The popular Krispy Kreme Company went public in 2000, with a market capitalization of approximately $500

million and share price above $40. The US had the world’s highest GDP of $10.9 trillion.

Krispy Kreme had expanded internationally to other markets outside of the U.S.

for example, the United Kingdom, Mexico, Australia, and Canada. One factor that began to impact the industry and the Krispy Kreme company would be the

emerging low- carbohydrate diet trend in the United States. This created new eating and spending habits across the country. Subsequently Krispy Kreme blamed its declining sales and overall financial position on this dilemma. Krispy Kreme also flooded the market with doughnuts. One analyst stated that “the biggest problem for Krispy Kreme may be that the company grew too quickly.” This means they saturated the market with excessively product availability. It had become a kind of franchise, as a lot of those shops were under the control of franchisees. After Vernon passed away in 1973, Beatrice Foods purchased Krispy Kreme Doughnuts, Inc. and the company had increased to more than one hundred locations. However, it was becoming weaker and eventually a group of franchisees had bought it in 1982. Fortunately, the company became debtless by 1989.
In terms of market share, it had a big initial public offering in April of 2000, and, right after, its share price of $42.63 gave it a market capitalization of roughly $500 million dollars. By 2004, the company remained a relatively domestic company, as it had stores in only four foreign countries. Unfortunately, people were becoming skeptical after how the company accounted for its franchise acquisitions. In 2004, Krispy Kreme Doughnuts, Inc.’s (KKD) shares declined to $15.71per share. By 2005, it had lost close to two and a half billion dollars in its market value of equity since August