Krispy-Kreme Doughnuts, Inc. was founded in
Winston-Salem, N.C., to be specific, and sells approximately five million
doughnuts a day and more than two billion doughnuts each year. Its shares surged in the fourth quarter of
2001 to $8.3 million (14 cents per share) from $4.3 million and 8 cents per share. Total company
revenue also rose, $81.9 million to $117.1 million. The company expects growth of 57 percent in 2002 and 39 percent in 2003. Earnings rose 55% in Q1 of 2002, and they earned $8.9 million (15 cents a share) for the period ending 4 August, up from $5.9 million, or 10 cents/share the previous year. In Q2, their net rose 50% from strong sales as well as manufacturing and distribution revenue, which rose 41% to $35.1 million. The company expects to earn 16 cents/share in Q3, up from 11 cents the previous year and 18 cents/share in the fourth, up from $8.3 million or 14 cents/share.
Krispy Kreme's first stores outside of North America will be in Australia and New Zealand, in a development partnership for 30 stores over five years. The first of these stores is slated to open in Sydney in March 2003, under the joint venture of Krispy Kreme Australia, which will have its equity divided between Krispy Kreme Winston-Salem, at 35% equity interest, and Borderless Australia Pty Ltd., an Australian firm that will hold the balance.
This agreement follows about a year of exploring international markets, said Krispy Kreme Chairman and Chief Executive Scott Livengood. They are also exploring Mexico markets.