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Krispy Kreme Advances Refranchising Strategy with WKS Deal

Tipranks - Tipranks - Wed Mar 25, 4:24PM CDT

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Krispy Kreme ( (DNUT) ) has provided an announcement.

On March 23, 2026, Krispy Kreme completed a refranchising transaction with WKS Restaurant Group that lifted WKS’s stake in their Western U.S. joint venture to 80% while reducing Krispy Kreme’s interest to 20%. The deal brought the company total consideration of about $90 million, including roughly $50 million in cash at closing and a note payable over time, and shifted 23 company-operated shops in California and Hawaii, plus related franchise rights and assets, into the joint venture.

As part of the same refranchising initiative, the joint venture used new financing to repay about $53.5 million of intercompany debt owed to Krispy Kreme, reinforcing the company’s effort to deleverage its balance sheet. Earlier, on March 2, 2026, Krispy Kreme closed the sale of its Japan operations to Unison Capital for nearly $70 million in cash, which was also used to pay down debt, underscoring a broader turnaround strategy centered on capital-light growth and greater reliance on franchise and joint venture partners.

The most recent analyst rating on (DNUT) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Krispy Kreme stock, see the DNUT Stock Forecast page.

Spark’s Take on DNUT Stock

According to Spark, TipRanks’ AI Analyst, DNUT is a Neutral.

The score is held down primarily by weak and volatile financial performance (sharp 2025 revenue/profitability deterioration, high leverage, and inconsistent free cash flow). Technicals are mixed with negative momentum indicators despite price trading above key moving averages. Valuation is supported by the higher dividend yield, and the latest earnings call adds modest positivity from turnaround/deleveraging progress, but not enough to offset the underlying financial risks.

To see Spark’s full report on DNUT stock, click here.

More about Krispy Kreme

Krispy Kreme, Inc., headquartered in Charlotte, N.C., is a global sweet-treat brand best known for its Original Glazed doughnut and operates in more than 40 countries. The company sells through a network of fresh doughnut shops, partnerships with major retailers, and a growing digital business, focusing on extending its fresh delivery reach and brand presence worldwide.

Krispy Kreme leverages joint ventures and franchise partnerships, including with WKS Restaurant Group in the Western U.S. and strategic retail partners such as Kroger, Target, and Walmart. Its model emphasizes a capital-light approach to expansion, using refranchising and strategic divestitures to support profitable growth and balance sheet deleveraging.

Average Trading Volume: 2,457,042

Technical Sentiment Signal: Strong Sell

Current Market Cap: $576.9M

For detailed information about DNUT stock, go to TipRanks’ Stock Analysis page.

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