Krispy Kreme (NASDAQ: DNUT) said it has agreed to sell its Japan business to private equity firm Unison Capital for approximately $65 million, marking the donut maker’s exit from the country after two decades of operations.

The transaction, which is expected to close in the first quarter of 2026, is part of Krispy Kreme’s broader re-franchising strategy aimed at improving financial flexibility and reducing debt. Proceeds from the sale will be used to pay down outstanding obligations, the company said. Krispy Kreme entered Japan in 2005 with the opening of its first store in Shinjuku, Tokyo. Over the years, the brand expanded to 89 locations and nearly 300 fresh delivery points nationwide, serving major metropolitan areas including Tokyo and Osaka.

“The sale of our Japan business is an important step in advancing our re-franchising initiative, supporting greater financial flexibility and reducing debt,” said Chief Executive Officer Josh Charlesworth. He added that Unison Capital is “a proven, skilled operator with deep expertise in the retail beverage and restaurant sectors” and well-positioned to operate and grow the brand in Japan. While Krispy Kreme initially saw strong momentum in Japan, the company later experienced uneven demand that led to store closures and a pause in expansion after roughly a decade. In recent years, the brand adjusted its offerings to better suit local tastes and improved customer experience, resulting in record sales in 2024.

In the third quarter, Krispy Kreme reported a 1.7% increase in adjusted EBITDA for its international segment, driven in part by performance in Japan and Mexico. Despite those gains, management said its long-term focus has shifted toward profitable U.S. expansion and capital-light international franchise growth.

As part of that strategy, Krispy Kreme has initiated re-franchising efforts not only in Japan, but also in Australia, New Zealand, Mexico, Ireland, and the United Kingdom.Unison Capital, founded in 1998, focuses on investments in consumer, healthcare, and business-to-business services. The firm has raised approximately $5 billion across multiple funds in Japan and South Korea and has invested in restaurant, beverage, and retail brands including bubble tea, noodle, sushi, and wine businesses.

“We are excited to assume ownership of Krispy Kreme’s operations in Japan and to be joining forces with such an iconic global brand,” said Tatsuya Hayashi, Unison’s Co-Founder and Managing Partner. He said the firm plans to build on Krispy Kreme’s two-decade presence in the country and continue expanding the brand’s footprint. Krispy Kreme currently operates in more than 40 countries worldwide.

About Krispy Kreme

Krispy Kreme (NASDAQ: DNUT) is a global retailer of fresh doughnuts and premium beverages, best known for its Original Glazed® doughnut. Founded in 1937 and headquartered in Charlotte, North Carolina, the company operates through a hub-and-spoke model that supports retail shops, delivered fresh daily to consumers and partners. Krispy Kreme operates in more than 40 countries through a mix of company-owned and franchised locations.