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Krispy Kreme Doughnuts Inc. reported for the fourth quarter ended January 28 a net loss of $24.4 million versus a loss of
$37.7 million for the same period last year. Revenues decreased 8.2% to $112.2 million from $122.2 million. Same-store sales
fell 6.4%. For the year ended January 28, the company reported a net loss of $42.2 million compared to a loss of $135.8
million for 2006. Revenues fell 15.1% to $461.2 million from $543.4 million. Same-store sales declined 11.9%. (Company
Release 4/12/07)
Krispy Kreme Doughnuts Inc. submitted its Uniform Franchise Offering Circular to states where it is required in order to
franchise in all 50 states. The new offering was filed last month. (NRN Daily NewsFax 5/15/07)
Krispy Kreme is still trying to recover from its financial fall three years ago. While adding more advertisements, the company
also needs to expand its products, especially coffee, Howard Penny, an analyst, comments. Another analyst, Andrew Wolf,
believes that the company can still make it, but thinks that investors should wait for signs of a turnaround. Krispy Kreme’s
shares fell 58¢ on June 4 after disappointing first-quarter results. (Forbes.com 6/5/07)
Krispy Kreme Doughnuts Inc. approved amendments to the company’s stock incentive plan. The changes included extending
the term of the plan by two years to June 30, 2012, and removing the plan’s sublimit on the number of shares that may be
issued that involve awards of stock and stock appreciation rights. (Company Release 6/4/07)
Krispy Kreme’s former largest operator, Great Circle Family Foods LLC, filed for Chapter 11 bankruptcy in late August. The
Krispy Kreme franchisee will continue operating its 12 Southern California units while seeking a restructuring. Great Circle
agreed in 1998 to open up to 42 units. However, the franchisee sued Krispy Kreme two years ago for allegedly conspiring to
bankrupt Great Circle and acquire it for “cents on the dollar.” The plaintiffs also alleged that Krispy Kreme overcharged
franchisees for equipment and supplies, misappropriated funds and improperly changed Great Circle’s payment terms. The
dispute was settled last year and a Krispy Kreme subsidiary paid $2.9 million for three of Great Circle’s outlets. (Nation’s
Restaurant News 9/3/07)
Krispy Kreme laid off 20 employees, mostly at its corporate headquarters. The layoffs were part of the company’s realignment
of its franchise and company stores operations. (Bizjournals.com 8/29/07)
Krispy Kreme Doughnuts Inc. reported a net loss of $27 million for the second quarter ended July 29 compared to a loss of
$4.6 million for the same period last year. Revenues declined 7.5% to $104.1 million from $112.5 million. Same-store sales
decreased 0.5% systemwide. (Company Release 9/6/07)
Krispy Kreme has sold some of its coffee-roasting assets to S&D Coffee Inc. for an undisclosed sum. The North Carolinabased
donut chain also signed an agreement with S&D to continue supplying Krispy Kreme’s 411 donut shops with coffees.
Krispy Kreme is seeking to reduce its supply-chain costs after two multiunit franchisees filed for Chapter 11 bankruptcy
protection. Other initiatives include closing underperforming stores and lowering supply-chain costs by selling an under-used
manufacturing facility. (NRN Daily NewsFax 10/5/07)
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