Revenue Recognition

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Disaggregation of Revenues

Revenues are disaggregated as follows:

	Quarter Ended
	March 31, 2024		April 2, 2023
Company Shops, DFD and Branded Sweet Treats	$	420,213	$	392,814
Mix and equipment revenue from franchisees	13,299		17,860
Franchise royalties and other	9,186		8,276
Total net revenues	$	442,698	$	418,950

Other revenues include advertising fund contributions from franchisees, rental income, development and franchise fees, and licensing royalties from customers for use of the Krispy Kreme brand, such as Keurig coffee cups.

Contract Balances

Deferred revenue and related receivables are as follows:

	March 31, 2024		December 31, 2023		Balance Sheet Location
Trade receivables, net of allowances of $450 and $564, respectively	$	50,212	$	45,858	Accounts receivables, net
Deferred revenue:
Current	$	21,772	$	22,066	Accrued liabilities
Noncurrent	7,714		6,005		Other long-term obligations and deferred credits
Total deferred revenue	$	29,486	$	28,071

Trade receivables relate primarily to payments due for royalties, franchise fees, advertising fees, sale of products, and licensing fees. Deferred revenue primarily represents the Company’s remaining performance obligations under gift cards and franchise and development agreements for which consideration has been received or is receivable and is generally recognized on a straight-line basis over the remaining term of the related agreement. The noncurrent portion of deferred revenue primarily relates to the remaining performance obligations in the franchise and development agreements.