To: craig crawford who wrote (142374 ) 5/23/2002 10:22:54 AM From: H James Morris Respond to of 164684 May 23, 2002 CHARLOTTE, N.C. – Krispy Kreme Doughnuts Inc. said Thursday its earnings soared 55 percent in the first quarter, narrowly beating Wall Street forecasts. The Winston-Salem, N.C.-based company earned $8.9 million, or 15 cents a share, for the three months ended May 5, up from $5.7 million, or 10 cents a share, a year ago. The consensus forecast of analysts surveyed by Thomson Financial/First Call was for earnings of 14 cents per share. Total company revenue rose more than 26 percent to $111 million, up from $87.9 million in the same period last year. Systemwide sales at both company-owned and franchised stores increased 30 percent to $183.1 million from $140.4 million in the first quarter of fiscal 2002. "I am pleased with our first quarter results which provide us with a strong start for fiscal year 2003," said Scott Livengood, chairman, president and chief executive. "We achieved strong results across all major sales channels and across our store network." Krispy Kreme also said it expects to report earnings of 14 cents per share for the second quarter, 16 cents per share for the third quarter and 18 cents per share for the fourth quarter. Those estimates match the consensus forecast of Wall Street analysts. The company also said it plans to open 62 stores in 15 new markets this year, or three more than prior guidance. Krispy Kreme currently operates 222 stores in the United States and Canada. On Wednesday, Krispy Kreme said it has awarded a franchise to a nonprofit community development corporation in Greensboro. The store will be part of a new shopping center being developed near downtown Greensboro by the community development corporation Project Homestead, selling hot doughnuts and serving an expanded beverage line. Rev. Michael King, president of Project Homestead, called the franchise a major step toward self-sustainability for the nonprofit group. Krispy Kreme already has two other locations in Greensboro.