CHARLOTTE, N.C. & TOKYO — In a major end-of-year move to solidify its balance sheet and transition toward a more “capital-light” business model, Krispy Kreme, Inc. (NASDAQ: DNUT) officially announced on December 19, 2025, that it has reached a definitive agreement to sell its Japanese operations to Unison Capital, a leading Japan-based private-equity firm.
The deal, valued at approximately $65 million in cash, represents a significant milestone in Krispy Kreme’s ongoing “turnaround plan” initiated in August 2025. The transaction is projected to close in the first quarter of 2026, marking the brand’s first major international refranchising agreement since restructuring its global strategy.
Deleveraging the Balance Sheet: Tackling a $1.45 Billion Debt Load
For investors and financial analysts, the core of this announcement lies in Krispy Kreme’s urgent need to reduce corporate debt. As of late 2025, the doughnut giant was carrying a substantial $1.45 billion in total debt, with short-term obligations frequently exceeding its liquid assets.
CEO Josh Charlesworth emphasized that the proceeds from the Japan sale—estimated at $65 million depending on the final fiscal year 2025 performance—will be used primarily to pare down this debt load after accounting for transaction-related fees.
“The sale of our Japan business is an important step in advancing our refranchising initiative, supporting greater financial flexibility and reducing debt,” Charlesworth stated. “Unison is a proven, skilled operator with deep expertise in the retail beverage and restaurant sectors, and we believe they are an ideal long-term partner.”
The “Capital-Light” Pivot: Refranchising as a Growth Engine
The sale marks a transition from company-owned operations to a master franchise model in one of Krispy Kreme’s most successful international markets. This “hub-and-spoke” model allows the company to maintain brand presence while offloading the capital-intensive logistics and operational costs to a local partner.
Unison Capital, founded in 1998, is well-positioned for this role. The firm has a track record of transforming consumer-facing brands in Japan, including successful management reforms for the Sukesan Udon noodle chain. Unison will now take the reins of Krispy Kreme’s 89 locations and nearly 300 fresh delivery points across major hubs like Tokyo and Osaka.
Market Reaction and Stock Performance
Following the news, DNUT stock showed signs of cautious optimism, testing the $4.70 resistance level in pre-holiday trading. While the stock has faced a challenging year—declining over 50% year-to-date due to profitability concerns and a failed partnership with McDonald’s USA—analysts view the divestment of Japan as a necessary “deleveraging” move.
The Japan sale follows the company’s June 2025 sale of its stake in Insomnia Cookies for $75 million, further proving that the “refranchising agenda” is the company’s primary defense against high interest rates and a weakening balance sheet.
Key Financial Highlights of the Deal
| Feature | Details |
| Transaction Value | ~$65 Million Cash |
| Purchaser | Unison Capital, Inc. |
| Assets Sold | 89 stores & 300 points of access in Japan |
| Expected Closing | Q1 2026 (Jan–March) |
| Primary Use of Proceeds | Debt repayment and deleveraging |
| Corporate Strategy | Transition to “Asset-Light” Franchise Model |
A 20-Year Legacy in Japan
The timing of the deal is symbolic, coming just as Krispy Kreme celebrated its 20th anniversary in Japan. Since launching its first store in Shinjuku, Tokyo, in 2006, the brand has become a cultural staple. Under Unison’s ownership, the goal is to pursue localized growth and operational improvements that a U.S.-based corporate office might struggle to implement from afar.
The sale does not mean Krispy Kreme is leaving Japan; rather, it is shifting its role from operator to franchisor, collecting royalties while Unison Capital manages the day-to-day expansion. This allows Krispy Kreme to focus its internal resources on its core U.S. market and its burgeoning digital business.