Krispy Kreme Financial Analysis

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Financial Analysis:
Krispy Kreme Doughnuts, Inc. operates as a branded retailer and wholesaler of doughnuts and coffee. It engages in the ownership and franchising of Krispy Kreme doughnut stores, which make and sell approximately 20 varieties of doughnuts. These stores also offer a wide variety of coffees and other beverages. As of January 31, 2010, there were 224 Krispy Kreme stores operated domestically in 37 U.S. states and in the District of Columbia and 358 shops in other countries internationally. Of the 582 total stores, 268 were factory stores and 314 were satellites stores.
Krispy Kreme stores are classified as either a factory store or a satellite store. The traditional factory store has the capacity to produce from 4,000
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Adding to this, Krispy Kreme sells other ingredients, packaging and supplies primarily to company-owned and domestic franchise stores. According to a study by Market Force Information, there is still considerable room for growth in the coffee house and snack chain industries. In a recent survey, data shows most consumers visit a coffee shop around once a week, with 70% reporting that they go to coffeehouses or snack restaurants less than five times a month. Many reported that they use time at a coffee or snack restaurant to reflect, or as an escape. That, paired with the fact that just 4% of consumers reported trying a new coffeehouse or snack restaurant in the last 30 days, indicates big room for growth for chains.
When asked which coffeehouse or snack restaurants were their favorites, Starbucks was cited by 36%, Dunkin’ Donuts by 28%, and Krispy Kreme by 16%. However, when the number of locations is factored into the results, Krispy Kreme wins 35% of the vote. Krispy Kreme also outscored competing coffee shops and snack chains on eight of 10 attributes. These attributes included Quality of Food, Taste of Food/Coffee, Speed of Service, Friendly Service, Cleanliness, Atmosphere, Accommodating, Overall Value, Healthy Choices, and Green/Sustainability. All other competitors were clustered together with very little differentiation. Moving forward, Krispy Kreme operates within the quick service restaurant

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