Krispy Kreme: Morgan to Transition to Non-Executive Chairman

Winston-Salem / NC. (kkd) Krispy Kreme Doughnuts Inc., member of the South Korean Lotte Group, announced that James H. Morgan, age 67, will transition from Executive Chairman of the Board of Directors of the Company to non-executive Chairman effective January 29, 2015. Morgan served as President and Chief Executive Officer of the Company from January 2008 until June 2014. He has served on the Company´s Board of Directors since 2000 and has served as Chairman of the Board since 2005. As part of its executive succession plan, the Company appointed Tony Thompson as its new President and Chief Executive Officer effective June 01, 2014, at which time Morgan became Executive Chairman. Morgan´s transition to non-executive Chairman completes the succession plan. Robert S. McCoy, Jr. will continue as the Board´s lead independent director, a position he has held since 2008. The Company expects to record a charge to earnings in the fourth quarter of fiscal 2015 (ending February 01, 2015) for payments to be made pursuant to the terms of Morgan´s employment agreement. The charge is not expected to have any effect on adjusted net income or adjusted earnings per share. Accordingly, management is reaffirming its forecast of adjusted net income for fiscal 2015 of between 48 million USD and 51 million USD (0.69 USD to 0.74 USD per share).