WINSTON-SALEM, N.C. // PRNewswire-FirstCall // -- Krispy Kreme Doughnut Corporation announced today that it has awarded development rights to Dough Nut, LLC for 21 Krispy Kreme retail locations over the next seven years in the greater Philadelphia market, which includes southeastern Pennsylvania, southern New Jersey and northern Delaware. Dough Nut, LLC is owned and operated by Keith Morgan, the former CEO of AAMCO Transmissions, the largest and best-known franchise company in the transmission and powertrain repair business. Keith is partnering with Brian Zaslow, who serves as Managing Director of Dough Nut, LLC. Brian is a marketing veteran with extensive food service experience, most recently as Vice President of Marketing for a $2B division of ARAMARK Corporation.
The first new Krispy Kreme shop in the market is expected to open in late 2010.
"Partnering with Krispy Kreme provides us with tremendous potential for success in the Philadelphia market," said Keith Morgan. "Krispy Kreme is an iconic brand with unmatched customer loyalty and serves the best doughnuts found anywhere in the world. Brian and I are excited to develop our stores and create new employment opportunities in the region."
"We are delighted that a franchise industry veteran of Keith's caliber has committed to making a significant investment in our brand," said Krispy Kreme President of US Stores, Steve Lineberger. "Having the right franchise partner in the greater Philadelphia market was critical for us, and because of his years of franchise experience and deep commitment to the community, we believe Keith Morgan is the right partner for Krispy Kreme."
Krispy Kreme (NYSE: KKD) is an international retailer and wholesaler of premium-quality sweet treats and complementary products, 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 shops can be found in over 560 locations around the world.
Information contained in this press release, other than historical information, should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management's beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. The words "believe," "may," "could," "will," "should," "anticipate," "estimate," "expect," "intend," "objective," "seek," "strive" or similar words, or the negative of these words, identify forward-looking statements. Factors that could contribute to these differences include, but are not limited to: 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; political, economic, currency 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 off-premises customers; our ability to protect our trademarks and trade secrets; restrictions on our operations and compliance with covenants contained in our secured credit facilities; changes in customer preferences and perceptions; and risks associated with competition. These and other risks and uncertainties, which are described in more detail in the Company's most recent Annual Report on Form 10-K and other reports and statements filed with the United States Securities and Exchange Commission, are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond the Company's control, and could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.
SOURCE Krispy Kreme Doughnut Corporation