Krispy Kreme Doughnuts

548 Words2 Pages
bulb-icon

Recommended: krispy and kreme case study

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

Show More
Related

  • Analysis Of Howard Zinn's 'Slavery Without Submission, Emancipation Without Freedom'

    905 Words  | 2 Pages

    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.

    Read More

  • Issues In The Four Agreements By Don Miguel Ruiz

    1309 Words  | 3 Pages

    For example, when I was younger my father told me that I would never be smart enough to attend college and that I might as well not even try to apply. For most of my life, this has caused me to think I would never be smart enough to graduate from high school or attend college. Eventually, I overcame this fear when I graduated high school and was accepted into college. I also had to learn not to take things personally from my father because the things that he said about me were not true. If I kept listening to him, I would always find myself hurt by the things he says. I began to realize that I had a problem with taking things personally, and I realized this even more after conducting some personal interviews about the Four

    Read More

  • Why Music Education Is Being Cut

    1463 Words  | 3 Pages

    Sheftel, B. (2002). Music Education Curriculum in Public Schools. PageWise, Inc, Retrieved August 6, 2003

    Read More

  • Examples Of Direct Characterization Of The Great Gatsby

    859 Words  | 2 Pages

    In the novel “The Great Gatsby,” author F. Scott Fitzgerald writes about a character that goes by the name Jay Gatsby, who captures the attention of those around him by surrounding himself with rich people and materialistic possessions. The title of the book itself is named after the protagonist, Jay Gatsby, who is a well-off man that moves from the west to the east to obtain the one thing in his life that he deeply desires; to be reunited with his one true love, Daisy Buchanan, who he had lost five years prior. Gatsby’s physical appearance, mannerisms and impressions contribute to his pursuit for The American dream drives him from rags to riches, into the arms of the love of his life, and ultimately to his death.

    Read More

  • The Importance of Music Education

    1574 Words  | 4 Pages

    Lewis Brown, Laura. "The Benefits of Music Education." PBS.org. PBS, N.D.. Web. 20 Feb. 2014.

    Read More

  • Paying For The Party, Armstrong And Hamilton

    998 Words  | 2 Pages

    ...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.

    Read More

  • The Complex Themes Hidden in The Great Gatsby by F. Scott Fitzgerald

    1703 Words  | 4 Pages

    Its theme is far more complex than a simple love story. It tells about the corruption of the American dream, the broken promise of “equality for all” and the fact that you can’t be “whatever you want”. The novel is concerned with Jay Gatsby’s life, who is the protagonist of the story and perhaps American’s literature most powerful character.Gatsby lives a luxurious life in west Egg, we learn about his glamorous parties full of drinks and people from everywhere! But all this is just a facade that hides what Gatsby really is- a simple man in love. It seems that years ago Gatsby had fallen in love with a golden-haired girl named daisy. However, he wasn’t always rich and wealthy there was a time when he was poor and had nothing. This was the reason he lost the love of his life, and now does everything only to gain it back.

    Read More

  • Business Strategy: Business Analysis Of Dunkin Donuts

    1660 Words  | 4 Pages

    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?

    Read More

  • Analysis of Dunkin Brands

    1134 Words  | 3 Pages

    The first Dunkin Donuts was opened in 1950 by founder Mr. Bill Rosenburg in Quincy, MA. Five years later the very first franchised branch was licensed. Sixty years later, under “Dunkin Brands Inc.”, there are now over 10,000 stores including more than 7,000 franchised locations, all in 36 of the United States. There are over 3,000 Dunkin stores internationally in 32 countries other than the United States. Dunkin' Brands Group, Inc. is one of the world's leading franchisors of quick service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream. Dunkin Brands is head quartered in Canton, MA (Company Snapshot).

    Read More

  • Krispy Kreme Analysis

    1686 Words  | 4 Pages

    The U.S. doughnut industry was a $5 to $6 billion market in 2003 – 2004 with a robust growth rate of 13%. Doughnut specialty stores were the fastest growing dining category in 2002 – 2003 with sales increases of 9% to approximately $3.6 billion. Opportunity for expansion in North America and globally is desirable. Doughnuts appeal to many people across all ages and demographics. The increasing rate of obesity and the concern about healthy living triggers a change in buyer demand toward a more health conscious diet.

    Read More

  • Krispy Kreme External Anaylsis

    1208 Words  | 3 Pages

    clients as much as possible with one stop is a sure draw for modern American consumers. Aside from breakfast there are not many who consider doughnuts as a full meal, it is generally considered a desert or at most a snack. Thus Krispy Kreme is faced with the problem of offering a greater variety of meals to suite lunch and dinner, or changing the way America perceives doughnuts to increase sales in existing markets.

    Read More

  • Krispy Kreme Essay

    1689 Words  | 4 Pages

    Stan Parker, senior VP-marketing, says “no one looks at Krispy Kreme as a replacement for lunch or dinner. It’s a complement” (MacArthur, 2003). Krispy Kreme wishes not to be a fast food business or another doughnut store.

    Read More

  • Krispy Kreme Case Study

    1002 Words  | 3 Pages

    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.

    Read More

  • Ben & Jerry And Unilever Case Study

    1099 Words  | 3 Pages

    At $36.00 (cash) per share, it is $4.00 higher than Meadowbrook Lane’s offer of $32 (cash) per share. With Ben & Jerry’s current stock price at $21.00, the $36.00 offer would result in a $15.00 gain on each share, for the shareholders. Looking at the market capitalization of Ben & Jerry’s and Unilever, shows a stark contrast in company size (see Market Cap. Excel). Ben & Jerry’s market capitalization is valued at $158,801,769 or .88% of Unilever’s $18 billion market capitalization, which is the largest of any of the offering

    Read More

  • Kraft Foods Case Study

    1273 Words  | 3 Pages

    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.

    Read More

More about Krispy Kreme Doughnuts

Open Document