Krispy Kreme Doughnuts, Inc. (ticker: KKD, exchange: New York Stock Exchange (.N))
News Release -
Krispy Kreme Awards Franchise Development Rights for Shanghai, Beijing and Tianjin, China
WINSTON-SALEM, N.C., Oct 08, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Krispy Kreme Doughnuts, Inc. (NYSE: KKD) announced today that it has entered into an agreement with KKD Lotte Holdings Company, Ltd. for the development of approximately 35 Krispy Kreme retail locations over the next four to five years in the metropolitan areas of Shanghai, Beijing and Tianjin, China. Lotte is also Krispy Kreme's franchisee in the Republic of Korea and Japan.
"We are very excited to expand our successful relationship with Lotte," said Jeff Welch, President of Krispy Kreme International Store Operations. "Lotte has been an outstanding partner to Krispy Kreme for many years in establishing and developing our brand in both Korea and the Kanto region of Japan. We are confident in their ability to successfully introduce Krispy Kreme to the China market."
"KKD Lotte Holdings Company is pleased to represent Krispy Kreme in China," said Kag Gyu Hwang, Executive Vice President, The Lotte Group. "Our successful four year relationship with Krispy Kreme will allow us to easily bring the Company's unique products to the growing Chinese market. We are proud to be Krispy Kreme's franchisee in China as well."
Currently, the Krispy Kreme hot Original Glazed® doughnut can be found in 16 countries, including the United States, Australia, Bahrain, Canada, Hong Kong, Indonesia, Japan, Kuwait, Lebanon, Mexico, the Philippines, the Republic of Korea, Qatar, the Kingdom of Saudi Arabia, the United Arab Emirates, and the United Kingdom. The Company also recently announced franchise development agreements for the Republic of Turkey and Malaysia.
About Krispy Kreme
Krispy Kreme is a leading branded specialty retailer of premium quality sweet treats, including its signature hot Original Glazed® doughnut. Headquartered in Winston-Salem, NC, the company has offered the highest quality doughnuts and great tasting coffee since it was founded in 1937. Krispy Kreme is proud that for decades its Fundraising program has helped non-profit organizations raise millions of dollars in needed funds. Today, Krispy Kreme and its one-of-a-kind Hot Light can be found in approximately 500 locations around the world. Visit us at http://www.KrispyKreme.com .
About Lotte Group
The Lotte Group, which includes Lotte Shopping Company, LTD., is a large international conglomerate founded in 1967 in Seoul, Korea. The Lotte Group consists of over 50 business units in Korea employing more than 60,000 people engaged in such diverse industries as retail, confectionery manufacturing, beverages, hotels, fast food, financial services, chemicals, electronics, IT, construction, logistics, ads, and entertainment. Its major operations are Korea, China, Russia, Vietnam, India, and Indonesia. Visit us at http://www.lotte.co.kr and http://www.lotteshopping.com .
Information contained in this press release, other than historical information, should be considered forward-looking. Forward-looking statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Krispy Kreme's operating results, performance or financial condition are the outcome of pending governmental investigations, including by the Securities and Exchange Commission (the "SEC") and the United States Attorney's Office for the Southern District of New York; potential indemnification obligations and limitations of our director and officer liability insurance; the quality of Company and franchise store operations; our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans; our relationships with our franchisees; our ability to implement our international growth strategy; our ability to implement our new domestic operating model and refranchising strategy; currency, economic, political and other risks associated with our international operations; the price and availability of raw materials needed to produce doughnut mixes and other ingredients; compliance with government regulations relating to food products and franchising; our relationships with wholesale customers; our ability to protect our trademarks; risks associated with our high levels of indebtedness; restrictions on our operations and compliance with covenants contained in our secured credit facilities; changes in customer preferences and perceptions; significant changes in our management; risks associated with competition; and other factors discussed in Krispy Kreme's Annual Report on Form 10-K for fiscal 2008 and other periodic reports filed with the SEC.
SOURCE Krispy Kreme Doughnuts, Inc.