Krispy Kreme, Inc. completed a $90 million transaction with its joint‑venture partner, WKS Restaurant Group, on March 23, 2026, raising WKS’s ownership stake in the Western U.S. joint venture from 45% to 80%. The deal comprised $50 million in cash at closing and the balance financed through a note payable to WKS over time.
The transaction is a cornerstone of Krispy Kreme’s turnaround plan, which has focused on deleveraging the balance sheet and shifting to a capital‑light, franchise‑heavy model. The proceeds, together with the nearly $70 million raised from the sale of its Japan operations, will be used to pay down the company’s net debt, which stood at $938 million at the end of 2025, up from $875 million in 2024.
Krispy Kreme’s recent financial performance has been under pressure: adjusted EBITDA fell nearly 30% last year, net revenue declined 2.9% in Q4 2025, and the company posted a GAAP net loss of $29.1 million for that quarter. The joint‑venture represents about 15% of the company’s U.S. revenue, and the move to increase WKS’s stake is intended to accelerate growth in that segment while preserving a strategic partnership.
The company’s capital‑light strategy targets 50% of system‑wide sales from franchisees by fiscal 2027, down from roughly 75% of sales generated by company‑owned locations in 2025. WKS Restaurant Group, a multi‑brand franchisee that operates Wendy’s, Denny’s, and El Pollo Loco across 19 states, is positioned to expand the joint venture’s footprint and operational scale.
Josh Charlesworth, Krispy Kreme’s CEO, said the partnership “has been key to our growth in the Western U.S. and this transaction advances our strategy to drive sustainable, profitable growth through capital‑light refranchising while further reducing our leverage.” Roland Spongberg, WKS President & CEO, added that the expanded stake “reinforces our confidence in the brand and positions the business to accelerate development across the Western U.S.”
The deal signals a decisive shift toward a franchise‑centric model, reduces debt, and sets the stage for accelerated expansion in the Western U.S. market, aligning with Krispy Kreme’s broader turnaround objectives.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.