Krispy Kreme to Realign its Franchise and Company Stores Operations

By: Krispy Kreme | 2 Shares 168 Reads

Senior Executives Jeff Welch and Steve Lineberger to Take on Expanded Roles in Franchise and Company Stores Operations

August 24, 2007 // Franchising.com // WINSTON-SALEM, N.C., -- Krispy Kreme Doughnuts, Inc. (NYSE: KKD) today announced that it is realigning its Franchise and Company Stores Operations. The changes will primarily affect the Krispy Kreme Support Center in Winston-Salem, North Carolina. As part of the changes, Jeff Welch and Steve Lineberger, current members of the Company's Executive Team, will take on expanded responsibilities in the Franchise and Company Stores business segments.

Jeff Welch will become the Senior Vice President and General Manager of Global Franchise Operations and Development. Welch has more than 25 years experience with public companies, and has successfully led Krispy Kreme's international franchise expansion into ten countries. He is a former Vice President of Franchising and Business Development for what is now Yum! Brands, Inc. and has extensive real estate development experience, having also served as the Vice President of International Real Estate with The Home Depot.

Steve Lineberger will become the Senior Vice President and General Manager of US Company Operations. With more than 20 years experience leading major business units in marketing, merchandising and sales, Lineberger has been heading Krispy Kreme's growth initiative, including new product development and innovation, as well as refining the Company's small retail concept. He is a former division Chief Executive with Sara Lee Corporation, and while there led fully vertical and highly integrated manufacturing and supply chain operations across numerous facilities and multiple countries.

Also, Jeff Jervik, Executive Vice President of Operations, has decided to leave Krispy Kreme to return to his private business interests, effective September 1, 2007. "This is the right time for me to get back to my personal businesses that afford me the opportunity to do what I enjoy most, spending time with my family," Jervik said. "Working closely with Daryl Brewster, the Company's Chief Executive Officer and President, our management team has made difficult decisions necessary to continue progress toward transforming this organization." Jervik added, "I have truly enjoyed the opportunity to contribute to the turnaround of an iconic brand like Krispy Kreme."

"Jeff Welch and Steve Lineberger have track records of extraordinary leadership that will help us continue our international growth and build on the strength of our southeastern roots, while restructuring the rest of our US operations," said Daryl Brewster, Chief Executive Officer and President of Krispy Kreme. "These changes will result in a more responsive, leaner and focused field structure that we expect will help us drive same store sales, improve unit economics and reduce system costs." "We also want to thank Jeff Jervik for his service and wish him continued success in his future endeavors," Brewster added.

About Krispy Kreme: Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme is a leading branded specialty retailer of premium quality doughnuts, including its signature Hot Original Glazed. There are currently approximately 411 Krispy Kreme stores including satellites operating system-wide in 41 U.S. states, Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico, the Philippines, the Republic of South Korea, the United Arab Emirates and the United Kingdom.

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 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; material weaknesses in our internal control over financial reporting; our ability to implement remedial measures necessary to improve our processes and procedures; negative publicity; significant changes in our management; our ability, and our dependence on the ability of our franchisees, to execute our and their business plans; our ability to implement our international growth 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 governmental regulations relating to food products and franchising; our relationships with wholesale customers; our ability to protect our trademarks; restrictions on our operations contained in our senior secured credit facilities; changes in customer preferences and perceptions; risks associated with competition; and other factors discussed in Krispy Kreme's Annual Report on Form 10-K for fiscal 2007 and other periodic reports filed with the Securities and Exchange Commission.

SOURCE Krispy Kreme Doughnuts, Inc.