Krispy Kreme Completes Refranchising of Dallas, Texas Market Agreements Provide for Development of Fifteen New Locations
WINSTON-SALEM, N.C., July 12, 2013 /PRNewswire/ -- Krispy Kreme Doughnut Corporation announced today that it has completed the sale of three Company-owned Krispy Kreme shops in the Dallas, Texas market to Sun Holdings, LLC ("Sun Holdings"), and executed a development agreement with Sun Holdings pursuant to which Sun Holdings has agreed to develop 15 additional Krispy Kreme locations in the market over the next five years.
Sun Holdings, whose principal owner is Guillermo Perales, is recognized as a leading franchise organization and operates nearly 400 restaurants in Texas and Florida, including the Burger King, Popeye's, Arby's, CiCi's, Golden Corral and Del Taco brands. The company also operates 13 T-Mobile stores.
"We are very pleased to begin what we expect will be a fantastic business relationship with Mr. Perales and the team at Sun Holdings," said Cindy Bay, Senior Vice President, U.S. Franchises and Company Stores. "Their extensive franchise experience with well-known brands gives us great confidence that they are the ideal group to represent the unique Krispy Kreme brand in the Dallas market."
"What an amazing opportunity, I'm very fortunate to be part of this new business relationship," said Guillermo Perales, president and CEO, Sun Holdings, LLC. "The unit economics of the new prototype are very attractive and I am confident that together we will be successful in this new path. My kids think Krispy Kreme serves the best doughnuts in the world and they ask to go to the stores daily."
Krispy Kreme currently has over 240 shops in the U.S., of which approximately 150 are franchised. In addition, the Company has over 530 locations in 21 countries outside the United States, all of which are franchised.
About Sun Holdings, LLC
In 1997, Mr. Perales founded Sun Holdings, LLC and opened his first Golden Corral restaurant. In just 16 years, Mr. Perales has guided his company through rapid growth by instilling a strong foundation for strategic business development. His expertise in restaurant operations and his development choices quickly vaulted Mr. Perales to become the largest Latino franchisee in the United States and one of the top ten in the country with almost 400 restaurants in his portfolio.
About Krispy Kreme
Krispy Kreme Doughnut Corporation, the principal operating subsidiary of Krispy Kreme Doughnuts, Inc. (NYSE: KKD) 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 770 locations in 22 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 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; increased costs or other effects of new government regulations relating to healthcare benefits; and risks associated with implementation of new technology platforms. 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, performance or achievements 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