Krispy Kreme Doughnuts Essay

769 words - 4 pages

Case Analysis
Krispy Kreme Doughnuts, Inc.
Thadavillil (Nathan) Jithendranathan
Professor of Finance
Opus College of Business
University of St. Thomas
St. Paul, Minnesota, U.S.A.

This case considers the sudden and very large
drop in the market value of equity for Krispy Kreme
Doughnuts, Inc., associated with a series of
announcements made in 2004. Those
announcements caused investors to revise their
expectations about the future growth of Krispy
Kreme, which had been one of the most rapidly
growing American corporations in the new

• To gradually gain back analysts’,
investors’ and lenders’ confidence in the
company in the succeeding ...view middle of the document...

company told investors to expect earnings to be 10% lower than
anticipated, claiming that the recent low-carbohydrate diet trend in
the United States had hurt wholesale and retail sales.
The company also said it planned to divest Montana Mills and would
take a charge of $35million to $40 million.
According to the Wall Street Journal, the company recorded the
interest paid by the franchisees as interest income and, thus, as
immediate profit; however, the company booked the purchase cost
of the franchise as an intangible asset which the company did not
Only 25% of the analysts were recommending the company as a
buy; 50% had downgraded to a hold.

• Rapid growth in revenues and earnings over the
past five years.
• Significant asset growth in the past five years.
• The bulk of this growth, however, has occurred
in accounts receivables from affiliates and from
reacquired franchise rights.

DuPont Analysis





Return on






























Liquidity, Leverage, and
• The firm’s liquidity ratios are strong and continued to
improve over the five-year period.
• The leverage ratios show that the firm has been
increasing its proportion of debt,...

Other Papers Like Krispy Kreme Doughnuts

Lafarge S.A Essay

2924 words - 12 pages NAME: IHEKANANDU KINGSLEY N. COURSE: MGMT 292 / F12 N01 TITLE: INDIVIDUAL CASE STUDY (LAFARGE S.A.) SUBMITTED: October 5, 2012 TABLE OF CONTENTS 2. INTRODUCTION 3 3. DESCRIPTION OF CASE 4 4. VALUES 4 4.1. Types of values 4 5. TEAMWORK 7 6. MOTIVATION 8 7. CREATIVITY 9 7.1. Components of creativity 9 8. CONCLUSION 12 9. BIBLIOGRAPHY 13 INTRODUCTION This report aims to provide an in-depth analysis of initiatives pursued by Lafarge as

Finance Essay

665 words - 3 pages Financial statements are the most common tool used for making business decisions. They consist of the balance sheet, income statement and statement of cash flows. The analysis tools used affect all aspects of a company not just a few. A systematic review of the resources a company used to achieve its mission is cost control. Cash flow should be kept at necessary levels for operations is one of the major benefits of cost control. It is a very

Analysis Of Operation Blue Star And Its Effects On The Gandhi Dynasty

934 words - 4 pages The period of time including and following Operation Blue star is considered a dark time in India and black spot in Indian history. It is a time Indian would rather forget, yet still to this day debate about. Was Indihar Gandhi correct in instating operation Blue Star, inflicting damage to the Golden temple, and being responsible for the killing of anywhere from 492 (official reports) to 1500 (estimates run as high as) civilians, which lead to an

Regretful Decisions

930 words - 4 pages Regretful Decisions There are many individuals in a child’s life that helps mold them into a well-rounded adult. In most cases, this guidance comes from the child’s parents or other older, but in Sonny’s case, this guidance was expected from his older brother. In the short narrative, Sonny’s Blues, Sonny’s life was adversely affected by the decisions that his older brother made. The decisions that his brother made include leaving Sonny to stay

Jail Responsibilities

589 words - 3 pages Jail Responsibilities Monique Priorello September 23, 2012 One of the main responsibilities of a jail is to give the officers the correct “Police Correspondence” courses. This is because these courses give the officers the effective basic training that they need to do things such as; Writing of Memoranda, Police Reports, and Civilian Letters. What needs to be done first is make sure that there are NO errors. This means in


638 words - 3 pages Starbucks Nefertiti Wright Sangita Patel October 15, 2012 STARBUCKS 2 STARBUCKS - 1 - [no notes on this page]I. Job description a. Baristas II. Job specifications a. Duties III. Form of departmentalization STARBUCKS 3 Starbucks Starbucks have been named in the 100 best companies to work for. Starbucks has many job opportunities for people, which require the right job specifications. The employees create uplifting experience

Fight Club

917 words - 4 pages Fight Club is a story of the narrator’s struggle to gain control over his life. He is in search for an identity in the form of manhood. His masculinity is so repressed because of the absence of a father figure in his life. Because of this he creates Tyler, his alternate personality. Tyler is nothing like anyone the narrator has met, he is self assured and completely free. The narrators alternate personality Tyler Durden is the ultimate alpha-male

The Powers Of The Health And Safety Representative

254 words - 2 pages The Powers of the Health and Safety Representative A health and safety representative has the power to: Identify Workplace Hazards The health and safety representative has the power to identify workplace hazards. This power is usually exercised by conducting workplace inspections. Obtain Information from the Employer The health and safety representative is entitled to the same information available to a joint committee member. Under the Act

Lesson Plan

6476 words - 26 pages QWERTYUIOP by Vivien Alcock Table of Contents Introduction About Short Stories The Writer Synopsis Elements Activities Beyond The Text Assessment Answer Key Glossary Panel of Writers [pic] SHORT STORY Welcome to the World of Literature and to Short Stories! We hope you will enjoy working with this guidebook, which has been specially designed to help you prepare your students enjoy the Literature


1227 words - 5 pages Coca-Cola Global Business and Marketing Strategy Introduction As domestic markets mature, it is becoming more and more fashionable for organisations to seek growth through opportunities in foreign countries. Faster communication, new technologies and improved transport links are making international markets more accessible and businesses pursuing a global position can experience an upsurge in brand awareness and cost effectiveness. Global

Facing Poverty With A Rich Girl's Habit

783 words - 4 pages Facing poverty with a rich girl’s habit Adele Strader Professor Chryst English Composition October 22, 2012 Facing poverty with a rich girl’s habit was written by Suki Kim and published in the New York Times on November 21, 2004. The most important point that Suki want to make was that (1) what we have in life can be taken away in an instant (2) do not go bankrupt in South Korea (3) that a person must adapt and endure

Related Essays

Krispy Kreme Doughnuts, Inc Essay

456 words - 2 pages I. POINT OF VIEW This case is analyzed from the point of view of a third party consultant. II. PROBLEM There is inefficiency in the management of Krispy Kreme Doughnuts, Inc. in terms of its operations, marketing, accounting, and investment planning. III. OBJECTIVES a. To gradually gain back analysts’, investors’ and lenders’ confidence in the company in the succeeding months. b. To increase sales and profitability in terms of its core

Marketing Plan Essay

4901 words - 20 pages Executive Summary Americans love their doughnuts. There’s no doubt about this fact. Among the leaders of the retail doughnut industry in the United States, Krispy Kreme Doughnuts, Inc. offers a wide variety of doughnuts at select markets nationwide, including the signature “Original Glazed.” Add a bright neon-light sign indicating “Hot Doughnuts Now” at every Krispy Kreme store, the appeal of their doughnuts is more enhanced. Since 1937

Krispy Kreme Essay

612 words - 3 pages company from scratch? The opportunity that the franchise saw in buying back Krispy Kreme rather than starting a new company from scratch was because of the simple fact that Krispy Kreme came with history and a strong foundation. Consumers who once ate from Krispy Kreme associated the company with happy memories and hot doughnuts. 3-20. Describe several business lessons that can be drawn from Krispy Kreme’s history. Negotiating is a big one

Econ Essay

660 words - 3 pages elasticity of demand for Dunkin Donuts (DD) glazed doughnuts, ηxy1 is the cross elasticity of demand between DD glazed doughnuts and Krispy Kreme (KK) glazed doughnuts, ηxy2 is the cross elasticity of demand between DD glazed doughnuts and DD French Vanilla coffee, and η I is the income elasticity of DD glazed doughnuts. a) If you want to increase your sales of glazed doughnuts by 30%, in what direction and by how much do you need to change