Krispy Kreme Signs New Development Agreement for Russia
WINSTON-SALEM, N.C., April 23, 2012 /PRNewswire/ -- Krispy Kreme Doughnut Corporation announced today that it has signed a development agreement for Moscow with LLC Doughnuts Cafe, wholly owned and operated by Arkady Novikov, owner of the Novikov Restaurant Group. As part of the new agreement, the franchisee is expected to build 40 Krispy Kreme shops over the next five years in the city of Moscow.
"We are very excited to work with Arkady Novikov, someone so instrumental in the development of today's vibrant restaurant culture in Moscow," said Jeff Welch, Krispy Kreme President, International. "Arkady's great passion for the Krispy Kreme brand, combined with his strong organizational structure and years of successful restaurant experience in Moscow, are strong assets he can leverage as we launch the brand in Russia. We look forward to a long relationship with Krispy Kreme fans in Moscow."
"I am grateful to Krispy Kreme for their choice of us as partners in development of the brand in Moscow," said Arkady Novikov, President, Novikov Restaurant Group. "Our team is excited to bring this iconic brand to Moscow and share the world famous melt-in-your-mouth taste of Krispy Kreme's signature doughnuts and beverages with the Russian consumer. We believe Krispy Kreme's premium products and one-of-a-kind experience will quickly become a favorite of Muscovites."
The Krispy Kreme Original Glazed® doughnut can be found in over 690 stores in 21 countries, including Australia, Bahrain, Canada, China, Dominican Republic, Indonesia, Japan, Kuwait, Lebanon, Malaysia, Mexico, the Philippines, Puerto Rico, the Republic of Korea, Qatar, the Kingdom of Saudi Arabia, Thailand, Turkey, the United Arab Emirates, the United Kingdom and the United States.
About LLC Doughnuts Cafe
LLC Doughnuts Cafe is a licensed franchisee of Krispy Kreme Doughnut Corporation in Moscow, Russia wholly owned and operated by Arkady Novikov. Mr. Novikov also owns and operates the Moscow based Novikov Restaurant Group. The Novikov Restaurant Group includes a variety of businesses located in Moscow, St. Petersburg and London, U.K. including more than 40 stand-alone family and fine dining restaurants plus the casual dining chains Barashka, Kish Mish, Delis Cafe and Prime Star (PSGI.PK). In addition, the Novikov Restaurant Group owns and operates the karaoke bar Krik, seafood supplier NRG, agricultural enterprise Agronom, florist chain Flower Studio 55, professional catering company Novikov Catering, luxury real estate firm Mainstreet and the balanced food project Just for You.
About Krispy Kreme
Krispy Kreme 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 690 locations in 21 countries around the world. 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 new 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; and increased costs or other effects of new government regulations relating to healthcare benefits. 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 and developments 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