Krispy Kreme has reported further progress on its plan to cut debt and pivot to a capital-light model by completing two transactions in the US and Japan.

The doughnut chain has completed a deal with WKS Restaurant Group to reshape its Western US joint venture (JV). Under the revised structure, WKS has lifted its ownership in the JV from 45% to 80%.

As part of the deal, 23 company-run shops in California and Hawaii have been transferred into the JV.

These outlets join an existing network of 50 shops already operated by the JV across the Western US. The JV also supports around 1,000 fresh delivery points through major retailers such as Kroger, Target and Walmart.

Krispy Kreme said the consideration tied to the WKS transaction was about $90m. This includes almost $50m in cash paid at closing.

Krispy Kreme CEO Josh Charlesworth said: “Our long-standing partnership with WKS has been key to Krispy Kreme’s growth in the Western US.

“This transaction advances our strategy to drive sustainable, profitable growth through capital-light refranchising while further reducing our leverage.”

Under the updated agreement, the JV has committed to opening more shops in the region and to widening Krispy Kreme’s fresh delivery presence over the coming years.

WKS Restaurant Group president and CEO Roland Spongberg said: “We are excited to expand our partnership with Krispy Kreme.

“By increasing our ownership stake and meaningfully expanding the joint venture’s footprint, we are reinforcing our confidence in the brand and positioning the business to accelerate development across the Western US.”

In a separate development, Krispy Kreme has also completed the previously announced sale of its Japan operations to Unison Capital.

The company said it received cash proceeds of nearly $70m from the Japan deal. Net cash proceeds from both transactions will be used by the company for debt paydown.