Krispy Kreme to Realign its Franchise and Company Stores Operations

    Senior Executives Jeff Welch and Steve Lineberger to Take on Expanded
    in Franchise and Company Stores Operations

    WINSTON-SALEM, N.C., Aug. 24 /CNW/ -- Krispy Kreme Doughnuts, Inc. (NYSE:  
KKD) today announced that it is realigning its Franchise and Company Stores
Operations.  The changes will primarily affect the Krispy Kreme Support Center
in Winston-Salem, North Carolina.  As part of the changes, Jeff Welch and
Steve Lineberger, current members of the Company's Executive Team, will take
on expanded responsibilities in the Franchise and Company Stores business
    Jeff Welch will become the Senior Vice President and General Manager of
Global Franchise Operations and Development.  Welch has more than 25 years
experience with public companies, and has successfully led Krispy Kreme's
international franchise expansion into ten countries.  He is a former Vice
President of Franchising and Business Development for what is now Yum! Brands,
Inc. and has extensive real estate development experience, having also served
as the Vice President of International Real Estate with The Home Depot.
    Steve Lineberger will become the Senior Vice President and General
Manager of US Company Operations.  With more than 20 years experience leading
major business units in marketing, merchandising and sales, Lineberger has
been heading Krispy Kreme's growth initiative, including new product
development and innovation, as well as refining the Company's small retail
concept.  He is a former division Chief Executive with Sara Lee Corporation,
and while there led fully vertical and highly integrated manufacturing and
supply chain operations across numerous facilities and multiple countries.
    Also, Jeff Jervik, Executive Vice President of Operations, has decided to
leave Krispy Kreme to return to his private business interests, effective
September 1, 2007.  "This is the right time for me to get back to my personal
businesses that afford me the opportunity to do what I enjoy most, spending
time with my family," Jervik said.  "Working closely with Daryl Brewster, the
Company's Chief Executive Officer and President, our management team has made
difficult decisions necessary to continue progress toward transforming this
organization."  Jervik added, "I have truly enjoyed the opportunity to
contribute to the turnaround of an iconic brand like Krispy Kreme."
    "Jeff Welch and Steve Lineberger have track records of extraordinary
leadership that will help us continue our international growth and build on
the strength of our southeastern roots, while restructuring the rest of our US
operations," said Daryl Brewster, Chief Executive Officer and President of
Krispy Kreme.  "These changes will result in a more responsive, leaner and
focused field structure that we expect will help us drive same store sales,
improve unit economics and reduce system costs."  "We also want to thank Jeff
Jervik for his service and wish him continued success in his future
endeavors," Brewster added.
    About Krispy Kreme:
    Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme is a
leading branded specialty retailer of premium quality doughnuts, including its
signature Hot Original Glazed.  There are currently approximately 411 Krispy
Kreme stores including satellites operating system-wide in 41 U.S. states,
Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico, the
Philippines, the Republic of South Korea, the United Arab Emirates and the
United Kingdom.  Krispy Kreme can be found on the World Wide Web at
    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; 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;
negative publicity; significant changes in our management; our ability, and
our dependence on the ability of our franchisees, to execute our and their
business plans; 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; restrictions on
our operations contained in our senior secured credit facilities; 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 2007 and other periodic reports filed with the Securities and Exchange

For further information:

For further information: Brian K. Little of Krispy Kreme Doughnuts,
Inc.,  +1-336-726-8825, Web Site:

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Krispy Kreme Doughnut Corporation

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