Krispy Kreme has agreed to sell its entire Japan operation, comprising 89 stores and fresh‑delivery points across Tokyo, Osaka and other major cities, to private‑equity firm Unison Capital for approximately $65 million in cash. The deal is expected to close in the first quarter of 2026 and will provide the doughnut maker with immediate liquidity that it plans to use to reduce its $1.45 billion balance‑sheet debt.
The sale is a key milestone in Krispy Kreme’s August 2025 turnaround plan, which focuses on deleveraging, cost control and refranchising profitable international markets. By divesting its Japan business, the company moves closer to an asset‑light model that relies on franchise partners to grow the brand while it concentrates on core U.S. operations and its high‑growth McDonald’s partnership. The $65 million proceeds will be applied directly to debt reduction, improving leverage ratios and freeing cash for future strategic initiatives.
Krispy Kreme’s Q3 2025 earnings showed a net loss of $20.1 million but an adjusted EBITDA that rose 17% year‑over‑year to $123 million, reflecting disciplined cost management amid a challenging macro environment. The company’s total debt of $1.45 billion had been a persistent headwind, and the Japan sale is the first international refranchising transaction since the turnaround plan was launched. The cash infusion is expected to lower interest expense and extend the company’s debt‑service coverage, positioning it for a more sustainable growth trajectory.
CEO Josh Charlesworth said, “This is the first international refranchising agreement since we launched our turnaround plan in August, and it demonstrates progress on a key pillar of the plan.” Unison Capital’s co‑founder and managing partner, Tatsuya Hayashi, added, “We are excited to bring our expertise in consumer and restaurant investments to the Japanese market and to help grow Krispy Kreme’s brand there.”
Market participants have reacted positively to the transaction, viewing it as a concrete step toward debt reduction and a shift to a more scalable, franchise‑centric model. The sale also signals confidence in the long‑term viability of Krispy Kreme’s international strategy, even as the company continues to navigate macro‑economic headwinds in the U.S. and global markets.
The transaction sets a precedent for future refranchising opportunities in other international markets. By demonstrating a successful exit in Japan, Krispy Kreme can leverage Unison Capital’s experience to accelerate similar deals elsewhere, potentially unlocking additional cash flows and reducing the company’s overall debt burden while maintaining brand presence abroad.
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