WINSTON-SALEM, N.C., July 23, 2013 /PRNewswire/ -- Krispy Kreme Doughnut Corporation continues to expand in the Asia Pacific region with the announcement today that it has reached an agreement in principle on the material terms of a development plan with existing franchisee Lotteria Co., LTD for 60 new Krispy Kreme franchise locations in South Korea over the next five years. The franchisee also plans significant remodels at more than half of its existing 73 Krispy Kreme locations throughout the country. The parties expect to execute a definitive agreement upon receipt of approval from South Korean franchise regulatory authorities, which is expected in the coming months.
"It is fantastic when we can build on existing business relationships to continue the exciting growth we are experiencing in Asia and around the world," said Jeff Welch, Krispy Kreme President — International. "Lotteria knows the Krispy Kreme brand well, and their QSR expertise is unmatched in the market. We expect their success in South Korea will continue as they further expand the Krispy Kreme brand.
"We now have more than 540 stores in our 21 international markets," Welch continued. "This new development agreement, when executed, would bring franchisees' commitments for new international shops to nearly 425."
The Krispy Kreme Original Glazed® doughnut can be found in over 785 locations in 22 countries, including Australia, Bahrain, Canada, China, Dominican Republic, India, Indonesia, Japan, Kuwait, Lebanon, Malaysia, Mexico, the Philippines, Puerto Rico, the Republic of Korea (South Korea), Qatar, Saudi Arabia, Thailand, Turkey, the United Arab Emirates, the United Kingdom and the United States.
About Lotteria Co., LTD
Lotteria Co., LTD is the licensed franchisee of Krispy Kreme Doughnut Corporation in South Korea, where it currently operates 73 Krispy Kreme shops. Lotteria Co., LTD is an affiliate of Lotte Group, which has a strong focus on the food and beverage business, operating the leading burger chain "Lotteria," coffee chain "Angel-in-us," ice cream chain "Natuur" and "TGI Friday's" in Korea and other Asian countries including China, Japan, Vietnam and Indonesia.
About Krispy Kreme
Krispy Kreme (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. Connect with Krispy Kreme at 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