Milling & Baking News - January 20, 2015 - 10

Business 

New Krispy Kreme c.e.o. details
range of expansion opportunities
ORLANDO, FLA. - Less than eight
months into his tenure as president
and chief executive officer of Krispy
Kreme Doughnuts, Inc., Anthony N.
"Tony" Thompson continues to be impressed by the future prospects for the
Winston-Salem, N.C.-based company.
In December, Mr. Thompson, who
took the helm at Krispy Kreme on June
1, 2014, said the biggest surprise in his
first six months on the job was the fact
the company does as much or more
business after 2 p.m. as it does before 2
p.m. Then, in a Jan. 12 presentation at
the ICR XChange in Orlando, he said he
sees an "enormous" amount of opportunity for expansion for the company.
To capitalize on expansion opportunities, Krispy Kreme has developed a
three-pronged approach: infill, pursue
and evaluate.
He said Krispy Kreme will infill
by expanding with existing franchise
partners and growing out existing

company-owned markets, which allows Krispy Kreme to leverage its supply chain efficiencies and capitalize on
brand awareness.
"Recently we have announced addon agreements, including Southern
California, South Korea and Mexico,"
he said. "In addition,
we continue to expand
company markets, including Atlanta and
Jacksonville."
The company also is
pursuing new franchise
interest with a goal of Thompson
growing its footprint
in underpenetrated areas and new
markets, Mr. Thompson said. Recent
announcements include Dallas, Houston, Maryland, Northern Virginia and
Arkansas in the United States, and Colombia and Bangladesh internationally.
The third part of the company's expansion approach centers on evaluation.

Kellogg acquires controlling stake in
major biscuit company in Egypt
BATTLE CREEK, MICH. - The Kellogg Co. on Jan. 15 announced it has
completed the acquisition of an 86%
stake in Bisco Misr, the largest packaged biscuit manufacturer in Egypt.
Kellogg acquired control of the Cairobased company at a price of Egyptian
Pound 89.86 ($12.58 per share), or a
total cost of $125 million.
Kellogg emerged as the highest
bidder in a three-month mandatory
public tender process for Bisco Misr
through the Egyptian Stock Exchange.
With a history in the Egyptian market
dating back to the 1950s, Bisco was described by Kellogg as "one of the most
recognized baked goods companies in
Egypt." Its brands include Bisco Luxe,

Chico Chico and Bisco Wafers. The
company operates three manufactur-

ing plants, has approximately 3,300
employees and had annual sales of
about $70 million in 2013.
For Kellogg, the acquisition represents its latest push for a greater presence in non-U.S. markets.
"Bisco Misr is an excellent strategic
fit for Kellogg, and Egypt is a growing

Cosi attributes quarterly sales gain
to rising consumer confidence
BOSTON - System-wide comparable
restaurant sales at Cosi, Inc. increased
3.9% in the fourth quarter ended Dec.
29, 2014, boosted by a 4.2% gain in
company-owned sales during the period. Franchise sales increased 3.5%
during the fourth quarter.
"Cosi along with the rest of the
10 / January 20, 2015 Milling & Baking News

industry is benefiting from a tailwind
given rising consumer confidence, positive weather trends and a halo over the
fast casual segment," said R.J. Dourney,
president and chief executive officer
of Cosi. "At the same time, at Cosi we
have made tremendous strides in raising our guests' satisfaction, positively

"We will evaluate new markets, regions and areas where we have very
limited or no presence at all," Mr.
Thompson said. "We expect to announce new development agreements
over the coming quarters and years as
we continue to grow the pipeline."
Offering a glimpse at fiscal 2015
financial prospects, Mr. Thompson
said Krispy Kreme projects company
same-store sales will be positive, with
double-digit system-wide unit growth
with 20 to 35 net domestic openings
and 95 to 110 international openings. Total revenues are expected to
increase between 8% and 11% for the
year, while adjusted net income is
forecast between $55 million and $59
million, with adjusted earnings per
share of 79c to 85c.
"I could not be more excited about
the future of Krispy Kreme and our
tremendous growth opportunities,"
Mr. Thompson said. "We are well positioned with a solid business model, a
strong talented team, and an incredibly powerful brand to drive continued
success." MBN
market with a strong economy," said
John Bryant, chairman and chief executive officer of Kellogg. "A number
of Kellogg's cereals and snacks are already offered in the market, and the
combination of the powerful Bisco
Misr brands with Kellogg's iconic
brands provides a tremendous opportunity for growth."
Kellogg said Bisco's manufacturing capacity and "go-to-market infrastructure," together with Kellogg's
technology, marketing expertise and
well-recognized brands would help
strengthen both companies both in
Egypt and throughout North Africa.
Bisco's results will be consolidated
into Kellogg's corporate results. The
acquisition, which has been financed
with debt, is not expected by Kellogg
to have a material impact on its 2015
operating profit totals. MBN
impacting frequency of visits, and moving the brand forward. We believe we
are well positioned for 2015."
Cosi operates 64 company-owned
and 47 franchised restaurants in 16
states, the District of Columbia, the
United Arab Emirates and Costa Rica.
The fast casual restaurant chain's
menu features sandwiches, salads,
bowls, breakfast wraps, melts, soups,
flatbread pizzas, snacks, desserts, coffee and other specialty beverages. MBN
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Milling & Baking News - January 20, 2015

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