Krispy Kreme, Inc. (NASDAQ: DNUT)

Krispy Kreme, Inc. is an omni-channel business focused on the production and sale of fresh, high-quality doughnuts through a global network of points of access. The company operates through a Hub and Spoke model that leverages doughnut factories and company-owned or franchise-operated shops to deliver products to consumers via in-shop purchases, fresh delivery to retail partners, and digital channels for pickup or delivery. Krispy Kreme generates revenue from the sale of doughnuts and complementary products to consumers through its various channels, as well as from the sale of doughnut mix, ingredients, supplies, and equipment to franchisees, along with franchise fees, royalties, and advertising fees based on franchisee sales. The company operates through three reported segments: U. S., International, and Market Development.

• The U. S. segment includes all Company-owned operations in the United States and Insomnia Cookies Bakeries globally through the date of deconsolidation, with revenue derived from product sales through Hot Light Theater Shops, Fresh Shops, fresh delivery, and digital channels in the U. S. market.

• The International segment includes all Company-owned operations in the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, and Japan, generating revenue from product sales through similar channels in these international Company-owned markets.

• The Market Development segment includes franchise operations across the globe, with revenue generated from the sale of product mix, ingredients, supplies, and equipment to franchisees, as well as development and initial franchise fees, ongoing royalties based on franchisee sales, and advertising fees based on franchisee sales.

Krispy Kreme holds a strong position in the global indulgence industry as one of the most beloved and well-known sweet treat brands, differentiated by its iconic Original Glazed doughnut, proprietary formulations, and unique consumer experience offered through its Hot Light Theater Shops. The company competes with a wide range of retailers including doughnut shops, coffee shops, convenience stores, supermarkets, and other sweet treat providers, but maintains a competitive advantage through brand love, product freshness, and its omni-channel Hub and Spoke model that ensures consistent quality across diverse access points.

Krispy Kreme serves a broad consumer base globally, including individual consumers purchasing doughnuts for personal consumption or sharing, as well as business customers such as grocery stores, club wholesalers, convenience stores, quick service restaurants, and drug stores that sell Krispy Kreme doughnuts through branded cabinets and merchandising units under fresh delivery arrangements.