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Krispy Kreme Reports Financial Results For The Third Quarter Of Fiscal 2013

 Krispy Kreme Reports Financial Results For The Third Quarter Of Fiscal 2013

RAISES OUTLOOK FOR FISCAL 2013

PROVIDES PRELIMINARY GUIDANCE FOR FISCAL 2014

PR Newswire

WINSTON-SALEM, N.C., Nov. 19, 2012

WINSTON-SALEM, N.C., Nov. 19, 2012 /PRNewswire/ -- Krispy Kreme Doughnuts,
Inc. (NYSE: KKD) (the "Company") today reported financial results for the
third quarter of fiscal 2013, ended October 28, 2012. The Company also raised
its outlook for fiscal 2013 and provided preliminary guidance for fiscal 2014.

Third Quarter Fiscal 2013 Highlights Compared to the Year-Ago Period:

  oRevenues increased 8.5% to $107.1 million from $98.7 million
  oCompany same store sales rose 6.8%, the sixteenth consecutive quarterly
    increase
  oOperating income rose 66% to $9.2 million from $5.6 million
  oAdjusted net income rose 76% to $8.3 million ($0.12 per share) from $4.7
    million ($0.07 per share); adjusted net income and adjusted EPS reflect
    income tax expense only to the extent currently payable in cash; adjusted
    net income and adjusted EPS are non-GAAP measures (see the reconciliation
    of GAAP to adjusted earnings in the table accompanying this release)
  oNet income was $5.0 million ($0.07 per share) compared to $4.7 million
    ($0.07 per share) in the third quarter last year; net income for the third
    quarter of fiscal 2013 reflects a substantially higher book income tax
    rate compared to the third quarter of fiscal 2012 as more fully described
    below
  oCash provided by operating activities was $15.0 million compared to $10.2
    million in the third quarter last year

The Company ended the third quarter of fiscal 2013 with a total of 731 Krispy
Kreme shops systemwide, a net increase of 20 shops during the quarter. As of
October 28, 2012, there were 96 Company stores and 635 franchise locations.

President and Chief Executive Officer James H. Morgan commented: "We commend
the entire Krispy Kreme family for their accomplishments in the third
quarter. Their efforts enabled us to deliver extraordinary results, including
healthy revenue gains, robust same store sales, and substantial growth in both
adjusted net income and operating cash flow. We have now generated positive
same store sales for an impressive sixteen consecutive quarters. Even more
important, our Company Stores segment has emerged as a strong contributor to
our overall profitability due to the solid foundation that has been laid over
the past four years by our operations team and those who support them, as well
as the outstanding effort of our marketing group."

Morgan continued, "While we are pleased with our near-term achievements, our
management focus is always centered on how best to position ourselves over the
long term. Our decision making process and capital deployment is designed to
build on Krispy Kreme's 75-year legacy so that we can create sustainable
long-term value for our shareholders. By executing on our strategies, we are
confident that we can continue to successfully grow the Company while at the
same time realizing our brand mission to touch and enhance lives through the
joy that is Krispy Kreme."

Morgan concluded, "Given our strong third quarter and year-to-date
performance, we are pleased to be increasing our earnings outlook for fiscal
2013 and projecting continued double digit earnings growth for fiscal 2014."

Third Quarter Fiscal 2013 Results

Consolidated Results

For the third quarter ended October 28, 2012, revenues increased 8.5% to
$107.1 million from $98.7 million.

Direct operating expenses increased to $90.2 million from $85.9 million, but
as a percentage of total revenues fell to 84.2% from 87.0%. General and
administrative expenses increased slightly to $5.1 million from $4.9 million
in the year-ago period and, as a percentage of total revenues, decreased to
4.7% from 5.0%.

Operating income increased to $9.2 million from $5.6 million.

Adjusted net income was $8.3 million ($0.12 per share) compared to $4.7
million ($0.07 per share) in the third quarter last year. Adjusted net income
and adjusted EPS reflect income tax expense only to the extent currently
payable in cash. Adjusted net income and adjusted EPS are non-GAAP measures
(see the reconciliation of GAAP to adjusted earnings in the table accompanying
this release).

Net income was $5.0 million ($0.07 per share) compared to $4.7 million ($0.07
per share), in the third quarter last year. Net income and EPS for the third
quarter of fiscal 2013 reflect a book tax rate of 43% compared to a rate of 9%
in the third quarter last year. The increase reflects the reversal of
valuation allowances on deferred tax assets in the fourth quarter of fiscal
2012. Accordingly, net income and EPS for the third quarter of fiscal 2013
are not comparable to those for the third quarter of fiscal 2012.

Segment Results

Company Stores revenues increased 7.2% to $72.5 million from $67.6 million.
Same store sales at Company stores rose 6.8%, the sixteenth consecutive
quarterly increase, and were driven by higher traffic. The Company Stores
segment posted operating income of $2.0 million compared to an operating loss
of $574,000 in the third quarter last year.

Domestic Franchise revenues rose 7.3% to $2.5 million from $2.3 million,
reflecting higher royalties. Total sales by domestic franchisees rose 6.1%,
while same store sales increased 5.0%. Domestic Franchise segment operating
income improved to $1.2 million compared to $1.1 million in the third quarter
last year.

International Franchise revenues increased 12.1% to $6.0 million from $5.4
million, driven by higher royalties. Sales by international franchise stores
rose 12.6%. Adjusted to eliminate the effects of changes in foreign exchange
rates, same store sales at international franchise stores fell 7.7%,
reflecting, among other things, honeymoon effects from the substantial number
of international store openings in recent years, as well as cannibalization as
markets develop. The International Franchise segment generated operating
income of $4.3 million, up from $3.3 million in the third quarter last year.

KK Supply Chain revenues (including sales to Company stores) rose 5.1% to
$52.8 million from $50.3 million in the same period last year. External KK
Supply Chain revenues rose 11.4% to $26.1 million from $23.4 million in the
year-ago period. KK Supply Chain generated operating income of $7.3 million
in the third quarter of fiscal 2013, up from $7.0 million in the third quarter
last year.

Outlook

Given the Company's third quarter and fiscal year-to-date results, along with
other current information, it is raising its fiscal 2013 outlook for
consolidated operating income to between $34 million and $36 million from the
previous forecast of between $29 million and $33 million. The Company
currently forecasts adjusted earnings per share for fiscal 2013 of between
$0.44 and $0.47. The Company noted that fiscal 2013 is a 53-week year and the
fourth quarter will therefore have 14 weeks instead of 13. In order to
facilitate comparisons, the preceding Company guidance for fiscal 2013 does
not reflect the anticipated, but irregularly occurring, benefit of the extra
week.

For fiscal 2014, the Company anticipates opening 5 to 10 Company stores,
between 10 and 15 domestic franchise stores, and more than 75 international
franchise stores. Although the Company looks for continued organic same store
sales growth in its domestic stores, international franchise same store sales
will likely continue to be pressured by the substantial growth in
international markets in recent years.

Based on these factors, the Company's preliminary fiscal 2014 guidance is for
operating income in the range of $38 million to $42 million and adjusted EPS
for fiscal 2014 of between $0.49 and $0.55 per share. The foregoing adjusted
EPS range reflects estimated adjusted income tax expense of $2 million;
adjusted income tax expense consists solely of taxes currently payable in
cash. Because the Company has substantial net operating loss carryovers, the
amount of taxes payable in cash is expected to remain insignificant for the
foreseeable future.

Adjusted net income, adjusted income tax expense and adjusted EPS are non-GAAP
measures (see the reconciliation of GAAP to adjusted earnings in the table
accompanying this release).

Conference Call

The Company will host a conference call to review financial results for the
third quarter of fiscal 2013 as well as its outlook this afternoon at 4:30
p.m. (ET).

A live webcast of the conference call will be available at
www.krispykreme.com. The conference call also can be accessed over the phone
by dialing (800) 510-0219 or, for international callers, by dialing (617)
614-3451. An archived replay of the call will be available shortly after its
conclusion by dialing (888) 286-8010, or (617) 801-6888 for international
callers; the passcode is 31034181. The audio replay will be available through
November 26, 2012. A transcript of the conference call also will be available
on the Company website.

About Krispy Kreme

Krispy Kreme is a leading branded specialty retailer and wholesaler of premium
quality sweet treats and complementary products, including its signature
Original Glazed^® doughnut. Headquartered in Winston-Salem, NC, the Company
has offered the highest quality doughnuts and great tasting coffee since it
was founded in 1937. Today, Krispy Kreme shops can be found in over 730
locations in 21 countries around the world. Connect with Krispy Kreme at
www.krispykreme.com and on Facebook, Foursquare, Twitter and YouTube.

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," "would," "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 small shop 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, and the price of motor fuel; our relationships with
wholesale customers; our ability to protect our trademarks and trade secrets;
changes in customer preferences and perceptions; risks associated with
competition; risks related to the food service industry, including food safety
and protection of personal information; compliance with government regulations
relating to food products and franchising; and increased costs or other
effects of new government regulations relating to healthcare benefits. 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, involve 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.



KRISPY KREME DOUGHNUTS, INC.
CONSOLIDATED STATEMENT OF INCOME
                               Three Months Ended        Nine Months Ended
                            October 28,  October 30,  October 28,  October 30,
                            2012         2011         2012         2011
                            (In thousands, except per share amounts)
Revenues                    $  107,087   $   98,708   $  317,698   $  301,260
Operating expenses:
 Direct operating expenses
 (exclusive of depreciation
 expense
         shown below)          90,220        85,874      264,568      258,554
 General and administrative    5,083         4,941       16,311       15,515
 expenses
 Depreciation expense         2,357         2,208       7,238        6,233
 Impairment charges and        216           135         302          680
 lease termination costs
Operating income              9,211         5,550       29,279       20,278
Interest income               14            30          102          131
Interest expense              (384)         (385)       (1,202)      (1,276)
Equity in losses of equity     (47)          (72)        (150)        (69)
method franchisees
Gain on sale of interest in    -             -           -            6,198
equity method franchisee
Other non-operating income     80            89          237          261
and (expense), net
Income before income taxes    8,874         5,212       28,266       25,523
Provision for income taxes    3,830         495         12,267       2,796
Net income                  $  5,044     $   4,717    $  15,999    $  22,727
Earnings per common share:
 Basic                     $  0.08      $   0.07     $  0.24      $  0.33
 Diluted                  $  0.07      $   0.07     $  0.23      $  0.32
Weighted average shares
outstanding:
 Basic                        66,668        69,384      67,897       69,013
 Diluted                     68,803        71,547      70,041       71,474



KRISPY KREME DOUGHNUTS, INC.
CONSOLIDATED BALANCE SHEET
                                             October 28,  January 29,
                                             2012         2012
                                             (In thousands)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                   $ 49,903     $ 44,319
Receivables                                   23,436       21,616
Receivables from equity method franchisees    774          655
Inventories                                   16,677       16,497
Deferred income taxes                          17,685       10,540
Other current assets                          6,991        3,613
 Total current assets                         115,466      97,240
Property and equipment                        76,132       75,466
Investments in equity method franchisees      -            -
Goodwill and other intangible assets          24,219       23,776
Deferred income taxes                          103,910      129,053
Other assets                                  12,153       9,413
 Total assets                               $ 331,880    $ 334,948
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt        $ 2,162      $ 2,224
Accounts payable                              12,047       10,494
Accrued liabilities                           28,280       28,800
 Total current liabilities                    42,489       41,518
Long-term debt, less current maturities       23,750       25,369
Other long-term obligations                   24,878       18,935
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Preferred stock, no par value                 -            -
Common stock, no par value                    353,186      377,539
Accumulated other comprehensive loss          (345)        (336)
Accumulated deficit                           (112,078)    (128,077)
 Total shareholders' equity                   240,763      249,126
  Total liabilities and shareholders' equity $ 331,880    $ 334,948



KRISPY KREME DOUGHNUTS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
                                                      Nine Months Ended
                                                      October 28,  October 30,
                                                      2012         2011
                                                         (In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                            $  15,999    $  22,727
Adjustments to reconcile net income to net cash
provided by operating activities:
   Depreciation expense                                  7,238        6,233
   Deferred income taxes                                 10,824       159
   Accrued rent expense                                  369          389
   Loss on disposal of property and equipment            468          348
   Gain on sale of interest in equity method             -            (6,198)
   franchisee
   Share-based compensation                              3,570        3,437
   Provision for doubtful accounts                       65           (397)
   Amortization of deferred financing costs              300          320
   Equity in losses of equity method franchisees         150          69
   Other                                                 (1,075)      956
Change in assets and liabilities:
   Receivables                                           (1,467)      (1,794)
   Inventories                                           (169)        (2,313)
   Other current and non-current assets                  (1,499)      (595)
   Accounts payable and accrued liabilities              690          1,767
   Other long-term obligations                           2,515        (2,196)
         Net cash provided by operating                  37,978       22,912
         activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment                       (9,480)      (8,222)
Proceeds from disposals of property and equipment        66           26
Acquisition of stores from franchisee                    (915)        -
Proceeds from sale of interest in equity method          -            7,723
franchisee
Escrow deposit recovery                                  -            1,600
Other investing activities                               347          (52)
         Net cash provided by (used for)                 (9,982)      1,075
         investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt                              (1,652)      (8,437)
Deferred financing costs                                 (11)         (23)
Proceeds from exercise of stock options                  -            1,036
Proceeds from exercise of warrants                       9            -
Repurchase of common shares                              (20,758)     (954)
         Net cash used for financing                     (22,412)     (8,378)
         activities
Net increase in cash and cash equivalents                5,584        15,609
Cash and cash equivalents at beginning of period         44,319       21,970
Cash and cash equivalents at end of period            $  49,903    $  37,579





KRISPY KREME DOUGHNUTS, INC.

NON-GAAP FINANCIAL INFORMATION

As of January 29, 2012, the Company had net deferred income tax assets of
approximately $139.6 million, including approximately $90 million of tax
assets related to federal and state net operating loss carryovers. The
Company's federal net operating loss carryovers totaled approximately $240
million.

In the quarter ended January 29, 2012, the Company reversed $139.6 million of
valuation allowances against deferred tax assets because management concluded
that realization of such assets was more likely than not. While such
reversal, which was required by GAAP, increased the Company's earnings by
$139.6 million in fiscal 2012, the reversal has the effect of increasing the
provision for income taxes, and therefore decreasing net income, beginning in
fiscal 2013. The reversal had no effect on the Company's cash payments for
income taxes. This negative effect on earnings occurs because the reversal of
the valuation allowances resulted in the recognition in fiscal 2012 of income
tax benefits expected to be realized in later years. Absent the reversal of
the valuation allowances, any such tax benefits would have been recognized
when realized in future periods upon the generation of taxable income.
Accordingly, beginning in fiscal 2013, the Company's effective income tax
rate, which in fiscal 2012 and earlier years bore little or no relationship to
pretax income, more closely reflects the blended federal and state income tax
rates in jurisdictions in which the Company operates.

Because of the increase in the Company's effective income tax rate as
described above, the Company's income tax expense in the first three quarters
of fiscal 2013 is not comparable to income tax expense in the first three
quarters of fiscal 2012. In addition, until such time as the Company's net
operating loss carryovers are exhausted or expire, GAAP income tax expense is
expected to substantially exceed the amount of cash income taxes payable by
the Company, which are expected to remain insignificant for the foreseeable
future.

In addition, in thefirst nine monthsof fiscal 2012, the Company realized a
pretax gain of $6.2 million ($4.7 million after tax, or $.06 per share) on the
sale of its 30% ownership interest in KK Mexico, an equity method investee.
The Company does not expect to realize similar gains in the future.

The following non-GAAP financial information and related reconciliation to
GAAP measures are provided to assist the reader in understanding the effects
of the above transactions and events, which are expected to be non-recurring,
on the Company's results of operations, and to facilitate comparisons of
fiscal 2013 results with the Company's results for the comparable periods of
fiscal 2012. In addition, the non-GAAP financial information is intended to
illustrate the material difference between the Company's income tax expense
and income taxes currently payable. Adjusted net income and adjusted EPS
reflect income tax expense only to the extent such expense is currently
payable in cash. These non-GAAP performance measures are consistent with
other measurements made by management in the operation of the business which
do not consider income taxes except to the extent to which those taxes
currently are payable, for example, capital allocation decisions and incentive
compensation measurements that are made on a pretax basis.



                        Historical Periods
                        Three Months Ended  Nine Months Ended      Year Ended
                        October   October   October   October 30,  January 29,
                        28,       30,       28,
                        2012      2011      2012      2011         2012
                        (In thousands, except per share amounts)
Net income, as reported $ 5,044   $ 4,717   $ 15,999  $  22,727    $ 166,269
Provision for deferred    3,300     31        10,824     159         (139,403)
income taxes
Gain on sale of
interest in KK Mexico
  (net of income taxes    -         -         -          (4,706)     (4,706)
  of $1,492)
Adjusted net income     $ 8,344   $ 4,748   $ 26,823  $  18,180    $ 22,160
Adjusted earnings per
common share:
  Basic                 $ 0.13    $ 0.07    $ 0.40    $  0.26      $ 0.32
  Diluted               $ 0.12    $ 0.07    $ 0.38    $  0.25      $ 0.31
Weighted average shares
outstanding:
  Basic                   66,668    69,384    67,897     69,013      69,145
  Diluted                 68,803    71,547    70,041     71,474      71,497



                                     Management's Earnings Guidance
                                     Year Ending
                                     February 2, 2014      February 3, 2013
                                     From        To        From      To
                                     (In thousands, except per share amounts)
Net income, as reported              $  20,000   $ 22,000  $ 17,900  $ 19,000
Provision for deferred income taxes     14,000     16,000    12,700    13,600
Adjusted net income                  $  34,000   $ 38,000  $ 30,600  $ 32,600
Adjusted earnings per common share:
           Basic                     $  0.51     $ 0.57    $ 0.45    $ 0.48
           Diluted                   $  0.49     $ 0.55    $ 0.44    $ 0.47
Weighted average shares outstanding:
           Basic                        66,700     66,700    67,600    67,600
           Diluted                      68,800     68,800    69,700    69,700



KRISPY KREME DOUGHNUTS, INC.
SEGMENT INFORMATION
                            Three Months Ended        Nine Months Ended
                            October 28,  October 30,  October 28,  October 30,
                            2012         2011         2012         2011
                            (In thousands)
Revenues:
 Company Stores:
    On-premises sales       $  35,299    $  31,347    $  102,488   $  93,151
    Wholesale sales            37,194       36,259       112,684      109,922
      Company Stores           72,493       67,606       215,172      203,073
      revenues
 Domestic Franchise           2,498        2,327        7,561        7,045
 International Franchise      6,024        5,374        17,832       16,362
 KK Supply Chain:
    Total revenues            52,825       50,277       158,075      154,501
    Less – intersegment        (26,753)     (26,876)     (80,942)     (79,721)
    sales elimination
      External KK Supply       26,072       23,401       77,133       74,780
      Chain revenues
            Total revenues $  107,087   $  98,708    $  317,698   $  301,260
Operating income (loss):
 Company Stores            $  1,985     $  (574)     $  5,271     $  551
 Domestic Franchise           1,174        1,114        4,072        2,477
 International Franchise      4,301        3,313        12,957       10,893
 KK Supply Chain              7,312        6,987        24,181       23,074
    Total segment operating    14,772       10,840       46,481       36,995
    income
 Unallocated general and       (5,345)      (5,155)      (16,900)     (16,037)
 administrative expenses
 Impairment charges and        (216)        (135)        (302)        (680)
 lease termination costs
    Consolidated operating  $  9,211     $  5,550     $  29,279    $  20,278
    income
Depreciation expense:
 Company Stores            $  1,880     $  1,756     $  5,921     $  4,982
 Domestic Franchise           40           55           150          165
 International Franchise      3            -            9            4
 KK Supply Chain              172          183          569          560
 Corporate administration     262          214          589          522
    Total depreciation      $  2,357     $  2,208     $  7,238     $  6,233
    expense



KRISPY KREME DOUGHNUTS, INC.
SELECTED OPERATING STATISTICS
                            Three Months Ended        Nine Months Ended
                            October 28,  October 30,  October 28,  October 30,
                            2012         2011         2012         2011
Systemwide Sales (in
thousands):^(1)
   Company stores^       $ 71,884     $  67,126    $ 213,399    $ 201,629
   Domestic Franchise         68,950        64,976      210,454      196,502
   stores^
   International Franchise    103,536       91,928      310,893      279,188
   stores^
   International Franchise
   stores, in constant        103,536       91,457      310,893      275,138
   dollars^(2)
Change in Same Store Sales
(on-premises sales
only):^(3)
   Company stores^          6.8     %     4.0    %    4.7     %    4.2     %
   Domestic Franchise         5.0     %     7.9    %    5.8     %    6.2     %
   stores^
   International Franchise    (8.3)   %     (8.5)  %    (9.6)   %    (5.4)   %
   stores^
   International Franchise
   stores, in constant        (7.7)   %     (12.2) %    (8.4)   %    (11.3)  %
   dollars^(2)
Change in Same Store
Customer Count - Company
stores ^
   (retail sales only) ^      8.4     %     (1.3)  %    5.3     %    (0.4)   %
Average guest check -
Company stores (retail      $ 7.43       $  7.49      $ 7.33       $ 7.34
sales only) ^
Wholesale Metrics - Company
stores:^(4)
   Grocers/mass merchants:
   ^
      Change in average
      weekly number of        (2.9)   %     1.4    %    (4.1)   %    3.7     %
      doors ^
      Change in average
      weekly sales per door   6.9     %     15.9   %    7.8     %    13.1    %
      ^
   Convenience stores: ^
      Change in average
      weekly number of        (4.5)   %     (9.3)  %    (7.7)   %    (4.4)   %
      doors ^
      Change in average
      weekly sales per door   4.7     %     14.0   %    9.3     %    9.2     %
      ^



 1) Systemwide sales, a non-GAAP financial measure, include the sales by
 both Company and franchise stores but excludes sales among Company and
 franchise stores. The Company believes systemwide sales data are useful in
 assessing the overall performance of the Krispy Kreme brand and, ultimately,
 the performance of the Company. The Company's consolidated financial
 statements appearing elsewhere herein include sales by Company stores, sales
 to franchisees by the KK Supply Chain business segment, and royalties and
 fees received from franchise stores based on their sales, but exclude sales
 by franchise stores to their customers.
 2) Computed on a pro forma basis assuming the average rate of exchange
 between the U.S. dollar and each of the foreign currencies in which the
 Company's international franchisees conduct business had been the same in the
 comparable prior year period.
 3) The change in "same store sales" represents the aggregate on-premises
 sales (including fundraising sales) during the current year period for all
 stores which had been open for more than 56 consecutive weeks during the
 current year period (but only to the extent such sales occurred in the 57^th
 or later week of each store's operation) divided by the aggregate on-premises
 sales of such stores for the comparable weeks in the preceding year period.
 Once a store has been open for at least 57 consecutive weeks, its sales are
 included in the computation of same stores sales for all subsequent periods.
 In the event a store is closed temporarily (for example, for remodeling) and
 has no sales during one or more weeks, such store's sales for the comparable
 weeks during the earlier or subsequent period are excluded from the same
 store sales computation. The change in "same store customer count" is
 similarly computed, but is based upon the number of retail transactions
 reported in the Company's point-of-sale system.
 4) For Company wholesale sales, "average weekly number of doors"
 represents the average number of customer locations to which product
 deliveries are made during a week by Company Stores, and "average weekly
 sales per door" represents the average weekly sales to each such location by
 Company Stores.



KRISPY KREME DOUGHNUTS, INC.
STORE COUNT
                                            NUMBER OF STORES
                                            DOMESTIC  INTERNATIONAL  TOTAL
Number of Stores Open at October 28, 2012:
Company:
       Factory                              75        -              75
       Satellite                            21        -              21
              Total Company                 96        -              96
Franchise:
       Factory                              101       119            220
       Satellite                            41        374            415
              Total franchise               142       493            635
                     Total systemwide       238       493            731
                                            NUMBER OF STORES
                                            COMPANY   FRANCHISE      TOTAL
Quarter ended October 28, 2012
July 29, 2012                               93        618            711
Opened                                     1         29             30
Closed                                     -         (10)           (10)
Transferred                                 2         (2)            -
October 28, 2012                            96        635            731
Quarter ended October 30, 2011
July 31, 2011                               88        581            669
Opened                                     1         22             23
Closed                                     -         (14)           (14)
October 30, 2011                            89        589            678



SOURCE Krispy Kreme Doughnut Corporation

Website: http://www.krispykreme.com
Contact: Media: Brian K. Little, +1-336-726-8825, blittle@KrispyKreme.com;
Investor Relations: Anita K. Booe, +1-336-703-6902, abooe@KrispyKreme.com
 
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