WINSTON-SALEM, N.C., May 9 /PRNewswire-FirstCall/ -- Krispy Kreme Doughnuts, Inc. announced today that it has awarded Middle East development rights to the Americana Group, the region's leading restaurant, food processing, distribution and retail company. Key markets will include, among others: Egypt, Kuwait, Saudi Arabia and the United Arab Emirates.
Krispy Kreme's franchise agreement with the Americana Group calls for the development of approximately 100 locations over the next five years, with the first location scheduled to open in Kuwait by early fall. The Americana Group will hold a 100% ownership position in the franchise.
"This is an exciting partnership for Krispy Kreme as we move forward with the Company's turnaround," said Daryl Brewster, President and Chief Executive Officer of Krispy Kreme. "We are encouraged by the growth in our current international markets and this partnership represents an important opportunity to continue to bring the great taste of Krispy Kreme to consumers around the world."
"We are thrilled to be partnering with Americana," said Jeff Welch, Krispy Kreme's Senior Vice President of Development & International Franchising. "Americana has a solid track record of successfully operating restaurant franchises throughout the Middle East. We are confident that their understanding of the food business in this geographic region will help promote Krispy Kreme's success in the marketplace."
"We are looking forward to introducing Krispy Kreme and the hot doughnut experience to our customers in the Middle East," said Marzouk Nasser Al-Kharafi, Chairman of the Americana Group. "In full partnership with Krispy Kreme, we intend to be successful in our region by building on Krispy Kreme's superior brand, which our customers will come to appreciate and embrace."
About Krispy Kreme
Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme is a leading branded retailer and wholesaler of high-quality doughnuts, including its signature Hot Original Glazed.(R) There are currently approximately 310 Krispy Kreme stores and 85 satellites operating systemwide in 43 U.S. states, Australia, Canada, Mexico, South Korea and the United Kingdom. Additional information on Krispy Kreme can be found on the Internet at http://www.krispykreme.com/.
About Americana Group
For the last 40 years, Americana Group has been an innovative pioneer in the food industry in the Arab world. Founded in 1964 as a small trading company based in Kuwait, Americana has now become the region's most successful restaurant, food processing, distribution, and retail company with world- leading brands like KFC, Pizza Hut, Hardee's, Americana Meat, California Garden and many others. Americana generates approximately $1 billion in annual sales from over 700 locations in 11 countries throughout the Middle East.
Information contained in this press release, other than historical information, should be considered forward-looking. Forward-looking statements are 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 the outcome of pending governmental investigations, including by the Securities and Exchange Commission and the United States Attorney's Office for the Southern District of New York, and a review by the Department of Labor; the outcome of shareholder derivative and class action litigation; potential indemnification obligations and limitations of our director and officer liability insurance; material weaknesses in our internal control over financial reporting; our ability to implement remedial measures necessary to improve our processes and procedures; continuing negative publicity; significant changes in our management; the quality of franchise store operations; our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans; disputes with our franchisees, including pending litigation with some of them; our ability to implement our international growth strategy; currency, economic, political and other risks associated with our international operations; the price and availability of raw materials needed to produce doughnut mixes and other ingredients; compliance with governmental regulations relating to food products and franchising; our relationships with wholesale customers; our ability to protect our trademarks; risks associated with our high levels of indebtedness; restrictions on our operations contained in our senior secured credit facilities; our ability to meet our ongoing liquidity needs; changes in customer preferences and perceptions; risks associated with competition; and other factors discussed in Krispy Kreme's Annual Report on Form 10-K for fiscal 2005 and in Forms 12b-25 and other periodic reports filed with the Securities and Exchange Commission.
Krispy Kreme Contact:
Laura Smith
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449 ext. 154
Americana Group Contact:
Mahmoud El Hawari
Americana Group
+20 12 312 3901 (Egypt)
