Krispy Kreme Doughnuts, Inc. (Nasdaq: KREM) announced yesterday the acquisition of the Savannah, Georgia market. The company will purchase the rights to this market from an associate franchisee who currently operates two factory stores in that 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 excited about this acquisition. We have discussed the possibility of franchise acquisitions since we went public. Savannah marks the first step in a series of franchise repurchases. We will evaluate this market for both retention as a company-owned operation and for refranchising to an area developer partner. For now we will keep our options open, but would expect under any scenario to retain at least a majority share of this market.”
Livengood also added, “This market is a significant part of our heritage. Krispy Kreme has been making magic moments for customers in Savannah for over 30 years. We look forward to an even closer relationship with both our customers and the Krispy Kreme employees of Savannah.”
The 63-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 180 stores in 29 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.