Case Study: Krispy Kreme Doughnuts, Inc. Case Study: Krispy Kreme Doughnuts, Inc. Problem The problem in this case deals with the loss in value of Krispy Kreme Doughnuts’ stock. Was the main reason for the fall in stock price due to article posted in the Wall Street Journal about the SEC investigation? Were there deeper issues within the company that caused the loss in earnings per share? Analysis In April of 2000, the CEO of Krispy Kreme Doughnuts took the company public and had one of the
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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
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September 30, 2013 FIN 3717 Case 3 Executive Summary “Krispy Kreme Doughnuts, Inc.” Executive Summary: * As the millennium began, the future for Krispy Kreme Doughnuts, Inc, looked very promising. * Not only had the company created an iconic status for themselves and gained a cult-like following, it had quickly become a darling of Wall Street. * Less than a year after its IPO, in April 2000, Krispy Kreme shares were selling for 62 times earnings and, by 2003, Fortune magazine dubbed
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Study: Krispy Kreme Doughnuts, Inc. Problem The problem in this case deals with the loss in value of Krispy Kreme Doughnuts’ stock. Was the main reason for the fall in stock price due to article posted in the Wall Street Journal about the SEC investigation? Were there deeper issues within the company that caused the loss in earnings per share? Analysis In April of 2000, the CEO of Krispy Kreme Doughnuts took the company public and had one of the largest IPO’s in recent years. After Krispy Kreme
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Analysis-Environment The business environment of Krispy Kreme deals with economic conditions, cultural and social values, and political and legal issues. The doughnut industry has generated five to six billion dollars in the years 2003-2004. The estimated sales at outlets specializing in doughnuts rose nine percent in 2002 to $3.6 billion. In 2002, worldwide sales were at $2.7 billion. According to these recorded results, the expected earnings per share in 2004 were expected to be between $1.16-$1.18
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Case Analysis Krispy Kreme Doughnuts, Inc. Thadavillil (Nathan) Jithendranathan Professor of Finance Opus College of Business University of St. Thomas St. Paul, Minnesota, U.S.A. Context This case considers the sudden and very large drop in the market value of equity for Krispy Kreme Doughnuts, Inc., associated with a series of announcements made in 2004. Those announcements caused investors to revise their expectations about the future growth of Krispy Kreme, which had been one
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Krispy Kreme Doughnuts, Inc. Krispy Kreme Doughnuts began as a single doughnut shop in Winston Salem, North Carolina in 1937. By the start of the new millennium, Krispy Kreme was not only able to boast iconic status but nearly had a cult-like following. Less than a year after its initial public offering in April 2000, Krispy Kreme shares were selling for 62 times earnings. As it had a tremendous increase in bottom line and brand recognition, it formulated an aggressive strategy to expand. Its shops
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TO: John Ivankoe FROM: Gussie Rhodes DATE: January 5, 2005 SUBJECT: Krispy Kreme Doughnuts Financial Analysis and Stock Recommendation Krispy Kreme Doughnuts, Inc. recently announced a restatement of last year’s financial statements. Since its peak in August 2003, KKD stock has declined more than 80% in price as the result of the restatement announcement and allegations of accounting misrepresentations. It seems that this would be a good opportunity to buy KKD stock while the price is below
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Financial Analysis: Krispy Kreme Doughnuts, Inc. operates as a branded retailer and wholesaler of doughnuts and coffee. It engages in the ownership and franchising of Krispy Kreme doughnut stores, which make and sell approximately 20 varieties of doughnuts. These stores also offer a wide variety of coffees and other beverages. As of January 31, 2010, there were 224 Krispy Kreme stores operated domestically in 37 U.S. states and in the District of Columbia and 358 shops in other countries internationally
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Krispy Kreme case demonstrates the downfall of a franchise based donut maker, Krispy Kreme. Krispy Kreme is an example of a franchise-gone-wrong. The Krispy Kreme craze in the early 2000s drove millions of customers to stores, waiting in line for the cherished fresh glazed delicacies. As a result of the demand, the number of Krispy Kreme franchises exploded, with new entrepreneurs trying to enter in the market. New stores emerged in 400 locations all over the country and the world, and the Krispy
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