Winston-Salem, NC-based fastfood chain Krispy Kreme Doughnuts has announced the acquisition of the Toledo, Ohio, market, as it has agreed to purchase the rights, as well as the associated assets from an area developer franchisee who currently operates one store in the market.
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The company did not disclose the purchase price but did indicate that it expects the acquisition to be modestly accretive to earnings in the current fiscal year.
Scott Livengood, chairman, president and CEO said: “We are very excited about this acquisition. With only one store in this market, we believe there is exceptional growth opportunity for our brand in terms of both additional retail sales and greater penetration in off-premises wholesale channels.
“We believe synergies exist between this market and our company-owned Akron, Cincinnati and Columbus, Ohio markets.”
Additionally, the company expressed comfort with its latest earnings guidance of US$0.14 per diluted share for the Q2 and US$0.63 per diluted share for FY 2003. The company anticipates systemwide comparable store sales of 10% for the year and Q2 expectations of 10%. The company anticipates opening 62 stores in 15 new markets. Finally, the company expects to sign at least one additional franchise agreement for development of international markets in FY 2003.
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By GlobalDataReferring to the current business trends, Livengood added, “Our business momentum continues to be very strong. New store and new market openings, recent record first week sales in new stores and very strong comparable store sales are all contributing to this strength.”
