.... POINT OF VIEW This case is analyzed from the point of view of a third party consultant. II. PROBLEM There is inefficiency in the management of Krispy Kreme Doughnuts, Inc. in terms of its operations, marketing, accounting, and investment planning. III. OBJECTIVES a. To gradually gain back analysts’, investors’ and lenders’ confidence in the company in the succeeding months. b. To increase sales and profitability in terms of its core business, selling of doughnuts. c. To regain and increase stock price therefore increasing shareholder value. d. To correct inaccurate entries in the financial statements of KKD and to present a clean and unbiased reports. e. To extend further reach to consumers strategically to achieve significant growth in the next five years. f. To implement extensive marketing measures for its brand and products and investment strategy for both on and off premise operations. IV. AREAS OF CONSIDERATION • Fortune magazine had dubbed Krispy Kreme Doughnut, Inc. “the hottest brand in America.” With ambitious plans to open 500 doughnut shops over the first half of the decade. • The company generated revenues through four primary sources: on-premise retail sales at company owned stores (27% of revenues), off-premises sales to grocery and convenience stores (40%); manufacturing and distribution of product mix and machinery (29%); and franchise royalties and fees (4%). • Roughly 60% of sales at a Krispy Kreme store were derived...
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...Krispy Kreme DoughnutsQuestion 1: Analysts are predicting that Krispy Kreme will be able to perform highly effectively andcontinue to grow rapidly in the coming two years. Do you agree with their analysis? If so, why? If not,why not? Key factors underlying growth: 1.Brand based on high quality product, highly differentiated products, high-volume production2.Fragmented (regional) competition with less brand recognition3.Strong opportunities to extend network of stores geographically.4.Great steps to insure customer satisfaction from the use of their proprietary flour recipe totheir automated doughnut making machines. Question 2: What factors did the CIBC analysts examine to forecast sales growth for KKD in the yearsended January 2003 and 2004? What assumptions did they implicitly make about number of new storesand weekly sales per store (for both company and franchise stores)? What are their implicitassumptions about revenue growth from franchise operations and KKM&D? Do you agree with theseforecasts? Revenue Forecasts The CIBC analysts’ forecasts were constructed using per store information. • Company plans to add 62 new stores in 2003, mostly through area developers. • Revenues per new store: Initial boom, followed by leveling off. Also, not all new stores areopen for full year. • Revenue growth per new store has been impressive. Franchise store revenue growth is stillhigh, as the number of area developers increase, with store revenue patterns comparable tocompany...
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...case teaching note | 14 Krispy Kreme Doughnuts, Inc. Overview With 181 Krispy Kreme stores in 28 states, Krispy Kreme Doughnuts in 2001 was rapidly building something of a cult following for its light, warm, melt-in-your-mouth doughnuts. Sales were on an impressive climb, exceeding 3.5 million doughnuts a day. The company’s business model called for 20 percent annual revenue growth, mid-single digit comparable store sales growth, and 25 percent annual growth in earnings per share. Krispy Kreme had created a flurry of excitement with its expansion into metropolitan markets outside the Southeast—its grand openings in newly entered markets attracted long lines of customers and created traffic jams around its store sites. The first new store in San Diego racked up $365,000 in sales the first week, with 5 TV crews covering the opening day event. The first store in Denver produced first-week revenues of $369,000, drew 50,000 visitors, and had $1,000,000 in sales the first 22 days; the crowds were so large that three off-duty deputy sheriffs were hired to direct traffic from 5 a.m. to 11 p.m. during the Tuesday-Saturday period of grand opening week—one night there were 150 cars in line at the drive-thru window at 1:30 a.m. But despite the enthusiastic reception that Krispy Kreme stores were getting, a number of securities analysts were dubious whether the company’s strategy and growth potential merited a stock price nearly 70 times projected 2002 earnings...
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...case teaching note | 14 Krispy Kreme Doughnuts, Inc. Overview With 181 Krispy Kreme stores in 28 states, Krispy Kreme Doughnuts in 2001 was rapidly building something of a cult following for its light, warm, melt-in-your-mouth doughnuts. Sales were on an impressive climb, exceeding 3.5 million doughnuts a day. The company’s business model called for 20 percent annual revenue growth, mid-single digit comparable store sales growth, and 25 percent annual growth in earnings per share. Krispy Kreme had created a flurry of excitement with its expansion into metropolitan markets outside the Southeast—its grand openings in newly entered markets attracted long lines of customers and created traffic jams around its store sites. The first new store in San Diego racked up $365,000 in sales the first week, with 5 TV crews covering the opening day event. The first store in Denver produced first-week revenues of $369,000, drew 50,000 visitors, and had $1,000,000 in sales the first 22 days; the crowds were so large that three off-duty deputy sheriffs were hired to direct traffic from 5 a.m. to 11 p.m. during the Tuesday-Saturday period of grand opening week—one night there were 150 cars in line at the drive-thru window at 1:30 a.m. But despite the enthusiastic reception that Krispy Kreme stores were getting, a number of securities analysts were dubious whether the company’s strategy and growth potential merited a stock price nearly 70 times projected 2002 earnings per share of $0.69 and 85 times...
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...case teaching note | 14 Krispy Kreme Doughnuts, Inc. Overview With 181 Krispy Kreme stores in 28 states, Krispy Kreme Doughnuts in 2001 was rapidly building something of a cult following for its light, warm, melt-in-your-mouth doughnuts. Sales were on an impressive climb, exceeding 3.5 million doughnuts a day. The company’s business model called for 20 percent annual revenue growth, mid-single digit comparable store sales growth, and 25 percent annual growth in earnings per share. Krispy Kreme had created a flurry of excitement with its expansion into metropolitan markets outside the Southeast—its grand openings in newly entered markets attracted long lines of customers and created traffic jams around its store sites. The first new store in San Diego racked up $365,000 in sales the first week, with 5 TV crews covering the opening day event. The first store in Denver produced first-week revenues of $369,000, drew 50,000 visitors, and had $1,000,000 in sales the first 22 days; the crowds were so large that three off-duty deputy sheriffs were hired to direct traffic from 5 a.m. to 11 p.m. during the Tuesday-Saturday period of grand opening week—one night there were 150 cars in line at the drive-thru window at 1:30 a.m. But despite the enthusiastic reception that Krispy Kreme stores were getting, a number of securities analysts were dubious whether the company’s strategy and growth potential merited a stock price nearly 70 times projected 2002 earnings...
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...delusional. I do not believe it is truly possible to ever get away with anything. No man has a good enough memory to be a successful liar. Given the corporate ethical breaches in recent times, I will assess whether or not I believe that the current business and regulatory environment is more conducive to ethical behavior. I will say up front that as I start this paper I do not believe anything has improved in America or in the world ethically speaking. I say this with confidence but not with pride. After all we are all human and we all have a sin nature. I do not care if a person tells me they do not believe in God or if they tell me they do believe in God. Research has proven conclusively that all of us cheat. We essentially weigh everything based upon...
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...Krispy Kreme Doughnuts ACCT 6334. Taiwan – Auditing Fall 2013 Class Research Project STUDENT: Chien-Yun Tseng UTD ID# 2021195349 Table of Contents INTRODUCTION................................................................ 3 CHAPTER1. THE CLIENT ACCEPTANCE /CONTINUATION PROCESS, INCLUDING ESTABLISHING AN UNDERSTANDING WITH THE CLIENT ... 4 CHAPTER2. OBTAINING AN UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT, INCLUDING INTERNAL CONTROL .................................. 5 CHAPTER3. PRELIMINARY ENGAGEMENT ACTIVITIES ....................... 8 CHAPTER4. ASSESS RISKS AND ESTABLISH MATERIALITY ................. 9 CHAPTER5. CONSIDER INTERNAL CONTROL .................................... 10 CHAPTER6. PLAN THE AUDIT ............................................................ 13 CHAPTER7. COMPLETE THE AUDIT ................................................... 16 CHAPTER8. EVALUATE RESULTS AND ISSUE AN AUDIT REPORT .... 17 REFERENCE ............................................................................................. 18 INDEPENDENT AUDIT REPORT................................................................ 19 ENGAGEMENT LETTER………………………………………………………..20 FINANCIAL STATEMENT .......................................................................... 22 2 INTRODUCTION The history of the Krispy Kreme began in the mid 1930s...
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...Financial Statement Analysis Paper Starbucks Coffee Company SUMMARY/INTRODUCTION Starbucks identifies itself as “the premier roaster, marketer and retailer of specialty coffee in the world” and fits squarely in the Coffee Shop industry. According to the IBISWorld Industry Report 72221b (Coffee & Snack Shops in the US), the “industry is composed of establishments that prepare or serve specialty snacks and nonalcoholic beverages including ice cream, frozen yogurt, cookies, donuts, bagels, coffee, juices, smoothies and sodas.” This fits the profile of Starbucks perfectly. Porter’s Five Forces: Supplier Power: Starbucks, for instance, identifies as being susceptible to supply of their coffee beans, such as weather, natural disasters, crop disease, general increase in farm inputs and costs of production, inventory levels, and political and economic conditions; all of these have a significant impact on crop pricing. Reliance on a singular bulk commodity, namely coffee beans, leads to high exposure should there be any roadblocks in supply come up. Many of these factors are out of companies’ control, such as material interruption in service providers and distribution channels, increased trade taxation, shipping embargoes or customs restrictions, or any natural disasters which may threaten the supply chain. (Information sourced from Starbucks Fiscal Report, 2014) Threat of Substitutes (High): Aside from heavy competition from storefront competitors, coffee snack shops...
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...Krispy Kreme’s Dilemma Preston Bass David Braziel Tyler Bullock Adam Hefton Ryan Tarrant Corporate Finance 4360 Dr. Steve Rich Table of Contents Executive Summary 3 Introduction 4 Purpose, Scope and Limitations 4 Sources and Methods of Literary Search 5 Report Organization 5 Krispy Kreme’s Dilemma 6 Krispy Kreme’s Current Solutions 9 Recommendations 11 Appendix 1: Corporate Overview 14 Appendix 2: Graphs 17 Appendix 3: Income Statement 18 Appendix 4: Revenue Chart 19 Bibliography 20 EXECUTIVE SUMMARY The purpose of this report is to evaluate the current situation of Krispy Kreme Doughnuts, Inc. and to discuss the reasons for such status. We will also look at current strategies the company is taking to better the situation, and finally, submit some of our own recommendations for ways to maximize potential at Krispy Kreme. Currently, Krispy Kreme faces many obstacles in operations and capital structure. Recent SEC filing discrepancies have added to the existing lack of optimism among stockholders. In addition, it appears that the money from loans made by the company to franchises has not been repaid at any type of acceptable rate. One major reason for the decline in franchise sales is that Krispy Kreme has oversaturated the market. This is made evident by nearly a 20% decrease in same store sales for the last quarter of fiscal 2004. Also, the company has doubled...
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...Starbucks Corporation Company Profile 12/15/2011 Company Overview: Starbucks Corporation is a premier roaster and retailer of specialty coffee. The company operates in the US, Asia Pacific, the Europe Middle East Africa (EMEA) region, and Latin America. Starbucks is headquartered in Seattle, Washington and employs 137,000 people. The company recorded revenues of $10,707.4 million during the financial year ended September 2010* (FY2010), an increase of 9.5% over FY2009. The operating profit of the company was $1,419.4 million in FY2010 compared to an operating profit of $562 million in FY2009. The net profit was $945.6 million in FY2010 compared to a net profit of $390.8 million in FY2009. *Starbucks's financial year ends on the Sunday closest to September 30. The financial year ended October 3, 2010 was a 53-week period whereas the financial year ended September 27, 2009 was a 52-week period. Key Facts: 2401 Utah Avenue South, Seattle, Washington 98134, USA T: 1 206 447 1575 www.starbucks.com * NASDAQ National Market Ticker: SBUX * No. of Employees: 137,000 * Turnover (US$ Mn): 10,707.4 * Financial Year End: September Mission: To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Vision: We are committed to doing business responsibly and conducting ourselves in ways that earn the trust and respect of our customers, partners and neighbors. Business description: Starbucks Corporation...
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...Thompson−Strickland: Strategic Management: Concepts and Cases, 13th Edition 14. Krispy Kreme Doughnuts, Inc. Case © The McGraw−Hill Companies, 2002 case 14 Krispy Kreme Doughnuts, Inc. Arthur A. Thompson The University of Alabama “We think we’re the Stradivarius of doughnuts.” —Scott Livengood, President and CEO, Krispy Kreme Doughnuts, Inc. With 181 Krispy Kreme stores in 28 states, Krispy Kreme Doughnuts in 2001 was rapidly building something of a cult following for its light, warm, melt-in-your-mouth doughnuts. Sales were on an impressive climb, exceeding 3.5 million doughnuts a day. The company’s business model called for 20 percent annual revenue growth, midsingle-digit comparable store sales growth, and 25 percent annual growth in earnings per share. But a number of securities analysts doubted whether Krispy Kreme’s strategy and growth potential merited a stock price nearly 70 times projected 2002 earnings per share of $0.69 and 85 times actual 2001 earnings of $0.55 per share. The company’s stock, which was trading in the $46–$50 range and had been as high as $54, had been a favorite of short sellers for several months—the 2.5 million shorted shares in May 2001 represented nearly 10 percent of the company’s outstanding shares. According to one analyst, “It [the stock] has had a good run, but the numbers just don’t work”; another analyst commented, “The odds are against this stock for long-term success.” A third said, “Single-product concepts...
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...Krispy Kreme Case Study FINA 470-01 Strategic Financial Management Company Overview: Krispy Kreme is a retailer and wholesaler of “high quality doughnuts and packaged sweets” (2010 10-K report) as well as various beverages. Krispy Kreme consists of stores and franchises that include domestic and international franchises, company stores and the KK Supply Chain. Krispy Kreme is also the sole provider to all their stores and franchises of the ingredients and equipment needed for store operations via the KK Supply Chain. Notably, neither equipment nor ingredients can be purchased from any other vendor and thus the franchises/stores are completely dependent upon Krispy Kreme. Vernon Rudolph acquired the Krispy Kreme recipe from a New Orleans chef and moved to Nashville and opened his own doughnut shop in 1937. Initially selling to grocery stores, he ended up cutting a hole in the building to sell to passersby who inquired about buying hot donuts directly from the bakery. Mr. Rudolph patented Krispy Kreme in 1939. Family members joined the bakery to help Rudolph meet rising demand for his doughnuts. Rudolph invented and built all his donut making equipment. To date, the company still uses only company made equipment. Other stores started popping up around the south in the 1950s and 1960s as the company quickly expanded. Rudolph died in 1973 and as the company began to flounder, it was sold to Beatrice Foods in 1976. Original franchisees repurchased the company...
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...KRISPY KREME DOUGHNUTS INC (KKD) DEF 14A Definitive proxy statements Filed on 05/11/2012 Filed Period 06/12/2012 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant [X] Filed by a Party other than the Registrant [ ] Check the appropriate box: [ ] Preliminary Proxy Statement [ ] Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) [X] Definitive Proxy Statement [ ] Definitive Additional Materials [ ] Soliciting Material Under Rule 14a-12 KRISPY KREME DOUGHNUTS, INC. (Name of Registrant as Specified In Its Charter) (Name of Person(s) Filing Proxy Statement, if Other Than the Registrant) Payment of Filing Fee (Check the appropriate box): [X] No fee required. [ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. 1) Title of each class of securities to which transaction a 2) 3) Aggregate number of securities to which transaction Per unit price or other underlying value of transactio Exchange Act Rule 0-11 (set forth the amount on wh calculated and state how it was determined): Proposed maximum aggregate value of transaction: Total fee paid: 4) 5) [ ] [ ] Fee paid previously with preliminary materials: Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2)...
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...fo"k; :- Contract – I izFke o"kZ 2015-16 uksV%& fuEufyf[kr iz’u dsoy vuqeku gS bu ij iw.kZr% fuHkZj ugh jgsaA iz’u 1- ^^lHkh lafonk,a djkj gksrh gS ysfdu lHkh djkj lafonk ugha gksrs gSaA^^ D;k vki blls lger gSa \ fu.khZr oknksa dh lgk;rk ls Li"V dhft;sA Q.-1 All contracts are agreements but all agreements are not contracts .Do you agree, Explain with the help of decided cases. iz’u 2- izfrQy dh ifjHkk"kk nhft;s rFkk blds viokn Hkh crkb;sA Q.- 2 Define Consideration and mention exceptions of the Consideration. iz’u 3- izLrko ds fy, Lohd`fr dk ogh egRo gS tks ck:n ls Hkjh xkM+h ds fy, ekfpl dh ,d tyrh gqbZ rhyh dk gS & ,Ulu Q.- 3 “Acceptance is to an offer what a lighted match is to a train of gunpowder.” – Anson. iz’u 4- Mkd o VsyhQksu }kjk lafonk ds fuekZ.k lEcU/kh fu;eksa dk o.kZu dhft,A Q.- 4 Explain the rules relating to formation of contract by post and telephone. iz’u 5- O;kikj vojks/kh djkj 'kwU; gksrs gS \ vioknksa lfgr bldk o.kZu dhft;sA Q.- 5 Agreements in restraint of trade are void. Discuss it with exception. iz’u 6- ckth djkj o lekfJr djkj esa vUrj dhft;s rFkk mudh ifjHkk"kk Hkh nhft;sA Q.- 6 Explain the difference between wagering agreement and contingement agreement and define the both also. iz’u 7- mu vk/kkjksa dk mYys[k dhft;s] ftuds vk/kkj ij ,d djkj o lafonk foQy ;k uSjk’; ¼QzLVªsVsM½ gks tkrh gSA Q.- 7 Explain the grounds on which a agreement and contract becomes frustrated. iz’u 8- ,d djkj esa ekufld lgefr vko’;d gSA foospuk...
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...Fuzzy Control Kevin M. Passino Department of Electrical Engineering The Ohio State University Stephen Yurkovich Department of Electrical Engineering The Ohio State University An Imprint of Addison-Wesley Longman, Inc. Menlo Park, California • Reading, Massachusetts Don Mills, Ontaria • Sydney • Bonn • Harlow, England • Berkeley, California • Amsterdam • Mexico City ii Assistant Editor: Laura Cheu Editorial Assistant: Royden Tonomura Senior Production Editor: Teri Hyde Marketing Manager: Rob Merino Manufacturing Supervisor: Janet Weaver Art and Design Manager: Kevin Berry Cover Design: Yvo Riezebos (technical drawing by K. Passino) Text Design: Peter Vacek Design Macro Writer: William Erik Baxter Copyeditor: Brian Jones Proofreader: Holly McLean-Aldis Copyright c 1998 Addison Wesley Longman, Inc. All rights reserved. No part of this publication may be reproduced, or stored in a database or retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Printed simultaneously in Canada. Many of the designations used by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and AddisonWesley was aware of a trademark claim, the designations have been printed in initial caps or in all caps. MATLAB is a registered trademark of The MathWorks...
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