By: Hudson Bridgers

History of Krispy Kreme Founded in 1937 in Winston-Salem, North Carolina Founder: Vernon Rudolph Vernon purchased a secret yeast rising doughnut recipe from a French chef Krispy Kreme was the subsidiary of Beatrice Foods Currently owned by Franchisees 1950’s-1960’s: Krispy Kreme expanded and became well known mainly in the Southeastern US 1990’s-Present: Krispy Kreme expanded into the rest of the US (currently 42 states) : Krispy Kreme expanded to Canada 2004-Present: Krispy Kreme expands internationally

Global Presence 23 Countries and 5 Continents!

224 Stores in the US 243 Stores in US 532 Stores Outside of US

Krispy Kreme’s Competing Industries Doughnuts

Krispy Kreme’s Competing Industries Coffees and Beverages Hot ChocolateCaramel Latte CappucinoMochaKaffe Kreme

Krispy Kreme’s Competing Industries Orange You Glad® and Very Berry Berries & Kreme, Oranges & Kreme, Lotta Latte®, Chocolate Chocolate and Mocha Dream Sweet Tea and Iced Coffee

Krispy Kreme’s Competing Industries Kool Kreme(Ice Cream Products) Doughnut SundaesClassic SundaesArtic Avalanche ® Cones Milkshakes

Major Competitors

Marketing

The Doughnut Theater

Promotions and Customer Appreciation

Company Statistics IPO: $21 per share on the NASDAQ on April 5, (KREM) Changed to the NYSE on May 17, 2001 (KKD) Total revenues rose to $435.8 million in fiscal 2013 compared to $403.2 million in fiscal Number of Employees: 4000+

Krispy Kreme’s Mission To touch and enhance lives through the joy that is Krispy Kreme. Krispy Kreme’s Vision To be the worldwide leader in sharing delicious tastes and creating joyful memories.

Interesting Facts Each week, Krispy Kreme makes enough donuts to reach from New York to Los Angeles. Each store makes around 3000 doughnuts per hour. In North America, there is an average of million Krispy Kreme doughnuts bought per day. 2 Billion Doughnuts are made per year in North America Each year Krispy Kreme uses enough chocolate to fill 2 Olympic size swimming pools. The hole in the center of doughnuts is credited in 1847 to a boy named Hanson Gregory who suggested to his mom to cut a hole in her “fried cakes” to make sure they were fully cooked in the middle.

Franchising Opportunities The initial investment to begin operation ranges from $928,000 to $1,883,250 for a Krispy Kreme Factory Store. Applicants must meet the following criteria to gain consideration: Passionate about the Krispy Kreme brand and products Proven track record of running a successful multi-unit restaurant business Highly committed to providing great customer service Financial resources to fund a multi-unit store development plan including a minimum $1 million in liquid assets and a minimum net worth of $2 million.

James H. Morgan James H. Morgan Chairman, President and CEO Douglas R. Muir Douglas R. Muir Executive Vice President, Chief Financial Officer and Treasurer Cynthia A. Bay Cynthia A. Bay Senior Vice President of U.S. Franchises and Company Stores G. Dwayne Chambers G. Dwayne Chambers Senior Vice President and Chief Marketing Officer Kenneth J. Hudson Kenneth J. Hudson Senior Vice President of Human Resources and Organizational Development M. Bradley Wall M. Bradley Wall Senior Vice President of Supply Chain and Off-Premises Operations Darryl R. Marsch Darryl R. Marsch Senior Vice President, General Counsel and Secretary Jeffrey B. Welch Jeffrey B. Welch Senior Vice President and President of International Corporate Management

Future Predictions According to the Fiscal 2013 Annual Tax Report, Krispy Kreme bought back $20 million worth of shares. According to an article on Bloomberg Businessweek, ¼ to ½ of Krispy Kreme’s Revenue depends on supermarket/convenience store sales. By 2017 they plan on adding 157 more U.S. stores to the 243 U.S. stores. To achieve their goals, Krispy Kreme has announced plans of a new building design that will sweep southeastern US that is cheaper, smaller, and more efficient that will sell only retail excluding the costly expiration dates of whole sale hassles. The stock price per share will slowly climb.