Krispy Kreme Awards Franchise Development Rights for The Republic of Turkey
WINSTON-SALEM, N.C., July 29 // PRNewswire-FirstCall // -- Krispy Kreme Doughnuts, Inc. (NYSE: KKD) announced today that it has entered into a franchise agreement with Almana Yiyecek Ve Icecek San. Ve. Tic, Ltd, STI (part of the Almana Group) for the development of approximately 25 Krispy Kreme retail locations over the next five years in Istanbul, The Republic of Turkey (Turkey).
"We are extremely pleased to be working with the Almana Group, an experienced QSR franchisee that operates KFC and Pizza Hut restaurants in Turkey, to establish Krispy Kreme in Istanbul," said Jeff Welch, Senior Vice President and General Manager of Global Franchise Operations and Development for Krispy Kreme. "We're confident that the Almana Group, with their extensive restaurant experience, is uniquely qualified to introduce Krispy Kreme in this important marketplace."
"We are excited to bring the world famous Krispy Kreme hot doughnut experience to our customers in Turkey," said Bader Almana, General Manager of the Almana Group. "We are impressed with the strength of the brand and expect that the quality Krispy Kreme products which we will offer to consumers in Turkey will be very much appreciated. We hope to establish Krispy Kreme as a new trend for our broad customer base in Istanbul."
Approximately 75% of Krispy Kreme's total stores are operated by franchisees, and half are located outside the US. Currently, the Krispy Kreme hot Original Glazed(R) doughnut can be found in 14 countries, including the United States, Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico, the Philippines, the Republic of South Korea, Qatar, the Kingdom of Saudi Arabia, the United Arab Emirates, and the United Kingdom.
About Krispy Kreme
Krispy Kreme is a leading branded specialty retailer of premium quality sweet treats, including its signature hot Original Glazed(R) 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 480 locations around the world. Visit us at www.KrispyKreme.com
About The Almana Group
The Almana Group is one of the largest business houses in Qatar. Since its inception in 1960, the Almana Group has grown from strength to strength, and in the process has made significant contribution to the very infrastructure of Qatar. Today the Group boasts a large turnover and with its diversified activities is all poised to participate successfully in the ongoing economic development of Qatar.
Almana Yiyecek Ve Icecek San. Ve. Tic, Ltd, STI, which is a Turkish subsidiary of the Almana Group, has significant experience in the QSR business. The company operates KFC and Pizza Hut restaurants in Turkey and will launch and operate the Krispy Kreme stores in Istanbul. Visit the Almana Group at www.AlmanaGroup.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.