SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
February 7, 2003
KRISPY KREME DOUGHNUTS, INC.
(Exact name of registrant as specified in its charter)
North Carolina 001-16485 56-2169715
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
370 Knollwood Street
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Winston-Salem, North Carolina 27103
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (336) 725-2981
Item 5. Other Events
On February 10, 2003, Krispy Kreme Doughnuts, Inc. issued the press release
attached hereto as Exhibit 99.1 and incorporated by reference herein.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description
99.1 Press Release dated February 10, 2003
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
KRISPY KREME DOUGHNUTS, INC.
Dated: February 10, 2003 By: /s/ Randy S. Casstevens
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Name: Randy S. Casstevens
Title: Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release dated February 10, 2003
EXHIBIT 99.1
Investor Contact: Robbin E. Moore
Investor Relations Director
Krispy Kreme Doughnuts, Inc.
336.726.8857
Media Contact: Brooke Smith
Public Relations Director
Krispy Kreme Doughnuts, Inc.
336.726.8997
KRISPY KREME ANNOUNCES ARBITRATION RULING
WINSTON-SALEM, NC (FEBRUARY 10, 2003) - Krispy Kreme Doughnuts, Inc. (NYSE: KKD)
announced today that on Friday, February 7, 2003 an arbitration panel entered an
award against its franchisee in Northern California, Golden Gate Doughnuts, LLC,
and the Company in the amount of $7,925,000. This arbitration award originates
from a lawsuit filed in March 2000 in Superior Court in the State of California
regarding ownership rights of the franchise. Subsequently, the matter was heard
before an arbitration panel. The Company is evaluating the arbitration panel's
decision and is reviewing its options, including further utilization of the
legal process.
A final award is expected to be issued after the arbitration panel considers
additional costs and fees. As a result of this award, the Company will make a
provision in the fourth quarter of Fiscal Year 2003. This award poses no
liquidity or capital resource issues given the Company's substantial cash,
investment balances and unused borrowing capacity under its line of credit
facility which collectively are currently in excess of $80 million.
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 more than 270
stores in 37 states and Canada. An estimated 7.5 million Krispy Kreme doughnuts
are made everyday and more than 2.7 billion are produced each year. Krispy Kreme
can be found on the World Wide Web at www.krispykreme.com.
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INFORMATION CONTAINED IN THIS PRESS RELEASE, OTHER THAN HISTORICAL
INFORMATION, MAY BE CONSIDERED FORWARD-LOOKING IN NATURE AND IS 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, COMPETITION
AND NUMEROUS OTHER FACTORS DISCUSSED IN KRISPY KREME'S PERIODIC REPORTS, PROXY
STATEMENT AND OTHER INFORMATION STATEMENTS FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.