Krispy Kreme Reports Net Income for the Fourth Quarter and Breakeven Results for the Fiscal Year Ended January 31, 2010

Krispy Kreme Doughnuts, Inc. (NYSE: KKD) (the "Company") today reported financial results for the fourth quarter and fiscal year ended January 31, 2010 ("fiscal 2010").

Fourth Quarter Fiscal 2010 Highlights Compared to the Year-Ago Period:

• Revenues decreased 5.6% to $86.8 million from $91.9 million; approximately $1 million of the decrease was due to refranchising


• Company same store sales rose 1.1%, the 5th consecutive quarterly increase


• Operating income increased 65% to $2.4 million from $1.5 million (the results reflect impairment charges and lease termination costs in both periods of $2.0 million and $1.2 million, respectively)


• Net income was $0.5 million compared to a net loss of $0.3 million

• Revenues decreased 10.1% to $346.5 million from $385.5 million; approximately $8 million of the decrease was due to refranchising


• Company same store sales rose 3.5%


• Operating income more than doubled to $11.8 million from $4.8 million (the results reflect impairment charges and lease termination costs in both periods of $5.9 million and $0.5 million, respectively)


• Net loss was $0.2 million compared to a net loss of $4.1 million


• Cash provided by operating activities increased to $19.8 million from $16.6 million


• Reduced total debt by $31.4 million, to $43.4 million at year end