DNUT

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited Condensed Consolidated Financial Statements and related notes included elsewhere in this Quarterly Report on Form 10-Q (this “Form 10-Q”), as well as our audited Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K, and in other reports filed subsequently with the U.S. Securities and Exchange Commission (“SEC”). Cautionary Note Regarding Forward-Looking Statements Certain information included in this Form 10-Q is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, and involves risks, assumptions, and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements. Forward-looking statements can be identified by use of forward-looking terminology, including terms such as “plan,” “believe,” “may,” “continue,” “could,” “will,” “should,” “would,” “anticipate,” “attempt,” “estimate,” “expect,” “intend,” “objective,” “seek,” “pursue,” “strive,” or, the negatives of these words, comparable terminology, or other references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included herein. We consider the assumptions and estimates on which forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross-contamination; impacts from any material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents; our ability to execute our business strategy, including our turnaround plan and growth through international development with strategic partners and profitable expansion of our fresh delivery and digital channels; our ability to realize the anticipated benefits from past or potential future strategic transactions (including refranchising); failure by our franchisees, subfranchisees, or third-party service providers to operate effectively and in compliance with our standards and applicable law; any harm to our reputation or brand image; negative impacts on our business due to changes in consumer spending habits, consumer preferences, or demographic trends; our ability to open new and maintain existing shops and points of access both domestically and internationally; disruptions to our and our franchisees’ supply chain, including the loss of or failure to perform by single-source or limited suppliers, vendors, distributors, or manufacturers; our significant indebtedness and our ability to meet the financial and other covenants under our credit facilities; changes in the cost of raw materials and fuel or other commodities, including due to import and export requirements (including tariffs), inflation, fluctuations in foreign exchange rates, or heightened geopolitical tensions (including the recent Iran conflict); our ability to recruit and retain key personnel; failure to develop or maintain effective internal control over financial reporting or disclosure controls and procedures; adverse regulatory actions or publicity concerning food or occupational safety, food quality, health, and other issues or regulatory investigations, enforcement actions, or material litigation; and other risks and uncertainties described under the heading “Risk Factors” and elsewhere in our Annual Report on Form 10-K, filed by us with the SEC and in other filings we make from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law. 32 Table of Contents Overview We believe Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Krispy Kreme operates in more than 40 countries through its unique network of shops (“Doughnut Shops”), partnerships with leading retailers, and growing digital business. Our purpose is to touch and enhance lives through the joy that is Krispy Kreme. We are an omni-channel business that focuses on fresh, high-quality doughnuts with 15,665 points of access globally as of the end of the second quarter of fiscal 2026. We refer to the points of access where consumers can purchase our doughnuts as our “Global Points of Access” or, when referring to points of access in a particular region or segment, “Points of Access.” We sell doughnuts to consumers through three main channels: (1) Hot Light Theater Shops and Fresh Shops, (2) fresh delivery, and (3) digital. The following table presents a summary of our financial results for the periods presented: Quarter Ended Two Quarters Ended (in thousands, except percentages) June 28, 2026 June 29, 2025 % Change June 28, 2026 June 29, 2025 % Change Net Revenues (1) $ 330,995 $ 379,767 (12.8) % $ 698,029 $ 754,951 (7.5) % Net Loss (19,831) (441,118) 95.5 % (42,504) (474,523) 91.0 % Net Loss Attributable to Krispy Kreme, Inc. (20,311) (435,260) 95.3 % (43,095) (468,544) 90.8 % Adjusted Net Loss, Diluted (2) (5,356) (25,307) 78.8 % (13,136) (34,145) (61.5) % Adjusted EBITDA (2) $ 28,806 $ 20,111 43.2 % 61,902 44,091 40.4 % (1)Organic revenue decline was 0.3% and 1.5%, respectively, in the quarter and two quarters ended June 28, 2026. Refer to “Results of Operations” below for more information on and the calculation of organic revenue growth/(decline). (2)Refer to “Key Performance Indicators and Non-GAAP Measures” below for more information as to how we define and calculate Adjusted EBITDA and Adjusted Net Income/(Loss), Diluted and for a reconciliation of Adjusted EBITDA and Adjusted Net Income/(Loss), Diluted to the most comparable measure calculated under GAAP. 33 Table of Contents Significant Events and Transactions Turnaround Plan The Company’s comprehensive turnaround plan, announced in August 2025, is designed to deleverage the balance sheet and deliver sustainable, profitable growth. The four components of the plan and certain progress made on each component are as follows: •Refranchising: Improve financial flexibility through pursuit of opportunities to refranchise certain international equity markets. In the first two quarters of fiscal 2026, we restructured our consolidated subsidiary in the western U.S., W.K.S. Krispy Kreme, to a minority ownership interest and completed the sale of our operations in Japan. We continue to evaluate additional refranchising opportunities and remain focused on identifying the right partners both in international markets and the U.S. to maximize value and position the Company for long-term growth. •Improving return on invested capital: Reduce capital intensity by using existing assets and focusing on franchise development. During the first two quarters of fiscal 2026 capital expenditures decreased by $38 million when compared to the first two quarters of 2025, and we expect to continue to reduce capital investment in fiscal 2026 compared to fiscal 2025. We are also making selective, capital-light investments in geographies which currently have limited access to our products or where we have insufficient production to meet demand. This includes expansion into new international franchise markets. We entered into agreements for three new markets, the Netherlands, Estonia, and Mauritius, during the first two quarters of fiscal 2026. In the first half of the year, we opened 59 shops, nearly all franchised and remain on track to open at least 100 new shops in 2026. •Expanding profit margins: Expand profit margins through greater operational efficiency. During the first two quarters of fiscal 2026, we continued our focus in the U.S. on making doughnuts more efficiently through optimizing production, streamlining Hub operations, and improving labor productivity. In addition, we continued our focus on delivering fresh doughnuts more efficiently through improved route management, improved demand planning, optimization of production and delivery schedules, and outsourced U.S. logistics to third-party logistics (“3PL”) carriers which we completed in the second quarter of fiscal 2026. •Driving sustainable, profitable growth: Pursue U.S. growth based upon sustainable and profitable revenue streams. During the first two quarters of fiscal 2026, the number of fresh delivery doors, inclusive of both Company- and franchise-operated locations, increased 448 doors in the U.S. with strategic partners. 34 Table of Contents Digital, Brand, and Innovation We continue to prioritize expanding our digital channel sales, which grew in the first two quarters of fiscal 2026 compared to the first two quarters of fiscal 2025. Growth in our digital channel is due to improvements in our branded digital platform as well as increasing product availability through third party digital channels, including delivery apps and our customers’ digital platforms. Innovation is also a significant driver of frequency as we create promotions and products that attract media outlets to our brand across our Global Points of Access. Additionally, we deliver new product experiences that align with seasonal and trending consumer and societal interests and create positive connections through simple, frequent, brand-focused offerings that encourage shared experiences. During the second quarter of fiscal 2026, we delivered the joy that is Krispy Kreme by spotlighting our core offerings such as the Original Glazed doughnut, supplemented by specialty doughnut offerings and seasonal activations, including MilkBar Collection, Mother’s Day with minis for Mom, Masters of the Universe, Match Day Dozen, and many others around the world. Termination of the Business Relationship Agreement with McDonald’s USA On June 24, 2025, we and McDonald’s USA announced that our companies jointly decided to terminate the Business Relationship Agreement effective July 2, 2025, resulting in the reduction of approximately 2,400 fresh delivery doors in the third quarter of fiscal 2025. We worked to quickly remove costs related to the McDonald’s USA partnership. Refer to Note 1, Description of Business and Summary of Significant Accounting Policies, to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Form 10-Q for further information (the “Condensed Consolidated Financial Statements”). 2024 Cybersecurity Incident As previously disclosed, during the fourth quarter of fiscal 2024, unauthorized activity on a portion of our information technology systems resulted in our experiencing certain operational disruptions, including with online ordering in parts of the U.S. (the “2024 Cybersecurity Incident”). We incurred losses and costs from the incident, primarily in the fourth quarter of fiscal 2024 and early in the first quarter of fiscal 2025. We hold cybersecurity insurance which offset a portion of the losses and costs from the incident. The investigation of the 2024 Cybersecurity Incident was substantially completed in the second quarter of fiscal 2025. Tariffs, Global Trade, and Geopolitical Uncertainty The imposition of tariffs by the U.S. on imports has heightened uncertainty in the global trade environment. These tariffs, along with retaliatory measures by other countries, may increase inflationary pressure and raise the costs of our imported commodities, including, but not limited to, palm oil. Additionally, the broader implications of tariff-driven price increases could influence consumer spending habits and negatively affect our business. These factors have caused, and may continue to cause, substantial uncertainty and volatility in financial markets, and may result in further retaliatory measures. 35 Table of Contents In addition to the above, conflicts involving Iran and in the Middle East more broadly have contributed to increased global economic instability and increases in fuel and other commodity prices, exacerbating inflationary pressures. These developments could impact our business by way of supply chain disruptions and increasing transportation costs, contributing to higher costs of materials and logistics across our global supply chain. We are monitoring developments with respect to the ongoing military conflict with Iran including the impact on global commodity prices and potential logistics disruptions. We may experience increases in transportation costs or delays in the shipment or delivery of our products. We may be unable to fully offset any such increases by adjusting the pricing of our products. Any of these factors could adversely affect our business, financial condition and results of operations. Revision of Financial Statements As discussed in Note 2, Revision of Financial Statements, to the Condensed Consolidated Financial Statements, the Company identified and corrected an error in the classification of its redeemable noncontrolling interests. Management determined the error did not materially misstate previously issued financial statements and would be appropriate to correct. The Company has revised previously issued financial information included in this Quarterly Report. The revisions do not affect the Company’s previously reported operating results, cash flows, or financial condition apart from the reclassification within the equity section of the balance sheet and the required redemption value accretion recognized throughout fiscal 2025. 36 Table of Contents Key Performance Indicators and Non-GAAP Measures We monitor the key business metrics and non-GAAP metrics set forth below to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. The calculation of the key business metrics discussed below may differ from other similarly titled metrics used by other companies, securities analysts, or investors. Throughout this Form 10-Q, we utilize “Global Points of Access” as a key performance indicator. Global Points of Access reflect all locations at which fresh doughnuts can be purchased. We define Global Points of Access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, fresh delivery doors, and other points at which fresh doughnuts can be purchased, at both Company-owned and franchise locations as of the end of the applicable reporting period. We monitor Global Points of Access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type. The following table presents our Global Points of Access, by segment and type, as of the end of the second quarter of fiscal 2026, the second quarter of fiscal 2025, and fiscal 2025, respectively: Global Points of Access Quarter Ended Fiscal Year Ended June 28, 2026 June 29, 2025 December 28, 2025 U.S.:(1) Hot Light Theater Shops 176 239 235 Fresh Shops 46 68 68 Fresh Delivery Doors(2) 6,186 9,869 7,160 Total 6,408 10,176 7,463 International:(1) Hot Light Theater Shops 47 50 52 Fresh Shops 448 524 527 Carts, Food Trucks, and Other(3) 17 17 18 Fresh Delivery Doors 3,899 4,669 4,225 Total 4,411 5,260 4,822 Market Development:(1) Hot Light Theater Shops 180 110 113 Fresh Shops 1,273 1,111 1,130 Carts, Food Trucks, and Other(3) 32 30 29 Fresh Delivery Doors 3,361 1,426 1,637 Total 4,846 2,677 2,909 Total Global Points of Access (as defined) 15,665 18,113 15,194 Total Hot Light Theater Shops 403 399 400 Total Fresh Shops 1,767 1,703 1,725 Total Shops 2,170 2,102 2,125 Total Carts, Food Trucks, and Other 49 47 47 Total Fresh Delivery Doors(2) 13,446 15,964 13,022 Total Global Points of Access (as defined) 15,665 18,113 15,194 (1)During the first quarter of fiscal 2026, certain points of access moved from the U.S. and International segments to the Market Development segment. Refer to Note 3, Acquisitions and Divestitures, to the Condensed Consolidated Financial Statements for more information on the impact of refranchising. (2)During fiscal 2025 we exited approximately 2,400 McDonald’s USA fresh delivery doors related to termination of the Business Relationship Agreement with McDonald’s USA. (3)Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of Access in this category are primarily found in international locations in airports and train stations. 37 Table of Contents As of June 28, 2026, we had 15,665 Global Points of Access, with 2,170 Krispy Kreme branded shops, 49 Carts and Food Trucks, and 13,446 fresh delivery doors. During the second quarter of fiscal 2026, we added a net 30 additional Krispy Kreme branded Doughnut Shops globally, in countries such as Spain, Brazil, and Taiwan, among others. The decrease to the total Global Points of Access compared to the end of the second quarter of fiscal 2025 primarily relates to the exit of fresh delivery doors related to the strategic closure of underperforming fresh delivery doors, including the exit of fresh delivery doors related to the termination of the Business Relationship Agreement with McDonald’s USA. We also utilize “Hubs” as a key performance indicator. We have an omni-channel strategy to reach more consumers where they are and drive sustainable, profitable growth, and this strategy is supported by a capital-efficient Hub and Spoke distribution model that provides a route to market and powers profitability. Our Hot Light Theater Shops and Doughnut Factories serve as centralized production facilities (“Hubs”). From these Hubs, we deliver doughnuts to our Fresh Shops, Carts and Food Trucks, and fresh delivery doors (“Spokes”) primarily through an integrated network of delivery routes, designed to ensure quality and freshness. During the second quarter of fiscal 2026, we completed outsourcing of our U.S. deliveries to 3PL carriers. In the U.S. segment, the decrease to the total number of Hubs as of June 28, 2026 compared to the end of the second quarter of fiscal 2025 primarily relates to the impact of refranchising and the optimization of our production network in the U.S. The following table presents our Hubs, by segment and type, as of the end of the second quarter of fiscal 2026, the second quarter of fiscal 2025, and fiscal 2025, respectively: Hubs Quarter Ended Fiscal Year Ended June 28, 2026 June 29, 2025 December 28, 2025 U.S.:(1) Hot Light Theater Shops(2) 154 235 223 Doughnut Factories 6 6 6 Total 160 241 229 Hubs with Spokes 100 161 159 Hubs without Spokes 60 80 70 International:(1) Hot Light Theater Shops(2) 41 41 43 Doughnut Factories 11 14 14 Total 52 55 57 Hubs with Spokes 52 55 57 Market Development:(1) Hot Light Theater Shops(2) 174 108 111 Doughnut Factories 31 26 26 Total 205 134 137 Total Hubs(3) 417 430 423 (1)During the first quarter of fiscal 2026, certain Hubs moved from the U.S. and International segments to the Market Development segment. Refer to Note 3, Acquisitions and Divestitures, to the Condensed Consolidated Financial Statements for more information on the impact of refranchising. (2)Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a Spoke location that produces some doughnuts for itself and also receives doughnuts from another producing location. (3)The decrease in total Hubs is driven by Hub optimization in the U.S. 38 Table of Contents Non-GAAP and Operating Measures We report our financial results in accordance with GAAP; however, management evaluates our results of operations using, among other measures, organic revenue growth/(decline), Sales per Hub, Systemwide Sales, adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), Adjusted Net Income/(Loss), Diluted, and Adjusted EPS as we believe these non-GAAP and operating measures are useful in evaluating our operating performance. Management believes these measures are important indicators of operations because they exclude items that may not be indicative of our core operating results and provide a better baseline for analyzing trends in our underlying business, and they are consistent with how business performance is planned, reported and assessed internally by management and the Company’s Board of Directors. Non-GAAP financial measures are not standardized and it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance under GAAP or a substitute for results reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAP financial measures in conjunction with the Company’s financial statements and not to rely on any single financial measure. Organic Revenue Growth/(Decline) Organic revenue growth/(decline) measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define “organic revenue growth/(decline)” as the growth/(decline) in revenues, excluding (i) the impact of revenues of acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs, (iv) the impact of the divestiture of shops through refranchising, and (v) the impact of revenues generated during the 53rd week for those fiscal years that have a 53rd week based on our fiscal calendar defined in Note 1, Description of Business and Summary of Significant Accounting Policies, to the Condensed Consolidated Financial Statements. See “Results of Operations” for our organic growth/(decline) calculations for the periods presented. 39 Table of Contents Adjusted EBITDA, Adjusted Net Income/(Loss), Diluted, and Adjusted EPS We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBITDA, both on a consolidated and at the segment level, is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. “Adjusted EBITDA margin” reflects Adjusted EBITDA as a percentage of net revenues. We define “Adjusted Net Loss, Diluted” as net loss attributable to common shareholders, adjusted for interest expense, share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent, or non-core income and expense items. “Adjusted EPS” is Adjusted Net Loss, Diluted converted to a per share amount. Adjusted EBITDA, Adjusted Net Loss, Diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP measures supplementally. The following tables present a reconciliation of net loss to Adjusted EBITDA, and net loss to Adjusted Net Loss, Diluted and Adjusted EPS for the periods presented: Quarter Ended Two Quarters Ended (in thousands) June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Net loss $ (19,831) $ (441,118) $ (42,504) $ (474,523) Interest expense, net 13,375 16,696 28,999 32,892 Income tax expense/(benefit) (4,259) (20,453) (676) (23,120) Share-based compensation 3,287 4,634 7,926 7,237 Employer payroll taxes related to share-based compensation 55 91 72 257 Loss on divestiture of Insomnia Cookies — 11,501 — 11,501 Goodwill impairment — 355,958 — 355,958 Other non-operating income, net(1) (261) (1,177) (420) (1,570) Strategic initiatives(2) 3,119 22,867 10,319 25,220 Acquisition and integration expenses(3) 2,002 (182) 2,002 (111) New market penetration expenses(4) — 245 — 320 Shop closure expenses, net(5) 2,657 35,723 2,689 35,995 Restructuring and severance expenses(6) 33 4,839 427 4,947 Gain on sale-leaseback — (6,749) — (6,749) Gain on refranchising(7) — — (8,885) — Other(8) 1,622 1,454 2,831 6,154 Amortization of acquisition related intangibles(9) 6,156 7,830 13,964 15,491 Consolidated Adjusted EBIT $ 7,955 $ (7,841) $ 16,744 $ (10,101) Depreciation expense and amortization of right of use assets 20,851 27,952 45,158 54,192 Consolidated Adjusted EBITDA $ 28,806 $ 20,111 $ 61,902 $ 44,091 40 Table of Contents Quarter Ended Two Quarters Ended (in thousands, except per share amounts) June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Net loss $ (19,831) $ (441,118) $ (42,504) $ (474,523) Share-based compensation 3,287 4,634 7,926 7,237 Employer payroll taxes related to share-based compensation 55 91 72 257 Loss on divestiture of Insomnia Cookies — 11,501 — 11,501 Goodwill impairment — 355,958 — 355,958 Other non-operating income, net (1) (261) (1,177) (420) (1,570) Strategic initiatives (2) 3,119 22,867 10,319 25,220 Acquisition and integration expenses (3) 2,002 (182) 2,002 (111) New market penetration expenses (4) — 245 — 320 Shop closure expenses, net (5) 2,657 35,723 2,689 35,995 Restructuring and severance expenses (6) 33 4,839 427 4,947 Gain on sale-leaseback — (6,749) — (6,749) Gain on refranchising (7) — — (8,885) — Other (8) 1,622 1,454 2,831 6,154 Amortization of acquisition related intangibles (9) 6,156 7,830 13,964 15,491 Tax impact of adjustments (10) (3,588) (27,081) (164) (20,251) Tax specific adjustments (11) (127) — (802) — Net loss/(income) attributable to noncontrolling interest (480) 5,858 (591) 5,979 Adjusted net loss attributable to common shareholders - Basic $ (5,356) $ (25,307) $ (13,136) $ (34,145) Additional income attributed to noncontrolling interest due to subsidiary potential common shares — — — — Adjusted net loss attributable to common shareholders - Diluted $ (5,356) $ (25,307) $ (13,136) $ (34,145) Basic weighted average common shares outstanding 172,578 170,802 172,299 170,546 Dilutive effect of outstanding common stock options, RSUs, and PSUs — — — — Diluted weighted average common shares outstanding 172,578 170,802 172,299 170,546 Adjusted net loss per share attributable to common shareholders: Basic $ (0.03) $ (0.15) $ (0.08) $ (0.20) Diluted $ (0.03) $ (0.15) $ (0.08) $ (0.20) (1)Primarily foreign translation gains and losses in each period. The quarter and two quarters ended June 29, 2025 also consists of equity method income from Insomnia Cookies following the divestiture of a controlling interest in Insomnia Cookies during fiscal 2024 until the sale of our remaining interest in the second quarter of fiscal 2025. (2)The quarter and two quarters ended June 28, 2026 consists primarily of $2.1 million and $6.3 million, respectively, of costs associated with the evaluation and execution of refranchising certain equity markets as well as $1.3 million and $4.2 million, respectively, in costs associated with the transition to third party logistics in the U.S.; of that amount $1.7 million and $3.3 million, respectively, is related to non-cash impairments. The quarter and two quarters ended June 29, 2025 consists primarily of $20.9 million and $23.3 million, respectively, of costs associated with preparing for and executing the U.S. national expansion (including McDonald’s). (3)Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period. (4)Consists of start-up costs associated with entry into new countries in which the Company’s brands had not previously operated, including Brazil and Spain. (5)Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment. (6)The quarter and two quarters ended June 28, 2026 consist primarily of costs associated with restructuring the Australia and New Zealand business. The quarter and two quarters ended June 29, 2025 consist primarily of costs associated with restructuring of the U.S. and U.K. businesses. 41 Table of Contents (7)Includes gains and losses on the deconsolidation of assets and liabilities associated with the refranchising of Krispy Kreme shops. (8)The quarter and two quarters ended June 28, 2026 consists primarily of $0.8 million and $1.6 million, respectively, of legal fees primarily related to shareholder derivative litigation. Refer to Note 13, Commitments and Contingencies, to the Condensed Consolidated Financial Statements for more information on the Company’s pending litigation. The quarter and two quarters ended June 29, 2025 consists primarily of $0.9 million and $5.3 million, respectively, in costs related to remediation of the 2024 Cybersecurity Incident, including fees for cybersecurity experts and other advisors. (9)Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statements of Operations. (10)Tax impact of adjustments calculated applying the applicable statutory rates. The quarter and two quarters ended June 28, 2026 and June 29, 2025 also include the impact of disallowed executive compensation expense. The Company’s adjusted effective tax rate is 17.7% and 4.4% for the quarters ended June 28, 2026 and June 29, 2025, respectively. (11)Consists of the recognition of previously unrecognized tax benefits unrelated to ongoing operations of $0.1 million and $0.8 million for the quarter and two quarters ended June 28, 2026. 42 Table of Contents Sales Per Hub In order to measure the effectiveness of our Hub and Spoke model, we use “Sales per Hub” on a trailing four-quarter basis, which includes all revenue generated from a Hub and its associated Spokes. Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes for the period. Fresh Revenues include product sales generated from our Doughnut Shop business (including digital channels), as well as fresh delivery sales, but exclude all Insomnia Cookies revenues as the measure is focused on the Krispy Kreme business. The average number of Hubs with Spokes for a period is calculated as the average of the number of Hubs with Spokes at the end of the five most recent quarters. The Sales per Hub performance measure allows us and investors to measure our effectiveness at leveraging the Hubs in the Hub and Spoke model to distribute product and generate cost efficiencies and profitability. Sales per Hub was as follows for each of the periods below: Trailing Four Quarters Ended Fiscal Year Ended (in thousands, unless otherwise stated) June 28, 2026 December 28, 2025 December 29, 2024 U.S.: Revenues $ 840,636 $ 913,050 $ 1,058,736 Non-Fresh Revenues (1) (2,600) (2,454) (3,161) Fresh Revenues from Insomnia Cookies and Hubs without Spokes (2) (139,782) (154,151) (307,665) Fresh Revenues from Hubs with Spokes 698,254 756,445 747,910 Sales per Hub (millions) (3) 5.1 4.7 4.9 International: Fresh Revenues from Hubs with Spokes (4) $ 525,301 $ 535,088 $ 519,102 Sales per Hub (millions) (5) 9.5 9.7 9.9 (1)Includes licensing royalties from customers for use of the Krispy Kreme brand. (2)Includes Insomnia Cookies revenues (through the date of deconsolidation of July 14, 2024) and Fresh Revenues generated by Hubs without Spokes. (3)Includes operations of the joint venture in the western U.S. through the date of deconsolidation of March 23, 2026. (4)Total International net revenues is equal to Fresh Revenues from Hubs with Spokes for that business segment. (5)International Sales per Hub comparative data has been restated in constant currency based on current exchange rates and includes operations in Japan through the date of deconsolidation of March 2, 2026. In our International segment, where the Hub and Spoke model originated, we had Sales per Hub of $9.5 million during the trailing four quarters ended June 28, 2026, largely consistent with the $9.7 million generated in the full fiscal year 2025 and the $9.9 million generated in the full fiscal year 2024. The International segment illustrates the benefits of leveraging our Hub and Spoke model as the most efficient way to grow the business, as shown by the consistent Sales per Hub and higher Adjusted EBITDA margins despite elevated commodity costs and macroeconomic conditions. In the U.S. segment, we had Sales per Hub of $5.1 million during the trailing four quarters ended June 28, 2026, up from the $4.7 million generated in the full fiscal year 2025 and the $4.9 million generated in the full fiscal year 2024. In the U.S. we continue our efforts to increase the number of quality Spokes served by our Hubs. During fiscal 2025, we identified and exited underperforming Spokes in connection with our turnaround plan. We expect to increase the number of quality Spokes through growth with fresh delivery customers across the U.S. coupled with a continued focus on identifying and addressing underperforming fresh delivery doors. Systemwide Sales We also utilize “Systemwide Sales” as a key performance indicator. Systemwide Sales reflects global sales in U.S. dollars on a nominal basis of all Krispy Kreme products, whether operated by the Company or franchisees, excluding mix, equipment, and royalty revenue. Sales from franchisees are reported to the Company by such franchisees and are not included in Company revenues. The Company believes Systemwide Sales information is important because it is indicative of the health of the Company’s brand and aids in understanding the Company’s financial performance. In the quarter and two quarters ended June 28, 2026, we generated Systemwide Sales of $497.3 million and $983.0 million, respectively. 43 Table of Contents Results of Operations The following comparisons are historical results and are not indicative of future results, which could differ materially from the historical financial information presented. Quarter ended June 28, 2026 compared to the Quarter ended June 29, 2025 The following table presents our unaudited condensed consolidated results of operations for the quarter ended June 28, 2026 and the quarter ended June 29, 2025: Quarter Ended June 28, 2026 June 29, 2025 Change (in thousands, except percentages) Amount % of Revenue Amount % of Revenue $ % Net revenues Product sales $ 315,674 95.4 % $ 371,377 97.8 % $ (55,703) -15.0 % Royalties and other revenues 15,321 4.6 % 8,390 2.2 % 6,931 82.6 % Total net revenues 330,995 100.0 % 379,767 100.0 % (48,772) -12.8 % Product and distribution costs 86,037 26.0 % 92,627 24.4 % (6,590) -7.1 % Operating expenses 158,869 48.0 % 210,712 55.5 % (51,843) -24.6 % Selling, general and administrative expense 53,695 16.2 % 62,920 16.6 % (9,225) -14.7 % Marketing expenses 11,086 3.3 % 12,185 3.2 % (1,099) -9.0 % Pre-opening costs — — % 1,471 0.4 % (1,471) -100.0 % Goodwill and other asset impairments 4,238 1.3 % 406,932 107.2 % (402,694) -99.0 % Other income (expense), net 1,039 0.3 % (8,311) -2.2 % 9,350 112.5 % Depreciation and amortization expense 27,007 8.2 % 35,782 9.4 % (8,775) -24.5 % Operating loss (10,976) -3.3 % (434,551) -114.4 % 423,575 97.5 % Interest expense, net 13,375 4.0 % 16,696 4.4 % (3,321) -19.9 % Loss on divestiture of Insomnia Cookies — — % 11,501 3.0 % (11,501) 100.0 % Other non-operating income, net (261) -0.1 % (1,177) -0.3 % 916 77.8 % Loss before income taxes (24,090) -7.3 % (461,571) -121.5 % 437,481 94.8 % Income tax expense/(benefit) (4,259) -1.3 % (20,453) -5.4 % 16,194 79.2 % Net loss (19,831) -6.0 % (441,118) -116.2 % 421,287 95.5 % Net income/(loss) attributable to noncontrolling interest 480 0.1 % (5,858) -1.5 % 6,338 108.2 % Net loss attributable to Krispy Kreme, Inc. $ (20,311) -6.1 % $ (435,260) -114.6 % $ 414,949 95.3 % 44 Table of Contents The following table presents a further breakdown of total net revenue and organic revenue growth by segment for the quarter ended June 28, 2026 compared to the quarter ended June 29, 2025: (in thousands, except percentages) U.S. International Market Development Total Company Total net revenues in second quarter of fiscal 2026 $ 172,680 $ 117,342 $ 40,973 $ 330,995 Total net revenues in second quarter of fiscal 2025 230,099 132,755 16,913 379,767 Total Net Revenues (Decline)/Growth (57,419) (15,413) 24,060 (48,772) Total Net Revenues (Decline)/Growth % (25.0) % (11.6) % 142.3 % (12.8) % Less: Impact of refranchising (57,526) (16,342) 17,990 (55,878) Adjusted net revenues in second quarter of fiscal 2025 172,573 116,413 34,903 323,889 Adjusted net revenue (decline)/growth 107 929 6,070 7,106 Adjusted Net Revenue (Decline)/Growth % 0.1 % 0.8 % 17.4 % 2.2 % Impact of acquisitions — — (1,039) (1,039) Impact of foreign currency translation — (6,893) (3) (6,896) Organic Revenue (Decline)/Growth $ 107 $ (5,964) $ 5,028 $ (829) Organic Revenue (Decline)/Growth % 0.1 % (5.1) % 14.4 % (0.3) % Total net revenue declined $48.8 million, or 12.8%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026, primarily due to the $55.9 million reduction associated with refranchising efforts taken in the U.S. and International segments. The results of refranchised businesses are reported within the U.S. or International segments, as applicable, prior to the respective dates of divestiture, and are reported within the Market Development segment, following the respective dates of divestiture. Organic revenue decreased by 0.3%, primarily driven by a decline in Global Points of Access and in the International segment, partially offset by growth in the Market Development segment. The organic revenue decrease reflects a Global Points of Access decline of 2,448, or 13.5%, primarily impacted by the strategic closure of underperforming fresh delivery doors that was completed in the third quarter of 2025, including those associated with the termination of the Business Relationship Agreement with McDonald’s USA. Our U.S. segment net revenue declined $57.4 million, or 25.0%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026, primarily due to the $57.5 million reduction associated with refranchising of the U.S. business and the strategic closure of underperforming fresh delivery doors. U.S. organic revenue increased by 0.1%, primarily driven by the strategic closure of underperforming fresh delivery doors in the second quarter of fiscal 2025. Our International segment net revenue declined $15.4 million, or 11.6%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026, due primarily to the impacts of the refranchising of Japan, partially offset by foreign currency translation impacts of $6.9 million. International organic revenue decreased by 5.1%, driven primarily by declines in the U.K. and Australia, partially offset by growth in Canada. Our Market Development segment net revenue increased $24.1 million, or 142.3%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026, primarily due to the $18.0 million benefit from refranchising in the first quarter of fiscal 2026. Market Development organic revenue increased by 14.4%, primarily due to an increase in royalty revenues primarily from the Middle East, Japan, and Brazil. Operating expenses: Operating expenses decreased $51.8 million, or 24.6%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026, driven mainly by refranchising transactions completed in the first quarter of fiscal 2026, coupled with an increase in operational efficiencies. Operating expenses as a percentage of revenue decreased by 750 basis points, from 55.5% in the second quarter of fiscal 2025 to 48.0% in the second quarter of fiscal 2026, primarily due to increased operational efficiencies as we continue to deliver on our turnaround plan. Selling, general and administrative expense: Selling, general and administrative (“SG&A”) expense decreased $9.2 million, or 14.7%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026, driven mainly by lower employee costs. As a percentage of revenue, SG&A expense remained relatively consistent with the comparable period. 45 Table of Contents Goodwill and other asset impairments: Goodwill and other asset impairments decreased $402.7 million, or 99.0%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026, driven mainly by the $406.9 million non-cash goodwill and other asset impairments charge in the second quarter of fiscal 2025. As a percentage of revenue, goodwill and other asset impairments decreased from 107.2% in the second quarter of fiscal 2025 to 1.3% in the fiscal quarter of 2026. This decrease was offset by other asset impairments of $4.2 million related to long-lived asset impairments incurred in the second quarter of fiscal 2026. Other income (expense), net: Other income (expense), net increased $9.4 million, or 112.5%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026, primarily driven by gains on sale-leaseback transactions in the second quarter of fiscal 2025. As a percentage of revenue, other income (expense), net increased 250 basis points, from (2.2)% in the second quarter of fiscal 2025 to 0.3% in the second quarter of fiscal 2026. Depreciation and amortization expense: Depreciation and amortization expense decreased $8.8 million, or 24.5%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026, primarily driven by lower finance lease amortization expense and fixed asset impairments taken in the second quarter of fiscal 2025 following the termination of the Business Relationship Agreement with McDonald’s USA. As a percentage of revenue, Depreciation and amortization expense decreased 120 basis points, from 9.4% in the second quarter of fiscal 2025 to 8.2% in the second quarter of fiscal 2026. Interest expense, net: Interest expense, net decreased $3.3 million, or 19.9%, from the second quarter of fiscal 2025 to the second quarter of fiscal 2026 primarily driven by a lower average debt balance. Loss on divestiture of Insomnia Cookies: In the second quarter of fiscal 2025, we sold the remainder of our ownership interest in Insomnia Cookies for cash proceeds and recognized a loss on divestiture of $11.5 million (gross of income taxes) with no comparable activity in the second quarter of fiscal 2026. Income tax (benefit)/expense: Income tax benefit was $4.3 million in the second quarter of fiscal 2026, while income tax benefit was $20.5 million in the second quarter of fiscal 2025. The variance was primarily driven by the tax effect of nondeductible goodwill impairment charges in the second quarter of fiscal 2025. Results of Operations by Segment – Quarter ended June 28, 2026 compared to the Quarter ended June 29, 2025 The following table presents Adjusted EBITDA by segment for the periods indicated: Quarter Ended Change (in thousands, except percentages) June 28, 2026 June 29, 2025 $ % Adjusted EBITDA U.S. $ 13,752 $ 9,930 $ 3,822 38.5 % International 14,182 18,221 (4,039) -22.2 % Market Development 19,386 8,948 10,438 116.7 % Corporate (18,513) (16,988) (1,525) -9.0 % Total Adjusted EBITDA (1) $ 28,807 $ 20,111 $ 8,696 43.2 % (1) Refer to “Key Performance Indicators and Non-GAAP Measures” above for a reconciliation of Adjusted EBITDA to net loss. U.S. segment Adjusted EBITDA increased $3.8 million, or 38.5%, with margin expansion of 370 basis points to 8.0% in the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025, primarily driven by operational efficiencies, and SG&A savings as we continue to deliver on our turnaround plan. International segment Adjusted EBITDA decreased $4.0 million, or 22.2%, primarily due to refranchising of the Japan business. The margin decline of 160 basis points to 12.1% in the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025 was due to lower Adjusted EBITDA in the U.K. and Australia and the refranchising of Japan. Market Development segment Adjusted EBITDA increased $10.4 million, or 116.7%, with margin decline of 560 basis points to 47.3% in the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025, driven mainly by changes in the regional mix of U.S. sales associated with the WKS Refranchising, and to a lesser degree the refranchising of Japan. 46 Table of Contents Two Quarters ended June 28, 2026 compared to the Two Quarters ended June 29, 2025 The following table presents our unaudited condensed consolidated results of operations for the two quarters ended June 28, 2026 and the two quarters ended June 29, 2025: Two Quarters Ended June 28, 2026 June 29, 2025 Change (in thousands, except percentages) Amount % of Revenue Amount % of Revenue $ % Net revenues Product sales $ 673,112 96.4 % $ 737,856 97.7 % $ (64,744) -8.8 % Royalties and other revenues 24,917 3.6 % 17,095 2.3 % 7,822 45.8 % Total net revenues 698,029 100.0 % 754,951 100.0 % (56,922) -7.5 % Product and distribution costs 174,367 25.0 % 183,363 24.3 % (8,996) -4.9 % Operating expenses 346,975 49.7 % 409,555 54.2 % (62,580) -15.3 % Selling, general and administrative expense 111,728 16.0 % 122,325 16.2 % (10,597) -8.7 % Marketing expenses 21,205 3.0 % 22,424 3.0 % (1,219) -5.4 % Pre-opening costs 194 — % 2,400 0.3 % (2,206) -91.9 % Goodwill and other asset impairments 6,126 0.9 % 407,094 53.9 % (400,968) -98.5 % Gain on refranchising, net (8,885) -5.1 % — — % (8,885) nm Other income (expense), net 1,798 0.3 % (7,073) -0.9 % 8,871 125.4 % Depreciation and amortization expense 59,122 8.5 % 69,683 9.2 % (10,561) -15.2 % Operating (loss)/income (14,601) -2.1 % (454,820) -60.2 % 440,219 96.8 % Interest expense, net 28,999 4.2 % 32,892 4.4 % (3,893) -11.8 % Loss on divestiture of Insomnia Cookies — — % 11,501 1.5 % (11,501) -100.0 % Other non-operating (income)/expense, net (420) -0.1 % (1,570) -0.2 % 1,150 73.2 % Loss before income taxes (43,180) -6.2 % (497,643) -65.9 % 454,463 91.3 % Income tax (benefit)/expense (676) -0.1 % (23,120) -3.1 % 22,444 97.1 % Net loss (42,504) -6.1 % (474,523) -62.9 % 432,019 91.0 % Net (loss)/income attributable to noncontrolling interest 591 0.1 % (5,979) -0.8 % 6,570 109.9 % Net loss attributable to Krispy Kreme, Inc. $ (43,095) -6.2 % $ (468,544) -62.1 % $ 425,449 90.8 % 47 Table of Contents The following table presents a further breakdown of total net revenue and organic revenue growth by segment for the two quarters ended June 28, 2026 compared to the two quarters ended June 29, 2025: (in thousands, except percentages) U.S. International Market Development Total Company Total net revenues in first two quarters of fiscal 2026 $ 394,230 $ 242,600 $ 61,199 $ 698,029 Total net revenues in first two quarters of fiscal 2025 466,643 252,390 35,918 754,951 Total Net Revenues (Decline)/Growth (72,413) (9,790) 25,281 (56,922) Total Net Revenues (Decline)/Growth % -15.5 % -3.9 % 70.4 % -7.5 % Less: Impact of refranchising (63,386) (21,694) 20,117 (64,963) Adjusted net revenues in first two quarters of fiscal 2025 403,257 230,696 56,035 689,988 Adjusted net revenue growth/(decline) (9,027) 11,904 5,164 8,041 Impact of acquisitions — — (1,039) (1,039) Impact of foreign currency translation — (17,353) (3) (17,356) Organic Revenue (Decline)/Growth $ (9,027) $ (5,449) $ 4,122 $ (10,354) Organic Revenue (Decline)/Growth % -2.2 % -2.4 % 7.4 % -1.5 % Total net revenue declined $56.9 million, or 7.5%, from the first two quarters of fiscal 2025 to the first two quarters of fiscal 2026, primarily due to the $65.0 million reduction associated with refranchising efforts taken in the U.S. and International segments, partially offset by an increase in royalty revenue. Organic revenue declined $10.4 million, or 1.5%, primarily driven by lower Doughnut Shop transaction volume impacted by consumer softness in a challenging macroeconomic environment and by Global Points of Access decline of 2,448, or 13.5%, impacted by the strategic closure of underperforming fresh delivery doors. Our U.S. segment net revenue declined $72.4 million, or 15.5%, from the first two quarters of fiscal 2025 to the first two quarters of fiscal 2026, primarily due to the divestiture of a controlling interest in Insomnia Cookies in the third quarter of fiscal 2024. U.S. organic revenue declined $9.0 million, or 2.2%, primarily driven by lower Doughnut Shop transaction volume impacted by consumer softness in a challenging macroeconomic environment. The organic revenue decline was also driven by Points of Access decline of 3,768, or 37.0%, impacted by the strategic closure of underperforming fresh delivery doors. Our International segment net revenue declined $9.8 million, or 3.9%, from the first two quarters of fiscal 2025 to the first two quarters of fiscal 2026, driven by the $21.7 million impact of refranchising transactions in fiscal 2026. International organic revenue declined $5.4 million, or 2.4%, driven primarily by adverse foreign currency impacts. Our Market Development segment net revenue increased $25.3 million, or 70.4%, from the first two quarters of fiscal 2025 to the first two quarters of fiscal 2026, primarily due to the $20.1 million impact of refranchising transactions in fiscal 2026. Market Development organic revenue increased $4.1 million, or 7.4%, primarily driven by an increase in royalty revenues. Operating expenses: Operating expenses decreased $62.6 million, or 15.3%, from the first two quarters of fiscal 2025 to the first two quarters of fiscal 2026, driven mainly by refranchising transactions and the decrease resulting from the reduction in costs associated with the transition to third-party logistics. Operating expenses as a percentage of revenue decreased 450 basis points, from 54.2% in the first two quarters of fiscal 2025 to 49.7% in the first two quarters of fiscal 2026, primarily due to operational efficiencies as we continue to deliver on our turnaround plan. Selling, general and administrative expense: SG&A expense decreased $10.6 million, or 8.7%, from the first two quarters of fiscal 2025 to the first two quarters of fiscal 2026, driven mainly by a $6.9 million reduction in legal professional fees, coupled with a $3.7 million reduction in employee costs. As a percentage of revenue, SG&A expense remained relatively consistent with the comparable period. Goodwill and other asset impairments: Goodwill and other asset impairments of $6.1 million consists primarily of truck impairments resulting from the transition to third-party logistics. As a percentage of revenue, Goodwill and other asset impairments decreased 5,300 basis points, from 53.9% in the first two quarters of fiscal 2025 to 0.9% in the first two quarters of 2026. 48 Table of Contents Gain on refranchising, net: In the first quarter of fiscal 2026, the Company completed two refranchising transactions, one each impacting the U.S. and International business segments resulting in a net gain of $8.9 million. Refer to Note 3, Acquisitions and Divestitures, to the Condensed Consolidated Financial Statements for further information. Other income (expense), net: Other income (expense), net of $1.8 million in the first two quarters of fiscal 2026 was primarily related to miscellaneous corporate expenses. Other income (expense), net of $7.1 million in the first two quarters of fiscal 2025 was driven by gains on sale-leaseback transactions. As a percentage of revenue, other income (expense), net remained consistent with the comparable period. Depreciation and amortization expense: Depreciation and amortization expense decreased $10.6 million, or 15.2%, from the first two quarters of fiscal 2025 to the first two quarters of fiscal 2026. As a percentage of revenue, Depreciation and amortization expense decreased 70 basis points, from 9.2% in the first two quarters of fiscal 2025 to 8.5% in the first two quarters of fiscal 2026, primarily driven by lower finance lease amortization expense and fixed asset impairments taken in the second quarter of fiscal 2025 following the termination of the Business Relationship Agreement with McDonald’s USA. Interest expense, net: Interest expense, net decreased $3.9 million, or 11.8%, from the first two quarters of fiscal 2025 to the first two quarters of fiscal 2026, primarily driven by a lower average debt balance. Loss on divestiture of Insomnia Cookies: In the second quarter of fiscal 2025, we sold the remainder of our ownership interest in Insomnia Cookies for cash proceeds and recognized a loss on divestiture of $11.5 million (gross of income taxes) with no comparable activity in the first two quarters of fiscal 2026. Income tax (benefit)/expense: Income tax benefit was $0.7 million in the first two quarters of fiscal 2026, while income tax benefit was $23.1 million in the first two quarters of fiscal 2025. The variance was primarily driven by the WKS Refranchising and the refranchising of Japan and an increase in pre-tax results in the first two quarters of fiscal 2026. Results of Operations by Segment – Two Quarters ended June 28, 2026 compared to the Two Quarters ended June 29, 2025 The following table presents Adjusted EBITDA by segment for the periods indicated: Two Quarters Ended Change (in thousands, except percentages) June 28, 2026 June 29, 2025 $ % U.S. $ 39,301 $ 25,841 $ 13,460 52.1 % International 28,654 33,118 (4,464) -13.5 % Market Development 31,020 19,995 11,025 55.1 % Corporate (37,073) (34,863) (2,210) -6.3 % Total Adjusted EBITDA (1) $ 61,902 $ 44,091 $ 17,811 40.4 % (1) Refer to “Key Performance Indicators and Non-GAAP Measures” above for a reconciliation of Adjusted EBITDA to net loss. U.S. segment Adjusted EBITDA increased $13.5 million, or 52.1%, primarily driven by increased operational efficiencies. The margin increase of 450 basis points to 10.0% in the first two quarters of fiscal 2026 compared to the first two quarters of fiscal 2025 was primarily driven by increased operational efficiencies across operating expenses and SG&A as we continue to deliver on our turnaround plan. International segment Adjusted EBITDA decreased $4.5 million, or 13.5%, with margin decline of 130 basis points to 11.8% in the first two quarters of fiscal 2026 compared to the first two quarters of fiscal 2025, as lower transaction volume continued to impact operating leverage for the International equity markets, particularly the U.K. Market Development segment Adjusted EBITDA increased $11.0 million, or 55.1%, impacted by franchise acquisitions in fiscal 2026. The margin decrease of 500 basis points to 50.7% in the first two quarters of fiscal 2026 compared to the first two quarters of fiscal 2025 was driven mainly by increased revenues from the WKS Refranchising and the refranchising of Japan. 49 Table of Contents Capital Resources and Liquidity Our principal sources of liquidity to date have included cash from operating activities, cash on hand, amounts available under our credit facility, commercial trade financing including our structured payables programs, and proceeds from strategic transactions. Our primary use of liquidity is to fund the cash requirements of our business operations, including working capital needs, capital expenditures, acquisitions, and other commitments. Our future obligations primarily consist of our debt and lease obligations, as well as commitments under ingredient and other forward purchase contracts. As of December 28, 2025, we had the following future obligations: •An aggregate principal amount of $900.3 million outstanding under the 2023 Facility; •An aggregate principal amount of $2.5 million outstanding under short-term, uncommitted lines of credit; •Non-cancellable future minimum operating lease payments totaling $641.6 million; •Non-cancellable future minimum finance lease payments totaling $92.8 million; and •Purchase commitments under ingredient and other forward purchase contracts of $74.0 million. As of June 28, 2026, the principal amount outstanding under our 2023 Facility was $791.9 million. The decrease from the 2023 Facility balance as of December 28, 2025 was primarily driven by proceeds from the refranchising transactions completed in the first quarter of fiscal 2026 which were used to pay down debt. Refer to Note 10, Long-Term Debt, to the Condensed Consolidated Financial Statements for further information. We had cash and cash equivalents of $21.8 million and $42.4 million as of June 28, 2026 and December 28, 2025, respectively. We believe that our existing cash and cash equivalents and available borrowing capacity under our credit facilities discussed above will be sufficient to fund our operating and capital needs for at least the next twelve months. Our assessment of the period of time through which our financial resources will be adequate to support our operations could vary because of, and our future capital requirements will depend on, many factors, including our growth rate, the growth of our presence in new markets, and the expansion of our omni-channel model in existing markets. We have based this estimate on assumptions that may prove to be wrong, and we could use our available capital resources sooner than we currently expect. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, or if we cannot expand our operations or otherwise capitalize on our business opportunities because we lack sufficient capital, our business, results of operations, and financial condition would be adversely affected. Dividend Policy In line with our capital allocation priorities and growth strategy, the Company does not currently pay cash dividends to holders of the Company’s common stock. 50 Table of Contents Cash Flows We have historically generated cash from operations and have credit availability and capacity to fund operating and discretionary spending such as capital expenditures and debt repayments. Our requirement for working capital is not significant because our consumers pay us in cash or on debit or credit cards at the time of the sale and we are able to sell many of our inventory items before payment is due to the vendors for the various inputs to such items. The following table and discussion present, for the periods indicated, a summary of our key cash flows from operating, investing, and financing activities: Two Quarters Ended (in thousands) June 28, 2026 June 29, 2025 Net cash provided by/(used for) operating activities $ 9,961 $ (53,377) Net cash provided by/(used for) investing activities 67,989 30,937 Net cash (used for)/provided by financing activities $ (98,902) $ 16,248 Operating Activities Cash provided by operations totaled $10.0 million for the first two quarters of fiscal 2026, a fluctuation of $63.3 million compared with the first two quarters of fiscal 2025, primarily due to an increase in operational efficiencies as we continue to deliver on our turnaround plan. Investing Activities Cash provided by investing activities totaled $68.0 million for the first two quarters of fiscal 2026, an increase of $37.1 million compared with the first two quarters of fiscal 2025. The cash provided by investing activities in the first two quarters of fiscal 2026 was primarily due to the refranchising transactions discussed in Note 3, Acquisitions and Divestitures, to the Condensed Consolidated Financial Statements, partially offset by the settlement of the liability to KK Canada discussed in Note 18, Redeemable Noncontrolling Interests, to the Condensed Consolidated Financial Statements, and cash for capital expenditures. As part of our turnaround plan, we expect to reduce capital investment by using existing assets and focusing on franchise development. Financing Activities Cash used for financing activities totaled $98.9 million for the first two quarters of fiscal 2026, a fluctuation of $115.2 million compared with the first two quarters of fiscal 2025, primarily driven by the repayment of long-term debt balances with a portion of the net proceeds received from the refranchising transactions discussed in Note 3, Acquisitions and Divestitures, to the Condensed Consolidated Financial Statements. Debt Our long-term debt obligations consist of the following: (in thousands) June 28, 2026 December 28, 2025 2023 Facility — term loan $ 721,901 $ 742,825 2023 Facility — revolving credit facility 70,000 157,500 Short-term lines of credit 12,892 2,514 Less: Debt issuance costs (2,234) (2,904) Deferred financing obligations 1,024 — Finance lease obligations 61,667 77,894 Total long-term debt 865,250 977,829 Less: Current portion of long-term debt (71,036) (65,977) Long-term debt, less current portion $ 794,214 $ 911,852 51 Table of Contents 2023 Secured Credit Facility As of June 28, 2026, the 2023 Facility consisted of a $300.0 million senior secured revolving credit facility and a term loan with an original principal amount of $700.0 million. During the second quarter of fiscal 2025, the Company amended the 2023 Facility to, among other things, establish additional, incremental term loan commitments in an aggregate principal amount of $125.0 million. Refer to Note 10, Long-Term Debt, to the Condensed Consolidated Financial Statements for further information. Under the terms of the 2023 Facility, we are subject to a requirement to maintain a leverage ratio of less than 5.00 to 1.00 as of the end of each quarterly Test Period (as defined in the 2023 Facility) through maturity in March 2028. The leverage ratio under the 2023 Facility is defined as the ratio of (a) Total Indebtedness (as defined in the 2023 Facility, which includes all debt and finance lease obligations) minus unrestricted cash and cash equivalents to (b) a defined calculation of Adjusted EBITDA (2023 Facility Adjusted EBITDA) for the most recently ended Test Period. Our leverage ratio was 3.9 to 1.00 as of the end of the second quarter of fiscal 2026 compared to 4.4 to 1.00 as of the end of fiscal 2025. We were in compliance with the financial covenants related to the 2023 Facility as of June 28, 2026. If we are unable to meet the 2023 Facility financial or other covenants in future periods, it could limit our ability to draw on the revolving credit facility, could result in the lenders accelerating the maturity of such indebtedness and foreclosing upon the collateral pledged thereunder, and could require the replacement of the 2023 Facility with new sources of financing, which we may be unable to secure on favorable terms or at all, any of which could negatively impact our liquidity. Short-Term Lines of Credit We are party to two agreements with existing lenders providing for short-term, uncommitted lines of credit up to an aggregate of $25.0 million. Borrowings under these short-term lines of credit are payable to the lenders on a revolving basis for tenors up to three months and are subject to an interest rate of adjusted term SOFR plus a credit spread adjustment of 0.10% plus a margin of 1.75%. Critical Accounting Policies and Estimates Our Condensed Consolidated Financial Statements and the related notes thereto included elsewhere in this Form 10-Q have been prepared in conformity with GAAP. The preparation of the Condensed Consolidated Financial Statements requires the use of judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses as well as related disclosures. We consider an accounting judgment, estimate, or assumption to be critical when (1) the estimate or assumption is complex in nature or requires a high degree of judgment and (2) the use of different judgments, estimates, and assumptions could have a material impact on our Condensed Consolidated Financial Statements. Actual results could differ from the estimates made by management. There have been no material changes to our critical accounting policies and estimates as compared to those described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our Annual Report on Form 10-K. New Accounting Pronouncements Refer to Note 1, Description of Business and Summary of Significant Accounting Policies to the Condensed Consolidated Financial Statements for a detailed description of recent accounting pronouncements. 52 Table of Contents