Essay on Krispy Kreme

This shows that the Krispy Kreme is effectively controlling its costs of sales since they are growing slower than the growth in revenues. The trend percents for General and Administrative expenses however exceed those of revenues in 2002, but this has changed in 2003. In both years the trend percents for income tax are noticeable higher that that for revenue, but the bottom line trend percents for net income is well above those for revenues which is a positive sign.

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.

Krispy Kreme Doughnuts (KKD), a once high flying growth stock has been hampered as of late with shareholder lawsuits. When sales growth and earnings began to drop significantly in 2003, the company blamed its problems on the popularity of low-carbohydrate diets like Atkins and South Beach at the time. But the SEC began probing Krispy Kreme's accounting for franchise buybacks and is now facing shareholder lawsuits for inflating profits. Senior management officials allegedly knew of the problems, but continued to pad sales figures by doubling doughnut shipments to wholesale customers at the end of fiscal quarters, according to

Is Krispy Kreme financially “healthy”? What do the statement show, what do the ratio show?

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.

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.

July 13, 1937 marked the day that Vernon Rudolph opened his doors in Winston Salem, North Carolina and started selling Krispy Kreme doughnuts. Initially his business plan

Krispy Kreme Doughnuts, Inc. (KKD) is an exclusive brand that offers doughnuts, beverages, collectibles, and franchise opportunities. It started as a small bakery in Winston Salem, North Carolina on July 13, 1937; and has evolved into a publicly traded firm boasting 395 retail stores and over three million dollars in sales (second quarter 2010). This was not always the case however, by the end of 2004, the economy began to slow. This caused businesses in competition with Krispy Kreme to flood their market hindering plans that Krispy Kreme had of expansion. Eventually they would have to scale back due to declining sales. Consumer interest in low carbohydrate diets such as the “Atkins” and “South Beach” diet plans are somewhat to blamed for

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

Each of the retail stores is a doughnut factory with the capacity to produce between 4,000 and 10,000 dozen doughnuts daily. Each factory store contains a full doughnut making production line. The factory store is marketed as a unique retail experience, featuring the store’s production process, including a doughnut-making theater. The stores also support multiple sales channels to more fully use production capacity. Stores provide Krispy Kreme doughnuts to be sold in satellite locations, ballparks, and grocery stores, and under private label marketing agreements.

Krispy Kreme Doughnuts generated revenues through four primary sources: on-premises retail sales at company-owned stores (accounting for 27 percent of revenues); off-premises sales to grocery and convenience stores (40 percent); man­ufacturing and distribution of product mix and machinery (29 percent); and fran­chisee royalties and fees (4 percent). In addition to the traditional domestic retail locations, the company sought growth through smaller "satellite concepts," which relied on factory stores to provide doughnuts for reheating, as well as the devel­opment of the international market.

Conducting an internal analysis on Krispy Kreme Doughnuts will identify some strengths within the firm that can be used for competitive advantage. Krispy Kreme can also grow and expand on these strengths to keep that advantage in far reach of other firms. Krispy Kreme has produced a very favorable and high quality doughnut with an excellent visual appeal not found elsewhere. This is in part from great technology that allows quick finishing of cooking of partially cooked doughnuts. Doughnuts are prepared in advance and cooked to a certain point (Krispy Kreme, 2001). They are kept stored properly and are then finished cooking by the technology of the “Hot Doughnuts Now” machine. This process helps prepare for large orders and big rushes, while still giving the customer quality and freshness. One big attraction of Krispy Kreme is there neon sign displayed at all stores which signals “Hot Now” when the doughnuts are fresh out the oven. Customers want freshness, so Krispy Kreme tells them when that is, without customers having to take chances on whether they will receive fresh, hot products. The innovation of this technology and idea is a major strength of Krispy Kreme and has been used for great advantage in the doughnut industry.

The US economy is currently recovering from a recession. Despite the poor economic conditions, Krispy Kreme managed to grow 15% in 2001 with $394 million in revenues ending the fiscal year (2/3/02). 10 Krispy Kreme however is in a low cost industry therefore the rise and

As at 2013, there were 10,858 Dunkin' Donuts retail locations, including 7,677 in the United States and 3,181 in 33 different countries. Most of Dunkin' Donuts are operating by franchisees and it is a very successful business model that generates much of its revenues. It is continuing to grow more franchisees in the United States and international market. In July 2013, Dunkin' Donuts

Can you picture “riding down the street then you look over to see the big red” “hot and ready “sign on for those delicious little glazed donuts, and you just have to stop in for a dozen but when you get in there you end up buying two dozen. Trust me, I always do. Krispy Kreme is the best donuts in the world to me and they just melt in your mouth. Before you know it you will have ate a whole entire box by yourself. I bet you’re thinking how can I invest in something I don’t know anything about this company. Well I can help you with that with a brief summary of history.