Krispy Kreme Doughnuts, Inc. (NYSE: KKD) announced yesterday the acquisition of the Baltimore, Maryland market. The Company has agreed to purchase the rights to this market, as well as the associated assets from an area developer franchisee who currently operates four factory stores in that market. The existing development agreement calls for six more stores in the Baltimore market. The Company did not disclose the purchase price but did indicate it expects the acquisition to be modestly accretive to earnings in the current fiscal year.
Scott Livengood, the Company’s Chairman, CEO and President said, “We are very optimistic regarding the future prospects of Krispy Kreme as evidenced by our continued desire to take a significant ownership interest in our franchise markets. Our Hot Original Glazed doughnuts were introduced to Baltimore area customers in 1998 and we believe synergies exist between this market and our company-owned Washington, DC market. Baltimore marks the third in a series of franchise repurchases following the acquisition of the Savannah, Georgia and Charleston, South Carolina markets. It is our intention to retain all or a significant interest in this market.”
The 64-year old North Carolina-based company is a leading branded specialty retailer of premium quality doughnuts, including the Company’s signature Hot Original Glazed. Krispy Kreme currently operates 187 stores in 31 states.
Krispy Kreme can be found on the World Wide Web at www.krispykreme.com.
Information contained in this press release, other than historical information, may be considered forward-looking in nature and is 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 its dependence on franchisees to execute its store expansion strategy, supply issues, competition and numerous other factors discussed in Krispy Kreme’s periodic reports, proxy statement and other information statements filed with the Securities and Exchange Commission.