Krispy Kreme Doughnuts, Inc.—2004 Cynthia Duff

The company has been sold several times. First, in 1935 Ishmael Armstrong sold Krispy Kreme to Vernon Rudolph’s father Plumie Rudolph. Second, in 1976 due to Vernon Rudolph’s death, the company was then sold to Beatrice Foods of Chicago. Third, in 1982 Joseph A McAleer Sr. who led a group of Krispy Kreme franchisee bought back Krispy Kreme from Beatrice Foods. Finally, Krispy Kreme Inc. became a publicly traded company in 2000 by joining the NASDAQ as well as joining NYSE in 2001.

The growth at the time was credited by the massive new store openings. The sales for new stores for the first week where huge in between $400,000 and $480,000 however over time they expected the sales to drop around $75,000-$100,000 a week because that is the average at the time of older stores. Finally the last section of Krispy Kreme manufacturing and distribution, was expected to grow. KKM&D had just opened a large distribution center on the west coast and had plans to open another one in Illinois. Since sales at the time for KKM&D were about 16.6% of total sales, they were expected to keep up with the franchises in growth. For the year of 2003 their assumptions were correct. The stock price grew (see chart) and Krispy Kreme expanded just as they planned. Then in 2004 the stock dropped, due to allegations of Krispy Kreme padding their shipping earnings for the two prior years. This event skewed the outcome of the forecast. KK is still doing well however, and has slowed down its growth but is still expanding.

In addition, be sure to provide inspirational vision and strong values, meaningful and challenging work, offer career opportunities, create an environment that enables people to do their best work, offer tangible rewards in both monetary and non-monetary ways and ensure work/life balance and support its importance.

After becoming CEO, president, and chairman of the board in 1999, the company repositioned and focused on being a specialty retailer rather than a wholesale bakery. Krispy Kreme wanted to give their customers the “hot doughnut experience” they all knew and loved (Peter & Donnelly, 2011). The second part of their plan was to increase the number of stores both franchises, and company owned nationally. The company began to move into other regions. For example, in 1996 the first store in NY City was opened, and in 1999 the first store in California opened. In early 2000, the company went public and merged into a new company called Krispy Kreme Doughnuts, Inc., instead of Krispy Kreme Doughnut Corporation. From 2000-2004, the number of stores has proliferated from 144 to 357 and Krispy Kreme is now beginning to open in international locations, opening the first factory in London. They now also have locations in Canada, Mexico, and Australia.

| |thing, Creating shareholder value, Respect for all people, Entrepreneurial spirit, Building strong relationships. |

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

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

By making all employees aware of our company goals and rewarding them when goals are met with either bonuses or awards. As well as having an environment that values, honesty, integrity, respect and working together in unity.

Create and communicate a fair vision and mission for your business. Studies show that most people want to believe that there is a purpose and meaning in their work. If your team happen to understand the meaning and direction of their company and their role in creating the desired results, they are looking to gain a sense of purpose and

The company under analysis in this report is Dunkin Donuts. The brand of Dunkin Donuts originated in 1950 when Bill Rosenberg opened the very first outlet in Massachusetts, USA. Today Dunkin' Donuts is the world's leading baked goods and coffee chain, serving more than 3 million customers per day worldwide. It sells about 52 varieties of donuts and more than a dozen coffee beverages as well as an array of bagels, breakfast, sandwiches, subs and other baked goods. Dunkin Donuts is a subsidiary company of Dunkin Brands Inc that owns companies like Dunkin Donuts, Baskin Robins etc. Dunkin Donuts is a multinational company with its presence in more than 32 nations. By the end of 2011, there were 10,083 Dunkin' Donuts stores worldwide that included 7,015 franchised restaurants in the United States of America and 3,068 international outlets in more than 32 countries across the globe employing more than 9000 people. According to the financial report published by Dunkin Brands Inc, the parent company of Dunkin Donuts the net sales worldwide totaled up to $8.77 billion, up 5.2 percent from the previous year and the Net income for the year was $108.3 million, up 214.5 percent as reported by the company.

Dunkin’ Donuts was first established in 1950, in Quincy, Massachusetts, by William Rosenberg. Over the years the company expanded and now is the largest coffee and baked goods chain in the world. They serve over 5,500 retail outlets; selling more than 4 million doughnuts and 2.7 million cups of coffee daily!

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

KKD's business model provides the company three sources of revenue: (1) Sales at company-owned stores; (2) Royalties from franchised stores and franchise fees from new stores; and (3) Sales of doughnut mixes, customized doughnut-making equipment, and coffees to franchised stores.

Krispy Kreme Doughnuts was a successful privately owned business since 1937. In 1982 a group of franchises bought back the company from Beatrice Foods for $24 million, and reintroduced the old recipe of doughnuts and their “hot doughnuts now” system. In 1998 Scott Livengood became Krispy Kreme’s new

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