Winston-Salem, North Carolina-based Krispy Kreme Doughnuts Inc (KKD - Snapshot Report) recently announced the appointment of Kenneth A. May as its new President and Chief Operating Officer (COO), effective immediately. Mr. May will report to James H. Morgan, the Chairman and chief executive officer (CEO) of Krispy Kreme. Mr. May replaces Morgan who held the position of the company’s president since 2008.
Mr. May, aged 51 years, boasts an experience of more than 25 years in the field of retail, brand enhancement and supply chain. He also has knowledge of both domestic and international operations. Earlier, he served as the President of ES3, LLC, a logistics company and is also an ex- board member of P.F. Chang's China Bistro, Inc . Mr. May was also the chairman of the March of Dimes board of trustees in 2010.
May has played a key role in the growth of FedEx Corporation (FDX - Analyst Report), a US-based logistic services company. He joined FedEx in 1982 as a night-shift supervisor, and was promoted 13 times during his stay in the company. In 2006, Mr. May became the CEO of FedEx as he ensured the smooth integration of Kinko's operations into FedEx in 2004.
However, in 2008, May resigned from his position to reinvigorate his family and personal life. Mr. May then began his career as a part-time supervisor at the United Parcel Service (UPS - Analyst Report) and worked there for three years.
As the new COO of Krispy Kreme, May will be responsible for all the operating segments of the company. We remain optimistic regarding his appointment based on his rich experience and expect Krispy to prosper under his leadership.
Krispy Kreme is slated to release its third quarter 2012 results on November 30, 2011. The Zacks Consensus Estimate for the reported quarter is 6 cents. The estimates have not budged in the last 30 days, implying that the analysts do not see any near-term catalysts and expect the company to report in line.
Krispy Kreme expects to achieve the higher end of its operating outlook of $22 million to $24 million in 2012.
Krispy Kreme currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.
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