Krispy Kreme Strategic Analysis: Introduction In 2003 Krispy Kreme was named by Fortune Magazine as “America’s Hottest Brand” and in 2004 they reported net income of $50 million. However over-expansion, an expensive store network, revelations of falsified financial reports and changing trends in diet have meant that Krispy Kreme revenues have declined by 50% between 2005 and 2010 The strategic problem considered is to analyse Krispy Kreme’s current operations and suggest recommendations for how
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weakness of Krispy Kreme is that it continues to try and grow when all financial dataindicates that franchisees are competing with each other rather than rivals. When stores arelocated near each other, they affect the sales volume of the other store. When the first KrispyKreme is put up in a new market, obsessed consumers camp outside for days to be the first tohave a fresh doughnut. As more and more stores are introduced into an area, this frenzy fadesand the craze dies out.Krispy Kreme could explore
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KRISPY KREME SCANDAL LaVeta Reed Brandman University ACCU 620 November 15, 2015 Introduction Krispy Kreme is a leading international branded specialty retailer of premium quality doughnuts. Headquartered in Winston-Salem, NC, the company has offered the highest-quality doughnuts and great-tasting coffee since it was founded in 1937. Today, Krispy Kreme and its one-of-a-kind Hot Light can be found in over 1000 shops around the world. Currently, Krispy Kreme can be found in 24 countries,
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Case #6: KRISPY KREME DOUGHNUTS, INC. Synopsis and Objectives 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 of the most rapidly growing American corporations in the new millennium. The task is to evaluate the implications of those announcements
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center aisle sales include: cookies ($3.7 billion), pastries/doughnut ($1.7 billion), baking mixes ($1.1 billion), and prepared pies and cakes ($1 billion). ("Digging into Desserts," in Food Technology, November 2011 (Vol. 65, No. 11), p. 17) Krispy Kreme is an international doughnut and coffee brand that is best known for its Original Glazed Doughnuts and Signature Coffee. The brand is present in more than 20 countries worldwide including the United States, Australia, Korea and the Philippines
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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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| 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
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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
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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 Dougnuts: Empty Calories or Empty Profits? Case Study of the Impact of Sarbanes-Oxley Act ("SOX") Krispy Kreme Doughnuts (KKD), a once high flying growth stock has been hampered as of late with shareholder lawsuits. When sales growth and earnings began to drop significantly in 2003, the company blamed its problems on the popularity of low-carbohydrate diets like Atkins and South Beach at the time. But the SEC began probing Krispy Kreme's accounting for franchise buybacks and is now
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