Kkd Case Analysis

Shifts in the “Food Marketplace” have greatly affected our food choices and habits in the last 40-50 years. As one woman stated in the film The Weight of the Nation, “It’s so hard to combat with what the tv is telling you to feed your kids”. Advertising has come to a whole new level in our generation; you can’t turn on the television without seeing an advertisement for fast food or something equally as unhealthy. As another woman put it, “you are taught that you can eat anywhere, anytime of day, and that eating is a glorious thing”. Another shift that has occurred is an economic one. If you go into a poor neighborhood corner store like they did in the film, you would see chips, sugar, sweets, etc. All of these unhealthy foods are cheap, incredibly cheaper than fresh fruits and vegetables. Obesity rates in these poor areas are much higher than in areas with a higher average income. Culturally, our country is changing to one that is always moving; we don’t have time to prepare a meal for the whole family. It’s much quicker to buy unhealthy fast food that you know your family will enjoy than to prepare a healthy meal that they will grudgingly consume. The film mentioned that our bodies were originally built for scarcity. We are wired to react to things that are sweet and contain a lot of fat because when an animal was killed we had to be able to eat as much of it as possible. The signals telling us to stop eating had to be overridden. Now, we consume so much fat and sugar not

3-21. Krispy Kreme started as a family business. How has that influenced the operation of the company?

Overall, sugar consumption has increased immensely. We know that our health is worse than it was just two hundred years ago, and yet we do nothing more than add sugar. Sugar is not a good thing, and it’s even worse when we eat a lot of it. Sugar has had a negative effect on everyone, not only our youth. We, as a whole, eat way too much sugar and either need to eat less sugar, or eradicate it

The documentary “Fed Up” provides some important and disturbing details of the food industry. The 1977 heart disease and diet study known as the McGovern Report warned that the obesity rate was increasing rapidly due to American diets in fatty meats, saturated fats, cholesterol, and sugar. The food industry vehemently denied these claims, but the American people still demanded lower fat food products. The food manufacturers found that the fat removal made the food bland and unpalatable so to address this they replaced the fat content with sugar. Both the documentary and the Harvard Nutrition Source discuss the role sugar has in health conditions such as obesity and type 2 diabetes. They both link the consumption of sugar as the causality for

* There is an increasing amount of pressure from the government to encourage people to eat healthier as the number of deaths relating to obesity and an unhealthy lifestyle is on the increase year after year.

Krispy Kreme is a branded specialty retailer and manufacturer of premium quality doughnuts. Its principal business is to own and franchise Krispy Kreme doughnut stores in the U.S. and internationally. The main product is the Hot Original Glazed, a one-of-a-kind doughnut with an established brand. Each outlet also sells over 20 other varieties of doughnuts and coffee products. Product quality and consistency has provided the Company with a very loyal customer base.3

Are there significant implications between negative family environment and reading scores of 5th grade students on KPrep?

The fact that the consumed calorie percent has dropped might appear unexpected, and, unfortunately, this doesn’t change the obesity rates at this moment. However, the news that Americans are now eating healthier foods and drinking less sugary beverages is extremely promising,

Dunkin’ Donuts is an American global doughnut company and coffeehouse chain based in Canton, Massachusetts that was founded in 1950. At start, it was famous for its quick service food doughnut but now it has already been well known for its high quality coffee and quick customer service. It is one of the subsidiary companies with sister brand Baskin-Robbins under the franchiser Dunkin' Brands.

KRISPY KREME, one of the successful companies in the food-service industry, began as a single doughnut shop in the early 20ths. The rapid expansion of its business scale made the corporation suffer its first economic crisis by the early 1980s. A group of franchisees later took charge of the heavily-debt company bringing new management ideas which helped the KRISPY KREME find way back to the game and become the role model in the industry. KK generated revenues through four primary sources: on-premises retail sales, off-premises sales, product mix and

In recent years, sugary foods and drinks that people like to consume have become an

A shift in consumer demand to want healthier fast-food options has hit the industry hard. Dunkin’ Donuts and Starbucks have combated this shift by offering healthier menu items, something Krispy Kreme has failed to do. Dunkin’ Donuts offers healthy breakfast sandwiches and

KKD divested Montana Mills chain of 28 bakery stores acquired in January 2003 for $40 million in stock. They would take a charge of $35 to $40 million in the 1st quarter. Also closing 3 new KKD “hot doughnut and coffee shops” resulting in a charge of $7 to $8 million. After these issues came to light, KKD’s shares closed down 30%, at $22.51 a share. Also in this time the SEC announced an informal investigation which caused KKD’s shares to fall another 15%, closing at $15.71 a share. The SEC filings were complete and KKD revised their financial statements. By the end of the next day the stock price was less than $10 a share.

Krispy Kreme Doughnuts Incorporates principal activity is to produce and market doughnuts and related items. The operations are carried out through three segments, company stores operations, franchise operations and Krispy Kreme Manufacturing and Distribution. The stores are both retail outlets and highly automated producers of over twenty varieties of doughnuts. The company is a branded specialty retailer, and produces more than three million doughnuts a day. In addition to its Krispy Kreme stores, the company sells its doughnuts in supermarkets, convenience stores and other retail outlets throughout the country. The Krispy Kreme Manufacturing and Distribution segment sells doughnut-making equipment, mix, other ingredients and supplies

The population of America is becoming more aware of the importance of good nutrition. Ironically the people are becoming increasingly less healthy. In the 1960's the nation ate healthier but knew less about nutrition. The foods that the teenagers consume today contributes to the increasing weight and decreasing health of the nation. Many outside factors determine the eating habits of teenagers today.