Krispy Kreme has concluded a $90 million agreement with joint venture partner WKS Restaurant Group, marking a key step in its ongoing refranchising and debt-reduction strategy.
The deal, finalised on March 23, sees WKS increase its ownership stake in the companies’ Western U.S. joint venture from 45% to 80%, while also expanding the venture’s footprint.
As part of the transaction, Krispy Kreme will receive about $50 million in cash upfront, with the remaining amount to be paid overtime. The company plans to use the proceeds primarily to reduce debt.
The agreement also includes the transfer of 23 company-operated stores in California and Hawaii into the joint venture. This takes the total footprint of the venture to more than 70 shops across the Western U.S., along with around 1,000 fresh delivery points through retail partners such as Kroger, Target and Walmart.
Krispy Kreme said the expanded partnership will continue to add new locations and grow its delivery network in the region over the coming years.
CEO Josh Charlesworth said the move supports the company’s shift toward a more “capital-light” model, focused on franchising rather than company-owned expansion. WKS CEO Roland Spongberg said the increased stake reflects confidence in the brand and its growth potential.
The transaction is part of a broader turnaround plan by Krispy Kreme to improve profitability, streamline operations and lower its debt load, with refranchising playing a central role in the strategy.
