Essay about Krispy Kreme

609 Words Feb 13th, 2015 3 Pages
3-17. How many times has the company been sold? When and by whom to whom? 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.
3-18. What mistakes did Beatrice Foods make after purchasing Krispy Kreme? Why wasn't Krispy Kreme a good fit for Beatrice Foods? Krispy Kreme was a family oriented business where on
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Right there was the opportunity to negotiate which would have helped Mr. McAleer from putting the company in a huge debt that kept the company from growing for the following ten years. On the other hand, buying an existing business is another business lesson that I noticed. Krispy Kreme was bought and sold several times, however it’s the history of the company that helped the company prosper and gain popularity.
3-21. Krispy Kreme started as a family business. How has that influenced the operation of the company? 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.
3-22. Identify three questions you would have asked Ishmael Armstrong while performing due diligence for the potential purchase of Krispy Kreme Doughnuts. List three questions you would ask today if you were considering becoming a Krispy Kreme franchisee,
1. How profitable has this company been since opening?
2. How long has this location been opened? How many locations have you had?
3. Are there any investors in this company or anyone that shares financial responsibility besides you?

1. May I have copies of the last 3-5 years financial statements?
2.

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