Krispy Kreme Executive Chairman Morgan To Transition To Non-executive Chairman

(RTTNews) - Krispy Kreme Doughnuts, Inc. (KKD) on Wednesday said Executive Chairman Jim Morgan will now transition to the role of non-executive chairman, effective January 29, 2015. The move will complete the company's executive succession plan that saw Antony Thompson succeeding Morgan as the new president and CEO on June 1, 2014.

"I know that I speak for everyone in the Krispy Kreme family in expressing my heartfelt appreciation to Jim for his exemplary service to the Company. Our entire community is grateful for his unwavering commitment to, and enthusiasm for, Krispy Kreme, and we look forward to his continued leadership as Chairman," Thompson said in a statement.

Morgan, age 67, had served as president and CEO from January 2008 until June 2014. He also has served as a director since 2000 and as chairman of the board since 2005.

Morgan has also served as president of Krispy Kreme in two stints from 2008 to November 2011 and from April 2012 to June 2014 as well as vice chairman of the board from 2004 to 2005.

Morgan joined Krispy Kreme after serving as chairman of investment management firm Covenant Capital, LLC from 2001 to 2008, chairman and CEO of Wachovia Securities, Inc. from April to December 1999; and in various capacities, including as chairman and CEO, at investment banking and brokerage firm Interstate/Johnson Lane from 1990 to 1999.

Krispy Kreme noted that Robert McCoy, Jr. will continue as the lead independent director of the board, a position he has held since 2008.

"Jim's transition to non-executive Chairman is a natural evolution of his role at Krispy Kreme, and we are appreciative of his ongoing commitment to the business as the leader of our board of directors," McCoy stated.

Additionally, Krispy Kreme said it expects to record a charge to earnings per share in the fourth quarter of fiscal 2015 related to the payments to be made with regard to the terms of Morgan's employment agreement.

However, the company reaffirms its adjusted net income for the full-year 2015 in the range of $0.69 to $0.74 per share as the charge is not expected to have any effect on adjusted earnings per share.

On average, four analysts polled by Thomson Reuters expect the company to report earnings of $0.72 per share for fiscal 2015. Analysts' estimates typically exclude special items.

In Wednesday's regular trading session, KKD is currently trading at $19.28, down $0.07 or 0.36% on a volume of 75,696 shares.