Krispy Kreme Doughnuts (KKD) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Investor Contact:	Mike Phalen
	Chief Financial Officer
	Krispy Kreme Doughnuts, Inc.
	336.733.3707
Financial Media Contact:	Robbin E. Moore
	Investor Relations Director
	Krispy Kreme Doughnuts, Inc.
	336.726.8857

KRISPY KREME ANNOUNCES SECOND QUARTER RESULTS
SYSTEMWIDE SALES INCREASED 15%

Winston-Salem, NC (August 26, 2004) —Krispy Kreme Doughnuts, Inc. (NYSE:KKD) today reported financial results for the second quarter ended August 1, 2004.

Second quarter systemwide sales, including sales of company and franchise stores, increased 14.8% compared with the second quarter last year. Total revenues for the quarter, which includes sales from company stores, franchise operations and Krispy Kreme Manufacturing and Distribution (KKM&D), increased 11.5% to $177.4 million compared with $159.2 million in the second quarter of last year. Company store sales increased 18.7% to $123.8 million, revenues from franchise operations grew 13.7% to $6.8 million and KKM&D revenues decreased 4.1% to $46.9 million due to lower equipment sales. On a comparable store basis, systemwide sales increased 0.1% and company store sales increased 0.6%.

Income from continuing operations for the second quarter of fiscal 2005 decreased to $6.2 million, or $0.10 per diluted share, compared with $13.4 million, or $0.22 per diluted share, in the second quarter last year. For the quarter, income from continuing operations before impairment and store closing charges was $7.3 million or $0.12 per diluted share. The pre-tax impairment charge and store closing costs was approximately $1.8 million, or $0.02 per diluted share. During the quarter, nine Company stores closed, comprised of six factory stores and three doughnut-and-coffee shops. In the quarter, the Company reported a loss from discontinued operations of approximately $0.5 million, or $0.01 per diluted share, related to the pending divestiture of the existing Montana Mills operation.

Systemwide sales for the first half of fiscal 2005, including company and franchise stores, increased 19.4%. Total revenues increased 17.5% to $361.8 million compared with $307.8 million for the same period in fiscal 2004. Sales from company stores increased 20.2% to $248.4 million, revenues from franchise operations increased 25.9% to $13.9 million and KKM&D sales increased 10.4% to $99.6 million.

Income from continuing operations for the six months ended August 1, 2004 decreased 39.5% to $16.1 million compared with $26.6 million in the same period last year. Diluted earnings per share from continuing operations was $0.25 in the first six months of the year compared with $0.43 per diluted share in the same period a year ago. For the first half of fiscal 2005, income from continuing operations before impairment and store closing charges was $21.6 million, or $0.34 per diluted share.

For the first half of fiscal 2005, the Company reported a loss from discontinued operations of approximately $34.8 million, or $0.55 per diluted share, related to the pending divestiture of the existing Montana Mills operation.

Commenting on the Company’s performance, Scott Livengood, Chairman, President and Chief Executive Officer of Krispy Kreme Doughnuts, Inc. said, “Although we are disappointed with the second quarter financial results, we are optimistic about the long-term growth potential of the business. We are focusing our efforts and resources on initiatives that improve long-term business prospects. We have core strategies with supporting initiatives, a leading consumer brand and great people to address the current challenges. Krispy Kreme has proven over its 67 year history an ability to overcome challenges, and I am confident in our ability to restore our business momentum.”

During the quarter, Krispy Kreme opened 32 new stores systemwide, comprised of 22 factory stores and 10 satellites. The factory stores are located in Myrtle Beach, SC; Lorton, VA; Roseville, CA; Enfield, UK; Bloomington, IN; Sydney, Australia (2); Oakville, Ontario; Springfield, MO; Columbus, GA; Hicksville, NY; Hutchinson, KS; Boca Raton, FL; Bentonville, AK; Orange, CA; Charlotte, NC; Garland, TX; Maysville, KY; Branson, MO; Temecula, CA; San Marcos, CA and Billings, MT. The satellites opened during the quarter were located in Philadelphia, PA; Charleston, SC; Sydney, Australia; Ormond Beach, FL; Memphis, TN; Chicago, IL (2); Clayton, MO; London, UK and Eastlake, CA. This brings the total number of stores at quarter-end to 423, including 387 factory stores and 36 satellites.

The Company now estimates that systemwide sales will grow approximately 15% for fiscal 2005 and approximately 10% in the second half of the year. The Company has revised its fiscal 2005 development plans and currently estimates opening approximately 75 new stores systemwide, including approximately 60 factory and 15 satellite stores. The Company is focused on delivering improved results over the long term and, therefore, is not providing earnings guidance for the third quarter or fiscal 2005.

The Company will hold a conference call today at 9:00 a.m. Eastern Time, which will be hosted by Scott Livengood, Chairman, President and Chief Executive Officer and Mike Phalen, Chief Financial Officer. The call will be broadcast live over the Internet and can be accessed at www.krispykreme.com/investorrelations.html. A replay of the call will be available until 6:00 p.m. Eastern Time, Thursday, September 6, 2004 by dialing 866.447.7331 (domestic) or 203.369.1162 (international), and entering passcode 1564.

We have disclosed above systemwide sales growth as well as systemwide comparable store sales information. Systemwide sales data are non-GAAP financial measures that include sales at all company and franchise stores. We believe systemwide sales information is useful in assessing our market share and concept growth.

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme is a leading branded specialty retailer of premium quality doughnuts, including the Company’s signature Hot Original Glazed. Krispy Kreme currently operates 427 stores (comprised of 390 factory stores and 37 satellites) in 45 U.S. states, Australia, Canada, Mexico and the United Kingdom. Krispy Kreme can be found on the World Wide Web at www.krispykreme.com.

# # #

Information contained in this press release, other than historical information, should be considered forward-looking. In particular, the Company has made predictions about its forecasted growth in systemwide sales for the second half of the fiscal year and the fiscal year overall, its revised development plans and estimated new store openings for the fiscal year and the potential for its new product and cost saving initiatives. Forward-looking statements are subject to various risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Krispy Kreme's operating results, performance or financial condition are its dependence on franchisees to execute its store expansion strategy, supply issues, changes in consumer preferences and perceptions, the failure of new products or cost saving initiatives to contribute to financial results in the timeframe or amount currently estimated, and numerous other factors discussed in Krispy Kreme's periodic reports, proxy statement and other information statements filed with the Securities and Exchange Commission.

Krispy Kreme Doughnuts, Inc.
Summary Financial Results
For the Second Quarter Ended August 1, 2004
(All dollar amounts in thousands except per share data)
(Unaudited)

				Impairment
	Quarter Ended			Charge and Store			Quarter Ended			Quarter Ended			As Reported			As Reported			Pro Forma			Pro Forma
	August 1, 2004			Closing Costs			August 1, 2004			August 3, 2003			$			%			$			%
	As Reported			Adjustment			Pro Forma			As Reported (1)			Change			Change			Change			Change
Total revenues	$	177,448		$	—		$	177,448		$	159,176		$	18,272			11.5	%	$	18,272			11.5	%
Operating expenses		145,633			—			145,633			120,573			25,060			20.8	%		25,060			20.8	%
General and administrative expenses		11,845			—			11,845			9,060			2,785			30.7	%		2,785			30.7	%
Depreciation and amortization expenses		6,328			—			6,328			4,536			1,792			39.5	%		1,792			39.5	%
Impairment charge and store closing costs		1,802			1,802			—			—			1,802			100.0	%		—			—
Income from operations		11,840			1,802			13,642			25,007			(13,167	)		-52.7	%		(11,365	)		-45.4	%
Interest income		226			—			226			205			21			10.2	%		21			10.2	%
Interest expense		1,366			—			1,366			997			369			37.0	%		369			37.0	%
Loss from joint ventures		399			—			399			802			(403	)		-50.2	%		(403	)		-50.2	%
Minority interest in consolidated joint ventures		(267	)		—			(267	)		616			(883	)		-143.3	%		(883	)		-143.3	%
Other (income) expense, net		(114	)		—			(114	)		343			(457	)		-133.2	%		(457	)		-133.2	%
Income from continuing operations before income taxes		10,682			1,802			12,484			22,454			(11,772	)		-52.4	%		(9,970	)		-44.4	%
Provision for income taxes		4,438			(748	)		5,186			9,014			(4,576	)		-50.8	%		(3,828	)		-42.5	%
Income from continuing operations		6,244			1,054			7,298			13,440			(7,196	)		-53.5	%		(6,142	)		-45.7	%
Discontinued operations		(480	)		—			(480	)		(439	)		(41	)		9.3	%		(41	)		9.3	%
Net income	$	5,764		$	1,054		$	6,818		$	13,001		$	(7,237	)		-55.7	%	$	(6,183	)		-47.6	%
Diluted earnings per share:
Income from continuing operations	$	0.10		$	0.02		$	0.12		$	0.22		$	(0.12	)		-54.2	%	$	(0.10	)		-46.8	%
Discontinued operations		(0.01	)		—			(0.01	)		(0.01	)		—			—			—			—
Net income	$	0.09		$	0.02		$	0.11		$	0.21		$	(0.12	)		-56.5	%	$	(0.10	)		-48.3	%
Diluted shares outstanding		63,351			63,351			63,351			62,127			1,224			2.0	%		1,224			2.0	%
Segment Information
Revenues
Company store operations	$	123,815		$	—		$	123,815		$	104,342		$	19,473			18.7	%	$	19,473			18.7	%
Franchise operations (2)		6,771			—			6,771			5,953			818			13.7	%		818			13.7	%
KKM&D		46,862			—			46,862			48,881			(2,019	)		-4.1	%		(2,019	)		-4.1	%
Total revenues	$	177,448		$	—		$	177,448		$	159,176		$	18,272			11.5	%	$	18,272			11.5	%
Operating Income
Company store operations	$	12,924		$	—		$	12,924		$	20,101		$	(7,177	)		-35.7	%		(7,177	)		-35.7	%
Franchise operations		4,896			—			4,896			4,700			196			4.2	%		196			4.2	%
KKM&D		8,132			—			8,132			9,671			(1,539	)		-15.9	%		(1,539	)		-15.9	%
Unallocated G&A expenses		(12,310	)		—			(12,310	)		(9,465	)		(2,845	)		30.1	%		(2,845	)		30.1	%
Impairment charge and store closing costs		(1,802	)		1,802			—			—			(1,802	)		100.0	%		—			—
Total operating income	$	11,840		$	1,802		$	13,642		$	25,007		$	(13,167	)		-52.7	%	$	(11,365	)		-45.4	%
Operating Margins
Company store operations		10.4	%		—			10.4	%		19.3	%		-8.9	%					-8.9	%
Franchise operations		72.3	%		—			72.3	%		79.0	%		-6.7	%					-6.7	%
KKM&D		17.4	%		—			17.4	%		19.8	%		-2.4	%					-2.4	%
Unallocated G&A expenses		-6.9	%		—			-6.9	%		-5.9	%		-1.0	%					-1.0	%
Impairment charge and store closing costs		-1.0	%		1.0	%		—			—			-1.0	%					—
Total operating income		6.7	%		1.0	%		7.7	%		15.7	%		-9.0	%					-8.0	%
Depreciation and Amortization Expenses
Company store operations	$	5,019		$	—		$	5,019		$	3,341		$	1,678			50.2	%		1,678			50.2	%
Franchise operations		44			—			44			43			1			2.3	%		1			2.3	%
KKM&D		800			—			800			747			53			7.1	%		53			7.1	%
Corporate administration		465			—			465			405			60			14.8	%		60			14.8	%
Total depreciation and amortization expenses	$	6,328		$	—		$	6,328		$	4,536		$	1,792			39.5	%	$	1,792			39.5	%
Increase in Systemwide Sales
Total Krispy Kreme stores		14.8	%
Comparable Store Sales
Company stores		0.6	%
Systemwide		0.1	%

Note: Operating results for the second quarter of fiscal 2005 include a pre-tax charge of $1,802, which represents primarily an estimate of the costs associated with exiting leases for Krispy Kreme stores closed during the quarter as a result of the Company’s decision in the first quarter to close certain underperforming stores. Operating results for the second quarter also include a loss from discontinued operations of $480, representing primarily operating results of the Montana Mills business as well as charges associated with exiting leases for Montana Mills stores which closed during the quarter. Operating results for the second quarter of fiscal 2004 have been adjusted to reflect the operating activity of Montana Mills as discontinued operations for the period. This schedule compares results for the second quarter of fiscal 2005, both before and after the impairment charge and store closing costs with the results of the second quarter of fiscal 2004.

(1) Restated to reflect amounts associated with Montana Mills Bread Co., Inc. operations as discontinued operations.

(2) Revenues from franchise operations consist of franchise fees and royalties on sales of our franchised stores, as reported by our franchisees. Sales of franchised stores for the quarter ended August 1, 2004 and August 3, 2003 were $150,073 and $134,187, respectively.

Krispy Kreme Doughnuts, Inc.

Summary Financial Results
For the Six Months Ended August 1, 2004
(All dollar amounts in thousands except per share data)
(Unaudited)

				Impairment
	Six Months Ended			Charge and Store			Six Months Ended			Six Months Ended			Arbitration			Six Months Ended
	August 1, 2004			Closing Costs			August 1, 2004			August 3, 2003			Award			August 3, 2003
	As Reported			Adjustment			Pro Forma			As Reported (1)			Adjustment			Pro Forma
Total revenues	$	361,804		$	—		$	361,804		$	307,836		$	—		$	307,836
Operating expenses		287,016			—			287,016			233,053			—			233,053
General and administrative expenses		22,509			—			22,509			17,962			—			17,962
Depreciation and amortization expenses		12,458			—			12,458			8,637			—			8,637
Impairment charge and store closing costs		9,345			9,345			—			—			—			—
Arbitration award		—			—			—			(525	)		(525	)		—
Income from operations		30,476			9,345			39,821			48,709			(525	)		48,184
Interest income		402			—			402			432			—			432
Interest expense		2,799			—			2,799			1,863			—			1,863
Loss from joint ventures		973			—			973			1,496			—			1,496
Minority interest in consolidated joint ventures		(141	)		—			(141	)		1,232			—			1,232
Other expense, net		43			—			43			368			—			368
Income from continuing operations before income taxes		27,204			9,345			36,549			44,182			(525	)		43,657
Provision for income taxes		11,113			(3,817	)		14,930			17,602			207			17,395
Income from continuing operations		16,091			5,528			21,619			26,580			(318	)		26,262
Discontinued operations		(34,765	)		—			(34,765	)		(439	)		—			(439	)
Net income (loss)	$	(18,674	)	$	5,528		$	(13,146	)	$	26,141		$	(318	)	$	25,823
Diluted earnings (loss) per share:
Income from continuing operations	$	0.25		$	0.09		$	0.34		$	0.43		$	(0.01	)	$	0.43
Discontinued operations		(0.55	)		—			(0.55	)		(0.01	)		—			(0.01	)
Net income (loss)	$	(0.30	)	$	0.09		$	(0.21	)	$	0.43		$	(0.01	)	$	0.42
Diluted shares outstanding		63,413			63,413			63,413			61,391			61,391			61,391
Segment Information
Revenues
Company store operations	$	248,355		$	—		$	248,355		$	206,585		$	—		$	206,585
Franchise operations (2)		13,876			—			13,876			11,019			—			11,019
KKM&D		99,573			—			99,573			90,232			—			90,232
Total revenues	$	361,804		$	—		$	361,804		$	307,836		$	—		$	307,836
Operating Income
Company store operations	$	32,203		$	—		$	32,203		$	41,660		$	—		$	41,660
Franchise operations		10,309			—			10,309			8,397			—			8,397
KKM&D		20,725			—			20,725			16,883			—			16,883
Unallocated G&A expenses		(23,416	)		—			(23,416	)		(18,756	)		—			(18,756	)
Impairment charge and store closing costs		(9,345	)		9,345			—			—			—			—
Arbitration award		—			—			—			525			(525	)		—
Total operating income	$	30,476		$	9,345		$	39,821		$	48,709		$	(525	)	$	48,184
Operating Margins
Company store operations		13.0	%		—			13.0	%		20.2	%		—			20.2	%
Franchise operations		74.3	%		—			74.3	%		76.2	%		—			76.2	%
KKM&D		20.8	%		—			20.8	%		18.7	%		—			18.7	%
Unallocated G&A expenses		-6.5	%		—			-6.5	%		-6.1	%		—			-6.1	%
Impairment charge and store closing costs		-2.6	%		2.6	%		—			—			—			—
Arbitration award		—			—			—			0.2	%		-0.2	%		—
Total operating income		8.4	%		2.6	%		11.0	%		15.8	%		-0.2	%		15.7	%
Depreciation and Amortization Expenses
Company store operations	$	9,882		$	—		$	9,882		$	6,275		$	—		$	6,275
Franchise operations		87			—			87			86			—			86
KKM&D		1,581			—			1,581			1,481			—			1,481
Corporate administration		908			—			908			795			—			795
Total depreciation and amortization expenses	$	12,458		$	—		$	12,458		$	8,637		$	—		$	8,637
Increase in Systemwide Sales
Total Krispy Kreme stores		19.4	%
Comparable Store Sales
Company stores		2.9	%
Systemwide		2.2	%

[Additional columns below]

[Continued from above table, first column(s) repeated]

	As Reported			As Reported			Pro Forma			Pro Forma
	$			%			$			%
	Change			Change			Change			Change
Total revenues	$	53,968			17.5	%	$	53,968			17.5	%
Operating expenses		53,963			23.2	%		53,963			23.2	%
General and administrative expenses		4,547			25.3	%		4,547			25.3	%
Depreciation and amortization expenses		3,821			44.2	%		3,821			44.2	%
Impairment charge and store closing costs		9,345			100.0	%		—			—
Arbitration award		525			-100.0	%		—			—
Income from operations		(18,233	)		-37.4	%		(8,363	)		-17.4	%
Interest income		(30	)		-6.9	%		(30	)		-6.9	%
Interest expense		936			50.2	%		936			50.2	%
Loss from joint ventures		(523	)		-35.0	%		(523	)		-35.0	%
Minority interest in consolidated joint ventures		(1,373	)		-111.4	%		(1,373	)		-111.4	%
Other expense, net		(325	)		-88.3	%		(325	)		-88.3	%
Income from continuing operations before income taxes		(16,978	)		-38.4	%		(7,108	)		-16.3	%
Provision for income taxes		(6,489	)		-36.9	%		(2,465	)		-14.2	%
Income from continuing operations		(10,489	)		-39.5	%		(4,643	)		-17.7	%
Discontinued operations		(34,326	)		NM			(34,326	)		NM
Net income (loss)	$	(44,815	)		-171.4	%	$	(38,969	)		-150.9	%
Diluted earnings (loss) per share:
Income from continuing operations	$	(0.18	)		-41.3	%	$	(0.09	)		-20.3	%
Discontinued operations		(0.54	)		NM			(0.54	)		NM
Net income (loss)	$	(0.72	)		-169.3	%	$	(0.63	)		-149.9	%
Diluted shares outstanding		2,022			3.3	%		2,022			3.3	%
Segment Information
Revenues
Company store operations	$	41,770			20.2	%	$	41,770			20.2	%
Franchise operations (2)		2,857			25.9	%		2,857			25.9	%
KKM&D		9,341			10.4	%		9,341			10.4	%
Total revenues	$	53,968			17.5	%	$	53,968			17.5	%
Operating Income
Company store operations	$	(9,457	)		-22.7	%	$	(9,457	)		-22.7	%
Franchise operations		1,912			22.8	%		1,912			22.8	%
KKM&D		3,842			22.8	%		3,842			22.8	%
Unallocated G&A expenses		(4,660	)		24.8	%		(4,660	)		24.8	%
Impairment charge and store closing costs		(9,345	)		100.0	%		—			—
Arbitration award		(525	)		-100.0	%		—			—
Total operating income	$	(18,233	)		-37.4	%	$	(8,363	)		-17.4	%
Operating Margins
Company store operations		-7.2	%					-7.2	%
Franchise operations		-1.9	%					-1.9	%
KKM&D		2.1	%					2.1	%
Unallocated G&A expenses		-0.4	%					-0.4	%
Impairment charge and store closing costs		-2.6	%					—
Arbitration award		0.2	%					—
Total operating income		-7.4	%					-4.7	%
Depreciation and Amortization Expenses
Company store operations	$	3,607			57.5	%	$	3,607			57.5	%
Franchise operations		1			1.2	%		1			1.2	%
KKM&D		100			6.8	%		100			6.8	%
Corporate administration		113			14.2	%		113			14.2	%
Total depreciation and amortization expenses	$	3,821			44.2	%	$	3,821			44.2	%
Increase in Systemwide Sales
Total Krispy Kreme stores
Comparable Store Sales
Company stores
Systemwide

Note: Operating results for the six months ended August 1, 2004 include a pre-tax charge of $9,345, primarily related to impairment charges and related store closing costs for Krispy Kreme stores closed or scheduled to be closed as a result of the Company’s decision in the first quarter to close certain underperforming stores. Operating results for the fiscal 2005 period also include a loss from discontinued operations of $34,765, resulting from the Company’s decision to divest the existing Montana Mills operation. Operating results for the six months ended August 3, 2003 include the reversal of the $525 accrual remaining after settlement of an arbitration award against the Company, as discussed in the Company’s Form 8-K filing dated February 10, 2003. Operating results for the fiscal 2004 period have been adjusted to reflect the operating activity of Montana Mills as discontinued operations for the period. This schedule compares results for the fiscal 2005 period both before and after the impairment charge and store closing costs with results for the fiscal 2004 period, both before and after adjusting for the reversal of the arbitration award.

(1)	Restated to reflect amounts associated with Montana Mills Bread Co., Inc. operations as discontinued operations.
(2)	Revenues from franchise operations consist of franchise fees and royalties on sales of our franchised stores, as reported by our franchisees. Sales of franchised stores for the six months ended August 1, 2004 and August 3, 2003 were $308,576 and $259,749, respectively.

Krispy Kreme Doughnuts, Inc.
Condensed Consolidated Balance Sheets
As of August 1, 2004, May 2, 2004 and February 1, 2004
(All dollar amounts in thousands)

	August 1, 2004		May 2, 2004		$ Change			% Change			February 1, 2004 (1)		$ Change			% Change
Cash and cash equivalents	$	19,309	$	13,715	$	5,594			40.8	%	$	20,300	$	(991	)		-4.9	%
Receivables		77,495		78,735		(1,240	)		-1.6	%		76,195		1,300			1.7	%
Inventories		33,076		32,974		102			0.3	%		28,573		4,503			15.8	%
Property and equipment, net		297,154		301,160		(4,006	)		-1.3	%		281,103		16,051			5.7	%
Investments in unconsolidated joint ventures		9,921		10,728		(807	)		-7.5	%		12,426		(2,505	)		-20.2	%
Assets held for sale		3,325		3,374		(49	)		-1.5	%		36,856		(33,531	)		-91.0	%
Other assets		221,328		213,797		7,531			3.5	%		205,211		16,117			7.9	%
Total assets	$	661,608	$	654,483	$	7,125			1.1	%	$	660,664	$	944			0.1	%
Payables	$	31,924	$	31,536	$	388			1.2	%	$	26,907	$	5,017			18.6	%
Accrued expenses		32,249		27,107		5,142			19.0	%		23,744		8,505			35.8	%
Debt		117,701		135,132		(17,431	)		-12.9	%		137,898		(20,197	)		-14.6	%
Other long-term obligations		40,235		30,057		10,178			33.9	%		19,908		20,327			102.1	%
Shareholders’ equity		439,499		430,651		8,848			2.1	%		452,207		(12,708	)		-2.8	%
Total liabilities and shareholders’ equity	$	661,608	$	654,483	$	7,125			1.1	%	$	660,664	$	944			0.1	%

(1) Restated to reflect amounts associated with Montana Mills Bread Co., Inc. as assets and liabilities of discontinued operations.

Krispy Kreme Doughnuts, Inc.
Store Count Recap

	Factory Stores
				Consolidated		Total								Joint		Total		Total
	Company			JVs		Company			Associate			AD		Ventures		AD		Franchise			Total
Total End Q1 FY05		117			35		152			56			98		66		164		220			372
Opened		8			—		8			1			5		8		13		14			22
Closed		(6	)		—		(6	)		(1	)		—		—		—		(1	)		(7	)
Transferred		—			—		—			—			—		—		—		—			—
Reclassification		—			—		—			—			—		—		—		—			—
Q2 Net		2			—		2			—			5		8		13		13			15
Total End Q2 FY05		119			35		154			56			103		74		177		233			387

Krispy Kreme Doughnuts, Inc.
Average Sales per Week
Dollars in Thousands

	FY 2005				FY 2004
	Q2		Q1		Q2
Company Stores	$	63.1	$	67.9	$	74.4
Area Developers	$	54.3	$	59.2	$	61.2
Associates	$	43.9	$	46.7	$	48.7
Total Franchise	$	51.6	$	56.0	$	57.3
Systemwide	$	56.3	$	60.7	$	63.7

Krispy Kreme Doughnuts, Inc.
Total Operating Weeks

	FY 2005				FY 2004
	Q2		Q1		Q2
Company Stores		1,988		1,847		1,396
Area Developers		2,131		2,104		1,617
Associates		735		728		724
Total Franchise		2,866		2,832		2,341
Systemwide		4,854		4,679		3,737