Industry News | April 25, 2007

Krispy Kreme CFO Leaving

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Krispy Kreme Doughnuts, Inc. announced yesterday the following changes in its Board of Directors and transitions in the chief financial officer and general counsel positions.

Robert L. (Bob) Strickland has retired from the Krispy Kreme Board of Directors effective immediately preceding the Annual Meeting of Shareholders on June 4. Strickland has served on Krispy Kreme's board of directors for more than eight years and was elected vice chairman in 2005.

The company also announced that its board of directors nominated two industry veterans, Lynn Crump-Caine and C. Stephen Lynn, to the Krispy Kreme board of directors for election at the June 4 Annual Meeting of Shareholders.

Crump-Caine is currently the CEO of OutsideIn Consulting, an organizational performance and strategy development consulting firm she founded in 2004. Previously, she worked for McDonald's Corporation for more than thirty years, and held several executive positions within McDonald's, including executive vice president of U.S. Restaurant Systems and executive vice president of Worldwide Systems.

Lynn currently serves as Chairman of Cummings Inc., a fully integrated provider of branding services to national and regional clients. Previously, he served as chairman and CEO of Shoney's Inc., and chairman and CEO of Sonic Corporation.

"We cannot adequately thank Bob Strickland for his many years of dedicated service to Krispy Kreme," says Daryl Brewster, president and CEO of Krispy Kreme. "His commitment to this Company has been outstanding, and we appreciate his leadership as a director."

"As we go forward, having restaurant industry veterans with decades of experience like Lynn and Steve join our Board of Directors will add a wealth of expertise to an already strong group of corporate leaders," Brewster says.

The company also announced today that Michael C. Phalen, chief financial officer, has decided to leave the company and return to investment banking in Baltimore where, prior to joining the company, he spent approximately eight years of his career. Phalen has led financial operations at the company since January 2004. His resignation will be effective June 5, 2007. Douglas R. Muir, chief accounting officer, has been named as his successor. Muir joined the ompany in December 2004 and was instrumental in the organization becoming current with its Securities and Exchange Commission (SEC) filings.

"Krispy Kreme has made significant progress under Mike Phalen's leadership as chief financial officer," Brewster says. "Mike has helped lead the company through some difficult times, and we appreciate his hard work and dedication. We wish him continued success."

"Mike will hand over the chief financial officer responsibilities to a very capable successor, Doug Muir, who has been with Krispy Kreme for the past three years. Doug has held many senior financial management positions during his 30-year career, including having served as chief financial officer for a public company," Brewster says.

The company has also appointed Sandra K. (Sandy) Michel as its new executive vice president and general counsel. Michel replaces Charles A. (Chuck) Blixt who has served in the position on an interim basis since September 2006. Blixt will remain a member of the company's board of directors and is being nominated for reelection at the Annual Meeting. With more than 25 years of legal experience, Michel has served as general counsel for two public companies both listed on the New York Stock Exchange. Most recently, she served as senior vice president, general counsel and secretary for La Quinta Corporation, where she managed the legal department, directed franchise compliance operations, negotiated strategic acquisitions, and handled complex litigation matters.

"The addition of Sandy Michel to the Krispy Kreme legal team as general counsel is an important step as we continue to prepare for sustained growth," Brewster says. "Additionally, we appreciate the commitment and significant contribution Chuck Blixt has made. We are pleased to have Chuck remain on the board."

Brewster says, "It is encouraging that we are transitioning two very important executive positions and attracting industry veterans to our board of directors as we continue the Krispy Kreme turn around."