Krispy Kreme, Inc. is a multinational doughnut and coffeehouse chain best known for its Original Glazed doughnuts. The company operates an omni-channel business model centered around its "Hub and Spoke" distribution strategy. Under this model, larger production facilities—often functioning as retail shops themselves (Hubs)—produce doughnuts that are sold on-site and delivered fresh daily (DFD) to various points of access (Spokes), including smaller retail shops, kiosks, and third-party grocery and convenience stores.
Krispy Kreme generates revenue primarily through three segments: the U.S., International, and Market Development. The vast majority of the company's revenue (approximately 95%) is derived from direct product sales through its company-owned shops, DFD doors, and digital channels. The remaining revenue comes from its Market Development segment, which includes franchise royalties, as well as the sale of doughnut mix and doughnut-making equipment to international and domestic franchisees.
Geographically, while the United States remains its largest market, Krispy Kreme has a significant international footprint with operations in over 30 countries, including company-owned operations in the U.K., Australia, Mexico, Canada, and Japan. The company has also expanded its reach through strategic partnerships, such as a nationwide rollout of its fresh doughnuts across McDonald's restaurants in the U.S. By leveraging its Hub and Spoke model, Krispy Kreme maximizes the utilization of its production facilities while expanding consumer access to its fresh products without the capital requirements of building full-scale bakeries in every location.
