This website uses cookies to ensure you have the best experience. Learn more

Krispy Kreme Doughnuts, Inc Essay

456 words - 2 pages

This case is analyzed from the point of view of a third party consultant.
There is inefficiency in the management of Krispy Kreme Doughnuts, Inc. in terms of its operations, marketing, accounting, and investment planning.
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 business, selling of doughnuts.
c. To regain and increase stock price therefore increasing shareholder value.
d. To correct inaccurate entries in the financial statements of KKD and to present a clean and unbiased reports.
e. To extend further reach to ...view middle of the document...

• Roughly 60% of sales at a Krispy Kreme store were derived from the company’s signature product, the glazed doughnut.
• On May 7, 2004, Krispy Kreme announced adverse results. The 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 $35 million to $40 million.
• According to the Wall Street Journal, the company recorded the interest paid by the franchisee 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 amortize.
• Over the previous 3 years, the company had recorded $174.5 million as intangible assets (reacquired franchise rights), which the company was not required to amortize. Kripy Kreme’s shares fell another 15%, closing at $15.71 a share.
• By the time the Wall Street Journal published the article in May 2004, only 25% of the analysts were recommending the company as a buy; 50% had downgraded to a hold.
• Another issue is that the company has relied for a significant chunk of profits on high profit-margin equipment that it requires franchisees to buy for each new store. Its profits have also been tied to growth in the number of franchised store.

Other Papers Like Krispy Kreme Doughnuts, Inc

Krispy Kreme Essay

304 words - 2 pages growth of Revenue, EBIT and Net income were continuously decreasing. Outcomes: * Over the period of 2000-2004 Krispy Kreme Inc. grew tremendously. As a result, the quality of new purchases was low. The average level of a new franchises’ performance became less that influenced the performance of the main company. * The assets turnover declined significantly for the period of 2000-2004, from 2.10 to 1.01. It means that an efficiency of the

Lafarge S.A Essay

2924 words - 12 pages ]. Langton, N., Robbin, S., Judge, T. (2010) Organizational Behaviour. 5th Canadian ed. Toronto, Pearson Canada Inc. Laszlo, C., Myers, M. (2006) Lafarge S.A. [Internet], Available from: < > [Accessed 02 October 2012]. * Tembosocial (2012) Introduce Social Recognition [Internet], Available from: <


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

Related Essays

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. Context 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

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 , 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 the other hand, Beatrice Foods was the complete opposite causing it not to be a good fit for them. Beatrice Foods had a big-business approach where

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