Krispy Kreme Doughnuts (KKD) 10-Q 11 Sep 15 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Aug. 02, 2015	Aug. 28, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Aug. 2, 2015
Amendment Flag	false
Entity Registrant Name	KRISPY KREME DOUGHNUTS INC
Entity Central Index Key	1,100,270
Current Fiscal Year End Date	--01-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock Shares Outstanding		62,912,961
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	KKD

CONSOLIDATED STATEMENT OF INCOM

CONSOLIDATED STATEMENT OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
CONSOLIDATED STATEMENT OF INCOME [Abstract]
Revenues	$ 127,336	$ 120,516	$ 259,810	$ 242,096
Operating expenses:
Direct operating expenses (exclusive of depreciation and amortization expense shown below)	104,145	99,067	207,917	195,457
General and administrative expenses	6,718	6,737	14,272	13,784
Depreciation and amortization expense	4,074	3,033	8,067	6,206
Impairment charges and lease termination costs	304	38	308	46
Pre-opening costs related to Company Stores	515	245	838	471
(Gains) and losses on commodity derivatives, net	$ 841	1,341	394	(103)
(Gain) on refranchisings, net of business acquisition charges		431		431
Operating income	$ 10,739	9,624	28,014	25,804
Interest income	72	64	219	235
Interest expense	$ (387)	(162)	$ (764)	(305)
Equity in losses of equity method franchisees		(61)		(118)
Other non-operating income and (expense), net	$ 89	152	$ 273	320
Income before income taxes	10,513	9,617	27,742	25,936
Provision for income taxes	4,595	3,865	11,158	10,528
Net income	$ 5,918	$ 5,752	$ 16,584	$ 15,408
Earnings per common share:
Basic	$ 0.09	$ 0.09	$ 0.25	$ 0.23
Diluted	$ 0.09	$ 0.08	$ 0.24	$ 0.22

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME [Abstract]
Net income	$ 5,918	$ 5,752	$ 16,584	$ 15,408
Other comprehensive income
Comprehensive income	$ 5,918	$ 5,752	$ 16,584	$ 15,408

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Aug. 02, 2015	Feb. 01, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 44,105	$ 50,971
Receivables	28,704	27,799
Receivables from equity method franchisees	945	782
Inventories	18,319	18,194
Deferred income taxes	23,155	23,245
Other current assets	8,418	6,856
Total current assets	123,646	127,847
Property and equipment	$ 120,021	$ 115,758
Investments in equity method franchisees
Goodwill and other intangible assets	$ 29,838	$ 30,070
Deferred income taxes	58,490	68,278
Other assets	10,054	10,760
Total assets	342,049	352,713
CURRENT LIABILITIES:
Current portion of lease obligations	328	333
Accounts payable	18,929	17,095
Accrued liabilities	32,214	32,530
Total current liabilities	51,471	49,958
Lease obligations, less current portion	11,252	9,354
Other long-term obligations and deferred credits	$ 25,506	$ 25,615
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Preferred stock, no par value; 10,000 shares authorized; none issued and outstanding
Common stock, no par value; 300,000 shares authorized; 63,545 shares and 64,926 shares outstanding, respectively	$ 280,218	$ 310,768
Accumulated deficit	(26,398)	(42,982)
Total shareholders equity	253,820	267,786
Total liabilities and shareholders' equity	$ 342,049	$ 352,713

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parentheticals) - $ / shares shares in Thousands, None in scaling factor is -9223372036854775296	Aug. 02, 2015	Feb. 01, 2015
CONSOLIDATED BALANCE SHEET [Abstract]
Preferred stock, par value per share
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share
Common stock, shares authorized	300,000	300,000
Common stock, shares issued	63,545	64,926
Common stock, shares outstanding	63,545	64,926

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 16,584	$ 15,408
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	8,067	6,206
Deferred income taxes	9,878	$ 9,388
Impairment charges	343
Accrued rent expense	268	$ 324
Loss on disposal of property and equipment	87	99
Share-based compensation	3,662	2,207
Provision for doubtful accounts	(3)	174
Amortization of deferred financing costs	$ 54	54
Equity in losses of equity method franchisees		118
Unrealized (gains) losses on commodity derivative positions	$ (532)	121
Other	23	6
Change in assets and liabilities:
Receivables	(1,730)	(4,197)
Inventories	(98)	(80)
Other current and non-current assets	(1,442)	(2,259)
Accounts payable and accrued liabilities	264	229
Other long-term obligations and deferred credits	13	(111)
Net cash provided by operating activities	35,438	27,687
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(10,158)	(13,063)
Proceeds from disposals of property and equipment	216	196
Acquisition of stores from franchisees	(312)	(7,152)
Other investing activities	917	427
Net cash used for investing activities	(9,337)	(19,592)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of lease obligations	(166)	(200)
Proceeds from exercise of stock options	519	6,655
Repurchase of common shares	(33,320)	(34,618)
Net cash used for financing activities	(32,967)	(28,163)
Net decrease in cash and cash equivalents	(6,866)	(20,068)
Cash and cash equivalents at beginning of period	50,971	55,748
Cash and cash equivalents at end of period	44,105	35,680
Supplemental schedule of non-cash investing and financing activities:
Assets acquired under leasing arrangements	$ 2,035	$ 3,781

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Accumulated Deficit [Member]
Beginning Balance at Feb. 02, 2014	$ 265,093	$ 338,135	$ (73,042)
Balance, shares at Feb. 02, 2014		64,940
Comprehensive income	15,408		$ 15,408
Exercise of stock options	6,655	$ 6,655
Exercise of stock options, shares		1,245
Share-based compensation	2,207	$ 2,207
Share-based compensation, shares		60
Repurchase of common shares	$ (32,773)	$ (32,773)
Repurchase of common shares, shares	(1,861)	(1,861)
Ending Balance at Aug. 03, 2014	$ 256,590	$ 314,224	$ (57,634)
Balance, shares at Aug. 03, 2014		64,384
Beginning Balance at Feb. 01, 2015	$ 267,786	$ 310,768	(42,982)
Balance, shares at Feb. 01, 2015	64,926	64,926
Comprehensive income	$ 16,584		$ 16,584
Exercise of stock options	519	$ 519
Exercise of stock options, shares		81
Share-based compensation	3,662	$ 3,662
Share-based compensation, shares		447
Repurchase of common shares	$ (34,731)	$ (34,731)
Repurchase of common shares, shares	(1,909)	(1,909)
Ending Balance at Aug. 02, 2015	$ 253,820	$ 280,218	$ (26,398)
Balance, shares at Aug. 02, 2015	63,545	63,545

Accounting Policies

Accounting Policies	6 Months Ended
	Aug. 02, 2015
Accounting Policies [Abstract]
Accounting Policies	Note 1 — Accounting Policies Krispy Kreme Doughnuts, Inc. (“KKDI”) and its subsidiaries (collectively, the “Company”) are engaged in the sale of doughnuts and complementary products through Company-owned stores. The Company also licenses the Krispy Kreme business model and certain of its intellectual property to franchisees in the United States and over 20 Significant Accounting Policies BASIS OF PRESENTATION. The consolidated financial statements contained herein should be read in conjunction with the Company's 2015 Form 10-K. The accompanying interim consolidated financial statements are presented in accordance with the requirements of Article 10 of Regulation S-X and, accordingly, do not include all the disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) with respect to annual financial statements. The interim consolidated financial statements have been prepared in accordance with the Company's accounting practices described in the 2015 Form 10-K, but have not been audited. In management's opinion, the financial statements include all adjustments, which consist only of normal recurring adjustments, necessary for a fair statement of the Company's results of operations for the periods presented. The consolidated balance sheet data as of February 1, 2015 were derived from the Company's audited financial statements. BASIS OF CONSOLIDATION. The financial statements include the accounts of KKDI and its subsidiaries. CHANGE IN PRESENTATION. In the first quarter of fiscal 2016, the Company changed the presentation of the Consolidated Statement of Income and segment financial information. Pre-opening costs related to Company Stores; gains and losses on commodity derivatives, net and gain on refranchisings, net of business acquisition charges are now separate line items on the Consolidated Statement of Income and are no longer in the respective business segments' operating income in Note 2. Such changes were made to provide more clarity and visibility to the Company's operations and to conform to new management reporting. The Company furnished a Current Report on Form 8-K on June 10, 2015 providing the Consolidated Statement of Income and segment financial information for the quarterly and annual periods in fiscal 2014 and fiscal 2015 conformed to the fiscal 2016 presentation. The Company has made no changes to its reportable segments. These presentation changes had no impact on the Company's consolidated operating income or consolidated net income. EARNINGS PER SHARE. The computation of basic earnings per share is based on the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share reflects the additional common shares that would have been outstanding if dilutive potential common shares had been issued, computed using the treasury stock method. Such potential common shares consist of shares issuable upon the exercise of stock options and the vesting of currently unvested restricted stock units. Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, 2015 2014 2015 2014 (In thousands) Numerator: net income $ 5,918 $ 5,752 $ 16,584 $ 15,408 Denominator: Basic earnings per share - weighted average shares outstanding 65,502 66,008 66,053 66,265 Effect of dilutive securities: Stock options 1,546 2,097 1,594 2,352 Restricted stock units 321 620 324 619 Diluted earnings per share - weighted average shares outstanding plus dilutive potential common shares 67,369 68,725 67,971 69,236 Stock options with respect to 285,000 295,000 214,000 110,000 August 2, 2015 and August 3, 2014, respectively Stock options with respect to 294,000 234,000 192,000 55,000 August 2, 2015 and August 3, 2014 , respectively . Recent Accounting Pronouncements The Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standard Update ("ASU") to communicate changes to the codification. The Company considers the applicability and impact of all ASU's. The followings are those ASU's that are relevant to the Company. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory”, which changes guidance for subsequent measurement of inventory within the scope of the update from the lower of cost or market to the lower of cost and net realizable value. This update is effective for annual and interim periods beginning after December 15, 2016 and early adoption is permitted. The Company will evaluate the effects of adoption of this guidance on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” This guidance states that given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to the line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the costs ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit. As all of the Company's debt issuance costs are related to line-of-credit arrangements and are currently classified as assets, this update will not have any impact on the Company's financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. This guidance was deferred by ASU 2015-14, issued by the FASB in August 2015, and is now effective for fiscal years beginning on or after December 15, 2017 with early adoption permitted as of the original effective date. The Company will evaluate the effects, if any, of adoption of this guidance on the Company's consolidated financial statements.

Segment Information

Segment Information	6 Months Ended
	Aug. 02, 2015
Segment Information [Abstract]
Segment Information	Note 2 — Segment Information The Company's operating and reportable segments are Company Stores, Domestic Franchise, International Franchise and KK Supply Chain. The Company Stores segment is comprised of the stores owned and operated by the Company. These stores sell doughnuts and complementary products through both on-premises and consumer packaged goods - wholesale (“CPG”) sales channels, although some stores serve only one of these distribution channels. The Domestic Franchise and International Franchise segments consist of the Company's franchise operations. Under the terms of franchise agreements, domestic and international franchisees pay royalties and fees to the Company in return for the use of the Krispy Kreme name and ongoing brand and operational support. Revenues and costs related to licensing certain Krispy Kreme trademarks to domestic third parties other than franchisees also are included in the Domestic Franchise segment. Expenses for these segments include costs to recruit new franchisees, to assist in store openings, and to support franchisee operations and marketing efforts, as well as allocated corporate costs. The majority of the ingredients and materials used by Company stores are purchased from the KK Supply Chain segment, which supplies doughnut mix, other ingredients and supplies and doughnut-making equipment to both Company and franchisee-owned stores. All intercompany sales by the KK Supply Chain segment to the Company Stores segment are at prices intended to reflect an arms-length transfer price and are eliminated in consolidation. Operating income for the Company Stores segment does not include any profit earned by the KK Supply Chain segment on sales of doughnut mix and other items to the Company Stores segment; such profit is included in KK Supply Chain operating income. The following table presents the results of operations of the Company's operating segments for the three and six months ended August 2, 2015 and August 3, 2014. Segment operating income is consolidated operating income before general and administrative expenses, corporate depreciation and amortization expense, impairment charges and lease termination costs, pre-opening costs related to Company Stores, gains and losses on commodity derivatives, net and gain on refranchisings, net of business acquisition charges. Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, 2015 2014 2015 2014 (In thousands) Revenues: Company Stores $ 84,117 $ 78,535 $ 174,834 $ 158,983 Domestic Franchise 3,936 3,296 7,645 6,795 International Franchise 7,314 7,534 14,042 14,115 KK Supply Chain: Total revenues 63,469 59,503 126,986 119,815 Less – intersegment sales elimination (31,500 ) (28,352 ) (63,697 ) (57,612 ) External KK Supply Chain revenues 31,969 31,151 63,289 62,203 Total revenues $ 127,336 $ 120,516 $ 259,810 $ 242,096 Operating income: Company Stores $ 1,592 $ 1,937 $ 8,949 $ 6,579 Domestic Franchise 2,440 1,900 4,534 4,056 International Franchise 5,487 5,111 10,391 9,391 KK Supply Chain 10,144 9,830 21,093 21,140 Total segment operating income 19,663 18,778 44,967 41,166 General and administrative expenses (6,718 ) (6,737 ) (14,272 ) (13,784 ) Corporate depreciation and amortization expense (546 ) (362 ) (1,141 ) (733 ) (304 ) (38 ) (308 ) (46 ) (515 ) (245 ) (838 ) (471 ) (841 ) (1,341 ) (394 ) 103 Gain on refranchisings, net of business acquisition charges - (431 ) - (431 ) Consolidated operating income $ 10,739 $ 9,624 $ 28,014 $ 25,804 Depreciation and amortization expense: Company Stores $ 3,261 2,457 6,430 $ 5,041 Domestic Franchise 16 49 33 95 International Franchise - 2 - 3 KK Supply Chain 251 163 463 334 Corporate 546 362 1,141 733 Total depreciation and amortization expense $ 4,074 3,033 8,067 $ 6,206 Segment information for total assets and capital expenditures is not presented as such information is not used in measuring segment performance or allocating resources among segments.

Receivables

Receivables	6 Months Ended
	Aug. 02, 2015
Receivables [Abstract]
Receivables	Note 3 — Receivables The components of receivables are as follows: August 2, February 1, 2015 2015 (In thousands) Receivables: Consumer packaged goods - wholesale customers $ 9,697 $ 9,557 Unaffiliated franchisees 14,157 12,743 Third-party distributors 2,980 4,075 Other receivables 1,228 867 Current portion of notes receivable from franchisees 1,036 1,052 29,098 28,294 Less — allowance for doubtful accounts: Consumer packaged goods - wholesale customers (146 ) (204 ) Unaffiliated franchisees (248 ) (291 ) (394 ) (495 ) $ 28,704 $ 27,799 Receivables from equity method franchisees (Note 5): Trade $ 945 $ 782 The changes in the allowance for doubtful accounts are summarized as follows: Six Months Ended August 2, August 3, 2015 2014 (In thousands) Allowance for doubtful accounts related to receivables: Balance at beginning of period $ 495 $ 241 Provision for doubtful accounts (41 ) 260 Net recoveries (chargeoffs) (60 ) 24 Balance at end of period $ 394 $ 525 The Company also has notes receivable from franchisees included in “Other assets” in the accompanying consolidated balance sheet, which are summarized in the following table. August 2, February 1, 2015 2015 (In thousands) Notes receivable: Notes receivable from franchisees $ 4,289 $ 4,534 Less — portion due within one year included in receivables (1,036 ) (1,052 ) $ 3,253 $ 3,482 Notes receivable at August 2, 2015 and February 1, 2015 consist principally of amounts payable to the Company related to a refranchising transaction, to the sale of certain leasehold interests to a franchisee and to sales of equipment. In addition to the foregoing notes receivable, the Company had promissory notes totaling approximately $ 1.2 1.9 700,000 900,000 Finally, the Company has a promissory note receivable from Krispy Kreme of South Florida, LLC (“KKSF”) totaling approximately $ 720,000 1.0 1.6 90,000 150,000 260,000 320,000

Inventories

Inventories	6 Months Ended
	Aug. 02, 2015
Inventories [Abstract]
Inventories	Note 4 — Inventories The components of inventories are as follows: August 2, February 1, 2015 2015 (In thousands) Raw materials $ 7,202 $ 6,779 Work in progress 81 115 Finished goods and purchased merchandise 11,036 11,300 $ 18,319 $ 18,194

Investments in Franchisees

Investments in Franchisees	6 Months Ended
	Aug. 02, 2015
Investments in Franchisees [Abstract]
Investment in Franchisees	Note 5 — Investments in Franchisees As of August 2, 2015, the Company had an ownership interest in three zero August 2, 2015 Company Investment Ownership and Percentage Advances Receivables (Dollars in thousands) Kremeworks, LLC 25.0 % $ 900 $ 487 Kremeworks Canada, LP 24.5 % 667 43 Krispy Kreme of South Florida, LLC 35.3 % - 415 1,567 945 Less: reserves and allowances (1,567 ) - $ - $ 945 February 1, 2015 Company Investment Ownership and Percentage Advances Receivables (Dollars in thousands) Kremeworks, LLC 25.0 % $ 900 $ 353 Kremeworks Canada, LP 24.5 % 667 30 Krispy Kreme of South Florida, LLC 35.3 % - 399 1,567 782 Less: reserves and allowances (1,567 ) - $ - $ 782 The carrying values of the Company's investments and advances in Kremeworks, LLC (“Kremeworks”) and Kremeworks Canada, LP (“Kremeworks Canada”) were zero at August 2, 2015 and February 1, 2015. In addition, the Company had reserved all of the balance of its advances to Kremeworks and Kremeworks Canada at such dates; accrued but uncollected interest on such advances of approximately $ 375,000

Credit Facility and Lease Oblig

Credit Facility and Lease Obligations	6 Months Ended
	Aug. 02, 2015
Credit Facility and Lease Obligations [Abstract]
Credit Facility and Lease Obligations	Note 6 — Credit Facility and Lease Obligations Lease obligations consist of the following: August 2, February 1, 2015 2015 (In thousands) Capital lease obligations $ 2,784 $ 2,940 Financing obligations 8,796 6,747 11,580 9,687 Less: current portion (328 ) (333 ) $ 11,252 $ 9,354 Lease Obligations The Company acquires equipment and facilities under capital and operating leases and build-to-suit arrangements. In certain build-to-suit leasing arrangements, the Company is involved in the construction of leased stores and is deemed the owner of the leased stores for accounting purposes during the construction period. The Company records the related assets and liabilities for construction costs incurred under these build-to-suit leasing arrangements during the construction period. Upon completion of the leased store, the Company considers whether the assets and liabilities qualify for derecognition under the sale-leaseback accounting guidance. These leasing arrangements entered into to date do not qualify for sale-leaseback treatment and, accordingly, the Company records the transactions as financing obligations. A portion of the lease payments is allocated to land and is classified as an operating lease. The remainder of the lease payments is allocated between interest expense and amortization of the financing obligations. The assets are depreciated over their estimated useful lives. At the end of the lease term, the carrying value of the leased asset and of the remaining financing obligation are expected to be equal, at which time the Company may either surrender the leased assets as settlement of the remaining financing obligation or enter into a new arrangement for the continued use of the asset. At August 2, 2015, the Company had property and lease obligations related to build-to-suit leasing arrangements of approximately $ 8.8 2013 Revolving Credit Facility On July 12, 2013, the Company entered into a $ 40 million revolving secured credit facility (the “2013 Revolving Credit Facility”) which matures in July 2018. The 2013 Revolving Credit Facility is secured by a first lien on substantially all of the personal property assets of the Company and certain of its domestic subsidiaries. No borrowings were made on the 2013 Revolving Credit Facility on the closing date . Interest on borrowings under the 2013 Revolving Credit Facility is payable either at LIBOR or the Base Rate (which is the greatest of the prime rate, the Fed funds rate plus 0.50 %, or the one-month LIBOR rate plus 1.00 % ), in each case plus the Applicable Percentage. The Applicable Percentage for LIBOR loans ranges from 1.25 % to 2.15 %, and for Base Rate loans ranges from 0.25 % to 1.15 %, in each case depending on the Company's leverage ratio. As of August 2, 2015, the Applicable Percentage was 1.25 %. The 2013 Revolving Credit Facility contains provisions which permit the Company to obtain letters of credit, issuance of which constitutes usage of the lending commitments and reduces the amount available for cash borrowings. At closing, $ 9.2 million of letters of credit were issued under the 2013 Revolving Credit Facility to replace letters of credit issued under the terminated credit facilities, substantially all of which secure the Company's reimbursement obligations to insurers under the Company's self-insurance programs. At August 2, 2015, the Company had approximately $ 8.7 million of letters of credits outstanding. The Company is required to pay a fee equal to the Applicable Percentage for LIBOR-based loans on the outstanding amount of letters of credit. There also is a fee on the unused portion of the 2013 Revolving Credit Facility lending commitment, ranging from 0.15 % to 0.35 %, depending on the Company's leverage ratio. As of August 2, 2015, the fee on the unused portion of the 2013 Revolving Credit Facility was 0.15 . The 2013 Revolving Credit Facility requires the Company to meet certain financial tests, including a maximum leverage ratio and a minimum fixed charge coverage ratio. The leverage ratio is required to be not greater than 2.25 to 1.0 and the fixed charge coverage ratio is required to be not less than 1.3 to 1.0. As of August 2, 2015, the Company's leverage ratio was 0.3 to 1.0 and the fixed charge coverage ratio was 3.8 to 1.0. The operation of the restrictive financial covenants described above may limit the amount the Company may borrow under the 2013 Revolving Credit Facility. The restrictive covenants did not limit the Company's ability to borrow the full $ 31.3 million of unused credit under the 2013 Revolving Credit Agreement as of August 2, 2015. The 2013 Revolving Credit Facility also contains covenants which, among other things, generally limit (with certain exceptions): liquidations, mergers, and consolidations; the incurrence of additional indebtedness (including guarantees); the incurrence of additional liens; the sale, assignment, lease, conveyance or transfer of assets; certain investments; dividends and stock redemptions or repurchases in excess of certain amounts; transactions with affiliates; engaging in materially different lines of business; certain sale-leaseback transactions; and other activities customarily restricted in such agreements. The 2013 Revolving Credit Facility also prohibits the transfer of cash or other assets to the Parent Company, whether by dividend, loan or otherwise, but provides for exceptions to enable the Parent Company to pay taxes, directors' fees and operating expenses, as well as exceptions to permit dividends in respect of the Company's common stock and stock redemptions and repurchases, to the extent permitted by the 2013 Revolving Credit Facility. The 2013 Revolving Credit Facility also contains customary events of default including, without limitation, payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other indebtedness in excess of $ 5 million, certain events of bankruptcy and insolvency, judgment defaults in excess of $ 5 million and the occurrence of a change of control. Borrowings and issuances of letters of credit under the 2013 Revolving Credit Facility are subject to the satisfaction of usual and customary conditions, including the accuracy of representations and warranties and the absence of defaults.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Aug. 02, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 7 — Commitments and Contingencies Except as disclosed below, the Company currently is not a party to any material legal proceedings. Pending Litigation K 2 Asia Litigation On April 7, 2009, a Cayman Islands corporation, K 2 The Company does not believe it is probable that a loss has been incurred with respect to this matter, and accordingly no liability related to it has been reflected in the accompanying financial statements. Other Legal Matters The Company also is engaged in various legal proceedings arising in the normal course of business. The Company maintains insurance policies against certain kinds of such claims and suits, including insurance policies for workers' compensation and personal injury, all of which are subject to deductibles. While the ultimate outcome of these matters could differ from management's expectations, management currently does not believe their resolution will have a material adverse effect on the Company's consolidated financial statements. Other Commitments and Contingencies The Company's primary bank had issued letters of credit on behalf of the Company totaling $ 8.7 million at August 2, 2015, substantially all of which secure the Company's reimbursement obligations to insurers under the Company's self-insurance arrangements.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Aug. 02, 2015
Shareholders' Equity [Abstract]
Shareholders' Equity	Note 8 — Shareholders' Equity Share-Based Compensation for Employees and Directors The Company measures and recognizes compensation expense for share-based payment (“SBP”) awards based on their fair values. The fair value of SBP awards for which employees and directors render the requisite service necessary for the award to vest is recognized over the related vesting period. The aggregate cost of SBP awards charged to earnings for the three and six months ended August 2, 2015 and August 3, 2014 is set forth in the following table. The Company did not realize any excess tax benefits from the exercise of stock options or the vesting of restricted stock units during any of the periods. Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, 2015 2014 2015 2014 (In thousands) Costs charged to earnings related to: Stock options $ 295 $ 226 $ 618 $ 561 Restricted stock units 1,370 814 3,044 1,646 Total costs $ 1,665 $ 1,040 $ 3,662 $ 2,207 Costs included in: Direct operating expenses $ 767 $ 460 $ 1,795 $ 1,163 General and administrative expenses 898 580 1,867 1,044 Total costs $ 1,665 $ 1,040 $ 3,662 $ 2,207 Repurchases of Common Stock In fiscal 2014, the Company's Board of Directors authorized the repurchase of up to $ 50 $ 155 . The Company generally permits holders of restricted stock unit awards to satisfy their obligations to reimburse the Company for the minimum required statutory withholding taxes arising from the vesting of such awards by surrendering vested common shares in lieu of reimbursing the Company in cash. The following table summarizes repurchases of common stock for the three and six months ended August 2, 2015 and August 3, 2014. Three Months Ended August 2, August 3, 2015 2014 Common Common Shares Stock Shares Stock (In thousands) Shares repurchased under share repurchase authorization 1,494 $ 26,883 403 $ 7,304 Shares surrendered in reimbursement for withholding taxes 13 223 21 334 1,507 $ 27,106 424 $ 7,638 Six Months Ended August 2, August 3, 2015 2014 Common Common Shares Stock Shares Stock (In thousands) Shares repurchased under share repurchase authorization 1,885 $ 34,311 1,840 $ 32,439 Shares surrendered in reimbursement for withholding taxes 24 420 21 334 1,909 $ 34,731 1,861 $ 32,773 Through August 2, 2015, the Company repurchased 5,307,149 18.07 95.9 32.9 34.6 $ 59.1 155

Impairment Charges and Lease Te

Impairment Charges and Lease Termination Costs	6 Months Ended
	Aug. 02, 2015
Impairment Charges and Lease Termination Costs [Abstract]
Impairment Charges and Lease Termination Costs	Note 9 — Impairment Charges and Lease Termination Costs The components of impairment charges and lease termination costs are as follows: Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, 2015 2014 2015 2014 (In thousands) Impairment of long-lived assets $ 343 $ - $ 343 $ - Lease termination costs: Provision for lease termination costs 71 40 75 48 Less - reversal of previously recorded accrued rent expense (110 ) (2 ) (110 ) (2 ) Net provision (39 ) 38 (35 ) 46 Total impairment charges and lease termination costs $ 304 $ 38 $ 308 $ 46 The Company tests long-lived assets for impairment when events or changes in circumstances indicate that their carrying value may not be recoverable. These events and changes in circumstances include store closing and refranchising decisions, the effects of changing costs on current results of operations, unfavorable observed trends in operating results, and evidence of changed circumstances observed as a part of periodic reforecasts of future operating results and as part of the Company's annual budgeting process. When the Company concludes that the carrying value of long-lived assets is not recoverable (based on future projected undiscounted cash flows), the Company records impairment charges to reduce the carrying value of those assets to their estimated fair values. During the three and six months ended August 2, 2015, the Company recorded impairment charges related to long-lived assets for one Company store that closed during the second quarter of fiscal 2016 to reduce the carrying value of those assets to their estimated fair values. Substantially all of such long-lived assets were real properties, the fair values of which were estimated based on an independent appraisal and are included in other current assets as assets held for sale. Lease termination costs represent the estimated fair value of liabilities related to unexpired leases, after reduction by the amount of accrued rent expense, if any, related to the leases, and are recorded when the lease contracts are terminated or, if earlier, the date on which the Company ceases use of the leased property. The fair value of these liabilities is estimated as the excess, if any, of the contractual payments required under the unexpired leases over the current market lease rates for the properties, discounted at a credit-adjusted risk-free rate over the remaining term of the leases. The provision for lease termination costs also includes adjustments to liabilities recorded in prior periods arising from changes in estimated sublease rentals and from settlements with landlords. During the three and six months ended August 2, 2015, the Company recorded lease termination costs related to a store closed during the second quarter of fiscal 2016. The transactions reflected in the accrual for lease termination costs are summarized as follows: Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, 2015 2014 2015 2014 (In thousands) Balance at beginning of period $ 85 $ 167 $ 116 $ 178 Provision for lease termination costs: Provisions associated with leased properties, net of estimated sublease rentals 57 44 57 44 Adjustments to previously recorded provisions resulting from settlements with lessors and adjustments of previous estimates 12 (10 ) 13 (5 ) Accretion of discount 2 6 5 9 Total provision 71 40 75 48 Payments on unexpired leases, including settlements with lessors (35 ) (31 ) (70 ) (50 ) Balance at end of period $ 121 $ 176 $ 121 $ 176 The lease termination accrual at August 2, 2015 of $ 121,000

Income Taxes

Income Taxes	6 Months Ended
	Aug. 02, 2015
Income Taxes [Abstract]
Income Taxes	Note 10 — Income Taxes The Company accounts for its provision for income taxes in accordance with GAAP, which requires management to estimate the annual effective income tax rate for the full year to be applied to the respective interim period taking into account year-to-date amounts and projected results for the full year. For the three and six months ended August 2, 2015, the Company's effective income tax rate was 43.7 40.2 40.2 40.6 The increase in the effective income tax rate in the quarter was due primarily to the revaluation of the Company's deferred tax assets, principally attributable to state net operating loss (“NOL”) carryforwards, resulting from the decrease in the North Carolina (“NC”) corporate income tax rate. Specifically, in the second quarter of fiscal 2016, the North Carolina state legislature announced it surpassed its revenue estimates and these increased tax revenues triggered an automatic reduction to the state corporate income tax rate, which caused the Company to revalue its deferred income tax assets to reflect the lower corporate income tax rate. The net effect of the NC tax rate reduction and associated revaluation of the Company's deferred tax assets resulted in the reduction in net deferred tax assets of $ 467,000 The Company recognizes deferred income tax assets and liabilities based upon management's expectation of the future tax consequences of temporary differences between the income tax and financial reporting bases of assets and liabilities. Deferred tax liabilities generally represent tax expense recognized for which payment has been deferred, or expenses which have been deducted in the Company's tax returns but which have not yet been recognized as an expense in the financial statements. Deferred tax assets generally represent tax deductions or credits that will be reflected in future tax returns for which the Company has already recorded a tax benefit in its consolidated financial statements. The Company establishes valuation allowances for deferred income tax assets in accordance with GAAP, which provides that such valuation allowances shall be established unless realization of the income tax benefits is more likely than not. The valuation allowance of $ 2.5 2.6 Realization of net deferred tax assets generally is dependent on generation of taxable income in future periods. While management believes its forecast of future taxable income is reasonable, actual results inevitably will vary from management's forecasts. Such variances could result in adjustments to the valuation allowance on deferred tax assets in future periods, and such adjustments could be material to the financial statements.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Aug. 02, 2015
Fair Value Measurements [Abstract]
Fair-Value Measurements	Note 11 — Fair Value Measurements The accounting standards for fair value measurements define fair value as the price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The accounting standards for fair value measurements establish a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities. These include certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis at August 2, 2015 and February 1, 2015. August 2, 2015 (1) Level 1 Level 2 Level 3 (In thousands) Assets: 401(k) mirror plan assets $ 2,335 $ - $ - Liabilities: Agricultural commodity futures contracts $ 502 $ - $ - Gasoline commodity futures contracts 777 - - Total liabilities $ 1,279 $ - $ - February 1, 2015 (1) Level 1 Level 2 Level 3 (In thousands) Assets: 401(k) mirror plan assets $ 2,496 $ - $ - Liabilities: Agricultural commodity futures contracts $ 874 $ - $ - Gasoline commodity futures contracts 937 - - Total liabilities $ 1,811 $ - $ - (1) There were no transfers of financial assets or liabilities among the levels within the fair value hierarchy during the three and six months ended August 2, 2015 or during the year ended February 1, 2015 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The following table presents the nonrecurring fair value measurements recorded during the three and six months ended August 2, 2015. There were no material nonrecurring fair value measurements recorded during the three and six months ended August 3, 2014. Three Months Ended August 2, 2015 Level 1 Level 2 Level 3 Total gain (loss) (In thousands) Long-lived assets $ - $ 94 $ - $ (343) Six Months Ended August 2, 2015 Level 1 Level 2 Level 3 Total gain (loss) (In thousands) Long-lived assets $ - $ 94 $ - $ (343) Long-Lived Assets During the three and six months ended August 2, 2015, long-lived assets having an aggregate carrying value of $ 437,000 94,000 343,000 Fair Values of Financial Instruments at the Balance Sheet Dates The carrying values and approximate fair values of certain financial instruments as of August 2, 2015 and February 1, 2015 were as follows: August 2, 2015 February 1, 2015 Carrying Fair Carrying Fair Value Value Value Value (In thousands) Assets: Cash and cash equivalents $ 44,105 $ 44,105 $ 50,971 $ 50,971 Receivables 28,704 28,704 27,799 27,799 945 945 782 782 Liabilities: Accounts payable 18,929 18,929 17,095 17,095 Agricultural commodity futures contracts 502 502 874 874 Gasoline commodity futures contracts 777 777 937 937 Lease obligations (including current portion) 11,580 11,580 9,687 9,687 The carrying values of all financial instruments approximate their fair values at August 2, 2015 and February 1, 2015.

Derivative Instruments

Derivative Instruments	6 Months Ended
	Aug. 02, 2015
Derivative Instruments [Abstract]
Derivative Instruments	Note 12 — Derivative Instruments The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are commodity price risk. The Company does not hold or issue derivative instruments for trading purposes. The Company is exposed to credit-related losses in the event of non-performance by the counterparties to its derivative instruments. The Company mitigates this risk of nonperformance by dealing with highly rated counterparties. Additional disclosure about the fair value of derivative instruments is included in Note 11. Commodity Price Risk The Company is exposed to the effects of commodity price fluctuations in the cost of ingredients of its products, of which flour, sugar and shortening are the most significant. In order to bring greater stability to the cost of ingredients, from time to time the Company purchases exchange-traded commodity futures contracts, and options on such contracts, for raw materials which are ingredients of its products or which are components of such ingredients, including wheat and soybean oil. The Company is also exposed to the effects of commodity price fluctuations in the cost of gasoline used by its delivery vehicles. To mitigate the risk of fluctuations in the price of its gasoline purchases, the Company may purchase exchange-traded commodity futures contracts and options on such contracts. The difference between the cost, if any, and the fair value of commodity derivatives is reflected in earnings because the Company has not designated any of these instruments as hedges. Gains and losses on these contracts are intended to offset losses and gains on the hedged transactions in an effort to reduce the earnings volatility resulting from fluctuating commodity prices. The settlement of commodity derivative contracts is reported in the consolidated statement of cash flows as a cash flow from operating activities. At August 2, 2015, the Company had commodity derivatives with an aggregate contract volume of 880,000 1.5 2.6 . Interest Rate Risk The Company is exposed to market risk from increases in interest rates on any borrowings outstanding under its 2013 Revolving Credit Facility. Quantitative Summary of Derivative Positions and Their Effect on Results of Operations The following table presents the fair values of derivative instruments included in the consolidated balance sheet as of August 2, 2015 and February 1, 2015: Liability Derivatives Fair Value August 2, February 1, Derivatives Not Designated as Hedging Instruments Balance Sheet Location 2015 2015 (In thousands) Agricultural commodity futures contracts Accrued liabilities $ 502 $ 874 Gasoline commodity futures contracts Accrued liabilities 777 937 Total $ 1,279 $ 1,811 The effects of derivative instruments on the consolidated statement of income for the three and six months ended August 2, 2015 and August 3, 2014 were as follows: Amount of Derivative Gain or (Loss) Recognized in Income Three Months Ended August 2, August 3, Derivatives Not Designated as Hedging Instruments Location of Derivative Gain or (Loss) Recognized in Income 2015 2014 (In thousands) Agricultural commodity futures contracts Gains and losses on commodity derivatives, net $ (71 ) $ (1,341 ) Gasoline commodity futures contracts Gains and losses on commodity derivatives, net (770 ) - Total $ (841 ) $ (1,341 ) Amount of Derivative Gain or (Loss) Recognized in Income Six Months Ended August 2, August 3, Derivatives Not Designated as Hedging Instruments Location of Derivative Gain or (Loss) Recognized in Income 2015 2014 (In thousands) Agricultural commodity futures contracts Gains and losses on commodity derivatives, net $ (406 ) $ 103 Gasoline commodity futures contracts Gains and losses on commodity derivatives, net 12 - Total $ (394 ) $ 103

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Aug. 02, 2015
Acquisitions and Divestitures [Abstract]
Acquisitions and Divestitures	Note 13 — Acquisitions and Divestitures Acquisition of Krispy Kreme Shops On April 23, 2015, the Company entered into several legal arrangements with a franchisee, which included an asset purchase agreement and management agreement, whereby the Company agreed to operate the franchisee's Krispy Kreme shop in Little Rock, Arkansas as a Company store. 312,000 2.7 252,000 27,000 137,000 104,000 On June 17, 2014, the Company acquired the business and operating assets of its franchisee in Birmingham, Alabama, consisting of four 9 13 7.5 three The Company recorded charges to earnings related to the acquisition of $ 431,000 343,000 88,000 The cost of the acquired business was allocated as follows: (In thousands) Purchase price allocated to: Working capital, exclusive of cash $ (5 ) Property and equipment 710 Reacquired franchise rights associated with the Company Stores segment 3,853 Goodwill associated with the Company Stores segment 2,594 $ 7,152 Amounts allocated to reacquired franchise rights are being amortized by charges to earnings on a straight-line basis through March 2020, which was the expiration date of the terminated franchise agreement. All of the goodwill recognized in the acquisition for financial reporting purposes is expected to be deductible for income tax purposes. The results of operations of the acquired business subsequent to the acquisition had no material effect on the Company's consolidated results of operations. The Company's results of operations for the year ended February 2, 2014, computed on a pro basis assuming the acquisition had been consummated at the beginning of those periods, would not be materially different from the Company's historical results of operations and, accordingly, have been omitted. In December 2013, the Company acquired the land, building and doughnut-making equipment at a facility in Illinois that had fiscal 2014 sales of approximately $ 3 1.6 million cash, all of which was allocated to property and equipment. The facility was being operated as a Krispy Kreme shop pursuant to a management agreement approved by the Company between the facility's former owner and one of the Company's franchisees. The management agreement was terminated in connection with the Company's acquisition of the facility, and was replaced by an operating agreement between the Company and the franchisee. Pursuant to the operating agreement, the Company agreed to permit the franchisee to continue to operate the facility for its account through June 2014 in exchange for monthly rental payments, and the payment of amounts based on the facility's sales equivalent to the amounts that would be payable to the Company if the facility were subject to a franchise agreement. The Company assumed operation of the facility for its own account in July 2014 Asset Divestitures On September 9, 2014, the Company refranchised its retail Krispy Kreme shop in Rockville, Maryland to a new franchisee for approximately $ 1.8 1.2 million on the refranchising transaction. The refranchising included the execution of a development agreement pursuant to which the new franchisee has agreed to develop an additional 20 seven

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Aug. 02, 2015
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION. The consolidated financial statements contained herein should be read in conjunction with the Company's 2015 Form 10-K. The accompanying interim consolidated financial statements are presented in accordance with the requirements of Article 10 of Regulation S-X and, accordingly, do not include all the disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) with respect to annual financial statements. The interim consolidated financial statements have been prepared in accordance with the Company's accounting practices described in the 2015 Form 10-K, but have not been audited. In management's opinion, the financial statements include all adjustments, which consist only of normal recurring adjustments, necessary for a fair statement of the Company's results of operations for the periods presented. The consolidated balance sheet data as of February 1, 2015 were derived from the Company's audited financial statements.
BASIS OF CONSOLIDATION	BASIS OF CONSOLIDATION. The financial statements include the accounts of KKDI and its subsidiaries.
CHANGE IN PRESENTATION	CHANGE IN PRESENTATION. In the first quarter of fiscal 2016, the Company changed the presentation of the Consolidated Statement of Income and segment financial information. Pre-opening costs related to Company Stores; gains and losses on commodity derivatives, net and gain on refranchisings, net of business acquisition charges are now separate line items on the Consolidated Statement of Income and are no longer in the respective business segments' operating income in Note 2. Such changes were made to provide more clarity and visibility to the Company's operations and to conform to new management reporting. The Company furnished a Current Report on Form 8-K on June 10, 2015 providing the Consolidated Statement of Income and segment financial information for the quarterly and annual periods in fiscal 2014 and fiscal 2015 conformed to the fiscal 2016 presentation. The Company has made no changes to its reportable segments. These presentation changes had no impact on the Company's consolidated operating income or consolidated net income.
EARNINGS PER SHARE	EARNINGS PER SHARE. The computation of basic earnings per share is based on the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share reflects the additional common shares that would have been outstanding if dilutive potential common shares had been issued, computed using the treasury stock method. Such potential common shares consist of shares issuable upon the exercise of stock options and the vesting of currently unvested restricted stock units. Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, 2015 2014 2015 2014 (In thousands) Numerator: net income $ 5,918 $ 5,752 $ 16,584 $ 15,408 Denominator: Basic earnings per share - weighted average shares outstanding 65,502 66,008 66,053 66,265 Effect of dilutive securities: Stock options 1,546 2,097 1,594 2,352 Restricted stock units 321 620 324 619 Diluted earnings per share - weighted average shares outstanding plus dilutive potential common shares 67,369 68,725 67,971 69,236 Stock options with respect to 285,000 295,000 214,000 110,000 August 2, 2015 and August 3, 2014, respectively Stock options with respect to 294,000 234,000 192,000 55,000 August 2, 2015 and August 3, 2014 , respectively .
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standard Update ("ASU") to communicate changes to the codification. The Company considers the applicability and impact of all ASU's. The followings are those ASU's that are relevant to the Company. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory”, which changes guidance for subsequent measurement of inventory within the scope of the update from the lower of cost or market to the lower of cost and net realizable value. This update is effective for annual and interim periods beginning after December 15, 2016 and early adoption is permitted. The Company will evaluate the effects of adoption of this guidance on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” This guidance states that given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to the line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the costs ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit. As all of the Company's debt issuance costs are related to line-of-credit arrangements and are currently classified as assets, this update will not have any impact on the Company's financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. This guidance was deferred by ASU 2015-14, issued by the FASB in August 2015, and is now effective for fiscal years beginning on or after December 15, 2017 with early adoption permitted as of the original effective date. The Company will evaluate the effects, if any, of adoption of this guidance on the Company's consolidated financial statements.

Accounting Policies (Tables)

Accounting Policies (Tables)	6 Months Ended
	Aug. 02, 2015
Accounting Policies [Abstract]
Schedule of Computation of Earnings Per Share	Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, 2015 2014 2015 2014 (In thousands) Numerator: net income $ 5,918 $ 5,752 $ 16,584 $ 15,408 Denominator: Basic earnings per share - weighted average shares outstanding 65,502 66,008 66,053 66,265 Effect of dilutive securities: Stock options 1,546 2,097 1,594 2,352 Restricted stock units 321 620 324 619 Diluted earnings per share - weighted average shares outstanding plus dilutive potential common shares 67,369 68,725 67,971 69,236

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Aug. 02, 2015
Segment Information [Abstract]
Schedule of Operations by Reporting Segment	Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, 2015 2014 2015 2014 (In thousands) Revenues: Company Stores $ 84,117 $ 78,535 $ 174,834 $ 158,983 Domestic Franchise 3,936 3,296 7,645 6,795 International Franchise 7,314 7,534 14,042 14,115 KK Supply Chain: Total revenues 63,469 59,503 126,986 119,815 Less – intersegment sales elimination (31,500 ) (28,352 ) (63,697 ) (57,612 ) External KK Supply Chain revenues 31,969 31,151 63,289 62,203 Total revenues $ 127,336 $ 120,516 $ 259,810 $ 242,096 Operating income: Company Stores $ 1,592 $ 1,937 $ 8,949 $ 6,579 Domestic Franchise 2,440 1,900 4,534 4,056 International Franchise 5,487 5,111 10,391 9,391 KK Supply Chain 10,144 9,830 21,093 21,140 Total segment operating income 19,663 18,778 44,967 41,166 General and administrative expenses (6,718 ) (6,737 ) (14,272 ) (13,784 ) Corporate depreciation and amortization expense (546 ) (362 ) (1,141 ) (733 ) (304 ) (38 ) (308 ) (46 ) (515 ) (245 ) (838 ) (471 ) (841 ) (1,341 ) (394 ) 103 Gain on refranchisings, net of business acquisition charges - (431 ) - (431 ) Consolidated operating income $ 10,739 $ 9,624 $ 28,014 $ 25,804 Depreciation and amortization expense: Company Stores $ 3,261 2,457 6,430 $ 5,041 Domestic Franchise 16 49 33 95 International Franchise - 2 - 3 KK Supply Chain 251 163 463 334 Corporate 546 362 1,141 733 Total depreciation and amortization expense $ 4,074 3,033 8,067 $ 6,206

Receivables (Tables)

Receivables (Tables)	6 Months Ended
	Aug. 02, 2015
Receivables [Abstract]
Schedule of Components of Receivables	August 2, February 1, 2015 2015 (In thousands) Receivables: Consumer packaged goods - wholesale customers $ 9,697 $ 9,557 Unaffiliated franchisees 14,157 12,743 Third-party distributors 2,980 4,075 Other receivables 1,228 867 Current portion of notes receivable from franchisees 1,036 1,052 29,098 28,294 Less — allowance for doubtful accounts: Consumer packaged goods - wholesale customers (146 ) (204 ) Unaffiliated franchisees (248 ) (291 ) (394 ) (495 ) $ 28,704 $ 27,799 Receivables from equity method franchisees (Note 5): Trade $ 945 $ 782 August 2, February 1, 2015 2015 (In thousands) Notes receivable: Notes receivable from franchisees $ 4,289 $ 4,534 Less — portion due within one year included in receivables (1,036 ) (1,052 ) $ 3,253 $ 3,482
Schedule of Changes in the Allowances for Doubtful Accounts	The changes in the allowance for doubtful accounts are summarized as follows: Six Months Ended August 2, August 3, 2015 2014 (In thousands) Allowance for doubtful accounts related to receivables: Balance at beginning of period $ 495 $ 241 Provision for doubtful accounts (41 ) 260 Net recoveries (chargeoffs) (60 ) 24 Balance at end of period $ 394 $ 525

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Aug. 02, 2015
Inventories [Abstract]
Schedule of Inventory	August 2, February 1, 2015 2015 (In thousands) Raw materials $ 7,202 $ 6,779 Work in progress 81 115 Finished goods and purchased merchandise 11,036 11,300 $ 18,319 $ 18,194

Investments in Franchisees (Tab

Investments in Franchisees (Tables)	6 Months Ended
	Aug. 02, 2015
Investments in Franchisees [Abstract]
Schedule of Investments in Franchisees	August 2, 2015 Company Investment Ownership and Percentage Advances Receivables (Dollars in thousands) Kremeworks, LLC 25.0 % $ 900 $ 487 Kremeworks Canada, LP 24.5 % 667 43 Krispy Kreme of South Florida, LLC 35.3 % - 415 1,567 945 Less: reserves and allowances (1,567 ) - $ - $ 945 February 1, 2015 Company Investment Ownership and Percentage Advances Receivables (Dollars in thousands) Kremeworks, LLC 25.0 % $ 900 $ 353 Kremeworks Canada, LP 24.5 % 667 30 Krispy Kreme of South Florida, LLC 35.3 % - 399 1,567 782 Less: reserves and allowances (1,567 ) - $ - $ 782

Credit Facility and Lease Obl27

Credit Facility and Lease Obligations (Tables)	6 Months Ended
	Aug. 02, 2015
Credit Facility and Lease Obligations [Abstract]
Schedule of Lease Obligations	August 2, February 1, 2015 2015 (In thousands) Capital lease obligations $ 2,784 $ 2,940 Financing obligations 8,796 6,747 11,580 9,687 Less: current portion (328 ) (333 ) $ 11,252 $ 9,354

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Aug. 02, 2015
Shareholders' Equity [Abstract]
Schedule of Share-Based Compensation	Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, 2015 2014 2015 2014 (In thousands) Costs charged to earnings related to: Stock options $ 295 $ 226 $ 618 $ 561 Restricted stock units 1,370 814 3,044 1,646 Total costs $ 1,665 $ 1,040 $ 3,662 $ 2,207 Costs included in: Direct operating expenses $ 767 $ 460 $ 1,795 $ 1,163 General and administrative expenses 898 580 1,867 1,044 Total costs $ 1,665 $ 1,040 $ 3,662 $ 2,207
Schedule of Repurchase of Common Stock	Three Months Ended August 2, August 3, 2015 2014 Common Common Shares Stock Shares Stock (In thousands) Shares repurchased under share repurchase authorization 1,494 $ 26,883 403 $ 7,304 Shares surrendered in reimbursement for withholding taxes 13 223 21 334 1,507 $ 27,106 424 $ 7,638 Six Months Ended August 2, August 3, 2015 2014 Common Common Shares Stock Shares Stock (In thousands) Shares repurchased under share repurchase authorization 1,885 $ 34,311 1,840 $ 32,439 Shares surrendered in reimbursement for withholding taxes 24 420 21 334 1,909 $ 34,731 1,861 $ 32,773

Impairment Charges and Lease 29

Impairment Charges and Lease Termination Costs (Tables)	6 Months Ended
	Aug. 02, 2015
Impairment Charges and Lease Termination Costs [Abstract]
Schedule of Impairment Charges and Lease Termination Costs	Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, 2015 2014 2015 2014 (In thousands) Impairment of long-lived assets $ 343 $ - $ 343 $ - Lease termination costs: Provision for lease termination costs 71 40 75 48 Less - reversal of previously recorded accrued rent expense (110 ) (2 ) (110 ) (2 ) Net provision (39 ) 38 (35 ) 46 Total impairment charges and lease termination costs $ 304 $ 38 $ 308 $ 46
Schedule of Lease Termination Liability	Three Months Ended Six Months Ended August 2, August 3, August 2, August 3, 2015 2014 2015 2014 (In thousands) Balance at beginning of period $ 85 $ 167 $ 116 $ 178 Provision for lease termination costs: Provisions associated with leased properties, net of estimated sublease rentals 57 44 57 44 Adjustments to previously recorded provisions resulting from settlements with lessors and adjustments of previous estimates 12 (10 ) 13 (5 ) Accretion of discount 2 6 5 9 Total provision 71 40 75 48 Payments on unexpired leases, including settlements with lessors (35 ) (31 ) (70 ) (50 ) Balance at end of period $ 121 $ 176 $ 121 $ 176

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Aug. 02, 2015
Fair Value Measurements [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis	August 2, 2015 (1) Level 1 Level 2 Level 3 (In thousands) Assets: 401(k) mirror plan assets $ 2,335 $ - $ - Liabilities: Agricultural commodity futures contracts $ 502 $ - $ - Gasoline commodity futures contracts 777 - - Total liabilities $ 1,279 $ - $ - February 1, 2015 (1) Level 1 Level 2 Level 3 (In thousands) Assets: 401(k) mirror plan assets $ 2,496 $ - $ - Liabilities: Agricultural commodity futures contracts $ 874 $ - $ - Gasoline commodity futures contracts 937 - - Total liabilities $ 1,811 $ - $ - (1) There were no transfers of financial assets or liabilities among the levels within the fair value hierarchy during the three and six months ended August 2, 2015 or during the year ended February 1, 2015
Schedule of Non-Recurring Measurements	Three Months Ended August 2, 2015 Level 1 Level 2 Level 3 Total gain (loss) (In thousands) Long-lived assets $ - $ 94 $ - $ (343) Six Months Ended August 2, 2015 Level 1 Level 2 Level 3 Total gain (loss) (In thousands) Long-lived assets $ - $ 94 $ - $ (343)
Schedule of Fair Values of Financial Instruments	August 2, 2015 February 1, 2015 Carrying Fair Carrying Fair Value Value Value Value (In thousands) Assets: Cash and cash equivalents $ 44,105 $ 44,105 $ 50,971 $ 50,971 Receivables 28,704 28,704 27,799 27,799 945 945 782 782 Liabilities: Accounts payable 18,929 18,929 17,095 17,095 Agricultural commodity futures contracts 502 502 874 874 Gasoline commodity futures contracts 777 777 937 937 Lease obligations (including current portion) 11,580 11,580 9,687 9,687

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Aug. 02, 2015
Derivative Instruments [Abstract]
Schedule of Derivative Fair Value	Liability Derivatives Fair Value August 2, February 1, Derivatives Not Designated as Hedging Instruments Balance Sheet Location 2015 2015 (In thousands) Agricultural commodity futures contracts Accrued liabilities $ 502 $ 874 Gasoline commodity futures contracts Accrued liabilities 777 937 Total $ 1,279 $ 1,811
Schedule of Derivative Gain (Loss)	Amount of Derivative Gain or (Loss) Recognized in Income Three Months Ended August 2, August 3, Derivatives Not Designated as Hedging Instruments Location of Derivative Gain or (Loss) Recognized in Income 2015 2014 (In thousands) Agricultural commodity futures contracts Gains and losses on commodity derivatives, net $ (71 ) $ (1,341 ) Gasoline commodity futures contracts Gains and losses on commodity derivatives, net (770 ) - Total $ (841 ) $ (1,341 ) Amount of Derivative Gain or (Loss) Recognized in Income Six Months Ended August 2, August 3, Derivatives Not Designated as Hedging Instruments Location of Derivative Gain or (Loss) Recognized in Income 2015 2014 (In thousands) Agricultural commodity futures contracts Gains and losses on commodity derivatives, net $ (406 ) $ 103 Gasoline commodity futures contracts Gains and losses on commodity derivatives, net 12 - Total $ (394 ) $ 103

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	6 Months Ended
	Aug. 02, 2015
Birmingham, Alabama Store Acquisition [Member]
Business Acquisition [Line Items]
Summary of Purchase Price Allocation	(In thousands) Purchase price allocated to: Working capital, exclusive of cash $ (5 ) Property and equipment 710 Reacquired franchise rights associated with the Company Stores segment 3,853 Goodwill associated with the Company Stores segment 2,594 $ 7,152

Accounting Policies (Schedule o

Accounting Policies (Schedule of Computation of Earnings Per Share) (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Accounting Policies [Abstract]
Net income	$ 5,918	$ 5,752	$ 16,584	$ 15,408
Basic earnings per share - weighted average shares outstanding	65,502	66,008	66,053	66,265
Diluted earnings per share - weighted average shares outstanding plus dilutive potential common shares	67,369	68,725	67,971	69,236
Stock Options [Member]
Effect of dilutive securities:
Share-based payment arrangement	1,546	2,097	1,594	2,352
Restricted Stock Units [Member]
Effect of dilutive securities:
Share-based payment arrangement	321	620	324	619

Accounting Policies (Narrative)

Accounting Policies (Narrative) (Details) - shares	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	285,000	295,000	294,000	234,000
Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	214,000	110,000	192,000	55,000

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Segment Reporting Information [Line Items]
Revenues	$ 127,336	$ 120,516	$ 259,810	$ 242,096
General and administrative expenses	(6,718)	(6,737)	(14,272)	(13,784)
Depreciation and amortization expense	(4,074)	(3,033)	(8,067)	(6,206)
Impairment charges and lease termination costs	(304)	(38)	(308)	(46)
Pre-opening costs related to Company Stores	(515)	(245)	(838)	(471)
Gains and (losses) on commodity derivatives, net	$ (841)	(1,341)	(394)	103
Gain on refranchisings, net of business acquisition charges		(431)		(431)
Operating income	$ 10,739	9,624	28,014	25,804
Segments [Member]
Segment Reporting Information [Line Items]
Operating income	19,663	18,778	44,967	41,166
Corporate [Member]
Segment Reporting Information [Line Items]
General and administrative expenses	(6,718)	(6,737)	(14,272)	(13,784)
Depreciation and amortization expense	(546)	(362)	(1,141)	(733)
Impairment charges and lease termination costs	(304)	(38)	(308)	(46)
Pre-opening costs related to Company Stores	(515)	(245)	(838)	(471)
Gains and (losses) on commodity derivatives, net	$ (841)	(1,341)	$ (394)	103
Gain on refranchisings, net of business acquisition charges		(431)		(431)
Company Stores [Member]
Segment Reporting Information [Line Items]
Revenues	$ 84,117	78,535	$ 174,834	158,983
Depreciation and amortization expense	(3,261)	(2,457)	(6,430)	(5,041)
Operating income	1,592	1,937	8,949	6,579
Domestic Franchise [Member]
Segment Reporting Information [Line Items]
Revenues	3,936	3,296	7,645	6,795
Depreciation and amortization expense	(16)	(49)	(33)	(95)
Operating income	2,440	1,900	4,534	4,056
International Franchise [Member]
Segment Reporting Information [Line Items]
Revenues	$ 7,314	7,534	14,042	14,115
Depreciation and amortization expense		(2)		(3)
Operating income	$ 5,487	5,111	10,391	9,391
KK Supply Chain [Member]
Segment Reporting Information [Line Items]
Revenues	31,969	31,151	63,289	62,203
Depreciation and amortization expense	(251)	(163)	(463)	(334)
Operating income	10,144	9,830	21,093	21,140
KK Supply Chain [Member] | Segments [Member]
Segment Reporting Information [Line Items]
Revenues	63,469	59,503	126,986	119,815
KK Supply Chain [Member] | Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Revenues	$ (31,500)	$ (28,352)	$ (63,697)	$ (57,612)

Receivables (Components of Rece

Receivables (Components of Receivables) (Details) - USD ($) $ in Thousands	Aug. 02, 2015	Feb. 01, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables	$ 1,228	$ 867
Current portion of notes receivable	1,036	1,052
Receivables	29,098	28,294
Less - allowance for doubtful accounts:	(394)	(495)
Receivables, net	28,704	27,799
Receivables from equity method franchisees	945	782
Consumer Packaged Goods - Wholesale Customers [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	9,697	9,557
Less - allowance for doubtful accounts:	(146)	(204)
Unaffiliated Franchisees [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	14,157	12,743
Less - allowance for doubtful accounts:	(248)	(291)
Third Party Distributors [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	$ 2,980	$ 4,075

Receivables (Allowance for Doub

Receivables (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands	6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014
Allowance For Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period	$ 495
Provision for doubtful accounts	(3)	$ 174
Balance at end of period	394
Trade Accounts Receivable [Member]
Allowance For Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period	495	241
Provision for doubtful accounts	(41)	260
Net recoveries (chargeoffs)	(60)	24
Balance at end of period	$ 394	$ 525

Receivables (Schedule of Other

Receivables (Schedule of Other Notes Receivables) (Details) - USD ($) $ in Thousands	Aug. 02, 2015	Feb. 01, 2015
Receivables [Abstract]
Note receivable from franchisees	$ 4,289	$ 4,534
Less - portion due within one year included in receivables	(1,036)	(1,052)
Non-current portion of notes receivable	$ 3,253	$ 3,482

Receivables (Narrative) (Detail

Receivables (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014	Feb. 01, 2015	Nov. 01, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unrecognized franchise revenue	$ 1,200,000		$ 1,200,000		$ 1,900,000
Collection of previously unrecognized franchise revenue	700,000	$ 900,000	700,000	$ 900,000
Krispy Kreme South Florida LLC [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unrecognized notes receivable	720,000		720,000		$ 1,000,000	$ 1,600,000
Collection of notes receivable	$ 90,000	$ 150,000	$ 260,000	$ 320,000

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Aug. 02, 2015	Feb. 01, 2015
Inventories [Abstract]
Raw materials	$ 7,202	$ 6,779
Work in progress	81	115
Finished goods and purchased merchandise	11,036	11,300
Inventories, Net, Total	$ 18,319	$ 18,194

Investments in Franchisees (Fin

Investments in Franchisees (Financial Exposure Related to Franchisee Investments) (Details) - USD ($) $ in Thousands	Aug. 02, 2015	Feb. 01, 2015
Schedule of Equity Method Investments [Line Items]
Investment and advances	$ 1,567	$ 1,567
Reserves and allowances	$ (1,567)	$ (1,567)
Investment and advances
Receivables	$ 945	$ 782
Reserves and allowances
Receivables	$ 945	$ 782
Kremeworks LLC [Member]
Schedule of Equity Method Investments [Line Items]
Company Ownership Percentage	25.00%	25.00%
Investment and advances	$ 900	$ 900
Receivables	$ 487	$ 353
Kremeworks Canada LP [Member]
Schedule of Equity Method Investments [Line Items]
Company Ownership Percentage	24.50%	24.50%
Investment and advances	$ 667	$ 667
Receivables	$ 43	$ 30
Krispy Kreme South Florida LLC [Member]
Schedule of Equity Method Investments [Line Items]
Company Ownership Percentage	35.30%	35.30%
Investment and advances
Receivables	$ 415	$ 399

Investments in Franchisees (Nar

Investments in Franchisees (Narrative) (Details) - Aug. 02, 2015	USD ($)franchises
Schedule of Equity Method Investments [Line Items]
Number of investments in franchisees	3
Kremeworks, LLC and Kremeworks Canada, LP [Member]
Schedule of Equity Method Investments [Line Items]
Accrued but uncollected interest on advances | $	$ 375,000

Credit Facility and Lease Obl43

Credit Facility and Lease Obligations (Schedule of Lease Obligations) (Details) - USD ($) $ in Thousands	Aug. 02, 2015	Feb. 01, 2015
Lease obligations:
Lease obligations	$ 11,580	$ 9,687
Less: current portion	(328)	(333)
Lease obligations, less current portion	11,252	9,354
Capital lease obligations [Member]
Lease obligations:
Lease obligations	2,784	2,940
Assets Under Financing Obligations [Member]
Lease obligations:
Lease obligations	$ 8,796	$ 6,747

Credit Facility and Lease Obl44

Credit Facility and Lease Obligations (2013 Revolving Credit Facility) (Details) $ in Millions	6 Months Ended
	Aug. 02, 2015USD ($)	Jul. 12, 2013USD ($)
Credit Facility and Lease Obligations [Abstract]
Letters of credit outstanding	$ 8.7	$ 9.2
2013 Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Issuance date	Jul. 12, 2013
Debt maturity date	Jul. 12, 2018
Maximum borrowing capacity	$ 40
Available borrowing capacity	$ 31.3
Spread over variable rate	1.25%
Description of variable rate basis	greatest of the prime rate, the Fed funds rate plus 0.50%, or the one-month LIBOR rate plus 1.00%
Fee on unused portion	0.15%
Leverage ratio	0.3
Fixed charge coverage ratio	3.8
Default triggering event	$ 5
2013 Revolving Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Fee on unused portion	0.15%
Fixed charge coverage ratio	1.3
2013 Revolving Credit Facility [Member] | Minimum [Member] | LIBOR [Member]
Line of Credit Facility [Line Items]
Spread over variable rate	1.25%
2013 Revolving Credit Facility [Member] | Minimum [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Spread over variable rate	0.25%
2013 Revolving Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Fee on unused portion	0.35%
Leverage ratio	2.25
2013 Revolving Credit Facility [Member] | Maximum [Member] | LIBOR [Member]
Line of Credit Facility [Line Items]
Spread over variable rate	2.15%
2013 Revolving Credit Facility [Member] | Maximum [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Spread over variable rate	1.15%

Commitments and Contingencies (

Commitments and Contingencies (Narratives) (Details) - USD ($) $ in Millions	6 Months Ended
	Aug. 02, 2015	Jul. 12, 2013
Loss Contingencies [Line Items]
Letters of Credit Outstanding, Amount	$ 8.7	$ 9.2
K2 Asia Litigation [Member]
Loss Contingencies [Line Items]
Loss Contingency, Actions Taken by Plaintiff	On April 7, 2009, a Cayman Islands corporation, K2 Asia Ventures, and its owners filed a lawsuit in Forsyth County, North Carolina Superior Court against the Company, its franchisee in the Philippines, and other persons associated with the franchisee. The suit alleges that the Company and the other defendants conspired to deprive the plaintiffs of claimed “exclusive rights” to negotiate franchise and development agreements with prospective franchisees in the Philippines, and seeks unspecified damages. The Company therefore does not know the amount or range of possible loss related to this matter. The Company believes that these allegations are false and intends to vigorously defend against the lawsuit. On July 26, 2013, the Superior Court dismissed the Philippines-based defendants for lack of personal jurisdiction, and the plaintiffs noticed an appeal of that decision. On January 22, 2015, the North Carolina Supreme Court denied the plaintiffs’ request to review the case. The Company moved for summary judgment on May 7, 2015 and is awaiting a decision by the Superior Court.

Shareholders' Equity (Allocatio

Shareholders' Equity (Allocation of Share-based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	$ 1,665	$ 1,040	$ 3,662	$ 2,207
Direct Operating Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	767	460	1,795	1,163
General and Administration Expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	898	580	1,867	1,044
Stock Options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	295	226	618	561
Restricted Stock Units [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	$ 1,370	$ 814	$ 3,044	$ 1,646

Shareholders' Equity (Repurchas

Shareholders' Equity (Repurchases of Common Stock) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		25 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015
Shareholders' Equity [Abstract]
Shares repurchased under share repurchase authorizations, shares	1,494,000	403,000	1,885,000	1,840,000	5,307,149
Shares surrendered in reimbursement for withholding taxes, shares	13,000	21,000	24,000	21,000
Repurchases of common shares, shares	1,507,000	424,000	1,909,000	1,861,000
Shares repurchased under share repurchase authorizations	$ 26,883	$ 7,304	$ 34,311	$ 32,439	$ 95,900
Shares surrendered in reimbursement for withholding taxes	223	334	420	334
Repurchase of common shares	$ 27,106	$ 7,638	$ 34,731	$ 32,773

Shareholders' Equity (Narrative

Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		25 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Feb. 02, 2014
Equity Disclosure [Line Items]
Authorization amount for repurchases of common stock	$ 155,000		$ 155,000		$ 155,000	$ 50,000
Shares repurchased under share repurchase authorizations, shares	1,494,000	403,000	1,885,000	1,840,000	5,307,149
Shares repurchased under share repurchase authorization, average price per share					$ 18.07
Value of shares repurchased under share repurchase authorization	$ 26,883	$ 7,304	$ 34,311	$ 32,439	$ 95,900
Repurchases settled during the period			32,900	$ 34,600
Amount remaining under repurchase authorization	$ 59,100		$ 59,100		$ 59,100

Impairment Charges and Lease 49

Impairment Charges and Lease Termination Costs (Schedule of Impairment Charges and Lease Termination Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Impairment Charges and Lease Termination Costs [Abstract]
Impairment of long-lived assets	$ 343		$ 343
Lease termination costs:
Provision for lease termination costs	71	$ 40	75	$ 48
Less - reversal of previously recorded accrued rent expense	(110)	(2)	(110)	(2)
Net provision	(39)	38	(35)	46
Total impairment charges and lease termination costs	$ 304	$ 38	$ 308	$ 46

Impairment Charges and Lease 50

Impairment Charges and Lease Termination Costs (Narrative) (Details)	Aug. 02, 2015USD ($)
Loss Contingencies [Line Items]
Current portion of lease termination costs	$ 121,000

Impairment Charges and Lease 51

Impairment Charges and Lease Termination Costs (Schedule of Lease Termination Liability) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Lease Termination Costs [Roll Forward]
Balance at beginning of period	$ 85	$ 167	$ 116	$ 178
Provision for lease termination costs:
Provisions associated with leased properties, net of estimated sublease rentals	57	44	57	44
Adjustments to previously recorded provisions resulting from settlements with lessors and adjustments of previous estimates	12	(10)	13	(5)
Accretion of discount	2	6	5	9
Total provision	71	40	75	48
Payments on unexpired leases, including settlements with lessors	(35)	(31)	(70)	(50)
Balance at end of period	$ 121	$ 176	$ 121	$ 176

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014	Feb. 01, 2015
Income Taxes [Abstract]
Effective income tax rate	43.70%	40.20%	40.20%	40.60%
Tax effect of change in tax rate	$ 467,000
Valuation allowance	$ 2,500,000		$ 2,500,000		$ 2,600,000

Fair Value Measurements (Assets

Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands	Aug. 02, 2015	Feb. 01, 2015
Liabilities:
Commodity futures contracts	$ 1,279	$ 1,811
Recurring [Member] | Level 1 [Member]
Assets:
401(k) mirror plan assets	2,335	2,496
Liabilities:
Total liabilities	1,279	1,811
Recurring [Member] | Level 1 [Member] | Agricultural Commodity Futures Contracts [Member]
Liabilities:
Commodity futures contracts	502	874
Recurring [Member] | Level 1 [Member] | Gasoline Commodity Futures Contracts [Member]
Liabilities:
Commodity futures contracts	$ 777	$ 937
Recurring [Member] | Level 2 [Member]
Assets:
401(k) mirror plan assets
Liabilities:
Total liabilities
Recurring [Member] | Level 2 [Member] | Agricultural Commodity Futures Contracts [Member]
Liabilities:
Commodity futures contracts
Recurring [Member] | Level 2 [Member] | Gasoline Commodity Futures Contracts [Member]
Liabilities:
Commodity futures contracts
Recurring [Member] | Level 3 [Member]
Assets:
401(k) mirror plan assets
Liabilities:
Total liabilities
Recurring [Member] | Level 3 [Member] | Agricultural Commodity Futures Contracts [Member]
Liabilities:
Commodity futures contracts
Recurring [Member] | Level 3 [Member] | Gasoline Commodity Futures Contracts [Member]
Liabilities:
Commodity futures contracts

Fair Value Measurements (Asse54

Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Assets, Fair Value Disclosure [Abstract]
Total gain (loss)	$ (343)		$ (343)
Fair Value, Measurements, Nonrecurring [Member] | Carrying Value [Member]
Assets, Fair Value Disclosure [Abstract]
Long-lived assets	$ 437		$ 437
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value [Member]
Assets, Fair Value Disclosure [Abstract]
Long-lived assets
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value [Member]
Assets, Fair Value Disclosure [Abstract]
Long-lived assets	$ 94		$ 94
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value [Member]
Assets, Fair Value Disclosure [Abstract]
Long-lived assets

Fair Value Measurements (Fair V

Fair Value Measurements (Fair Values of Financial Instruments at Balance Sheet Dates) (Details) - USD ($) $ in Thousands	Aug. 02, 2015	Feb. 01, 2015
Liabilities:
Commodity futures contracts	$ 1,279	$ 1,811
Carrying Value [Member]
Assets:
Cash and cash equivalents	44,105	50,971
Receivables	28,704	27,799
Receivables from equity method franchisees	945	782
Liabilities:
Accounts payable	18,929	17,095
Lease obligations (including current portion)	11,580	9,687
Carrying Value [Member] | Agricultural Commodity Futures Contracts [Member]
Liabilities:
Commodity futures contracts	502	874
Carrying Value [Member] | Gasoline Commodity Futures Contracts [Member]
Liabilities:
Commodity futures contracts	777	937
Fair Value [Member]
Assets:
Cash and cash equivalents	44,105	50,971
Receivables	28,704	27,799
Receivables from equity method franchisees	945	782
Liabilities:
Accounts payable	18,929	17,095
Lease obligations (including current portion)	11,580	9,687
Fair Value [Member] | Agricultural Commodity Futures Contracts [Member]
Liabilities:
Commodity futures contracts	502	874
Fair Value [Member] | Gasoline Commodity Futures Contracts [Member]
Liabilities:
Commodity futures contracts	$ 777	$ 937

Derivative Instruments (Narrati

Derivative Instruments (Narrative) (Details) - 6 months ended Aug. 02, 2015 lb in Millions, gal in Millions	lbbugal
Wheat Commodity Contracts [Member]
Derivative [Line Items]
Aggregate contract volume	880,000
Soybean Oil Contracts [Member]
Derivative [Line Items]
Aggregate contract mass | lb	1.5
Gasoline Commodity Futures Contracts [Member]
Derivative [Line Items]
Aggregate contract volume | gal	2.6

Derivative Instruments (Fair Va

Derivative Instruments (Fair Value by Balance Sheet Location) (Details) - USD ($) $ in Thousands	Aug. 02, 2015	Feb. 01, 2015
Derivatives, Fair Value [Line Items]
Commodity futures contracts	$ 1,279	$ 1,811
Accrued Liabilities [Member] | Agricultural Commodity Futures Contracts [Member]
Derivatives, Fair Value [Line Items]
Commodity futures contracts	502	874
Accrued Liabilities [Member] | Gasoline Commodity Futures Contracts [Member]
Derivatives, Fair Value [Line Items]
Commodity futures contracts	$ 777	$ 937

Derivative Instruments (Effect

Derivative Instruments (Effect of Derivative Instuments by Income Statement Location) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2015	Aug. 03, 2014	Aug. 02, 2015	Aug. 03, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Derivative Gain or (Loss) Recognized in Income	$ (841)	$ (1,341)	$ (394)	$ 103
Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in income	(841)	(1,341)	(394)	103
Gains and Losses on Commodity Derivatives, Net [Member] | Agricultural Commodity Futures Contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in income	(71)	$ (1,341)	(406)	$ 103
Gains and Losses on Commodity Derivatives, Net [Member] | Gasoline Commodity Futures Contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in income	$ (770)		$ 12

Acquisitions and Divestitures59

Acquisitions and Divestitures (Acquisition of Krispy Kreme Shops) (Details)	Apr. 23, 2015USD ($)	Jun. 17, 2014USD ($)stores	Dec. 31, 2013USD ($)stores	Aug. 03, 2014USD ($)	Aug. 02, 2015USD ($)	Aug. 03, 2014USD ($)	Feb. 01, 2015USD ($)	Feb. 02, 2014USD ($)
Business Acquisition [Line Items]
Payments to acquire businesses, net of cash acquired					$ 312,000	$ 7,152,000
Little Rock Acquisition [Member]
Business Acquisition [Line Items]
Net sales							$ 2,700,000
Payments to acquire businesses, net of cash acquired	$ 312,000
Property and equipment	252,000
Inventory	27,000
Reacquired franchise rights	137,000
Unfavorable lease liability	$ 104,000
Illinois Store Acquisition [Member]
Business Acquisition [Line Items]
Net sales								$ 3,000,000
Number of stores acquired | stores			1
Payments to acquire businesses, net of cash acquired			$ 1,600,000
Birmingham, Alabama Store Acquisition [Member]
Business Acquisition [Line Items]
Net sales								$ 9,000,000
Number of stores acquired | stores		4
Acquisition expenses				$ 431,000		431,000
Settlement of pre-existing franchise agreement				343,000		343,000
Acquisition-related transaction costs				88,000		88,000
Cash consideration for acquisition		$ 7,500,000
Property and equipment				710,000		710,000
Birmingham, Alabama Store Acquisition [Member] | Company Stores [Member]
Business Acquisition [Line Items]
Reacquired franchise rights				$ 3,853,000		$ 3,853,000

Acquisitions and Divestitures60

Acquisitions and Divestitures (Schedule of Acquired Business) (Details) - Birmingham, Alabama Store Acquisition [Member] $ in Thousands	Aug. 03, 2014USD ($)
Purchase price allocated to:
Working capital, exclusive of cash	$ (5)
Property and equipment	710
Purchase price	7,152
Company Stores [Member]
Purchase price allocated to:
Reacquired franchise rights	3,853
Goodwill	$ 2,594

Acquisitions and Divestitures61

Acquisitions and Divestitures (Asset Divestitures) (Details) $ in Thousands	Sep. 09, 2014USD ($)stores	Aug. 02, 2015USD ($)	Aug. 03, 2014USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of equipment		$ (87)	$ (99)
Maryland Divestiture [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from refranchising	$ 1,800
Gain on refranchising transaction	$ 1,200
Future store locations required | stores	20