preview

Krispy Kreme Doughnuts, Inc

Better Essays

; ,.:
) j

I

1 '

7

I
I
I l-*--*** I I ___i

Krispy Kreme Doughnuts,Inc.
As the millennium began, the future for Krispy Kreme Doughnuts,Inc., smelled sweet.Not only could the company boast iconic statusand a nearly cultlike following. it had quickly become a darling of Wali Street.Less than a year after its initial public offering, in April 2000, Krispy Kreme shareswere selling for 62 times earnings and, by 2003, Fortune magazinehad dubbed the company "the hottestbrand in America." With ambitiousplans to open 500 doughnutshopsover the frrst half of the decade,the company 'sdistinctivegreen-and-red "Hot vintage logo and unmistakable Dor.rghnr-rts Now" neon sign had becomeubiquitous. At the end of 2004, however,the …show more content…

Krispy Kreme 's Business to strategy expanil an After the compi1ny 's IPO, Krispy Kleme announcecl aggressive over the next fi.re years.In addition ' the conrthe number of storesf1om i44 to 500 with 32 locationsplannedfor Canadaand more pany plannedto -qrowinternationally, for the United Kin,edorn,Mexico, and Australia. Exhibit 3 providesan overview of the company 'sstoreopenin-es. four primary sources: Krispy Kreme Doughnuts generatedrevenuesthrourgh for (accor-rnting 27Vo of rev ' on-premises retail sales at company-owned stores stores(40Vo);manufacturenLres): off-premisessales to grocery and convenience royalties in-9and.distribution of product mix and machinery(29?o);and franchisee retail locations,the company and fees GVo).In a,Jditionto the traditional dcmestic growth through smaller "satellite concepts,"which relied on factory stores sor-rght of to provide dou-ghnuts reheating,as well as the development the international for market. , to On-premisessales; Each factory store allowedconsumers seethe productionof creareas doughnuts:Krispy Kreme 's cltstom machineryand doughnut-viewing In atedwhat the companycaiied a "doughnui theater." that way, Krispy Kreme 4I1 attemptedto differentiateitself from its competitionby offering cttstomers €r"rperiencerather than simply a product.Each factory storecollld producebetween doughnlrtsa day, which were sold both on- and 4,000-dozenand 10.000-dozen

Get Access