Krispy Kreme's Japanese Exit Could Be The Sugar Rush Its Turnaround Needs

Krispy Kreme, Inc. (NASDAQ:DNUT) stock rose on Friday following a strategic update related to its international operations.

The doughnut chain announced a major refranchising agreement aimed at strengthening liquidity and reducing leverage.

Krispy Kreme reached an agreement to transfer its Japan operations to Unison Capital, Inc.

Also Read: Stock Market Today: S&P 500, Nasdaq Future Gain Following Cooler-Than-Expected Inflation Print—Oracle, Coty, Nike In Focus

The cash proceeds from this transaction are estimated to be approximately $65 million, contingent upon the fiscal year 2025 financial results for Japan. 

The transaction represents the company’s first international refranchising deal since launching its turnaround plan.

Management expects the sale to support balance sheet improvement and greater financial flexibility.

The transaction is scheduled to close during the first quarter of fiscal 2026.

Japan Market Footprint

Krispy Kreme recently celebrated two decades of operations in Japan. The brand launched its first Japanese location in Tokyo’s Shinjuku district.

Since then, Krispy Kreme expanded across major urban centers, including Tokyo and Osaka. The Japan network includes company-operated shops and fresh delivery access points.

Unison Capital focuses on investments in consumer, healthcare, and business services.

The firm manages multiple funds across Japan and South Korea.

Its portfolio includes restaurant, beverage, and specialty retail brands.

Management Commentary

“We are pleased to announce our first international refranchising agreement since launching our turnaround plan in August,” said Josh Charlesworth, Krispy Kreme chief executive officer.

“The sale of our Japan business is an important step in advancing our refranchising initiative,” Charlesworth added.

Tatsuya Hayashi, co-founder and managing partner of Unison, highlighted the long-term growth potential.

“We are excited to assume ownership of Krispy Kreme’s operations in Japan,” Hayashi said.

DNUT Price Action: Krispy Kreme shares were up 1.29% at $4.69 during premarket trading on Friday, according to Benzinga Pro data.

Read Next:

• Nike Plunges 11% As Tariffs, China Woes Cloud Outlook: Q3 Margins To Contract Amid Warning Of ‘Longer Road’ To Recovery

Photo by Morumotto via Shutterstock