It seems as though this is a protection plan against a "hostile" takeover as stated in the AP article:
"Krispy Kreme's so-called "poison pill" plan limits the way the company's previous operating losses and other credits could be applied to future taxes if there were a change of ownership."
And the next line SHOULD read... "IF THE BOD determines the need for the "poison pill" to be put into action".
ie - IF...IF they were to receive an offer to buy the company then they have a provision in place that would TRUMP a LOW BALL offer if it were determined by the BOD to be insufficient. This reduces the risk that an acquirer would gain control of the company at a low ball price.
Smart move in light of the growth demonstrated over the last 3 years and the potential for the future.
If they were to get takeover offers - they want to make sure they are in a position of strength to maximize share holder value in any possible deal.