoldingsLLCInsomniaCookiesMember2024-01-012024-03-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:InsomniaCookiesHoldingsLLCInsomniaCookiesMember2023-01-022023-04-020001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeHoldingsPtyLtdKKAustraliaMember2024-01-012024-03-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeHoldingsPtyLtdKKAustraliaMember2023-01-022023-04-020001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeMexicoSDeRLDeCVKKMexicoMember2024-01-012024-03-310001857154us-gaap:RestrictedStockUnitsRSUMemberdnut:KrispyKremeMexicoSDeRLDeCVKKMexicoMember2023-01-022023-04-020001857154dnut:KrispyKremeIncKKIMemberus-gaap:EmployeeStockOptionMember2024-01-012024-03-310001857154dnut:KrispyKremeIncKKIMemberus-gaap:EmployeeStockOptionMember2023-01-022023-04-020001857154dnut:USSegmentMember2023-01-022023-04-020001857154dnut:InternationalSegmentMember2023-01-022023-04-020001857154dnut:MarketDevelopmentSegmentMember2023-01-022023-04-020001857154us-gaap:OperatingSegmentsMemberdnut:USSegmentMember2024-01-012024-03-310001857154us-gaap:OperatingSegmentsMemberdnut:USSegmentMember2023-01-022023-04-020001857154us-gaap:OperatingSegmentsMemberdnut:InternationalSegmentMember2024-01-012024-03-310001857154us-gaap:OperatingSegmentsMemberdnut:InternationalSegmentMember2023-01-022023-04-020001857154dnut:MarketDevelopmentSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-03-310001857154dnut:MarketDevelopmentSegmentMemberus-gaap:OperatingSegmentsMember2023-01-022023-04-020001857154us-gaap:CorporateNonSegmentMember2024-01-012024-03-310001857154us-gaap:CorporateNonSegmentMember2023-01-022023-04-020001857154dnut:StrategicInitiativesMember2024-01-012024-03-310001857154dnut:StrategicInitiativesMember2023-01-022023-04-020001857154us-gaap:SubsequentEventMember2024-04-302024-04-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________

FORM 10-Q
_________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______

Commission file number: 001-40573

Image_0.jpg
Krispy Kreme, Inc.
(Exact name of registrant as specified in its charter)
_________________________

Delaware37-1701311
(State or other jurisdiction of incorporation)
(IRS Employer Identification No.)
2116 Hawkins Street, Charlotte, North Carolina 28203
(Address of principal executive offices)

(800) 457-4779
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)
_________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading SymbolName of each exchange on which registered
Common stock, $0.01 par value per share
DNUT
Nasdaq Global Select Market
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

The registrant had outstanding 168.7 million shares of common stock as of April 30, 2024.


Table of Contents
Page


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Krispy Kreme, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share amounts)
Quarter Ended
March 31,
2024 (13 weeks)
April 2,
2023 (13 weeks)
Net revenues
Product sales$433,512 $410,674 
Royalties and other revenues9,186 8,276 
Total net revenues442,698 418,950 
Product and distribution costs107,015 117,833 
Operating expenses205,195 191,408 
Selling, general and administrative expense71,574 61,468 
Marketing expenses12,115 9,853 
Pre-opening costs1,105 764 
Other expenses/(income), net200 (5,263)
Depreciation and amortization expense33,586 27,939 
Operating income11,908 14,948 
Interest expense, net13,736 11,988 
Other non-operating expense, net573 999 
(Loss)/income before income taxes(2,401)1,961 
Income tax expense4,262 317 
Net (loss)/income(6,663)1,644 
Net income attributable to noncontrolling interest1,871 1,945 
Net loss attributable to Krispy Kreme, Inc.$(8,534)$(301)
Net loss per share:
Common stock — Basic$(0.05)$0.00 
Common stock — Diluted$(0.05)$0.00 
Weighted average shares outstanding:
Basic168,685 168,141 
Diluted168,685 168,141 
See accompanying notes to Condensed Consolidated Financial Statements.
1

Krispy Kreme, Inc.
Condensed Consolidated Statements of Comprehensive (Loss)/Income (Unaudited)
(in thousands)
 Quarter Ended
 March 31,
2024 (13 weeks)
April 2,
2023 (13 weeks)
Net (loss)/income$(6,663)$1,644 
Other comprehensive (loss)/income, net of income taxes:
Foreign currency translation adjustment(6,069)11,092 
Unrealized loss on cash flow hedges, net of income taxes (1)
(2,684)(2,967)
Total other comprehensive (loss)/income(8,753)8,125 
Comprehensive (loss)/income(15,416)9,769 
Net income attributable to noncontrolling interest1,871 1,945 
Foreign currency translation adjustment attributable to noncontrolling interest(299)(108)
Total comprehensive income attributable to noncontrolling interest1,572 1,837 
Comprehensive (loss)/income attributable to Krispy Kreme, Inc.$(16,988)$7,932 
(1)Net of income tax benefit of $0.9 million and $1.0 million for the quarters ended March 31, 2024, and April 2, 2023, respectively.
See accompanying notes to Condensed Consolidated Financial Statements.
2

Krispy Kreme, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
As of
 (Unaudited) March 31,
2024
December 31,
2023
ASSETS  
Current assets:  
Cash and cash equivalents$33,132 $38,185 
Restricted cash480 429 
Accounts receivable, net57,287 59,362 
Inventories39,257 34,716 
Taxes receivable18,397 15,526 
Prepaid expense and other current assets25,461 25,363 
Total current assets174,014 173,581 
Property and equipment, net543,100 538,220 
Goodwill1,098,826 1,101,939 
Other intangible assets, net938,847 946,349 
Operating lease right of use asset, net456,810 456,964 
Other assets22,721 23,539 
Total assets$3,234,318 $3,240,592 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt$60,326 $54,631 
Current operating lease liabilities50,275 50,365 
Accounts payable128,555 156,488 
Accrued liabilities117,093 134,005 
Structured payables133,809 130,104 
Total current liabilities490,058 525,593 
Long-term debt, less current portion881,778 836,615 
Noncurrent operating lease liabilities454,265 454,583 
Deferred income taxes, net123,203 123,925 
Other long-term obligations and deferred credits37,127 36,093 
Total liabilities1,986,431 1,976,809 
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.01 par value; 300,000 shares authorized as of both March 31, 2024 and December 31, 2023; 168,731 and 168,628 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
1,687 1,686 
Additional paid-in capital1,449,773 1,443,591 
Shareholder note receivable(3,629)(3,850)
Accumulated other comprehensive (loss)/income, net of income tax(1,208)7,246 
Retained deficit(293,430)(278,990)
Total shareholders’ equity attributable to Krispy Kreme, Inc.1,153,193 1,169,683 
Noncontrolling interest94,694 94,100 
Total shareholders’ equity1,247,887 1,263,783 
Total liabilities and shareholders’ equity$3,234,318 $3,240,592 
See accompanying notes to Condensed Consolidated Financial Statements.
3

Krispy Kreme, Inc.
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
(in thousands, except per share amounts)
 
Common Stock
Additional
Paid-in
Capital
Shareholder
Note
Receivable
Accumulated Other Comprehensive
Income/(Loss)
Retained
(Deficit)/
Earnings
Noncontrolling
Interest
Total
 
Shares
Outstanding
Amount
Foreign
Currency
Translation
Adjustment
Unrealized
Income/(Loss) on
Cash Flow
Hedges
Unrealized  Loss on Employee
Benefit Plans
Balance at December 31, 2023168,628 $1,686 $1,443,591 $(3,850)$1,985 $5,629 $(368)$(278,990)$94,100 $1,263,783 
Net (loss)/income for the quarter ended March 31, 2024— — — — — — — (8,534)1,871 (6,663)
Other comprehensive (loss)/income for the quarter ended March 31, 2024 before reclassifications— — — — (5,770)367 — — (299)(5,702)
Reclassification from AOCI— — — — — (3,051)— — — (3,051)
Capital contribution by shareholders, net of loans issued— —  232 — — — — — 232 
Share-based compensation— — 6,986 — — — — — — 6,986 
Dividends declared on common stock and equivalents ($0.035 per share) (1)
— — — — — — — (5,905)— (5,905)
Distribution to noncontrolling interest— — — — — — — — (977)(977)
Issuance of common stock upon settlement of RSUs, net of shares withheld103 1 (805)— — — — — — (804)
Other— — 1 (11)— — — (1)(1)(12)
Balance at March 31, 2024168,731 $1,687 $1,449,773 $(3,629)$(3,785)$2,945 $(368)$(293,430)$94,694 $1,247,887 
(1)Includes a $0.035 cash dividend per common share declared in the first quarter of fiscal 2024 and expected to be paid in the second quarter of fiscal 2024.
See accompanying notes to Condensed Consolidated Financial Statements.
4

Krispy Kreme, Inc.
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
(in thousands, except per share amounts)
 
Common Stock
Additional
Paid-in
Capital
Shareholder
Note
Receivable
Accumulated Other Comprehensive Income/(Loss)
Retained
(Deficit)/
Earnings
Noncontrolling
Interest
Total
 
Shares
Outstanding
Amount
Foreign
Currency
Translation
Adjustment
Unrealized
Income/(Loss) on
Cash Flow
Hedges
Unrealized  Loss on Employee
Benefit Plans
Balance at January 1, 2023168,137 $1,681 $1,426,105 $(4,813)$(23,028)$14,251 $(374)$(217,490)$102,543 $1,298,875 
Net income/(loss) for the quarter ended April 2, 2023— — — — — — — (301)1,945 1,644 
Other comprehensive income/(loss) for the quarter ended April 2, 2023 before reclassifications— — — — 11,200 (781)— — (108)10,311 
Reclassification from AOCI— — — — — (2,186)— — — (2,186)
Share-based compensation— — 5,545 — — — — — — 5,545 
Dividends declared on common stock and equivalents ($0.035 per share)
— — — — — — — (5,884)— (5,884)
Distribution to noncontrolling interest— — —  — — — — (1,139)(1,139)
Issuance of common stock upon settlement of RSUs, net of shares withheld39 1 (1)— — — — — —  
Other— —  (17)— — — 1 — (16)
Balance at April 2, 2023168,176 $1,682 $1,431,649 $(4,830)$(11,828)$11,284 $(374)$(223,674)$103,241 $1,307,150 
See accompanying notes to Condensed Consolidated Financial Statements.
5

Krispy Kreme, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
 Quarter Ended
 March 31,
2024 (13 weeks)
April 2,
2023 (13 weeks)
CASH FLOWS (USED FOR)/FROM OPERATING ACTIVITIES:  
Net (loss)/income$(6,663)$1,644 
Adjustments to reconcile net (loss)/income to net cash (used for)/provided by operating activities:
Depreciation and amortization expense33,586 27,939 
Deferred and other income taxes214 (219)
Loss on extinguishment of debt 472 
Impairment and lease termination charges247 4,900 
(Gain)/loss on disposal of property and equipment(49)33 
Gain on sale-leaseback (9,661)
Share-based compensation6,986 5,545 
Change in accounts and notes receivable allowances113 334 
Inventory write-off411 7,115 
Settlement of interest rate swap derivatives 7,657 
Amortization related to settlement of interest rate swap derivatives(2,955) 
Other788 (204)
Change in operating assets and liabilities, excluding foreign currency translation adjustments(50,383)(35,190)
Net cash (used for)/provided by operating activities(17,705)10,365 
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Purchase of property and equipment(29,064)(26,553)
Proceeds from sale-leaseback 10,025 
Other investing activities19 82 
Net cash used for investing activities(29,045)(16,446)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of debt179,500 891,698 
Repayment of long-term debt and lease obligations(132,343)(852,144)
Payment of financing costs (5,000)
Proceeds from structured payables101,287 44,757 
Payments on structured payables(97,416)(70,480)
Capital contribution by shareholders, net of loans issued232  
Distribution to shareholders(5,902)(5,884)
Payments for repurchase and retirement of common stock(804) 
Distribution to noncontrolling interest(977)(1,139)
Net cash provided by financing activities43,577 1,808 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(1,829)(1,373)
Net decrease in cash, cash equivalents and restricted cash(5,002)(5,646)
Cash, cash equivalents and restricted cash at beginning of period38,614 35,730 
Cash, cash equivalents and restricted cash at end of period$33,612 $30,084 
Supplemental schedule of non-cash investing and financing activities:
Increase/(decrease) in accrual for property and equipment$3,913 $(104)
Accrual for distribution to shareholders(5,905)(5,884)
Reconciliation of cash, cash equivalents and restricted cash at end of period:
Cash and cash equivalents$33,132 $29,675 
Restricted cash480 409 
Total cash, cash equivalents and restricted cash$33,612 $30,084 
See accompanying notes to Condensed Consolidated Financial Statements.
6

Krispy Kreme, Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited)
(dollars in thousands, unless otherwise specified)
Note 1 — 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 March 31, 2024 and April 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 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 March 31, 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.
7

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 March 31, 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.
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.
Note 2 — Inventories
The components of Inventories are as follows:
March 31, 2024December 31, 2023
Raw materials$23,594 $21,000 
Work in progress470 211 
Finished goods and purchased merchandise15,193 13,505 
Total inventories$39,257 $34,716 

8

Note 3 — 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
 (3,113) (3,113)
Balance as of March 31, 2024$677,956 $291,355 $129,515 $1,098,826 
Other Intangible Assets, net
Other intangible assets consist of the following:
 March 31, 2024December 31, 2023
Gross
Carrying
Amount
Accumulated
Amortization
Net Amount
Gross
Carrying
Amount  
Accumulated
Amortization
Net Amount
Intangible assets with indefinite lives   
 
 
Trade names and trademarks$657,990 $— $657,990 $657,980 $— $657,980 
Intangible assets with definite lives
Franchise agreements30,390 (11,107)19,283 30,390 (10,744)19,646 
Customer relationships15,000 (6,629)8,371 15,000 (6,413)8,587 
Reacquired franchise rights (1)
396,822 (143,619)253,203 397,279 (137,143)260,136 
Total intangible assets with definite lives442,212 (161,355)280,857 442,669 (154,300)288,369 
Total intangible assets$1,100,202 $(161,355)$938,847 $1,100,649 $(154,300)$946,349 
(1)Reacquired franchise rights include the impact of foreign currency fluctuations associated with the respective countries.
Amortization expense related to intangible assets included in depreciation and amortization expense was $7.4 million for the quarter ended March 31, 2024, and $7.3 million for the quarter ended April 2, 2023.
9

Note 4 — Leases
The Company included the following amounts related to operating and finance lease assets and liabilities within the Condensed Consolidated Balance Sheets:
As of
  March 31, 2024December 31, 2023
AssetsClassification  
Operating leaseOperating lease right of use asset, net$456,810 $456,964 
Finance leaseProperty and equipment, net42,140 41,411 
Total leased assets$498,950 $498,375 
Liabilities 
Current 
Operating leaseCurrent operating lease liabilities$50,275 $50,365 
Finance leaseCurrent portion of long-term debt8,326 8,631 
Noncurrent 
Operating leaseNoncurrent operating lease liabilities454,265 454,583 
Finance leaseLong-term debt, less current portion39,637 38,486 
Total leased liabilities$552,503 $552,065 
Lease costs were as follows:
Quarter Ended
  March 31, 2024April 2, 2023
Lease costClassification  
Operating lease costSelling, general and administrative expense$935 $891 
Operating lease costOperating expenses24,023 22,390 
Short-term lease costOperating expenses1,085 1,281 
Variable lease costsOperating expenses7,433 9,345 
Sublease incomeRoyalties and other revenues(35)(35)
Finance lease cost:
 
 
Amortization of right of use assetsDepreciation and amortization expense$2,921 $1,584 
Interest on lease liabilitiesInterest expense, net877 573 
Supplemental disclosures of cash flow information related to leases were as follows:
Quarter Ended
March 31, 2024April 2, 2023
Other information
Cash paid for leases:
Operating cash flows for operating leases (1)
$31,124 $29,145 
Operating cash flows for finance leases
864 549 
Financing cash flows for finance leases
2,593 1,696 
Right of use assets obtained in exchange for new lease liabilities:
Operating leases
$13,114 $26,850 
Finance leases
3,158 1,421 
(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 $7.4 million and $9.3 million for the quarters ended March 31, 2024 and April 2, 2023, respectively.
10

There were no lease termination charges in the quarter ended March 31, 2024. The Company recognized a net gain of $0.9 million included in Other expenses/(income), net on the Condensed Consolidated Statement of Operations in the quarter ended April 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 quarter ended March 31, 2024. In the quarter ended April 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 $9.7 million, which is included in Other expenses/(income), net on the Condensed Consolidated Statement of Operations for the quarter ended April 2, 2023.
Note 5 — Fair Value Measurements
The following table presents assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023:
March 31, 2024
Level 2
Assets:
Interest rate derivatives
$972 
Commodity derivatives
341 
Total Assets$1,313 
Liabilities:
Foreign currency derivatives
$599 
Total Liabilities$599 
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 quarter ended March 31, 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.
11

Note 6 — 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 March 31, 2024 and December 31, 2023, the total notional amount of commodity derivatives was 1.4 million and 1.8 million gallons of fuel, respectively. They are scheduled to mature between April 2024 and December 2024 and January 2024 and December 2024, respectively. As of March 31, 2024 and December 31, 2023, the Company recorded an asset of $0.3 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 March 31, 2024 and December 31, 2023, the Company has recorded assets of $1.0 million and $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 April 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 primary difference between these new agreements and the prior versions included the setting of a new payment rate on the fixed component of the swaps (4.38%). At the same time, the Company also amended the benchmark interest rate on the floating component of all $505.0 million hedged notional to one-month SOFR, corresponding to the new interest rate on its credit facility discussed in Note 8, Long-Term Debt.
The net effect of the interest rate swap arrangements will be to fix the interest rate on the term loan under the 2023 Facility 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 June 2024.
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 March 31, 2024 and December 31, 2023, the total notional amount of foreign exchange derivatives was $50.1 million and $49.8 million, respectively. They matured in April 2024 and January 2024, respectively. The Company recorded liabilities of $0.6 million and $0.3 million as of March 31, 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 March 31, 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
March 31,
2024
December 31,
2023
Balance Sheet Location
Commodity derivatives
$341 $ Prepaid expense and other current assets
Total Assets$341 $ 
Foreign currency derivatives
$599 $345 Accrued liabilities
Commodity derivatives  113 Accrued liabilities
Total Liabilities$599 $458 
12

Derivatives Fair Value
Derivatives Designated as Hedging
Instruments
March 31,
2024
December 31,
2023
Balance Sheet Location
Interest rate derivatives
$972 $1,596 Prepaid expense and other current assets
Total Assets$972 $1,596 
The effect of derivative instruments on the Condensed Consolidated Statements of Operations for the quarters ended March 31, 2024 and April 2, 2023 is as follows:
 
Derivative Gain Recognized in Income for the Quarter Ended
 
Derivatives Designated as Hedging InstrumentsMarch 31, 2024April 2, 2023
Location of Derivative Gain Recognized in Income
Gain on interest rate derivatives$3,051 $2,186 Interest expense, net
 $3,051 $2,186  
 
Derivative (Loss)/Gain Recognized in Income for the Quarter Ended
 
Derivatives Not Designated as Hedging InstrumentsMarch 31, 2024April 2, 2023
Location of Derivative (Loss)/Gain Recognized in Income
Loss on foreign currency derivatives$(254)$(924)Other non-operating expense, net
Gain/(loss) on commodity derivatives454 (118)Other non-operating expense, net
 $200 $(1,042) 
Note 7 — Vendor Finance Programs
The following table presents liabilities related to vendor finance programs which the Company participates in as a buyer as of March 31, 2024 and December 31, 2023:
 March 31, 2024December 31, 2023
Balance Sheet Location
Supply chain financing programs$29,622 $51,239 Accounts payable
Structured payables programs133,809 130,104 Structured payables
Total Liabilities$163,431 $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.
13

Note 8 — Long-Term Debt
The Company’s long-term debt obligations consists of the following:
March 31, 2024December 31, 2023
2023 Facility — term loan$673,750 $682,500 
2023 Facility — revolving credit facility207,500 155,000 
Short-term lines of credit17,000 11,000 
Less: Debt issuance costs(4,109)(4,371)
Finance lease obligations47,963 47,117 
Total long-term debt942,104 891,246 
Less: Current portion of long-term debt(60,326)(54,631)
Long-term debt, less current portion$881,778 $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 a 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 March 31, 2024 and December 31, 2023, the unhedged interest rate was 7.43% and 7.46% under the 2023 Facility, respectively. As of March 31, 2024 and December 31, 2023, $505.0 million out of the $673.8 million term loan balance and $505.0 million out of the $682.5 million term loan balance, respectively, was hedged. The effective interest rate on the term loan was approximately 6.78% and 6.80% for the quarter ended March 31, 2024 and fiscal year ended December 31, 2023, 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%.
14

Note 9 — 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,
2023
GrantedVestedForfeitedNon-vested shares outstanding at March 31,
2024
KKI
RSUs and PSUs
6,785 104 164 88 6,637 
Weighted Average Grant Date Fair Value
$14.54 13.52 14.75 15.11 $14.51 
KK U.K.
RSUs
7    7 
Weighted Average Grant Date Fair Value
$29.80    $29.80 
Insomnia Cookies
RSUs
47  2  45 
Weighted Average Grant Date Fair Value
$120.21  74.12  $122.42 
KK Australia
RSUs
185    185 
Weighted Average Grant Date Fair Value
$1.57    $1.57 
KK Mexico
RSUs
20    20 
Weighted Average Grant Date Fair Value
$30.18    $30.18 
The Company recorded total non-cash compensation expense related to RSUs and PSUs under the plans of $6.1 million and $4.7 million for the quarters ended March 31, 2024, and April 2, 2023, respectively, which is included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.
15

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 March 31, 2024
 Unrecognized Compensation Cost
Recognized Over a
Weighted Average
Period of
KKI$53,665 2.9 years
KK U.K.94 2.2 years
Insomnia Cookies3,355 0.9 years
KK Australia74 1.3 years
KK Mexico231 1.4 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 March 31, 2024 (with no options granted, exercised, or forfeited since December 31, 2023) is presented below:
Share options outstanding at
(in thousands, except per share amounts)March 31,
2024
KKI
Options2,993
Weighted Average Grant Date Fair Value$5.90
Weighted Average Exercise Price$14.30
The Company recorded total non-cash compensation expense related to the time-vested stock options of $0.9 million and $0.9 million for the quarters ended March 31, 2024 and April 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 stock options and the weighted average period over which such cost is expected to be recognized are as follows:
As of March 31, 2024
Unrecognized Compensation Cost
Recognized Over a
Weighted Average
Period of
KKI$7,311 2.1 years
No time-vested stock options under the KKI plan vested during the fiscal periods presented.
16

Note 10 — 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 -177.5% and 16.2% for the quarters ended March 31, 2024 and April 2, 2023, respectively. The Company’s effective income tax rate for the quarter ended March 31, 2024 differed from the respective statutory rates primarily due to disallowed executive compensation expense, the mix of income and taxes attributable to foreign jurisdictions, and noncontrolling interest in domestic joint ventures. The Company’s effective income tax rate for the quarter ended April 2, 2023 differed from the respective statutory rates primarily due to disallowed executive compensation expense, the mix of income and taxes attributable to foreign jurisdictions, and a discrete tax benefit unrelated to ongoing operations.
Note 11 — 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
The Company’s primary banks issued letters of credit on its behalf totaling $13.3 million and $15.4 million as of March 31, 2024 and December 31, 2023, respectively, a majority of which secure the Company’s reimbursement obligations to insurers under its self-insurance arrangements.
Note 12 — Related Party Transactions
The Company has an equity ownership in three franchisees, KremeWorks USA, LLC (20% ownership), KremeWorks Canada, L.P. (25% ownership), and Krispy Kreme Doughnuts France SAS (“KK France”) (33% ownership), with an aggregate carrying value of $2.3 million and $2.8 million as of March 31, 2024 and December 31, 2023, respectively.
Note 13 — Revenue Recognition
Disaggregation of Revenues
Revenues are disaggregated as follows:
Quarter Ended
March 31, 2024April 2, 2023
Company Shops, DFD and Branded Sweet Treats$420,213 $392,814 
Mix and equipment revenue from franchisees13,299 17,860 
Franchise royalties and other9,186 8,276 
Total net revenues$442,698 $418,950 
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.
17

Contract Balances
Deferred revenue and related receivables are as follows:
 March 31, 2024December 31, 2023
Balance Sheet Location
Trade receivables, net of allowances of $450 and $564, respectively
$50,212 $45,858 Accounts receivables, net
Deferred revenue:
Current$21,772 $22,066 Accrued liabilities
Noncurrent7,714 6,005 Other long-term obligations and deferred credits
Total deferred revenue$29,486 $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.
18

Note 14 — Net Loss per Share
The following table presents the calculations of basic and diluted EPS:
 
Quarter Ended
(in thousands, except per share amounts)March 31, 2024April 2, 2023
Net loss attributable to Krispy Kreme, Inc.$(8,534)$(301)
Additional income attributed to noncontrolling interest due to subsidiary potential common shares(19)(10)
Net loss attributable to common shareholders - Diluted$(8,553)$(311)
Basic weighted average common shares outstanding168,685 168,141 
Dilutive effect of outstanding common stock options, RSUs, and PSUs  
Diluted weighted average common shares outstanding168,685 168,141 
Loss per share attributable to common shareholders:
 
Basic$(0.05)$0.00 
Diluted$(0.05)$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
(in thousands)March 31, 2024April 2, 2023
KKI6,637 5,097 
KK U.K.7 7 
Insomnia Cookies  
KK Australia185 276 
KK Mexico  
For both quarters ended March 31, 2024 and April 2, 2023, all 3.0 million time-vested stock options were excluded from the computation of diluted weighted average common shares outstanding based on application of the treasury stock method.
19

Note 15 — 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
 March 31, 2024April 2, 2023
Net revenues:
 
 
U.S.$295,935 $281,344 
International124,750 111,988 
Market Development22,013 25,618 
Total net revenues$442,698 $418,950 
20

Quarter Ended
March 31, 2024April 2, 2023
Segment Adjusted EBITDA:
U.S.$42,616 $38,535 
International20,536 18,982 
Market Development11,900 11,551 
Corporate(16,864)(14,140)
Adjusted EBITDA58,188 54,928 
Interest expense, net13,736 11,988 
Income tax expense4,262 317 
Depreciation and amortization expense33,586 27,939 
Share-based compensation6,986 5,545 
Employer payroll taxes related to share-based compensation43 25 
Other non-operating expense, net (1)
573 999 
Strategic initiatives (2)
4,821 13,469 
Acquisition and integration expenses (3)
248 91 
New market penetration expenses (4)
466 94 
Shop closure expenses/(income), net (5)
139 (679)
Restructuring and severance expenses (6)
6 580 
Gain on sale-leaseback (9,661)
Other (7)
(15)2,577 
Net (loss)/income$(6,663)$1,644 
(1)Primarily foreign translation gains and losses in each period.
(2)The quarter ended March 31, 2024 consists 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 specific initiatives aggregating to approximately $4.6 million of the total). The quarter ended April 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 (approximately $13.4 million of the total).
(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 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. The quarter ended April 2, 2023 includes gains 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.
(6)The quarter ended April 2, 2023 consists primarily of costs associated with restructuring of the global executive team.
(7)The quarters ended March 31, 2024 and April 2, 2023 consist primarily of legal and other regulatory expenses incurred outside the ordinary course of business. The regulatory expenses incurred in the quarter ended April 2, 2023 relate to previous business acquisitions.
Note 16 — Subsequent Events
The Company evaluated subsequent events and transactions for potential recognition or disclosure in the Condensed Consolidated Financial Statements through May 9, 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 April 30, 2024, the Company’s Board of Directors declared a $0.035 per share cash dividend payable on August 7, 2024, to shareholders of record on July 24, 2024.
21

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited Condensed Consolidated Financial Statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as our audited Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, and in other reports filed subsequently with the SEC.
Cautionary Note Regarding Forward-Looking Statements
This report contains forward-looking statements that involve risks and uncertainties. The words “believe,” “may,” “could,” “will,” “should,” “anticipate,” “estimate,” “expect,” “outlook,” “guidance,” or similar words, or the negative of these words, identify forward-looking statements. Such forward-looking statements are based on certain assumptions and estimates that we consider reasonable but are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included herein. Factors that could cause actual results to differ from those expressed in forward-looking statements include, without limitation, the risks and uncertainties described under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed by us with the SEC and described in the other filings we make from time to time with the SEC. We believe that these factors include, but are not limited to, the impact of pandemics, changes in consumer preferences, the impact of inflation, and our ability to execute on our omni-channel business strategy. These forward-looking statements are made only as of the date of this document, and we do not undertake any obligation, other than as may be required by applicable law, to update or revise any forward-looking or cautionary statement to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.
Overview
Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Krispy Kreme operates in 39 countries with our transformational omni-channel strategy, which focuses on delivering fresh doughnuts such as our iconic Original Glazed® doughnut, which is universally recognized for its hot-off-the-line, melt-in-your-mouth experience, to where our consumers are located and want to have access to them. Global Points of Access are a key metric and we define them as our unique network of fresh Doughnut Shops, partnerships with leading retailers (DFD Doors), and a rapidly growing digital business. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities, and the planet.
The following table presents a summary of our financial results for the periods presented:
Quarter Ended
(in thousands, except percentages)March 31, 2024April 2, 2023% Change
Net Revenues (1)
$442,698 $418,950 5.7 %
Net Loss Attributable to Krispy Kreme, Inc. (8,534)(301)-2,735.2 %
Adjusted Net Income, Diluted (2)
11,321 15,261 -25.8 %
Adjusted EBITDA (2)
58,188 54,928 5.9 %
(1)We generated 6.7% organic revenue growth for the quarter ended March 31, 2024.
(2)Refer to “Key Performance Indicators and Non-GAAP Measures” below for more information as to how we define and calculate Adjusted EBITDA and Adjusted Net Income, Diluted and for a reconciliation of Adjusted EBITDA and Adjusted Net Income, Diluted to the most comparable GAAP measure.
22

Significant Events and Transactions
Executing on our Omni-Channel Strategy
We made strong progress on the execution of our omni-channel strategy in the first quarter of fiscal 2024, as we continue to add quality Global Points of Access across our network and convert markets into fully implemented Hub and Spoke models (refer to “Key Performance Indicators and Non-GAAP Measures” below for more information as to how we define the Hub and Spoke model). We added 667 new Global Points of Access in the first quarter of fiscal 2024 to reach 14,814 Global Points of Access. The primary driver of the increased Global Points of Access during the first quarter was the continued expansion of our DFD network in alignment with our transformation strategy, as we added 605 DFD Doors globally, including 390 DFD Doors to the U.S. segment. The increase in DFD Doors is the result of our focus on executing our omni-channel strategy to drive our transformation, and includes expansion with key customers. We expect DFD growth to continue to be one of our most significant drivers of earnings growth, primarily through increased door count and also through optimization of revenue per door. Deployment of the omni-channel strategy in the U.S. led to our trailing four quarters Sales per Hub increasing by 6.5% from $4.6 million in the first quarter of fiscal 2023 to a record high $4.9 million in the first quarter of fiscal 2024. The increase in our Sales per Hub contributed to U.S. segment organic revenue growth of 7.4% and Adjusted EBITDA margin expansion of 70 basis points to 14.4% in the first quarter of fiscal 2024. Our goal is to continue to grow our Sales per Hub over time, which we believe will drive higher margins and higher return on invested capital.
In addition to grocery and convenience stores, we are also expanding in DFD channels such as Quick Service Restaurant (“QSR”), club membership, and drug stores to further broaden availability of our doughnuts to consumers. This includes our recently announced QSR partnership with McDonald’s. Following a successful pilot at approximately 160 McDonald’s shops in Louisville and Lexington, Kentucky and the surrounding area, we entered into an agreement to work with McDonald’s to develop a deployment schedule for a U.S. national rollout of the sale of Krispy Kreme doughnuts at McDonald’s restaurants. The deployment schedule will set forth the anticipated launch period for each McDonald’s business unit in the U.S., with phasing expected through the end of fiscal 2026. The agreement does not guarantee us any particular level of business unit deployment, sales, or profits.
Growing our Global Presence
Another key strategic initiative on our journey to become the Most Loved Sweet Treat Brand in the World is to increase our global presence, focusing on the percentage of our revenues and Adjusted EBITDA generated outside the U.S. We expect to open in three to five new countries in fiscal 2024, with a key focus in Western Europe and select Asian and South American countries. We recently entered into agreements with franchise partners in Brazil and Germany, with shop openings expected in the future. We expect to have further announcements throughout the year as we grow our global business.
Digital, Brand, and Innovation
Digital channel sales represented a record 23.0% of our Doughnut Shop and Cookie Bakery sales (excluding DFD) for the first quarter of fiscal 2024, up from 19.6% in the same quarter last year. Our growth in digital is due to our focus on owned channel improvements and increasing product availability through third parties.
Innovation is a significant driver of frequency as we create and introduce premium and buzz-worthy offerings to consumers across our Global Points of Access. During the first quarter of fiscal 2024 we delivered the joy that is Krispy Kreme through powerful specialty doughnuts and seasonal activations including Chocomania with HERSHEY’S, Valentine’s Day, and Saint Patrick’s Day, among many others around the world.
Aggregated.jpg
23

Segment Reclassifications
As discussed in Note 1, Description of Business and Summary of Significant Accounting Policies to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q, effective January 1, 2024, we realigned our 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.
24

Key Performance Indicators and Non-GAAP Measures
We monitor the key business metrics and non-GAAP metrics set forth below to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. The calculation of the key business metrics discussed below may differ from other similarly titled metrics used by other companies, securities analysts, or investors.
Throughout this Quarterly Report on Form 10-Q, we utilize “Global Points of Access” as a key performance indicator. Global Points of Access reflect all locations at which fresh doughnuts or cookies can be purchased. We define Global Points of Access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors, Cookie Bakeries, and other defined points at both Company-owned and franchise locations as of the end of the respective reporting period. We monitor Global Points of Access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type.
The following table presents our Global Points of Access, by segment and type, as of the end of the first quarter of fiscal 2024, the first quarter of fiscal 2023, and fiscal 2023, respectively:
Global Points of Access
Quarter EndedFiscal Year Ended
March 31, 2024April 2, 2023December 31, 2023
U.S.:
Hot Light Theater Shops229 228 229 
Fresh Shops71 67 70 
Cookie Bakeries277 239 267 
DFD Doors (2)
7,198 6,081 6,808 
Total7,775 6,615 7,374 
International:
Hot Light Theater Shops45 43 44 
Fresh Shops490 458 483 
Carts, Food Trucks, and Other (1)
16 16 16 
DFD Doors
4,202 3,319 3,977 
Total4,753 3,836 4,520 
Market Development:
Hot Light Theater Shops117 106 116 
Fresh Shops1,010 835 968 
Carts, Food Trucks, and Other (1)
30 28 30 
DFD Doors
1,129 990 1,139 
Total2,286 1,959 2,253 
Total Global Points of Access (as defined)14,814 12,410 14,147 
Total Hot Light Theater Shops391 377 389 
Total Fresh Shops1,571 1,360 1,521 
Total Cookie Bakeries277 239 267 
Total Shops2,239 1,976 2,177 
Total Carts, Food Trucks, and Other46 44 46 
Total DFD Doors12,529 10,390 11,924 
Total Global Points of Access (as defined)14,814 12,410 14,147 
(1)Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of Access in this category are primarily found in international locations in airports, train stations, etc.
(2)Includes over 160 McDonald’s shops located in Louisville and Lexington, Kentucky and the surrounding area as of March 31, 2024.
25

As of March 31, 2024, we had 14,814 Global Points of Access, with 2,239 Krispy Kreme and Insomnia Cookies branded shops, 46 Carts and Food Trucks, and 12,529 DFD Doors. During the first quarter of fiscal 2024, we added a net 62 additional shops globally, including two Hot Light Theater Shops, 50 Fresh Shops, and 10 Insomnia Cookie Bakeries. Hot Light Theater Shop openings during the quarter included expansion in Philadelphia, Pennsylvania and Khamis Mushait, Saudi Arabia. We added a net 605 new DFD Doors during the quarter as we continue to focus on the deployment of our Hub and Spoke model and our expansion into QSR channels. We plan to continue adding new locations and expanding our digital platform in order to extend the availability of and access to our products. We are excited about our partnership with McDonald’s and the phasing of a U.S. national rollout, which we believe has validated the attractiveness of the QSR channel.
We also utilize “Hubs” as a key performance indicator. Our transformation is driven by the implementation of an omni-channel strategy to reach more consumers where they are and drive revenue growth, and this strategy is supported by a capital-efficient Hub and Spoke distribution model that provides a route to market and powers profitability. O