Krispy Kreme : Jim Morgan To Transition To Non-Executive Chairman; Names New CEO

(RTTNews) - Krispy Kreme Doughnuts Inc. (KKD) announced that James Morgan, age 67, will transition from Executive Chairman of the Board of Directors of the Company to non-executive Chairman effective January 29, 2015.

Morgan served as President and Chief Executive Officer of the Company from January 2008 until June 2014. He has served on the Company's Board of Directors since 2000 and has served as Chairman of the Board since 2005.

As part of its executive succession plan, the Company appointed Tony Thompson as its new President and Chief Executive Officer effective June 1, 2014, at which time Mr. Morgan became Executive Chairman. Morgan's transition to non-executive Chairman completes the succession plan.

Robert McCoy, Jr. will continue as the Board's lead independent director, a position he has held since 2008.

The company expects to record a charge to earnings in the fourth quarter of fiscal 2015 (ending February 1, 2015) for payments to be made pursuant to the terms of Morgan's employment agreement.

The company noted that the charge is not expected to have any effect on adjusted net income or adjusted earnings per share. Accordingly, the company reaffirmed its forecast of adjusted net income for fiscal 2015 of between $48 million and $51 million or $0.69 to $0.74 per share. 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.