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Segment Reporting
 12 Months Ended
Jan. 02, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company conducts business through the following three reportable segments:
•U.S. and Canada: Includes all Company-owned operations in the U.S. and Canada, including Krispy Kreme and Insomnia Cookies-branded shops, DFD, and the Branded Sweet Treat Line;
•International: Includes all Krispy Kreme’s Company-owned operations in the U.K., Ireland, Australia, New Zealand and Mexico; and
•Market Development: Includes franchise operations across the globe, as well as the Company-owned operations in Japan.
Unallocated corporate costs are excluded from the Company’s measurement of segment performance. These costs include general corporate expenses.
Segment information is identified and prepared on the same basis that the CEO, the Company’s Chief Operating Decision Maker (“CODM”), evaluates financial results, allocates resources and makes key operating decisions. The CODM allocates resources and assesses performance based on geography and line of business, which represents the Company’s operating segments. The operating segments within the U.S. and Canada and International reportable segments have been evaluated and combined into reportable segments because they have met the similar economic characteristics and qualitative aggregation criteria set forth in the relevant accounting guidance.
The primary financial measures used by the CODM to evaluate the performance of its operating segments are net revenues and segment Adjusted EBITDA. The following tables reconcile segment results to consolidated results reported in accordance with GAAP. The accounting policies used for internal management reporting at the operating segments are consistent with those described in Note 1, Description of Business and Summary of Significant Accounting Policies, to the audited Consolidated Financial Statements. The Company manages its assets on a total company basis and the CODM does not review asset information by segment when assessing performance or allocating resources. Consequently, the Company does not report total assets by reportable segment.
The reportable segment results are as follows:
Fiscal Years Ended
January 2, 2022January 3, 2021December 29, 2019
Net revenues:
U.S. and Canada
$928,413 $782,717 $587,522 
International
332,995 230,185 223,115 
Market Development
122,983 109,134 148,771 
Total net revenues
$1,384,391 $1,122,036 $959,408 
Fiscal Years Ended
January 2, 2022January 3, 2021December 29, 2019
Depreciation and amortization:
U.S. and Canada
$55,447 $43,056 $30,610 
International
36,139 30,438 25,188 
Market Development
2,042 2,304 3,464 
Corporate
7,980 4,600 4,505 
Total depreciation and amortization
$101,608 $80,398 $63,767 
Fiscal Years Ended
January 2,
2022		January 3,
2021		December 29,
2019
Segment Adjusted EBITDA:
U.S. and Canada
$107,571 $91,574 $71,620 
International
81,422 44,554 53,252 
Market Development
40,824 39,060 51,574 
Corporate
(41,872)(29,754)(30,062)
187,945 145,434 146,384 
Interest expense, net32,622 34,741 38,085 
Interest expense — related party(1)
10,387 22,468 21,947 
Income tax expense10,745 9,112 12,577 
Depreciation and amortization expense101,608 80,398 63,767 
Share-based compensation22,923 11,601 10,741 
Employer payroll taxes related to share-based compensation2,044 — — 
Other non-operating expense/(income), net(2)
2,191 (1,101)(609)
New York City flagship Hot Light Theater Shop opening(3)
— 6,513 3,784 
Strategic initiatives(4)
— 20,517 4,059 
Acquisition and integration expenses(5)
5,255 12,679 20,433 
Shop closure expenses(6)
2,766 6,269 629 
Restructuring and severance expenses(7)
1,733 — 583 
IPO-related expenses(8)
14,534 3,184 — 
Gain on sale-leaseback(8,673)— — 
Other(9)
4,653 (7)4,389 
Net Loss$(14,843)$(60,940)$(34,001)
1.Consists of interest expense related to the Related Party Notes which were paid off in full during the second quarter of fiscal 2021.
2.Primarily foreign translation gains and losses in each period.
3.Consists of pre-opening costs related to the Company’s New York City flagship Hot Light Theater Shop opening, including shop design, rent, and additional consulting and training costs incurred and reflected in Selling, general and administrative expenses.
4.Consists mainly of consulting and advisory fees, personnel transition costs, and network conversion and set-up costs related to the evolution of the Company’s legacy wholesale business in the U.S.
5.Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, consulting and advisory fees incurred in connection with acquisition-related activities for the applicable period.
6.Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment.
7.Fiscal 2021 consists of severance and related benefits costs associated with the Company’s realignment of the Company Shop organizational structure to better support the DFD and Branded Sweet Treat Line businesses. Fiscal 2019 consists of severance and related benefits costs associated with the Company’s hiring of a new global management team.
8.Includes consulting and advisory fees incurred in connection with preparation for and execution of the Company’s IPO.
9.Fiscal 2021 consists primarily of legal expenses incurred outside the ordinary course of business on matters described in Note 14, Commitments and Contingencies, to the Company’s audited Consolidated Financial Statements. Fiscal 2020 consists primarily of fixed asset and impairment expenses, net of a gain on the sale of land, as well as $1.2 million of management fees paid to JAB. Fiscal 2019 includes $3.1 million lease impairment expenses related to the Company’s Winston-Salem office location incurred in connection with the Company’s corporate headquarters relocation to Charlotte, North Carolina.
Geographical information related to consolidated revenues and long-lived assets is as follows:
Fiscal Years Ended
January 2, 2022January 3, 2021December 29, 2019
Net revenues:
United States
$955,384 $854,097 $696,841 
United Kingdom
147,233 93,121 120,009 
Australia / New Zealand
99,582 78,677 86,734 
Mexico
77,831 53,085 8,991 
All other
104,361 43,056 46,833 
Total net revenues
$1,384,391 $1,122,036 $959,408 
Fiscal Years Ended
January 2,
2022		January 3,
2021		December 29,
2019
Long-lived assets:
United States
$684,790 $625,928 $565,933 
United Kingdom
69,112 68,500 63,543 
Australia / New Zealand
61,155 59,656 54,003 
Mexico
30,944 23,094 20,965 
All other
28,085 17,765 4,290 
Total long-lived assets
$874,086 $794,943 $708,734 
Total long-lived assets consist of Property and equipment, net and Operating lease right of use asset, net.