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Krispy and kreme case study
Krispy and kreme case study
Krispy and kreme case study
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Krispy Kreme Donuts, Inc.
Since Krispy Kreme was founded in 1937, it has grown into a leading branded specialty retailer, producing more than 5 million doughnuts a day and over 1.8 billion a year. In addition to Krispy Kreme stores, their premium quality doughnuts are sold in supermarkets, convenience stores and other retail outlets throughout the country. Best known for their fresh, glazed, yeast-raised doughnuts, known as "Hot Original Glazed”,
Krispy Kreme also make more than a dozen other varieties of yeast-raised and cake doughnuts. But the company is currently going through financial turmoil along with possible earnings management.
Krispy Kreme Doughnuts recently announced that they are slashing 125-130 jobs, the vast majority in Winston-Salem. The company is eliminating one-fourth of their staff in order to cut costs. Also, they recently sold their corporate jet to a Wilmington company for $30.5 million. It is evident that the donut empire is suffering from liquidity and cash flow problems. Some investor argue that they didn’t see this coming because the once highly profitable, ever expanding company, seemed incapable of fiscal failure. The layoff shows that they have experienced a major downturn in the past year. Less than two years ago, Krispy Kreme’s shares sold for $50 and are currently selling for $7.21. The bottom line is that Krispy Kreme must revamp sales in order to increase cash flow or they will not make it.
Their board of directors said that the downsizing would create an annual pretax savings of about $7.4 million; they will take a restructuring charge in their fiscal first quarter to pay for the work force reduction. The company also stated that selling the jet will result in annual pretax savings of $3 million; but it will have to take a $300,000 charge in its current fiscal first quarter because of the deal.
Also in January, Krispy Kreme's long-term debt lenders contracted to extend for two months to March 25, 2005, the date on which the company would be in default on its
$150 million credit agreement. This agreement restricts the company from borrowing any money until repaid.
Kripsy Kreme is witnessing the results of a low-carbohydrate phase combined with expanding too fast; plunging profit, crumbling stock price, its accounting is under investigation by the Securities and Exchange Commission (because they have yet to file quarterly reports that were due February 1,2 005), and it is the subject of various
In the reading “Slavery Without Submission, Emancipation Without Freedom,” by Howard Zinn addresses how the South strongly supported the practice of slavery, while the north didn’t shared the same views. Zinn explains how the African slaves were kept into slavery by the white men by using methods such as separation of families, punishment (whipping), and even killing. He also address that despite many failed attempts to revolt against the whites, the African slaves were not granted liberty until President Abraham Lincoln was elected and order the government to abolish slavery, which later lead to the civil war.
First, the comeback of this company was worthwhile because of it’s company worth. As mentioned in the article, “410 million dollars was the price that ‘Apollo Global Management’ and ‘C. Dean Metropoulos and company’ paid for the Hostess Cake division.” This shows that investors want to invest in the company because these two hot shot companies are showing confidence in Hostess. Also, the Twinkies were off the market for eight months after, …“having failed to reach a deal on a new contract with its striking bakers.” These eight months were spent in idle mode for this large company when it could be producing more companies. With these eight months not producing investors started to lose interest even though the public is still roaring over this. In addition, having failed to make a deal with bakers this shows that Twinkies are not appealing to bakers to produce, even though it is apparently “Americas favorite snack.” These facts are a negative weight to the company worth if Appollo and Metropoulos hadn't stepped in and had interest in the ‘indestructible snack’, overall been underdogs in saving the Twinkie and launching it into a successful comeback.
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must also take into consideration that the additional business units will not hinder the profitability of the existing business units.
The numerous themes and ideas that F. Scott Fitzgerald presents in The Great Gatsby are valued in many ways. He shows that dreams should be important in peoples’ lives, and that everyone should have a goal in life. He also displays the corrupt nature of the American Dream in the 1920’s, and how society’s social classes and racist views will never result to equality in America. This perspective of 20th century life and Fitzgerald’s style are also appreciated and valued.
...he mobility pathway benefits when the least privilege students receive tuitions that are low, the financial aid is adequate and they are able to receive both loans and grants. Moreover, the mobility students can benefit if there are special programs targeted for them and if they are constantly guided by the university staff (Armstrong & Hamilton, 2013). Therefore, I feel that my college pathway is well supported at Cal because I am able to receive through the educational program both the economic, social and cultural capital that I need, like grants, academic advising and peers to balance my school life. Finally, I also feel that Cal, in general, supports the mobility pathway, by making work- study, unsubsidized low- interest loans and other social services available and accessible to students. Thus, I feel that Cal supports effectively my stay in this college route.
Revenues climbed 30% to $392 million. Krispy Kreme is a product company and the most profitable part of the business is doughnut sales due to the high volume of loyal customers. Many Wall Street analysts considered Krispy Kreme to be overvalued. Analysts said in April 2000 the stock was destined for the $15 to $20 share range at best, which is where most known food related stocks are located. Instead it had been hovering at a value of $40 a share for most of the year.
Due to the growth in the bagel industry, all U.S. production facilities capable of making bagels were signing long term supplier contracts with different firms hence leaving very few opportunities for additional capacity to be obtained. In order to still thrive in the bagel industry, Dunkin’ Donuts should not terminate their contract with Harold’s Bakery. Rather, they should gradually continue with the rollout by limiting advertising and the pace of store expansion. In the meantime they should assist Harold’s Bakery to find more co-packers in the short term.
used to finance the company. The asset-to-equity for Kraft Food Group is up and down. This is a weakness that needs to be addressed.
One thing Krispy Kreme needs to work on is diversifying their product. Competitors, such as Dunkin¡¦ Donuts¡¦, offer bagels, low-fat products, premium coffees, and newly cinnamon sticks. They offer these products to go with the changing times of the market. They remain to be the top competitor in the market because they are constantly changing their product line to suit their customers.
Many public schools offer music education as part of their curriculum. Although these classes are required, many schools choose not to allocate enough money into the music programs in favor of better scores on standard tests. Recently there have been many strides to strengthen the importance of music education.
In March of 2014, the company announced the decision to extend its CEO’s contract by two additional years from December of 2016 to 2018. This came partly due to his great productivity with the organization. In his short five years as CEO of Dunkin Brands, Mr. Travis has managed to produce a growth rate of 6.2%, add 3,000 new Dunkin Donuts and Baskin Robbins stores, as well as provide the company’s shareholders a return of approximately $650 million.
To begin the analysis on Krispy Kreme, the first analysis is that of the depreciation analysis. There are three different methods to calculate depreciation and they are straight-line, units-of-production and double-declining-balance (Larson, Wild, & Chiappetta, 2005). The Krispy Kreme Company uses the straight-line method to calculate their depreciation on building, machinery, equipment and leasehold improvements. The breakdown of the depreciation on property and equipment consist of land, buildings, machinery and equipment, leasehold improvements and construction in process (Larson, Wild, & Chiappetta, 2005). Krispy Kreme’s total gross property and equipment in 2002 was a total of $156,484,000 and in 2003, it was a total of $252,770,000. The accumulated depreciation for the year 2002 was a total of $43,907,000 and for the year 2003, the total was $50,212,000. To find the net property and equipment amount, taking the gross property and equipment and subtracting the accumulated depreciation is the equation used. The net property and equipment for the year 2002 would be $112,577,000 and 2003 would be $202,558,000. Once b...
“Music education opens doors that help children pass from school into the world around them a world of work, culture, intellectual activity, and human involvement. The future of our nation depends on providing our children with a complete education that includes music.” Former US president Gerald Ford, said this in regards to musical education. He and many other people believe in having an education in music at some point in a student’s life. According to the National Association for Music Education (NAfME) says that Bill Clinton is a saxophone player (The Most Musical United States Presidents par 25)
Music education plays an enormous role in student’s overall well being, outweighing the costs of it. In 1994, Congress passed the Improving America’s Schools Act, concluding that “...the arts are forms of understanding and ways of knowing that are fundamentally important to education” (Ford, AdamMcMahon, Maureen). Congress recognized the importance of music education. Now the effort must be made to make a difference. If people really do want the best for the future, music education is key. Ramon Cortines, former chancellor of the New York City public schools stated, “We engage in the arts, we ought to teach the arts, because this is part of what it means to be human” (“Arts Education”). When people eventually realize this, the benefits will be vast.
The Dunkin brand has two major companies Baskin Robins and Dunkin Donuts. For this business analysis I will be focusing in on Dunkin Donuts of the Dunkin Brand. Dunkin Donuts is one of the leading companies in the coffee industry that is growing rapidly each day. Though the coffee is rapidly increasing, can Dunkin Donuts keep up and compete with top rivals?