WINSTON-SALEM, N.C. (AP) — Krispy Kreme has signed a deal with a VA! Group subsidiary to open 25 of its doughnut shops over the next five years in Colombia, its first development deal in South America. Financial terms were not disclosed.
Food service company IRCC Ltda. will open stores in major cities such as Bogota, Medellin and Barranquilla. IRCC is based in Bogota.
"Colombia offers Krispy Kreme an attractive opportunity with its growing economy and long customer experience with international brands," Jeff Welch, Krispy Kreme president— International, said in a statement on Wednesday.
Krispy Kreme Doughnuts Inc. already nearly 800 shops globally, including in countries such as Australia, Canada, Japan, Mexico, Russia, Thailand, Turkey, the U.K. and the U.S.
Last month Krispy Kreme, which is based in Winston-Salem, N.C., reported a second-quarter profit that missed analysts' estimates but its revenue topped Wall Street's view.
Krispy Kreme shares finished at $19.70 on Tuesday. They have fallen 16 percent since hitting a high for the past year of $23.57 per share in mid-August.