Krispy Kreme

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 analyses indicate that the franchisees are profitable at this level of sales; some franchisees appear to be having cash flow problem, since footnote 7 points out Boston Chicken had been forced to make advances to franchisees to fund local and national advertising; the sales from same store and distribution of same store sales; late payments by franchisees; the total cash floe generated by all stores.

When it comes to the consumption of coffee and donuts, I wonder to myself who does the best job at doing so at a reasonable price and who has the most benefits. That is when I decided that I was to put Dunkin’ Donuts and Krispy Kreme side-by-side to see who would be the best in the modern marketing world. In order to do this, I will be discussing the four P’s to differentiate the companies and use other material that was discussed in class. When I started to write this report; my original plan was to use Dunkin’ Donuts and Starbucks to determine which would be better, however these companies are far from comparison and I chose a company that would be more similar in products and service, with that company being Krispy Kreme Doughnuts.

The owner of Krispy Kreme, Luxembourg-based investment firm JAB Holding Co., expanded its coffee and breakfast brand after agreeing to acquire bakery products chain Panera Bread Co. (NASDAQ:PNRA) for $315 per share, in a transaction valued at about $7.5 billion.

The organization also has gotten into money related-problems and legitimate inconvenience and is attempting to survive the changes in the market. Krispy Kreme’s destructive desire for growth in opening more company-owned and franchises became a problem for the company’s finance.Krispy

• KKM&D revenues are driven by franchisee revenues, since sales are to franchisees and will vary with their volume. They have averaged 33% of franchise sales in last two years. Use 32% of franchise sales.

As an internationally recognised business, Krispy Kreme is undoubtedly a larger food franchise than Dulwich Bakery, earning its place in the post-maturity stage of the business lifecycle. Opening its first store in Australia in 1937, Krispy Kreme has since developed and expanded into more than 200 stores internationally. Over the past year Krispy Kreme has seen a 118% increase in sales, and this sudden rise in market gain has spiked even more interest into the public. Not only this, but Krispy Kreme’s secure and steady improvement is also a result of advertising in its early stages. The company would spend little to no money on advertising their product and would send boxes of Krispy Kreme donuts to well populated areas like markets and paper

Each of the individual components have been previously discussed, but it is interesting to compare them together to see how three of the most important aspects of the business have changed over time. Specifically it is worth noting that Profit Margin has increased significantly every year since 2000. What this means is that Krispy Kreme has gotten better every year at turning each sale dollar into net income.

The year 2003 was a turning point for the Kit Kat bar as well as the confectionery industry in general. The popularity of low carb diets and the push to healthier eating stifled sales growth in many parts of the world. In addition, fierce competition from Cadbury 's newly formed Dairy Milk super brand

From the above information (which is fictional data), we can assume that the breakeven point is somewhere between 75,000 and 120,000 dozen donuts produced, and the more they produce the more profit they will have. That is if they have a set price of $4.50 per dozen. In evaluating this data, I think that Krispy Kreme should and will stay in business due to the fact that the profit potential is very high.

Based on the Common Sized Financial Statement of Limited Service Restaurant Averages and Krispy Kreme (KKD) the value of KKD’s cash and equivalents is 3.1 and its lower that the 3 years industry average’s value of 12.8 in 2001, 12.4 in 2002 and 13.7 in which is not a good sign because it show company has low cash in their hand compared to industry benchmark. This is due to the low in sale especially cash sale that will lead to low cash collected from their sale. Although their cash turnover (CTO) that increase back to

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.

     Vernon Rudolph is the brains behind the Krispy Kreme name. He bought a doughnut shop in 1933 and all the assets came along with the purchase, including a secret recipe and name, Krispy Kreme. Rudolph moved to Winston-Salem, North Carolina, where he opened his first Krispy Kreme shop. The business prospered and in the 1950¡¦s over ten other locations were opened. The business was able to produce 500 dozen doughnuts an hour. ¡§Revenues grew from less than a million in 1954 to $58 millions in 1974.¡¨(C-280) The company was bought out in 1976 by Beatrice Foods. This hurt the name and image of Krispy Kreme. Revenues began to fall and customers

Problem is Thai people interest with Krispy Kreme lower than the beginning period, so male Krispy Kreme no more long queues although Krispy Kreme launch more favors, but not attraction customer like beginning period. Now Krispy Kreme has not yet opens a new branch although I think Krispy Kreme must to open new branch.

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