WINSTON-SALEM, N.C. /PRNewswire-FirstCall via COMTEX News Network/ -- Krispy Kreme Doughnut Corporation announced today that it has awarded development rights to Hot Glazed Enchantment, Inc. for the development of five Krispy Kreme retail locations over the next three years in the metropolitan area of Albuquerque, New Mexico. Hot Glazed Enchantment, Inc. is owned and operated by Roland Spongberg. Mr. Spongberg is also President and CEO of WKS Restaurant Corporation which operates El Pollo Loco, Denny's and Corner Bakery Cafe franchises in the region. The first new Krispy Kreme shop in the New Mexico market is expected to open by the end of the year.
"Reentering the New Mexico market with a successful and experienced QSR franchise operator like Roland Spongberg is very important to our continued growth in that region of the US," said Krispy Kreme President of US Stores, Steve Lineberger. "Our new smaller retail shops are the perfect fit for that metro region and we are confident that we have found the right partner to reintroduce our one-of-a-kind Krispy Kreme products to the New Mexico market."
Roland Spongberg, President of Hot Glazed Enchantment, stated, "We are excited to be part of such an incredible brand as Krispy Kreme. They are truly one of the iconic brands of America. We have seen much excitement created in Albuquerque as Krispy Kreme prepares to reenter the market."
Krispy Kreme is an international retailer of premium-quality sweet treats, including its signature Original Glazed((R)) doughnut. Headquartered in Winston-Salem, N.C., the company has offered the highest-quality doughnuts and great-tasting coffee since it was founded in 1937. Krispy Kreme is proud of its Fundraising program, which for decades has helped non-profit organizations raise millions of dollars in needed funds. Today, Krispy Kreme can be found in approximately 530 locations around the world. Krispy Kreme Doughnuts, Inc. (NYSE: KKD) is listed on the New York Stock Exchange.
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 Doughnut Corporation