Krispy Kreme Inc. (NASDAQ: DNUT) completed two transactions to reduce debt through refranchising operations, receiving approximately $160 million in total proceeds.

The company increased WKS Restaurant Group's ownership stake in their Western U.S. joint venture from 45% to 80% on March 23, generating approximately $90 million for Krispy Kreme. The transaction included $50 million in cash at closing and a promissory note for the remainder. The expanded joint venture now operates 73 shops across California, Hawaii, and other Western states, plus approximately 1,000 fresh delivery locations with retailers including Kroger, Target, and Walmart.

WKS also agreed to develop additional shops and expand Krispy Kreme's fresh delivery network. The joint venture added 23 California and Hawaii locations previously operated directly by Krispy Kreme.

Separately, Unison Capital Inc. acquired Krispy Kreme's Japan operations for nearly $70 million in cash on March 2. Both transactions' proceeds were designated for debt reduction.

"This transaction advances our strategy to drive sustainable, profitable growth through capital-light refranchising while further reducing our leverage," said CEO Josh Charlesworth.

WKS Restaurant Group, founded in 1987, operates four restaurant brands across 19 states with over 10,000 employees. The company's portfolio includes Wendy's, Denny's, El Pollo Loco, and now an expanded Krispy Kreme presence.

The transactions support Krispy Kreme's turnaround plan focused on balance sheet deleveraging and sustainable growth through refranchising operations rather than direct ownership of retail locations.