EX-99.1 2 exhibit99-1.htm HISTORICAL BUSINESS SEGMENT FINANCIAL RESULTS AND OPERATING METRICS exhibit99-1.htm
Krispy Kreme Doughnuts, Inc.
Operating Metrics
 
Fiscal Year 2011
      Q1
Same Store Sales (on-premises sales only):
       Company stores 3.4 %
       Domestic Franchise stores 2.7
       International Franchise stores (7.7 )
       International Franchise stores, in constant dollars (1) (17.6 )
 
Off-Premises Metrics (Company stores only):
       Average weekly number of doors served:
              Grocers/mass merchants 5,499
              Convenience stores 5,051
 
       Average weekly sales per door:
              Grocers/mass merchants $       263
              Convenience stores 208
 
Systemwide Sales (in thousands): (2)
       Company stores $ 62,188
       Domestic Franchise stores 62,478
       International Franchise stores 74,574
       International Franchise stores volume
              increase over the prior year period 9.1 %
 
Average Weekly Sales Per Store (in thousands): (3)(4)
       Company stores:
              Factory stores:
          Commissaries — off-premises $ 173.5
          Dual-channel stores:
                            On-premises 31.6
                            Off-premises 38.6
                                   Total 70.2
          On-premises only stores 33.8
          All factory stores 66.1
              Satellite stores 18.4
              All stores 58.0
 
       Domestic Franchise stores:
              Factory stores $ 41.3
              Satellite stores 13.8
 
       International Franchise stores:
              Factory stores $ 35.5
              Satellite stores 9.5

(1) Represents the change in International Franchise same store sales computed by reconverting franchise store sales in each foreign country to U.S. dollars at a constant rate of exchange for all periods.
       
(2)   Excludes sales among Company and franchise stores.
   
(3) Includes sales between Company and franchise stores.
   
(4) Metrics include only stores open at period end.


Krispy Kreme Doughnuts, Inc.
Operating Metrics
 
Fiscal Year 2010
    Q1     Q2     Q2 YTD     Q3     Q3 YTD     Q4     Q4 YTD
Same Store Sales (on-premises sales only):
       Company stores 2.1 % 5.9 % 3.8 % 5.1 % 4.2 % 1.1 % 3.5 %
       Domestic Franchise stores 2.4 0.6 1.5 1.0 1.4 (0.4 ) 0.9
       International Franchise stores (38.2 ) (32.6 ) (35.2 ) (15.6 ) (28.8 ) (10.5 ) (24.2 )
       International Franchise stores, in constant dollars (1) (24.6 ) (25.0 ) (24.8 ) (16.8 ) (21.9 ) (19.1 ) (21.1 )
 
Off-Premises Metrics (Company stores only):
       Average weekly number of doors served:
              Grocers/mass merchants 5,859 5,600 5,729 5,619 5,692 5,457 5,634
              Convenience stores 5,625 5,266 5,445 5,230 5,373 5,019 5,285
 
       Average weekly sales per door:
              Grocers/mass merchants $     236 $     246 $     241 $     241 $     241 $     246 $     242
              Convenience stores 212 208 210 210 210 203 208
 
Systemwide Sales (in thousands): (2)
       Company stores $ 65,636 $ 59,634 $ 125,270 $ 59,738 $ 185,008 $ 58,379 $ 243,387
       Domestic Franchise stores 58,000 54,050 112,050 52,918 164,968 55,661 220,629
       International Franchise stores 61,565 62,658 124,223 65,192 189,415 74,186 263,601
       International Franchise stores volume
              increase over the prior year period 12.4 % (5.9 )% 2.6 % (0.4 )% 1.7 % (1.8 )% 0.8 %
 
Average Weekly Sales Per Store (in thousands): (3)(4)
       Company stores:
              Factory stores:
          Commissaries — off-premises $ 166.7 $ 153.9 $ 160.3 $ 149.5 $ 156.7 $ 152.6 $ 155.7
          Dual-channel stores:
             On-premises 30.3 25.4 27.9 27.7 27.8 27.4 27.7
             Off-premises 36.2 37.1 36.7 37.2 36.8 35.5 36.5
                                   Total 66.5 62.5 64.5 64.9 64.6 62.9 64.2
          On-premises only stores 35.0 30.6 32.8 31.8 32.4 32.3 32.4
          All factory stores 65.3 59.9 62.6 61.3 62.2 60.6 61.8
              Satellite stores 19.7 16.7 18.2 18.1 18.1 18.0 18.1
              All stores 59.7 54.3 56.9 54.9 56.2 53.6 55.5
 
       Domestic Franchise stores:
              Factory stores $ 39.7 $ 36.7 $ 38.2 $ 35.8 $ 37.4 $ 36.4 $ 37.2
              Satellite stores 17.7 15.4 16.4 13.7 15.4 13.4 14.8
 
       International Franchise stores:
              Factory stores $ 36.6 $ 34.8 $ 35.7 $ 35.7 $ 35.7 $ 37.6 $ 36.2
              Satellite stores 8.9 9.0 9.0 9.0 9.0 10.4 9.4

(1)       Represents the change in International Franchise same store sales computed by reconverting franchise store sales in each foreign country to U.S. dollars at a constant rate of exchange for all periods.
          
(2)   Excludes sales among Company and franchise stores.
     
(3)   Includes sales between Company and franchise stores.
     
(4)   Metrics include only stores open at January 31, 2010.


Krispy Kreme Doughnuts, Inc.
Operating Metrics
 
Fiscal Year 2009
  Q1    Q2    Q2 YTD    Q3    Q3 YTD    Q4    Q4 YTD
Same Store Sales (on-premises sales only):
       Company stores 1.2 % (4.1 )% (1.3 )% (1.3 )% (1.3 )% 0.9 % (0.7 )%
       Domestic Franchise stores (3.6 ) (4.5 ) (4.0 ) (4.5 ) (4.2 ) (0.3 ) (3.3 )
       International Franchise stores (9.0 ) (18.5 ) (14.1 ) (26.0 ) (18.3 ) (34.7 ) (23.4 )
       International Franchise stores, in constant dollars(1)   (13.8 ) (21.2 ) (17.9 ) (18.6 ) (18.1 ) (19.7 ) (18.6 )
 
Off-Premises Metrics (Company stores only):(2)
       Average weekly number of doors served:
              Grocers/mass merchants 6,492 6,354 6,423 6,273 6,373 6,103 6,306
              Convenience stores 6,156 6,028 6,092 5,940 6,041 5,817 5,985
 
       Average weekly sales per door:
              Grocers/mass merchants $      227 $      220 $      223 $      211 $      219 $      218 $    219
              Convenience stores 227 220 223 214 220 207 217
 
Systemwide Sales (in thousands):(3)
       Company stores $ 71,896 $ 64,684 $ 136,580 $ 64,216 $ 200,796 $ 63,092 $ 263,888
       Domestic Franchise stores 64,382 60,508 124,890 56,502 181,392 54,166 235,558
       International Franchise stores 65,081 74,360 139,441 65,544 204,985 68,069 273,054
       International Franchise stores volume
              increase over the prior year period 59.6 % 62.1 % 61.0 % 45.2 % 55.2 % 24.6 % 45.2 %
 
Average Weekly Sales Per Store (in thousands):(4)(5)
       Company stores:
              Factory stores:
          Commissaries — off-premises $ 162.5 $ 169.1 $ 165.8 $ 163.8 $ 165.1 $ 162.9 $ 164.6
          Dual-channel stores:
             On-premises 29.5 23.8 26.6 26.4 26.5 26.8 26.6
             Off-premises 39.6 38.1 38.8 36.7 38.1 35.7 37.5
                                   Total 69.0 61.8 65.4 63.1 64.6 62.5 64.1
          On-premises only stores 33.5 28.7 31.1 30.0 30.7 32.8 31.2
          All factory stores 66.0 60.6 63.3 61.4 62.7 61.8 62.5
              Satellite stores 19.1 16.1 17.6 17.2 17.5 18.3 17.7
              All stores 60.0 55.4 57.7 56.2 57.2 56.6 57.1
 
       Domestic Franchise stores:
              Factory stores $ 42.6 $ 40.3 $ 41.4 $ 38.2 $ 40.3 $ 36.6 $ 39.4
              Satellite stores 15.5 15.4 15.4 15.0 15.3 15.7 15.4
 
       International Franchise stores:
              Factory stores $ 50.7 $ 50.8 $ 50.8 $ 43.3 $ 48.1 $ 42.9 $ 46.7
              Satellite stores 14.4 15.5 15.0 11.4 13.6 9.6 12.3

(1)        Represents the change in International Franchise same store sales computed by reconverting franchise store sales in each foreign country to U.S. dollars at a constant rate of exchange for all periods.
                    
(2)   Metrics excludes off-premises sales by Company stores in Eastern Canada, which the Company refranchised in the fourth quarter of fiscal 2009 as the data for these stores was not available.
     
(3)   Excludes sales among Company and franchise stores.
     
(4)   Includes sales between Company and franchise stores.
     
(5)   Metrics include only stores open at January 31, 2010.


Krispy Kreme Doughnuts, Inc.
Systemwide Store Information
 
      Fiscal Year 2011
Q1
Number of Stores Open At Period End:
       Company stores:
              Factory:
                     Commissaries 6
                     Dual-channel stores 38
                     On-premises only stores 25
              Satellite stores 14
                            Total Company stores 83
 
       Domestic Franchise stores:
              Factory stores 103
              Satellite stores 37
                     Total Domestic Franchise stores 140
 
       International Franchise stores:
              Factory stores 100
              Satellite stores 293
                     Total International Franchise stores 393
                            Total systemwide stores 616
 
  Fiscal Year 2011
  Q1
Store Operating Weeks:
       Company stores:
              Factory stores:
                     Commissaries 78
                     Dual-channel stores 494
                     On-premises only stores 325
              Satellite stores 182
 
       Domestic Franchise stores: (1)
              Factory stores 1,339
              Satellite stores 481
 
       International Franchise stores: (1)
              Factory stores 1,153
              Satellite stores 3,526

(1)       Metrics include only stores open at period end.


Krispy Kreme Doughnuts, Inc.
Systemwide Store Information
 
Fiscal Year 2010
      Q1       Q2       Q3       Q4
Number of Stores Open At Period End:
       Company stores:
              Factory:
                     Commissaries 6 6 6 6
                     Dual-channel stores 47 45 40 38
                     On-premises only stores 27 26 25 25
              Satellite stores 11 12 13 14
                            Total Company stores 91 89 84 83
 
       Domestic Franchise stores:
              Factory stores 102 100 101 104
              Satellite stores 28 33 37 37
                     Total Domestic Franchise stores 130 133 138 141
 
       International Franchise stores:
              Factory stores 95 93 93 95
              Satellite stores 220 233 248 263
                     Total International Franchise stores 315 326 341 358
                            Total systemwide stores 536 548 563 582

Fiscal Year 2010
      Q1       Q2       Q3       Q4       YTD
Store Operating Weeks:
       Company stores:
              Factory stores:
                     Commissaries 78 78 78 78 312
                     Dual-channel stores 710 675 606 550 2,541
                     On-premises only stores 299 312 307 299 1,217
              Satellite stores 122 135 153 182 592
 
       Domestic Franchise stores: (1)
              Factory stores 1,312 1,313 1,322 1,377 5,324
              Satellite stores 286 360 391 412 1,449
 
       International Franchise stores: (1)
              Factory stores 1,068 1,066 1,075 1,094 4,303
              Satellite stores 2,399 2,711 2,915 3,152 11,177

(1)       Metrics include only stores open at January 31, 2010.



Krispy Kreme Doughnuts, Inc.
Systemwide Store Information
 
Fiscal Year 2009
      Q1       Q2       Q3       Q4
Number of Stores Open At Period End:
       Company stores:
              Factory:
                     Commissaries 6 6 6 6
                     Dual-channel stores 61 57 55 51
                     On-premises only stores 26 25 25 26
              Satellite stores 12 12 11 10
                            Total Company stores 105 100 97 93
 
       Domestic Franchise stores:
              Factory stores 113 111 107 104
              Satellite stores 26 27 28 28
                     Total Domestic Franchise stores 139 138 135 132
 
       International Franchise stores:
              Factory stores 83 87 91 94
              Satellite stores 143 169 186 204
                     Total International Franchise stores 226 256 277 298
                            Total systemwide stores 470 494 509 523

Fiscal Year 2009
      Q1       Q2       Q3       Q4       YTD
Store Operating Weeks:
       Company stores:
              Factory stores:
                     Commissaries 78 78 78 78 312
                     Dual-channel stores 832 813 793 753 3,191
                     On-premises only stores 299 299 299 299 1,196
              Satellite stores 130 123 117 117 487
 
       Domestic Franchise stores: (1)
              Factory stores 1,248 1,264 1,273 1,313 5,098
              Satellite stores 260 268 272 285 1,085
 
       International Franchise stores: (1)
              Factory stores 831 891 940 1,052 3,714
              Satellite stores 1,374 1,665 1,990 2,245 7,274

(1)       Metrics include only stores open at January 31, 2010.
 

Krispy Kreme Doughnuts, Inc.
Consolidated Segment Information
 
Fiscal Year 2011
Q1
      (Dollars in thousands)
Revenues by business segment:
        Company Stores $       62,534
        Domestic Franchise 2,200
        International Franchise 4,760
        KK Supply Chain:  
                Total revenues 45,905
                Less – intersegment sales elimination (23,282 )
                        External KK Supply Chain revenues 22,623
                                Total revenues $ 92,117
 
Segment revenues as a percentage of total revenues: (1)  
        Company Stores 67.9 %
        Domestic Franchise 2.4
        International Franchise 5.2
        KK Supply Chain (external sales) 24.6
  100.0 %
 
Operating income (loss):
        Company Stores $ (31 )
        Domestic Franchise 1,154
        International Franchise 3,486
        KK Supply Chain 8,690
                Total segment operating income 13,299
        Unallocated general and administrative expenses (5,945 )
        Impairment charges and lease termination costs (1,299 )
                Consolidated operating income $ 6,055
 
(1)       Percentage amounts may not add to totals due to rounding.


Krispy Kreme Doughnuts, Inc.
Consolidated Segment Information
 
Fiscal Year 2010
Q1      Q2      Q2 YTD      Q3      Q3 YTD      Q4      Q4 YTD
(Dollars in thousands)
Revenues by business segment:
       Company Stores $ 65,857 $ 59,853 $ 125,710 $ 60,020 $ 185,730 $ 60,643 $ 246,373
       Domestic Franchise 2,051 1,802 3,853 1,945 5,798 2,009 7,807
       International Franchise 3,878 3,806 7,684 3,583 11,267 4,640 15,907
       KK Supply Chain:  
              Total revenues 44,858 37,754 82,612 39,314 121,926 40,201 162,127
              Less – intersegment sales elimination    (23,224 )    (20,485 ) (43,709 )    (21,262 ) (64,971 )    (20,723 ) (85,694 )
                     External KK Supply Chain revenues 21,634 17,269 38,903 18,052 56,955 19,478     76,433
                            Total revenues $ 93,420 $ 82,730 $ 176,150 $ 83,600 $ 259,750 $ 86,770 $ 346,520
  
Segment revenues as a percentage of total revenues: (1)
       Company Stores 70.5 %   72.3 %   71.4 %   71.8 %   71.5 %   69.9 %   71.1 %
       Domestic Franchise 2.2 2.2 2.2 2.3   2.2   2.3 2.3
       International Franchise 4.2 4.6 4.4 4.3 4.3 5.3 4.6
       KK Supply Chain (external sales) 23.2 20.9 22.1 21.6 21.9     22.4 22.1
100.0 %   100.0 %   100.0 %   100.0 %   100.0 %   100.0 %   100.0 %
  
Operating income (loss):  
       Company Stores $ 2,944 $ 1,387 $ 4,331 $ (1,380 ) $ 2,951 $ (663 ) $ 2,288
       Domestic Franchise 1,180 434 1,614 811 2,425 843 3,268
       International Franchise 2,435 1,943 4,378     2,117 6,495 3,401 9,896
       KK Supply Chain 8,139     5,687   13,826 5,549 19,375 6,587 25,962
              Total segment operating income   14,698     9,451   24,149   7,097 31,246 10,168 41,414
       Unallocated general and administrative expenses (6,563 ) (5,052 )    (11,615 ) (6,355 )    (17,970 ) (5,767 )    (23,737 )
       Impairment charges and lease termination costs (2,357 ) (1,456 ) (3,813 ) (109 ) (3,922 ) (1,981 ) (5,903 )
              Consolidated operating income $ 5,778 $ 2,943 $ 8,721 $ 633 $ 9,354 $ 2,420 $ 11,774
  
(1)       Percentage amounts may not add to totals due to rounding.
 

Krispy Kreme Doughnuts, Inc.
Consolidated Segment Information
 
Fiscal Year 2009
Q1      Q2      Q2 YTD      Q3      Q3 YTD      Q4      Q4 YTD
(Dollars in thousands)
Revenues by business segment:
       Company Stores $ 72,182 $ 65,071 $ 137,253 $ 64,708 $ 201,961 $ 63,929 $ 265,890
       Domestic Franchise 2,046 2,249 4,295 1,882 6,177 1,865 8,042
       International Franchise 4,466 4,378 8,844 4,511 13,355 4,140 17,495
       KK Supply Chain:
              Total revenues 51,603 47,342 98,945 47,804 146,749 44,707 191,456  
              Less – intersegment sales elimination (26,247 )    (24,314 ) (50,561 )    (24,078 ) (74,639 )    (22,722 ) (97,361 )
                     External KK Supply Chain revenues 25,356 23,028 48,384 23,726 72,110 21,985 94,095
                            Total revenues $    104,050 $ 94,726 $ 198,776 $ 94,827 $ 293,603 $ 91,919 $ 385,522
 
Segment revenues as a percentage of total revenues: (1)
       Company Stores 69.4 %   68.7 %   69.0 %   68.2 68.8 %   69.5 %   69.0 %
       Domestic Franchise 2.0 2.4 2.2 2.0 2.1 2.0 2.1
       International Franchise 4.3 4.6 4.4 4.8 4.5 4.5   4.5
       KK Supply Chain (external sales)   24.4 24.3 24.3 25.0 24.6 23.9   24.4
100.0 %   100.0 %   100.0 %   100.0 100.0 %   100.0 %   100.0 %
   
Operating income (loss):
       Company Stores $ (294 ) $ (4,221 ) $ (4,515 ) $ (4,470 ) $ (8,985 ) $ (828 ) $ (9,813 )
       Domestic Franchise 1,120 1,523 2,643 1,157 3,800   1,165 4,965
       International Franchise 3,322 2,375 5,697 3,031 8,728   2,822 11,550
       KK Supply Chain 7,992 3,999 11,991     5,449   17,440 5,829 23,269
              Total segment operating income 12,140     3,676   15,816 5,167     20,983   8,988 29,971
       Unallocated general and administrative expenses (7,172 )   (5,028 )      (12,200 )   (6,134 )    (18,334 ) (6,328 )    (24,662 )
       Impairment charges and lease termination costs 645 348 993 (345 ) 648 (1,196 ) (548 )
              Consolidated operating income (loss) $ 5,613 $ (1,004 ) $ 4,609 $ (1,312 ) $ 3,297 $ 1,464 $ 4,761
 
(1)       Percentage amounts may not add to totals due to rounding.
 

Krispy Kreme Doughnuts, Inc.
Company Store Segment Operating Results
 
Fiscal Year 2011
Q1
(In thousands)
Revenues:
       On-premises sales:
              Retail sales $ 25,406
              Fundraising sales 4,647
                     Total on-premises sales 30,053
       Off-premises sales:
              Grocers/mass merchants 18,651
              Convenience stores 13,164  
              Other off-premises   666
                     Total off-premises sales 32,481
                            Total revenues        62,534
 
Operating expenses:
       Cost of sales:
              Food, beverage and packaging 22,979
              Shop labor 12,214
              Delivery labor 5,261
              Employee benefits 4,732
                     Total cost of sales 45,186
              Vehicle costs 3,054
              Occupancy 2,426
              Utilities expense 1,410
              Depreciation expense 1,395
              Other operating expenses 4,825
                     Total store level costs 58,296
       Store operating income 4,238
       Other segment operating costs 3,144
       Allocated corporate overhead 1,125
Segment operating loss $ (31 )
  

Percentage of Total
Revenues (1)
Fiscal Year 2011
Q1
Revenues:
       On-premises sales:
              Retail sales 40.6 %
              Fundraising sales 7.4
                     Total on-premises sales 48.1  
       Off-premises sales:
              Grocers/mass merchants 29.8
              Convenience stores 21.1
              Other off-premises 1.1
                     Total off-premises sales 51.9
                            Total revenues 100.0
 
Operating expenses:
       Cost of sales:
              Food, beverage and packaging 36.7
              Shop labor 19.5
              Delivery labor 8.4
              Employee benefits 7.6
                     Total cost of sales 72.3
              Vehicle costs 4.9
              Occupancy 3.9
              Utilities expense 2.3
              Depreciation expense 2.2
              Other operating expenses 7.7
                     Total store level costs 93.2
       Store operating income 6.8
       Other segment operating costs 5.0
       Allocated corporate overhead 1.8
Segment operating loss (0.0 )%
 
(1)       Percentage amounts may not add to totals due to rounding.
 

Krispy Kreme Doughnuts, Inc.
Company Store Segment Operating Results
 
Fiscal Year 2010
Q1      Q2      Q2 YTD      Q3      Q3 YTD      Q4      Q4 YTD
(In thousands)
Revenues:
       On-premises sales:
              Retail sales $ 27,706 $ 25,022 $ 52,728 $ 24,682 $ 77,410 $ 26,446 $ 103,856
              Fundraising sales 4,498 2,553 7,051 3,753 10,804 2,677 13,481
                     Total on-premises sales 32,204 27,575 59,779 28,435 88,214 29,123 117,337
       Off-premises sales:
              Grocers/mass merchants 17,902 17,839 35,741 17,413 53,154 17,798 70,952
              Convenience stores 15,171 13,894 29,065 13,555 42,620 12,831 55,451
              Other off-premises 580 545 1,125 617 1,742 629 2,371
                     Total off-premises sales 33,653 32,278 65,931 31,585 97,516   31,258 128,774
       Other revenues - - - - - 262 262
                            Total revenues       65,857       59,853       125,710 60,020 185,730 60,643       246,373
   
Operating expenses:
       Cost of sales:
              Food, beverage and packaging 22,105 20,231 42,336 20,910 63,246 21,305 84,551
              Shop labor 12,536 11,956 24,492 11,938 36,430 12,284 48,714
              Delivery labor 5,687 5,258 10,945 5,211 16,156 5,124 21,280
              Employee benefits 5,039 4,543 9,582 5,259 14,841 4,304 19,145
                     Total cost of sales 45,367 41,988 87,355       43,318       130,673   43,017 173,690
              Vehicle costs 2,862 2,604 5,466   3,081 8,547 2,944 11,491
              Occupancy 3,025 2,650 5,675 2,366 8,041 2,099 10,140
              Utilities expense 1,610   1,406 3,016 1,451 4,467 1,270 5,737
              Depreciation expense   1,496 1,519 3,015 1,694   4,709 1,584 6,293
              Settlement of litigation -   -   -   750     750 950 1,700
              Other operating expenses 4,638 4,392   9,030 4,603 13,633 5,481 19,114
                     Total store level costs 58,998 54,559 113,557 57,263 170,820       57,345 228,165
       Store operating income 6,859 5,294 12,153 2,757 14,910 3,298 18,208
       Other segment operating costs 2,328 2,341 4,669 2,560 7,229 2,338 9,567
       Allocated corporate overhead 1,587 1,566 3,153 1,577 4,730 1,623 6,353
Segment operating income (loss) $ 2,944 $ 1,387 $ 4,331 $ (1,380 ) $ 2,951 $ (663 ) $ 2,288
 

Percentage of Total Revenues (1)
Fiscal Year 2010
Q1      Q2      Q2 YTD      Q3      Q3 YTD      Q4      Q4 YTD
Revenues:
       On-premises sales:
              Retail sales 42.1 % 41.8 % 41.9 %   41.1 % 41.7 %   43.6 % 42.2 %
              Fundraising sales 6.8 4.3 5.6 6.3 5.8 4.4 5.5
                     Total on-premises sales 48.9 46.1 47.6 47.4 47.5 48.0 47.6
       Off-premises sales:
              Grocers/mass merchants 27.2 29.8 28.4 29.0 28.6 29.3 28.8
              Convenience stores 23.0 23.2 23.1 22.6   22.9 21.2 22.5
              Other off-premises 0.9 0.9 0.9 1.0 0.9 1.0 1.0
                     Total off-premises sales 51.1 53.9 52.4 52.6 52.5 51.5 52.3
       Other revenues - - - - - 0.4 0.1
                            Total revenues      100.0      100.0      100.0      100.0      100.0      100.0      100.0
  
Operating expenses:
       Cost of sales:    
              Food, beverage and packaging 33.6 33.8 33.7 34.8 34.1 35.1 34.3
              Shop labor 19.0 20.0 19.5 19.9 19.6 20.3 19.8
              Delivery labor 8.6 8.8 8.7 8.7 8.7 8.4 8.6
              Employee benefits 7.7 7.6 7.6 8.8 8.0 7.1 7.8
                     Total cost of sales 68.9 70.2 69.5 72.2 70.4 70.9   70.5
              Vehicle costs 4.3   4.4 4.3   5.1 4.6 4.9 4.7
              Occupancy 4.6   4.4 4.5 3.9 4.3 3.5 4.1
              Utilities expense 2.4 2.3   2.4   2.4 2.4 2.1 2.3
              Depreciation expense 2.3 2.5   2.4 2.8 2.5   2.6 2.6
              Settlement of litigation - - - 1.2 0.4 1.6   0.7
              Other operating expenses 7.0 7.3 7.2 7.7 7.3   9.0 7.8
                     Total store level costs 89.6 91.2 90.3 95.4 92.0 94.6 92.6
       Store operating income 10.4 8.8 9.7 4.6 8.0 5.4 7.4
       Other segment operating costs 3.5 3.9 3.7 4.3 3.9 3.9 3.9
       Allocated corporate overhead 2.4 2.6 2.5 2.6 2.5 2.7 2.6
Segment operating income (loss) 4.5 % 2.3 % 3.4 %   (2.3 )% 1.6 %   (1.1 )% 0.9 %
 
(1)       Percentage amounts may not add to totals due to rounding.
 

Krispy Kreme Doughnuts, Inc.
Company Store Segment Operating Results
 
  Fiscal Year 2009
  Q1     Q2     Q2 YTD     Q3     Q3 YTD     Q4     Q4 YTD
  (In thousands)
Revenues:  
       On-premises sales:  
              Retail sales   $ 28,874 $ 25,190 $ 54,064 $ 25,622 $ 79,686 $ 27,456 $ 107,142
              Fundraising sales   4,270 2,645 6,915 3,789 10,704 2,556 13,260
                     Total on-premises sales   33,144 27,835 60,979 29,411 90,390 30,012 120,402
       Off-premises sales:  
              Grocers/mass merchants   20,246 19,319 39,565 18,220 57,785 17,771 75,556
              Convenience stores   18,015 17,106 35,121 16,391 51,512 15,559 67,071
              Other off-premises   777 811 1,588 686 2,274 587 2,861
                     Total off-premises sales   39,038 37,236 76,274 35,297 111,571 33,917 145,488
                            Total revenues        72,182      65,071      137,253      64,708      201,961      63,929      265,890
 
Operating expenses:  
       Cost of sales:  
              Food, beverage and packaging   25,528 24,109 49,637 23,869 73,506 22,702 96,208
              Shop labor   14,018 13,171 27,189 13,208 40,397 12,716 53,113
              Delivery labor   6,721 6,447 13,168 6,232 19,400 6,019 25,419
              Employee benefits   5,888 4,647 10,535 5,592 16,127 5,142 21,269
                     Total cost of sales   52,155 48,374 100,529 48,901 149,430 46,579   196,009
              Vehicle costs   4,515 5,208 9,723 4,528 14,251 2,626 16,877
              Occupancy   2,986 3,049 6,035 3,303 9,338 2,887   12,225
              Utilities expense   1,828 1,851 3,679 1,880 5,559   1,677 7,236
              Depreciation expense   1,628 1,678 3,306     1,548 4,854   1,548   6,402
              Other operating expenses   5,232   5,319 10,551   5,275   15,826   5,253 21,079
                     Total store level costs     68,344     65,479     133,823 65,435     199,258 60,570 259,828
       Store operating income (loss)   3,838 (408 )   3,430 (727 ) 2,703 3,359 6,062
       Other segment operating costs   2,659 2,354 5,013 2,298 7,311 2,720 10,031
       Allocated corporate overhead   1,473 1,459 2,932 1,445 4,377 1,467 5,844
Segment operating loss   $ (294 ) $ (4,221 ) $ (4,515 ) $ (4,470 ) $ (8,985 ) $ (828 ) $ (9,813 )
 

Percentage of Total Revenues (1)
Fiscal Year 2009
Q1       Q2       Q2 YTD       Q3       Q3 YTD       Q4       Q4 YTD
Revenues:
       On-premises sales:
              Retail sales 40.0 38.7 39.4 39.6 39.5 42.9 40.3 %
              Fundraising sales 5.9 4.1 5.0 5.9 5.3 4.0 5.0
                     Total on-premises sales 45.9 42.8 44.4 45.5 44.8 46.9 45.3
       Off-premises sales:
              Grocers/mass merchants 28.0 29.7 28.8 28.2 28.6 27.8 28.4  
              Convenience stores 25.0 26.3 25.6 25.3 25.5 24.3 25.2
              Other off-premises 1.1 1.2 1.2 1.1 1.1 0.9 1.1
                     Total off-premises sales 54.1 57.2 55.6 54.5 55.2 53.1 54.7
                            Total revenues      100.0      100.0      100.0      100.0      100.0      100.0      100.0
 
Operating expenses:
       Cost of sales:
              Food, beverage and packaging 35.4 37.1 36.2 36.9 36.4 35.5 36.2
              Shop labor 19.4 20.2 19.8 20.4 20.0 19.9 20.0
              Delivery labor 9.3 9.9 9.6 9.6 9.6 9.4 9.6
              Employee benefits 8.2 7.1 7.7 8.6 8.0 8.0 8.0
                     Total cost of sales 72.3 74.3 73.2 75.6 74.0 72.9 73.7
              Vehicle costs 6.3 8.0 7.1 7.0 7.1 4.1   6.3
              Occupancy 4.1 4.7 4.4 5.1 4.6 4.5   4.6
              Utilities expense 2.5 2.8 2.7 2.9 2.8 2.6 2.7
              Depreciation expense 2.3 2.6 2.4 2.4 2.4   2.4 2.4
              Other operating expenses 7.2 8.2   7.7 8.2 7.8   8.2 7.9
                     Total store level costs 94.7   100.6 97.5 101.1   98.7 94.7 97.7
       Store operating income (loss) 5.3   (0.6 ) 2.5     (1.1 ) 1.3 5.3 2.3
       Other segment operating costs 3.7 3.6 3.7 3.6   3.6 4.3 3.8
       Allocated corporate overhead 2.0 2.2 2.1 2.2 2.2 2.3 2.2
Segment operating loss (0.4 ) (6.5 ) (3.3 ) (6.9 ) (4.4 ) (1.3 ) (3.7 )%
 
(1)       Percentage amounts may not add to totals due to rounding.
 

Krispy Kreme Doughnuts, Inc.
Company Store Segment Operating Metrics
 
Fiscal Year 2011
Q1
On-premises:
              Change in same store sales 3.4 %
Off-premises:
       Grocers/mass merchants:  
              Change in average weekly number of doors (6.1 )%
              Change in average weekly sales per door 11.4 %
       Convenience stores:
              Change in average weekly number of doors (10.2 )%
              Change in average weekly sales per door (1.9 )%


Krispy Kreme Doughnuts, Inc.
Company Store Segment Operating Metrics
 
  Fiscal Year 2010
   Q1     Q2     Q2 YTD     Q3     Q3 YTD     Q4     Q4 YTD
On-premises:  
              Change in same store sales   2.1 % 5.9 % 3.8 % 5.1 % 4.2 % 1.1 % 3.5 %
Off-premises:  
       Grocers/mass merchants:    
              Change in average weekly number of doors       (9.8 )%     (11.9 )%       (10.8 )%       (10.4 )%     (10.7 )%     (10.6 )%       (10.7 )%
              Change in average weekly sales per door   4.0 % 11.8 % 8.1 % 14.2 % 10.0 %   12.8 % 10.5 %
       Convenience stores:                  
              Change in average weekly number of doors   (8.6 )% (12.6 )% (10.6 )% (12.0 )% (11.1 )% (13.7 )% (11.7 )%
              Change in average weekly sales per door   (6.6 )% (5.5 )% (5.8 )% (1.9 )% (4.5 )% (1.9 )% (4.1 )%


Krispy Kreme Doughnuts, Inc.
Company Store Segment Operating Metrics
 
  Fiscal Year 2009
      Q1       Q2       Q2 YTD       Q3       Q3 YTD       Q4       Q4 YTD
On-premises:                            
       Change in same store sales 1.2 %   (4.1 )%   (1.3 )%   (1.3 )%   (1.3 )%   0.9 % (0.7 )%
Off-premises:
       Grocers/mass merchants:
       Change in average weekly number of doors (9.5 )%   (10.2 )%   (9.8 )%   (5.8 )%   (8.6 ) (6.5 )% (8.0 )%
       Change in average weekly sales per door (5.0 )%   (6.0 )%   (5.5 )%   (8.3 )%   (6.4 ) 0.5 % (4.8 )%
       Convenience stores:
       Change in average weekly number of doors (2.3 )%   (5.5 )%   (3.9 )%   (5.5 )%   (4.5 ) (6.8 )% (5.0 )%
       Change in average weekly sales per door (13.0 )%   (10.6 )%   (12.2 )%   (10.5 )%   (11.6 ) (8.4 )% (10.7 )%


Krispy Kreme Doughnuts, Inc.
Domestic Franchise Segment Operating Results
 
Fiscal Year 2011
Q1
(In thousands)
Revenues:    
       Royalties $ 2,063
       Other 137
       Total revenues 2,200
 
Operating expenses:
       Segment operating expenses 891
       Depreciation expense 55
       Allocated corporate overhead 100
       Total operating expenses 1,046
Segment operating income $ 1,154
 


Krispy Kreme Doughnuts, Inc.
Domestic Franchise Segment Operating Results
 
  Fiscal Year 2010
Q1 Q2       Q2 YTD       Q3       Q3 YTD       Q4       Q4 YTD
(In thousands)
Revenues:                    
       Royalties $      1,997 $      1,748 $      3,745 $      1,891 $      5,636 $      1,906 $      7,542
       Development and franchise fees - - - - - 50 50
       Other 54 54 108 54 162 53 215
              Total revenues 2,051 1,802 3,853 1,945 5,798 2,009 7,807
 
Operating expenses:
       Segment operating expenses 739 1,238 1,977 1,009 2,986 1,030 4,016
       Depreciation expense 21 22 43 14 57 14 71
       Allocated corporate overhead 111 108 219 111 330 122 452
              Total operating expenses 871 1,368 2,239 1,134 3,373 1,166 4,539
Segment operating income $ 1,180 $ 434 $ 1,614 $ 811 $ 2,425 $ 843 $ 3,268
 


Krispy Kreme Doughnuts, Inc.
Domestic Franchise Segment Operating Results
 
  Fiscal Year 2009
Q1       Q2       Q2 YTD       Q3       Q3 YTD       Q4       Q4 YTD
(In thousands)
Revenues:                    
       Royalties $      1,977 $      2,194 $      4,171 $      1,828 $      5,999 $      1,811 $      7,810
       Development and franchise fees 2 1 3 - 3 - 3
       Other 67 54 121 54 175 54 229
              Total revenues 2,046 2,249 4,295 1,882 6,177 1,865 8,042
 
Operating expenses:
       Segment operating expenses 860 668 1,528 672 2,200 638 2,838
       Depreciation expense 21 22 43 21 64 22 86
       Allocated corporate overhead 45 36 81 32 113 40 153
              Total operating expenses 926 726 1,652 725 2,377 700 3,077
Segment operating income $ 1,120 $ 1,523 $ 2,643 $ 1,157 $ 3,800 $ 1,165 $ 4,965
 


Krispy Kreme Doughnuts, Inc.
International Franchise Segment Operating Results
 
Fiscal Year 2011
Q1
(In thousands)
Revenues:    
       Royalties $ 3,884
       Development and franchise fees 876
              Total revenues 4,760
 
Operating expenses:
       Segment operating expenses 948
       Depreciation expense 1
       Allocated corporate overhead 325
              Total operating expenses 1,274
Segment operating income $ 3,486
 


Krispy Kreme Doughnuts, Inc.
International Franchise Segment Operating Results
 
  Fiscal Year 2010
Q1       Q2       Q2 YTD       Q3       Q3 YTD       Q4       Q4 YTD
(In thousands)
Revenues:          
       Royalties $      3,470 $      3,484 $      6,954 $      3,165 $      10,119 $      4,045 $      14,164
       Development and franchise fees 408 322 730 418 1,148 595 1,743
              Total revenues 3,878 3,806 7,684 3,583 11,267 4,640 15,907
 
Operating expenses:
       Segment operating expenses 1,170 1,604 2,774 1,198 3,972 954 4,926
       Allocated corporate overhead 273 259 532 268 800 285 1,085
              Total operating expenses 1,443 1,863 3,306 1,466 4,772 1,239 6,011
Segment operating income $ 2,435 $ 1,943 $ 4,378 $ 2,117 $ 6,495 $ 3,401 $ 9,896
 
 

Krispy Kreme Doughnuts, Inc.
International Franchise Segment Operating Results
 
  Fiscal Year 2009
Q1       Q2       Q2 YTD       Q3       Q3 YTD       Q4       Q4 YTD
(In thousands)
Revenues:              
       Royalties $      3,762 $      3,804 $      7,566 $      3,698 $      11,264 $      3,678 $      14,942
       Development and franchise fees 645 540 1,185 813 1,998 462 2,460
       Other 59 34 93 - 93 - 93
              Total revenues 4,466 4,378 8,844 4,511 13,355 4,140 17,495
 
Operating expenses:
       Segment operating expenses 901 1,775 2,676 1,257 3,933 1,083 5,016
       Allocated corporate overhead 243 228 471 223 694 235 929
              Total operating expenses 1,144 2,003 3,147 1,480 4,627 1,318 5,945
Segment operating income $ 3,322 $ 2,375 $ 5,697 $ 3,031 $ 8,728 $ 2,822 $ 11,550
 
 

Krispy Kreme Doughnuts, Inc.
KK Supply Chain Segment Operating Results
 
      Fiscal Year 2011
  Q1
  (In thousands)
Revenues:    
       Doughnut mixes   $ 16,060
       Other ingredients, packaging and supplies   27,838
       Equipment   1,808
       Fuel surcharge   199
              Total revenues before intersegment sales elimination   45,905
 
Operating expenses:  
       Cost of sales:  
             Cost of goods produced and purchased   29,505
              Inbound freight
   870
                     Total cost of sales   30,375
       Distribution costs:  
              Outbound freight   2,539
              Other distribution costs   941
                     Total distribution costs   3,480
       Other segment operating costs   2,873
       Depreciation expense   212
       Allocated corporate overhead   275
              Total operating costs   37,215
Segment operating income   $ 8,690
 
 
  Percentage of
  Total Revenues
  Before Intersegment
  Sales Elimination (1)
  Fiscal Year 2011
  Q1
Revenues:    
       Doughnut mixes   35.0 %
       Other ingredients, packaging and supplies   60.6
       Equipment   3.9
       Fuel surcharge   0.4
              Total revenues before intersegment sales elimination   100.0
 
Operating expenses:  
       Cost of sales:  
              Cost of goods produced and purchased   64.3
               Inbound freight   1.9
                     Total cost of sales   66.2
       Distribution costs:  
              Outbound freight   5.5
              Other distribution costs   2.0
                     Total distribution costs   7.6
       Other segment operating costs   6.3
       Depreciation expense   0.5
       Allocated corporate overhead   0.6
              Total operating costs   81.1
Segment operating income   18.9 %
 
 
(1)       Percentage amounts may not add to totals due to rounding.
 

Krispy Kreme Doughnuts, Inc.
KK Supply Chain Segment Operating Results
 
  Fiscal Year 2010
Q1     Q2     Q2 YTD     Q3     Q3 YTD     Q4     Q4 YTD
(In thousands)
Revenues:      
       Doughnut mixes $    16,965 $    13,032 $    29,997 $    14,096 $    44,093 $    14,239 $    58,332
       Other ingredients, packaging and supplies 25,986 23,462 49,448 23,732 73,180 24,442 97,622
       Equipment 1,907 1,260 3,167 1,486 4,653 1,520 6,173
              Total revenues before intersegment sales elimination   44,858 37,754 82,612 39,314 121,926 40,201 162,127
 
Operating expenses:
       Cost of sales:
              Cost of goods produced and purchased 29,109 26,023 55,132 26,952 82,084 26,418 108,502
              Inbound freight 1,037 845 1,882 852 2,734 749 3,483
                     Total cost of sales 30,146 26,868 57,014 27,804 84,818 27,167 111,985
       Distribution costs:
              Outbound freight 2,627 2,404 5,031 2,276 7,307 2,700 10,007
              Other distribution costs 1,105 801 1,906 785 2,691 681 3,372
              Total distribution costs 3,732 3,205 6,937 3,061 9,998 3,381 13,379
       Other segment operating costs 2,332 1,489 3,821 2,395 6,216 2,535 8,751
       Depreciation expense 227 223 450 219 669 214 883
       Allocated corporate overhead 282 282 564 286 850 317 1,167
              Total operating costs 36,719 32,067 68,786 33,765 102,551 33,614 136,165
Segment operating income $ 8,139 $ 5,687 $ 13,826 $ 5,549 $ 19,375 $ 6,587 $ 25,962  
 

Percentage of Total Revenues Before Intersegment Sales Elimination (1)
Fiscal Year 2010
Q1     Q2     Q2 YTD     Q3     Q3 YTD     Q4     Q4 YTD
Revenues:                      
       Doughnut mixes 37.8 % 34.5 % 36.3 % 35.9 % 36.2 % 35.4 % 36.0 %
       Other ingredients, packaging and supplies 57.9 62.1 59.9 60.4 60.0 60.8 60.2
       Equipment 4.3 3.3 3.8 3.8 3.8 3.8 3.8
              Total revenues before intersegment sales elimination      100.0     100.0     100.0    100.0      100.0       100.0        100.0
 
Operating expenses:
       Cost of sales:
              Cost of goods produced and purchased 64.9 68.9 66.7 68.6 67.3 65.7 66.9
              Inbound freight 2.3 2.2 2.3 2.2 2.2 1.9 2.1
                     Total cost of sales 67.2 71.2 69.0 70.7 69.6 67.6 69.1
       Distribution costs:
              Outbound freight 5.9 6.4 6.1 5.8 6.0 6.7 6.2
              Other distribution costs 2.5 2.1 2.3 2.0 2.2 1.7 2.1
              Total distribution costs 8.3 8.5 8.4 7.8 8.2 8.4 8.3
       Other segment operating costs 5.2 3.9 4.6 6.1 5.1 6.3 5.4
       Depreciation expense 0.5 0.6 0.5 0.6 0.5 0.5 0.5
       Allocated corporate overhead 0.6 0.7 0.7 0.7 0.7 0.8 0.7
              Total operating costs 81.9 84.9 83.3 85.9 84.1 83.6 84.0
Segment operating income 18.1 % 15.1 % 16.7 % 14.1 % 15.9 % 16.4 % 16.0 %
 
 
(1)       Percentage amounts may not add to totals due to rounding.


Krispy Kreme Doughnuts, Inc.
KK Supply Chain Segment Operating Results
 
  Fiscal Year 2009
Q1     Q2     Q2 YTD     Q3     Q3 YTD     Q4     Q4 YTD
(In thousands)
Revenues:    
       Doughnut mixes $    20,183 $    17,990 $    38,173 $    17,939 $    56,112 $    17,200 $    73,312
       Other ingredients, packaging and supplies 28,200 26,235 54,435 26,355 80,790 25,264 106,054
       Equipment 2,336 2,033 4,369 2,453 6,822 1,927 8,749
       Fuel surcharge 884 1,084 1,968 1,057 3,025 316 3,341
              Total revenues before intersegment sales elimination   51,603 47,342 98,945 47,804 146,749 44,707 191,456
 
Operating expenses:
       Cost of sales:
              Cost of goods produced and purchased 35,289 33,134 68,423 33,074 101,497 30,097 131,594
              Inbound freight 1,950 2,283 4,233 1,750 5,983 1,567 7,550
                     Total cost of sales 37,239 35,417 72,656 34,824 107,480 31,664 139,144
       Distribution costs:
              Outbound freight 3,128 5,003 8,131 2,868 10,999 2,807 13,806
              Other distribution costs 338 336 674 1,262 1,936 1,421 3,357
                     Total distribution costs 3,466 5,339 8,805 4,130 12,935 4,228 17,163
       Other segment operating costs 2,288 2,002 4,290 2,813 7,103 2,393 9,496
       Depreciation expense 262 255 517 248 765 254 1,019
       Allocated corporate overhead 356 330 686 340 1,026 339 1,365
              Total operating costs 43,611 43,343 86,954 42,355 129,309 38,878 168,187
Segment operating income $ 7,992 $ 3,999 $ 11,991 $ 5,449 $ 17,440 $ 5,829 $ 23,269  
 
 
Percentage of Total Revenues Before Intersegment Sales Elimination (1)
Fiscal Year 2009
Q1     Q2     Q2 YTD     Q3     Q3 YTD     Q4     Q4 YTD
Revenues:
       Doughnut mixes 39.1 % 38.0 % 38.6 %   37.5 % 38.2 %   38.5 % 38.3 %
       Other ingredients, packaging and supplies 54.6 55.4 55.0 55.1 55.1 56.5 55.4
       Equipment 4.5 4.3 4.4 5.1 4.6 4.3 4.6
       Fuel surcharge 1.7 2.3 2.0 2.2 2.1 0.7 1.7
              Total revenues before intersegment sales elimination      100.0     100.0     100.0    100.0      100.0       100.0        100.0
 
Operating expenses:
       Cost of sales:
              Cost of goods produced and purchased 68.4 70.0 69.2 69.2 69.2 67.3 68.7
              Inbound freight 3.8 4.8 4.3 3.7 4.1 3.5 3.9
                     Total cost of sales 72.2 74.8 73.4 72.8 73.2 70.8 72.7
       Distribution costs:
              Outbound freight 6.1 10.6 8.2 6.0 7.5 6.3 7.2
              Other distribution costs 0.7 0.7 0.7 2.6 1.3 3.2 1.8
                     Total distribution costs 6.7 11.3 8.9 8.6 8.8 9.5 9.0
       Other segment operating costs 4.4 4.2 4.3 5.9 4.8 5.4 5.0
       Depreciation expense 0.5 0.5 0.5 0.5 0.5 0.6 0.5
       Allocated corporate overhead 0.7 0.7 0.7 0.7 0.7 0.8 0.7
              Total operating costs 84.5 91.6 87.9 88.6 88.1 87.0 87.8
Segment operating income 15.5 % 8.4 % 12.1 %   11.4 % 11.9 %   13.0 12.2 %
 
 
(1)       Percentage amounts may not add to totals due to rounding.