Krispy Kreme was the hottest brand in America in 2003, however, its stock price plummeted more than 80% in the next 16 months. What had happened to this company? Why investors suddenly fleeing the popular Krispy Kreme? Answer following questions will help us find the solutions. From the historical income statement and balance sheet, we notice that, from 2000 to 2004, the KK grew very fast and its net income increased substantially. For example, form 2003 to 2004, KK’s net income increased by 71%
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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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. 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
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selling those products all closed at 6pm, something clicked” (Feran, 2011). Lastly, their product itself is differentiated, and one main way is that the bags and most items can be monogrammed. Cost Effectiveness: Krispy Kreme is my example for cost effectiveness. First, Krispy Kreme significantly outperformed the market estimates for earnings per share for yearend 2011 by posting $2.01 EPS while the estimate averaged at $0.06 EPS. This, along with its increase in margins displays cost effectiveness
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Case 5-5 Krispy Kreme 1. In each round trip transaction, Krispy Kreme recognized additional income in an amount more or less equal to the funds that were paid back from the franchises. As a result, Krispy Kreme filed annual, quarterly, and current reports with the SEC that contained misstated financial results, failed to have books and records that accurately and fairly reflected its transactions and disposition of assets, and failed to set up and maintain internal accounting controls sufficient
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1. งบกำไรขาดทุนและงบดุลของ Krispy Kreme Doughnut แสดงให้เห็นถึงฐานะและผลการดำเนินงานอย่างไร สื่อถึง ผลและฐานะที่แท้จริงของ Krispy Kreme Doughnut หรือไม่ คำตอบ รายการในงบกำไรขาดทุนและงบดุลของ Krispy Kreme Doughnut เป็นเพียงการบันทึกสิ่งที่ผ่านมาในอดีต ไม่ใช่การ แสดงมูลค่าที่แท้จริงหรือไม่สามารถแสดงให้เห็นถึงฐานะและผลการดำเนินงานที่แท้จริงของบริษัทได้ นักลงทุนใช้ข้อมูลจากผล ประกอบการเพื่อวิเคราะห์และคาดการณ์เกี่ยวกับอนาคตของบริษัท เนื่องจาก Krispy Kreme Doughnut เป็นบริษัทที่จดทะเบียนในตลาดหลักทรัพย์
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Financial Analysis Krispy Kreme was a successful manufacturer of Doughnuts that was established in 1937 by a young entrepreneur named Vernon Rudolph. Rudolph was an industrious man who found clever ways to market and sell his unique confections to the American public. By the 1950’s Rudolph’s business had expanded to twenty-nine shops within twelve different states. Each shop featured pick-up windows (early versions of drive thrus) and possessed the capability of producing 500 dozen doughnuts per
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I. 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
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Krispy Kreme was a successful manufacturer of Doughnuts that was established in 1937 by a young entrepreneur named Vernon Rudolph. Rudolph was an industrious man who found clever ways to market and sell his unique confections to the American public. By the 1950’s Rudolph’s business had expanded to twenty-nine shops within twelve different states. Each shop featured pick-up windows (early versions of drive thrus) and possessed the capability of producing 500 dozen doughnuts per hour. In 1954, Mike
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on technology Krispy Kreme Doughnut case study Purchasing a secret yeast-raised doughnut recipe from a French chef in New Orleans, Vernon Rudolf opened the first Krispy Kreme in Winston-Salem, NC in July of 1937. The plan was to supply doughnuts to local grocery stores, but customers soon started inquiring about purchasing hot doughnuts. A hole was cut in a wall of the store and he started selling “Hot Original Glazed” doughnuts directly to customers. Currently, Krispy Kreme produces more than
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