Krispy Kreme Awards Franchise Development Rights in Malaysia
WINSTON-SALEM, N.C., Aug. 8 // PRNewswire-FirstCall // -- Krispy Kreme Doughnuts, Inc. (NYSE: KKD) announced today that it has entered into a franchise agreement with Berjaya Krispy Kreme Doughnuts Sdn Bhd in Malaysia for the development of approximately 20 Krispy Kreme retail shops over the next five years. Berjaya Krispy Kreme Doughnuts Sdn Bhd is a 70% owned subsidiary of Berjaya Corporation Berhad (BCorporation).
"Having a well respected QSR franchisee like BCorporation introduce Krispy Kreme in Malaysia is an exciting opportunity," said Jeff Welch, Senior Vice President and General Manager of Global Franchise Operations and Development for Krispy Kreme. "BCorporation has significant franchise experience in Malaysia, and we look forward to working with them to share the one-of-a-kind Krispy Kreme experience with consumers there."
"The addition of Krispy Kreme will strategically complement and widen BCorporation's existing food and beverage operations. We are delighted to enter into a franchise relationship with Krispy Kreme and be part of their international expansion in Asia. Krispy Kreme is very popular in Japan, South Korea and Philippines and we expect Krispy Kreme to do well in Malaysia as well," said Tan Sri Dato' Seri Vincent Tan, Chairman and Chief Executive Officer of BCorporation.
The Krispy Kreme hot Original Glazed(R) doughnut can now 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 490 locations around the world. Visit us at http://www.KrispyKreme.com.
About Berjaya Corporation Berhad
Berjaya Corporation Berhad is a major Malaysian conglomerate listed on the Malaysian Stock Exchange, Bursa Malaysia Securities Berhad, with interests in property investment and development; vacation timeshare, hotels, resorts and recreation development; consumer marketing and direct selling; financial services and gaming. Berjaya currently holds the Starbucks, Wendy's, Kenny Rogers Roasters and Papa John's Pizza franchises in Malaysia.
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.