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Krispy Kreme is now two quarters into its turnaround plan, focusing its attention on both refranchising efforts and development growth, especially in the U.S. 

The Charlotte, N.C.-based doughnut chain had previously announced that its Japanese operations would be purchased by Unison Capital for $65 million, and during Thursday’s fourth quarter earnings call, Krispy Kreme announced similar plans to restructure its Western U.S. joint venture with WKS Restaurant Group. Moving forward, Krispy Kreme will have a minority ownership stake in its Western U.S. operations. 

These efforts are part of the company’s larger capital-light strategy that will provide more financial stability for Krispy Kreme. The company said it intends franchising sales to grow from 25% to half of the company’s systemwide sales by 2027.

“We want to shift to sort of more capital light growth, and to grow to 50% [franchising sales], that will be a combination of refranchising and continuing to open up in new markets,” Krispy Kreme CEO Josh Charlesworth said in an interview.  “We're targeting three to four new countries in 2026 and at least 100 new shops around the world. Growth with franchise partners is a really important part of our future strategy.”

Although the company has closed underperforming locations, Krispy Kreme said that growth in the U.S. market is a top priority, especially with third-party partnerships with retail companies like Target, Walmart, and Costco. 

“We’re a multichannel business,” Charlesworth said. “There's a lot of growth we've seen in the core business. … We’re talking a lot about the U.S., but we're a global business, and we expect to build new shops and expand into new markets in 2026 as well.”

Charlesworth added that in 2025, Krispy Kreme saw a 30% increase in digital sales, and plans to dial into that part of the business as omnichannel growth becomes more crucial.

For the fourth quarter ended Dec. 28, Krispy Kreme reported net revenues of $392.4 million, down 3.9% from $404 million the same quarter the year prior, driven by strategic closures. Krispy Kreme swung to a loss of $29.1 million, or 17 cents per share, compared to a loss of $22.2 million, or 13 cents per share, in the same quarter last year. 

Contact Joanna at joanna.fantozzi@informa.com