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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
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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
As a district manager, many responsibilities come with the job. District management is responsible for virtually all the operations in the company with respect to the business goals that have been set out in the company plan. This is especially the case when the district assigned is a group of new area start-ups. District managers are responsible for the allocation of resources, hiring, training and managing teams. The roles of a district manager starting new Dunkin’ Donuts locations are no different yet they include the responsibility for a smooth start. These added responsibilities include job design,
Krispy Kreme executives no longer rush to implement new plans before the time is right. They carefully study each geographical location to make sure its market will support a full-scale doughnut operation. Also, management spends time checking out sites for individual stores. Potential franchisee and employees are required to maintain certain standards and are thoroughly screened.
The “Coffee Wars – The Big Three: Starbucks, McDonald’s and Dunkin’ Donuts” article focuses on the company analysis of the Starbucks brand and how its main competitors, McDonald’s and Dunkin Donuts, has affected their brand and driven competition higher. Even though there are many companies trying to enter the specialty coffee market, these three companies own the majority of the market share. With Starbucks’ top quality and above average prices they hold a different market than the fast coffee/food market of Dunkin’ Donuts and Starbucks; yet the competitive moves Dunkin’ Donuts has made over the years in order to compete with Starbucks and surpass McDonald’s has driven competition up between all three companies. The competition has stiffened ever more in the past ten years due to the changing economy. This led to “the big three” to come up with different techniques to gain competitive advantage over the other. Although the competition between these companies is to gain most of the market share, consumers are still loyal to a certain brand; this makes it difficult to gain each other’s clientele. McDonald’s continues to appeal to customers who want value and speed, Dunkin’ Donuts focuses on the middle-class, while Starbucks a customer who desires a higher quality product along with being recognized for using the brand.
For example, is there a bottleneck operation in your production process that you can expand cheaply? What is the effect of adding another oven? How much would you be willing to pay to rent an additional oven?
Doughnut Time (2016) is a Brisbane based company, specialising in a variety of premium desserts that capitalise on the use of social media, unique locations and offerings (refer to table 1). Despite desserts being considered non-essential, high levels of competition and healthy eating trends (refer to table 1), the business has successfully established itself within the fast food and dessert industry, which is set to grow in the next five years (Tonkin, 2016). The company has a distinctive vintage flair, yet modern take on doughnut names and designs, becoming popular on social media (Doughnut Time, 2016). It’s vintage vans and small ‘hole in the wall’ stores make the company sort after, and appear unique from a large number of competitors
Despite its location, Dot’s Doughnut shop was about to get famous. The shop was a mini diner near the Interstate 23, a block away from New John City, but the place was well visited though. They recently came out with the new Double Decker doughnut that had two prodigious donuts glued together by vanilla custard creme. It quickly became the #1 best selling snack in the county. The only thing that kept citizens from buying it was the distance from the city, and the shop didn’t have home delivery, so people would call cabs or take the bus. Also, people wouldn't be able to buy their products because people would have spent all of their money on rides to the shop. On the shop’s 25th anniversary, they sold all donuts for 50% off. Peculiarly there
Starbucks financial statements were analyzed for the fiscal year ended September 27, 2015. Like all public companies, annual and quarterly financial statements are required to allow regulators and other interested parties to analyze the financial status and management decision making of the company. This analysis focuses on the results of Starbucks most recent published annual report containing their balance sheets, statement of earnings and cash flows. These statements will be analyzed against the results of one of its competitors, Dunkin Donuts, to investigate how the two companies compare to each other. It was noted that Starbucks and Dunkin Donuts do not have corresponding fiscal year ends. The data therefore is not directly comparable since the reports do not reflect the same time period of data but should provide additional insight. The paper will attempt to provide a brief analysis of Starbucks operations in terms of its liquidity, leverage, activity, profitability and growth ratios used by analysts in the industry.
1. What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.?
According to Pamberton’s President, the company should be focused on leveraging resources and expertise to develop products with sustainable competitive advantage. The flat crackers that Krispy Natural have produced do are not outstanding compared to competitors. There is more potential growth in the “Crackers with Filling” (annual growth expected to be 10-14%) market than there is in the “All Other” market (6-7% annual growth). The top companies that are holding the most market share in the “Crackers with Filling” are losing more market share than in the other market (Kraft went from 34.7 to 32.7 and Lance went from 31.5 to 29.9). Overall there is more potential to make the Krispy Natural brand stand out in the “Crackers with Filling” market.
Krispy Kreme has experienced dramatic growth over the past 5 years based on their income statement. Every line on the income statement has grown rather impressively. Revenues have grown from $220M to $666M and net income has grown from $6M to $57M. Based on the income statement, Krispy Kreme is doing very well.
As Wall Street Journal stated, Krispy Kreme grew too quickly and diluted its cult status by selling its doughnut in too many outlets. They could not anticipate when the demand decreased due to low-carbohydrate diet trend issues. It can be seen clearly that interest expenses also increased for the year ended Feb 2, 2003 to the year ended Feb 1, 2004 as the debt increased.
Dunkin’ Donuts was established by Bill Rosenberg in 1950 in Quincy, MA. Dunkin’ Donuts started license franchises in 1955. It is the world’s leading baked goods and coffee chains serving more than 3 million customers per day. Dunkin’ Donut sells 52 varieties of donuts and more than a dozen coffee beverages as well as an array of bagels, breakfast sandwiches, and baked goods. At the end of 2010, there were 9,760 franchises all over the
Even though Dunkin Donuts is an international business, each individual store has its own set of goals and missions to achieve success. This is also known as the value chain, which is “the process or activities by which a company adds value to an article, including production, marketing, and the provision of after-sales service.” (Oxford) After observing and working for Dunkin Donuts, the business’ success is primarily based off the happiness of their loyal customers and smooth teamwork of their employees. This particular Dunkin Donuts on Western Avenue in Peoria, Illinois is faced with a lot of challenges, but with the right approach to these challenges can make their business even more successful.
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.
In 2003, the U.S. doughnut industry was a $5 - $6 billion market. American households consumed an estimated 10 -12 billion doughnuts annually; this translates into over three dozen doughnuts per capita. In 2002, doughnut industry sales rose by about 13%. Sales from doughnut outlets rose by about 9%, to approximately $3.6 billion, whereas packaged doughnut sales at supermarkets, convenience stores and other retail outlets staggered in the past five years. A study by Technomic confirmed the growth of doughnut shops and identified this segment as the fastest-growing dining category in the country. Further analysis provided by the following figure shows attractiveness and profitability