Krispy Kreme, Inc.DNUT

Krispy Kreme, Inc. Earnings Per Share Disclosure

10-KFiled Feb 27, 20252 min read
Net Earnings/(Loss) per Share
The following table presents the calculations of basic and diluted EPS:
Fiscal Years Ended
(in thousands, except per share amounts)
December 29,
2024		December 31,
2023		January 1,
2023
Net income/(loss) attributable to Krispy Kreme, Inc.
$3,095 $(37,925)$(15,622)
Adjustment to net income/(loss) attributable to common shareholders
— — (374)
Net income/(loss) attributable to common shareholders — Basic
$3,095 $(37,925)$(15,996)
Additional income attributed to noncontrolling interest due to subsidiary potential common shares
(20)(28)(143)
Net income/(loss) attributable to common shareholders — Diluted
$3,075 $(37,953)$(16,139)
Basic weighted average common shares outstanding169,341 168,289 167,471 
Dilutive effect of outstanding common stock options, RSUs, and PSUs2,159 — — 
Diluted weighted average common shares outstanding
171,500 168,289 167,471 
Earnings/(loss) per share attributable to common shareholders:
Basic
$0.02 $(0.23)$(0.10)
Diluted
$0.02 $(0.23)$(0.10)
Potential dilutive shares consist of unvested RSUs and PSUs, calculated using the treasury stock method. The calculation of dilutive shares outstanding excludes certain unvested RSUs granted under certain subsidiaries’ executive ownership plans and long-term incentive plans, because their inclusion would have been antidilutive. Refer to Note 13, Share-based Compensation, to the audited Consolidated Financial Statements for further information about the plans.
The following table summarizes the gross number of potential dilutive unvested RSUs and PSUs excluded due to antidilution (unadjusted for the treasury stock method):
Fiscal Years Ended
(in thousands)
December 29,
2024		December 31,
2023		January 1,
2023
KKI
1,421 6,785 4,946 
KK U.K.
7 7 60 
Insomnia Cookies
— 47 — 
For the fiscal years ended December 29, 2024, December 31, 2023, and January 1, 2023, all 2.7 million, 3.0 million, and 2.6 million time-vested stock options, respectively, were excluded from the computation of diluted weighted average common shares outstanding based on application of the treasury stock method.

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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