Krispy Kreme Doughnuts (KKD)

FORWARD-LOOKING STATEMENTS

     This quarterly report contains statements about future events and expectations, including our business strategy and trends in or expectations regarding the Company’s operations, financing abilities and planned capital expenditures that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. The words “believe,” “may,” “will,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive” or similar words, or the negative of these words, identify forward-looking statements. Factors that could contribute to these differences include, but are not limited to:

• the outcome of pending governmental investigations, including by the Securities and Exchange Commission (the “SEC”) and the United States Attorney’s Office for the Southern District of New York;
   
• potential indemnification obligations and limitations of our director and officer liability insurance;
   
• the quality of Company and franchise store operations;
   
• our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans;
   
• our relationships with our franchisees;
   
• our ability to implement our international growth strategy;
   
• our ability to implement our new domestic operating model and refranchising strategy;
   
• currency, economic, political and other risks associated with our international operations;
   
• the price and availability of raw materials needed to produce doughnut mixes and other ingredients;
   
• compliance with government regulations relating to food products and franchising;
   
• our relationships with wholesale customers;
   
• our ability to protect our trademarks;
   
• risks associated with our high levels of indebtedness;
   
• restrictions on our operations and compliance with covenants contained in our secured credit facilities;
   
• changes in customer preferences and perceptions;
   
• significant changes in our management;
   
• risks associated with competition; and

3

FORWARD-LOOKING STATEMENTS

     This quarterly report contains statements about future events and expectations, including our business strategy and trends in or expectations regarding the Company’s operations, financing abilities and planned capital expenditures that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. The words “believe,” “may,” “will,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive” or similar words, or the negative of these words, identify forward-looking statements. Factors that could contribute to these differences include, but are not limited to:

• the outcome of pending governmental investigations, including by the Securities and Exchange Commission (the “SEC”) and the United States Attorney’s Office for the Southern District of New York;
   
• potential indemnification obligations and limitations of our director and officer liability insurance;
   
• the quality of Company and franchise store operations;
   
• our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans;
   
• our relationships with our franchisees;
   
• our ability to implement our international growth strategy;
   
• our ability to implement our new domestic operating model and refranchising strategy;
   
• currency, economic, political and other risks associated with our international operations;
   
• the price and availability of raw materials needed to produce doughnut mixes and other ingredients;
   
• compliance with government regulations relating to food products and franchising;
   
• our relationships with wholesale customers;
   
• our ability to protect our trademarks;
   
• risks associated with our high levels of indebtedness;
   
• restrictions on our operations and compliance with covenants contained in our secured credit facilities;
   
• changes in customer preferences and perceptions;
   
• significant changes in our management;
   
• risks associated with competition; and
   
• other factors in Krispy Kreme’s periodic reports and other information filed with the SEC, including under Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2008 (the “2008 Form 10-K”).

3

FORWARD-LOOKING STATEMENTS

     This quarterly report contains statements about future events and expectations, including our business strategy and trends in or expectations regarding the Company’s operations, financing abilities and planned capital expenditures that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. The words “believe,” “may,” “will,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive” or similar words, or the negative of these words, identify forward-looking statements. Factors that could contribute to these differences include, but are not limited to:

• the outcome of pending governmental investigations, including by the Securities and Exchange Commission (the “SEC”) and the United States Attorney’s Office for the Southern District of New York;
   
• potential indemnification obligations and limitations of our director and officer liability insurance;
   
• the quality of Company and franchise store operations;
   
• our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans;
   
• our relationships with our franchisees;
   
• our ability to implement our international growth strategy;
   
• our ability to implement our new domestic operating model and refranchising strategy;
   
• currency, economic, political and other risks associated with our international operations;
   
• the price and availability of raw materials needed to produce doughnut mixes and other ingredients;
   
• compliance with government regulations relating to food products and franchising;
   
• our relationships with wholesale customers;
   
• our ability to protect our trademarks;
   
• risks associated with our high levels of indebtedness;
   
• restrictions on our operations and compliance with covenants contained in our secured credit facilities;
   
• changes in customer preferences and perceptions;
   
• significant changes in our management;
   
• risks associated with competition; and
   
• other factors in Krispy Kreme’s periodic reports and other information filed with the SEC, including under Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2008 (the “2008 Form 10-K”). 

3

FORWARD-LOOKING STATEMENTS

     This Annual Report on Form 10-K contains statements about future events and expectations, including our business strategy and trends in or expectations regarding the Company’s operations, financing abilities and planned capital expenditures that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. The words “believe,” “may,” “will,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive” or similar words, or the negative of these words, identify forward-looking statements. Factors that could contribute to these differences include, but are not limited to:

• the outcome of pending governmental investigations, including by the Securities and Exchange
  Commission (the “SEC”) and the United States Attorney’s Office for the Southern District of New York;
   
• potential indemnification obligations and limitations of our director and officer liability insurance;
   
• the quality of Company and franchise store operations;
   
• our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans;
   
• our relationships with our franchisees;
   
• our ability to implement our international growth strategy;
   
• our ability to implement our new domestic operating model and refranchising strategy;
   
• currency, economic, political and other risks associated with our international operations;
   
• the price and availability of raw materials needed to produce doughnut mixes and other ingredients;
   
• compliance with government regulations relating to food products and franchising;
   
• our relationships with wholesale customers;
   
• our ability to protect our trademarks;
   
• risks associated with our high levels of indebtedness;
   
• restrictions on our operations and compliance with covenants contained in our secured credit facilities;
   
• changes in customer preferences and perceptions;
   
• significant changes in our management;
   
• risks associated with competition; and
   
• other factors discussed below in Item 1A, “Risk Factors” and in Krispy Kreme’s periodic reports and other information filed with the SEC.

FORWARD-LOOKING STATEMENTS

     This Annual
Report on Form 10-K contains statements about future events and expectations,
including our business strategy and trends in or expectations regarding the
Company’s operations, financing abilities and planned capital expenditures that
constitute “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are based
on management’s beliefs, assumptions and expectations of our future economic
performance, considering the information currently available to management.
These statements are not statements of historical fact. Forward-looking
statements involve risks and uncertainties that may cause our actual results,
performance or financial condition to differ materially from the expectations of
future results, performance or financial condition we express or imply in any
forward-looking statements. The words “believe,” “may,” “will,” “should,”
“anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive” or
similar words, or the negative of these words, identify forward-looking
statements. Factors that could contribute to these differences include, but are
not limited to:

• the outcome of pending governmental
  investigations, including by the Securities and Exchange
  Commission (the “SEC”) and the United States Attorney’s
  Office for the Southern District of New York;
   
  
• potential indemnification obligations and
  limitations of our director and officer liability insurance;
   
  
• the quality of Company and franchise store
  operations;
   
  
• our ability, and our dependence on the ability of
  our franchisees, to execute on our and their business plans;
   
  
• our relationships with our
  franchisees;
   
  
• our ability to implement our international growth
  strategy;
   
  
• our ability to implement our new domestic
  operating model and refranchising strategy;
   
  
• currency, economic, political and other risks
  associated with our international operations;
   
  
• the price and availability of raw materials needed
  to produce doughnut mixes and other ingredients;
   
  
• compliance with government regulations relating to
  food products and franchising;
   
  
• our relationships with wholesale
  customers;
   
  
• our ability to protect our
  trademarks;
   
  
• risks associated with our high levels of
  indebtedness;
   
  
• restrictions on our operations and compliance with
  covenants contained in our secured credit facilities;
   
  
• changes in customer preferences and
  perceptions;
   
  
• significant changes in our
  management;
   
  
• risks associated with competition;
  and
   
  
• other factors discussed below in Item 1A, “Risk
  Factors” and in Krispy Kreme’s periodic reports and other information filed with the SEC.

FORWARD-LOOKING STATEMENTS

     This quarterly report contains statements about future events and expectations, including our business strategy, remediation plans with respect to internal controls and trends in or expectations regarding the Company’s operations, financing abilities and planned capital expenditures that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. The words “believe,” “may,” “will,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive” or similar words, or the negative of these words, identify forward-looking statements. Factors that could contribute to these differences include, but are not limited to:

• the outcome of pending governmental investigations, including by the United States Securities and Exchange Commission (the “Commission”) and the United States Attorney’s Office for the Southern District of New York;
   
• potential indemnification obligations and limitations of our director and officer liability insurance;
   
• material weaknesses in our internal control over financial reporting;
   
• our ability to implement remedial measures necessary to improve our processes and procedures;
   
• the quality of Company and franchise store operations;
   
• our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans;
   
• our relationships with our franchisees;
   
• our ability to implement our international growth strategy;
   
• currency, economic, political and other risks associated with our international operations;
   
• the price and availability of raw materials needed to produce doughnut mixes and other ingredients;
   
• compliance with government regulations relating to food products and franchising;
   
• our relationships with wholesale customers;
   
• our ability to protect our trademarks;
   
• risks associated with our high levels of indebtedness;
   
• restrictions on our operations and compliance with covenants contained in our secured credit facilities;
   
• changes in customer preferences and perceptions;
   
• significant changes in our management;
   
• risks associated with competition; and
   
• other factors in Krispy Kreme’s periodic reports and other information filed with the Commission, including under Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2007 (the “2007 Form 10-K”).

3

FORWARD-LOOKING STATEMENTS

     This quarterly report contains statements about future events and expectations, including our business strategy, remediation plans with respect to internal controls and trends in or expectations regarding the Company’s operations, financing abilities and planned capital expenditures that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. The words “believe,” “may,” “will,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive” or similar words, or the negative of these words, identify forward-looking statements. Factors that could contribute to these differences include, but are not limited to:

• the outcome of pending governmental investigations, including by the United States Securities and Exchange Commission (the “Commission”) and the United States Attorney’s Office for the Southern District of New York;
   
• potential indemnification obligations and limitations of our director and officer liability insurance;
   
• material weaknesses in our internal control over financial reporting;
   
• our ability to implement remedial measures necessary to improve our processes and procedures;
   
• the quality of Company and franchise store operations;
   
• our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans;
   
• disputes with our franchisees;
   
• our ability to implement our international growth strategy;
   
• currency, economic, political and other risks associated with our international operations;
   
• the price and availability of raw materials needed to produce doughnut mixes and other ingredients;
   
• compliance with government regulations relating to food products and franchising;
   
• our relationships with wholesale customers;
   
• our ability to protect our trademarks;
   
• risks associated with our high levels of indebtedness;
   
• restrictions on our operations contained in our secured credit facilities;
   
• changes in customer preferences and perceptions;
   
• significant changes in our management;
   
• risks associated with competition; and
   
• other factors in Krispy Kreme’s periodic reports and other information filed with the Commission, including under Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2007 (the “2007 Form 10-K”).

3

FORWARD-LOOKING STATEMENTS

     This quarterly report contains statements about future events and expectations, including our business strategy, remediation plans with respect to internal controls and trends in or expectations regarding the Company’s operations, financing abilities and planned capital expenditures that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. The words “believe,” “may,” “will,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive” or similar words, or the negative of these words, identify forward-looking statements. Factors that could contribute to these differences include, but are not limited to:

• the outcome of pending governmental investigations, including by the Securities and Exchange Commission (the “Commission”) and the United States Attorney’s Office for the Southern District of New York;
   
• potential indemnification obligations and limitations of our director and officer liability insurance;
   
• material weaknesses in our internal control over financial reporting;
   
• our ability to implement remedial measures necessary to improve our processes and procedures;
   
• the quality of franchise store operations;
   
• our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans;
   
• disputes with our franchisees;
   
• our ability to implement our international growth strategy;
   
• currency, economic, political and other risks associated with our international operations;
   
• the price and availability of raw materials needed to produce doughnut mixes and other ingredients;
   
• compliance with government regulations relating to food products and franchising;
   
• our relationships with wholesale customers;
   
• our ability to protect our trademarks;
   
• risks associated with our high levels of indebtedness;
   
• restrictions on our operations contained in our secured credit facilities;
   
• changes in customer preferences and perceptions;
   
• significant changes in our management;
   
• risks associated with competition; and
   
• other factors in Krispy Kreme’s periodic reports and other information filed with the Commission, including under Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2007 (the “2007 Form 10-K”).

3

FORWARD-LOOKING STATEMENTS

     This Annual Report on Form 10-K contains statements about future events and expectations, including our business strategy, remediation plans with respect to internal controls and trends in or expectations regarding the Company’s operations, financing abilities and planned capital expenditures that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. The words “believe,” “may,” “will,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive” or similar words, or the negative of these words, identify forward-looking statements. Factors that could contribute to these differences include, but are not limited to:

• the outcome of pending governmental investigations, including by the Securities and Exchange Commission and the United States Attorney’s Office for the Southern District of New York;
   
• potential indemnification obligations and limitations of our director and officer liability insurance;
   
• material weaknesses in our internal control over financial reporting;
   
• our ability to implement remedial measures necessary to improve our processes and procedures;
   
• the quality of franchise store operations;
   
• our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans;
   
• disputes with our franchisees;
   
• our ability to implement our international growth strategy;
   
• currency, economic, political and other risks associated with our international operations;
   
• the price and availability of raw materials needed to produce doughnut mixes and other ingredients;
   
• compliance with government regulations relating to food products and franchising;
   
• our relationships with wholesale customers;
   
• our ability to protect our trademarks;
   
• risks associated with our high levels of indebtedness;
   
• restrictions on our operations contained in our senior secured credit facilities;
   
• changes in customer preferences and perceptions;
   
• significant changes in our management;
   
• risks associated with competition; and
   
• other factors discussed below in Item 1A, “Risk Factors” and in Krispy Kreme’s periodic reports and other information filed with the Securities and Exchange Commission.