This action might not be possible to undo. Are you sure you want to continue?
Case Study: Adapting to the Changing Needs of Consumers
By: Andrea Slonecker, Jessica Curtin, Mike Hurlbut, & Keith Anderson
Table of Contents
Executive Summary............................................................................................................................ 1 Introduction ...................................................................................................................................... 2 Company History ....................................................................................................................................... 2 Current Situation ....................................................................................................................................... 4 External Environment Analysis ........................................................................................................... 6 General Environment ................................................................................................................................ 6 Industry Environment ............................................................................................................................. 10 Competitive Environment ....................................................................................................................... 12 Internal Environment Analysis .......................................................................................................... 17 Peformance ............................................................................................................................................. 20 Krispy Kreme’s Efficiency ........................................................................................................................ 21 Risks Facing Krispy Kreme ................................................................................................................ 23 Competition ............................................................................................................................................ 23 Costs ........................................................................................................................................................ 23 Expansion ................................................................................................................................................ 25 Economic Risk ......................................................................................................................................... 26 Changing Consumer Preferences ............................................................................................................ 27 Key Problem .................................................................................................................................... 27 Recommendations ........................................................................................................................... 28 Implementation Plan............................................................................................................................... 30 Appendix ......................................................................................................................................... 32
Krispy Kreme is a doughnut manufacturer and retailer that was founded over 70 years ago and has since expanded into a global firm. After several structural changes, the company began to expand rapidly in the mid 1990’s and early 2000’s. A few years later after realizing they over expanded and several questionable accounting practices came to light, the company’s stock prices plummeted. New management has slowly been trying to rebuild their reputation and decrease costs which are severely hurting the company. Competition is increasingly becoming an issue based on the changing needs of consumers who are looking for healthier products, convenience of store locations, and low price. Krispy Kreme competes in both the quick-service restaurant sector and the U.S. bread production industry and as a result their competitors vary greatly. The top three competitors they currently face are Dunkin’ Donuts, Starbucks Coffee Inc., and Hostess who each have their own strengths and weaknesses. While internally the company’s new management is making smart decisions by building smaller factory stores in more locations, rather than traditional large stores in fewer areas which has allowed them to reach more customers and somewhat reduce costs, they are still facing a lot of store closures. Despite these financial improvements, the company is drawing in comparatively smaller revenues and still has higher costs than its competitors in the present market. Krispy Kreme needs to focus on cutting costs and expanding their customer base even further to bring in higher revenues. This can be done by implementing new, healthy lunch options to their menu. While it will change the company’s traditional menu of doughnuts and sugary treats, it will help them adapt to the changing needs of consumers; without meeting the needs of their consumers they may face eventual bankruptcy.
―To be the worldwide leader in sharing delicious tastes and creating joyful memories.Introduction Krispy Kreme is a doughnut retailer in the quick-service restaurant sector.1 In addition to their famous Original Glazed® doughnuts. Going against giants like McDonalds and Burger King.‖2 Krispy Kreme obviously feels that they need to be more than just an average doughnut shop that sells doughnuts in the morning. However. Founder Vernon Rudolph purchased a secret doughnut recipe used to produce the treats that he then sold to grocery stores in the area. They have also recently started to offer a product called Kool Kreme® which is a homemade ice-cream that they make doughnut sundaes and other dessert items with. Company History Krispy Kreme was started July 13. North Carolina. Unlike these other quick-service restaurants. Krispy Kreme is having a tough time matching what these monster chains can offer customers. 2010 they operated 582 stores in 20 countries across the world including The United States. Saudi Arabia. As of January 31. Based on their recent menu additions and the company’s vision statement. they also offer other options such as doughnut holes and jell-filled doughnuts. 1937 in Winston-Salem. and sweet treats. Rudolph created an accessible section in the factory to 2|Page . The quick-service restaurant sector of the economy is very competitive. as pedestrians walked by the factory in the morning they were enticed by the smell of fresh doughnuts and inquired if they could purchase them straight from the factory while they were still hot. These competitors are encroaching into the breakfast market and Krispy Kreme is in danger of losing its advantage and position in the market. Mexico. and Qatar. coffee. Australia. Krispy Kreme is having trouble bringing in customers for meals after breakfast because they offer only doughnuts. and coffee and espresso drinks that complement their featured product.
To promote this they created the famous sign that lights up to alert passerby’s that fresh doughnuts just rolled off the line. Krispy Kreme decided that it should expand its stores in the South. after the buyback. the hot Original Glazed®. An answer to this problem was created in uniform machines that would produce the doughnuts evenly and at a faster pace than the previous style could produce. With this new technology stores could make 500 dozen doughnuts per hour!4 When Vernon Rudolph died in 1973 the company was sold to Beatrice Foods Company and became a subsidiary of the company. superior doughnuts to sell to the public and grocery stores to one based on gaining short-term profits and not caring about the long-term health of the company as a whole. This helped standardize the taste of the doughnuts. A group of franchise owners purchased the company back from Beatrice Foods in 1982 with the intent of going back to the old ways of the company. To solve this problem the factory created a dry mix that would be distributed to all of the stores. Krispy Kreme had debts that needed to be paid off and the company was stalled for some time until the mid 1990’s when they went through a huge period of expansion. and consistency from store to store was lackluster . Their main focus during the expansion was to sell their main product. With this strategy in mind they expanded out of the 3|Page . but it didn’t solve the problem of shape/size.sell doughnuts to customers walking by on the street and the first Krispy Kreme doughnut shop was born. however. Krispy Kreme’s business model was tinkered with and changed from what its core competency was .creating fresh. Unfortunately.3 With the success of the store in North Carolina.some used too much flour and some made them too small. this created additional revenues for the company and gave them better name recognition as everyone wanted to get their hands on a Krispy Kreme doughnut. with expansion came problems as well.
Net income has been negative since 2003 and the company has been on the verge of bankruptcy several times throughout the past seven years. The company was sued by shareholders after releasing its first profit-warning in May of 2004 and was accused of fudging earnings to meet expectations and receive huge bonuses. 2010 is forecasted to have a positive net income based on quarterly earnings for the year.5 Current Situation Krispy Kreme is going through a tough stretch right now. The current situation Krispy Kreme finds itself in is based on the actions of former CEO Scott Livengood. They targeted markets where they felt they could come in and take a huge portion of the market share.6 As the following graph shows. Nevada and California and were a national chain. 4|Page . 2004 was the first year that Krispy Kreme reported a loss. In 2005 the company failed to file audited financial statements and Livengood resigned as CEO. Current leadership has done a great job recreating the company’s image and getting back to the basics of the classic doughnut shop. By the end of the decade they had successfully expanded west into Texas. but it is safe to assume that they were losing money during that time. However. The actions of past management have put the current management under serious pressure to save the company. moving first into Indiana and then to most places between North Carolina and New York City. Their aggressive expansion in the 1990’s and early 2000’s have come back to hit them hard. The Securities Exchange Commission formally filled an investigation into the company and the stock price had fallen 50% in 2004. but there is still a lot of work to do.South and moved north. It is impossible to know what the real numbers would have been had Krispy Kreme been following the guidelines from 2000-2004.
9 5|Page . Dunkin’ Donuts offers healthy breakfast sandwiches and a variety of flatbread sandwiches that are based on both morning and lunch styles. its competitors dwarfed Krispy Kreme’s revenue of 350. Low revenues have caused major problems for the company. on November 10.29 billion respectfully. Krispy Kreme’s revenues are drastically lower. Dunkin’ Donuts and Starbucks. In the period from 2004-2009 over 240 domestic stores were shut down by the company and franchisees. coupled with falling sales. as well as changes in consumer taste and poor expansion strategy. A shift in consumer demand to want healthier fast-food options has hit the industry hard.8 Competition from these companies. High startup costs. has put Krispy Kreme in a difficult position.90 and 10.7 Additionally. 2010 they announced they will be shutting down 21 of their 51 stores in Australia. Dunkin’ Donuts and Starbucks have combated this shift by offering healthier menu items. have stressed Krispy Kreme’s stores.42 million in 2009. Posting revenues of 6.Compared with its largest competitors. something Krispy Kreme has failed to do.
cakes and other bakery items. salads. NAICS code 31181. Other quick-service restaurants can offer more selection than Krispy Kreme can and this makes them more appealing.12 The two major players are Sara Lee Corporation (7. which together make up thirteen percent market share of the industry. fruit plates.0%). putting Krispy Kreme at a disadvantage. It’s in the mature stage of the life cycle with annual revenues of $36. oatmeal.5 billion. yogurt. This includes everything from the production for wholesale or retail of breads. ―Many of the new Krispy Kreme outlets were located within the food courts of major shopping centers. doughnuts. where rents are high and consumers can immediately compare retail offerings‖11.0%) and Flowers Foods. External Environment Analysis General Environment Krispy Kreme competes in the Bread Production in the United States industry. These seemed like solid investments when the management was participating in unethical accounting methods. coffee. (6. pies. muffins. The magnitude of growth in the late 1990’s and locations chosen for expansion have not worked as well as Krispy Kreme had hoped. and breakfast sandwiches to complement their main product.13 The other eighty seven percent is made 6|Page . and roughly 8.495 small to medium sized firms competing. As primarily a doughnut shop. how Krispy Kreme addresses and answers the health craze in the upcoming years will define the company’s future.10 Even with a forecasted profit for 2010.Starbucks is even more impressive when it comes to variety on its menu as they offer pastries. For example. Inc. Why are these franchises now failing and have they been failing since they opened? Almost all new locations have competition in the form of multiple options for consumers to choose from. Krispy Kreme is viewed as a snack and not a full meal which is leading to the aforementioned store closures.
14 There are seven product segments which make up this industry. they are not requirements in the diet. yet still highly competitive firms like Hostess Brands (4. in other words. in the colder holiday months there is a spike. croissants and bagels. while spring and summer months see a decline as people are eating lighter. grains and potatoes. The five lowest revenue-yielding segments are because the products are not considered discretionary items rather than staples. They also see fluctuations seasonally. holding 14% of the market. but indulgences.0%). The frozen cakes and pastries segment carries 15% of the market. capturing roughly 19%. Revenues from this segment make up more than half the industry total. The last four segments include other sweet goods. retail bakery products with 10%. for example. Some examples of other staple foods are pastas.up of smaller. Again. Varieties include fresh or packaged rolls. this category yields strong revenues which are tied to its strong relationship with the staples of the American diet. muffins. people consume bread products in such quantities that it’s a substantial portion of their diets. This segment is somewhat an up-and-coming segment with strong recent popularity due to its convenience combined with shelf life.5%). soft cakes (non-frozen variety) holding 8%.5%). The second largest segment is the rolls segment. Bimbo Bakeries USA (4. and pies making up 2%. which is in part because the breads in this segment are considered staple foods. The largest is the bread segment at 32% which includes many fresh and packaged breads like French bread or the loaf varieties you might find in your local grocery store.15 7|Page . China or Japan may consider rice as a staple more so than Americans would. and Krispy Kreme (<1. These discretionary segments also feel losses when the economy is experiencing difficulties and people begin cutting their spending habits. Staple foods can vary from country to country.
therefore.16 Competition is extremely high and therefore firms must be able to provide low-cost. Many of the larger firms have an advantage because they deal business under contracts with their suppliers and therefore have fixed costs which allow them more flexibility in not having to worry over unstable costs. as well as the bread producing industry as a whole. Bakeries buy their raw materials like sugar or flour from their suppliers who often have erratic prices. add a recession on top of it. From 2005 to 2010. doughnuts are not at the top of priority lists.how do they get customers in the door when the product isn’t a current need? The indulgence categories of items on consumer’s lists often get cut during recessions. prices are fairly volatile. 8|Page . firms must have some form of brand loyalty from their customers or some sort of differentiation in order to stand out. there have been 813 closed enterprises within the industry. has struggled like many other companies and industries during the recession. In the past few years. they become subject to closure or easy targets of acquisition. This raises the stakes for competing firms . Growth within the industry over the past five years has been nonexistent. and you have a potential problem as a buyer. including competition. the doughnut market unfortunately falls into the discretionary item category.0%. smaller firms don’t have the opportunities or resources to enter into contracts like larger firms do and therefore have to work with what is available. Already. differentiated products to the consumer who has extremely low switching costs.Economics plays a large part in the industry.18 As previously stated. with the recession taking a toll on consumer spending. impacts cause a ripple effect throughout the industry touching everything. transportation costs. supply prices. Competing firms see great struggles with their raw input prices. as many face substantial difficulties simply paying for current necessities. and labor costs. consumer spending habits and tastes. without. around -1.17 This is because in order to survive with all-around low bargaining power. On the other hand. Krispy Kreme.
In the past. Americans are becoming increasingly busier. the Southeast and the Plains region. high levels of sugars and fats and low in nutrients.26 9|Page .19 Prime supply areas include the Great Lakes region. there has been an increase in packaging procedures as well as the addition of preservatives which can extend the life of products. they still are not suitable for exportation and instead many major players have extended their franchises outside of the United States to gain presence in many other countries abroad. consumers are looking to substitute products like fresh snack foods that are much more easily accessible than traditional bread products. These goods are highly perishable and overall generally taste better fresh.20 Finally.Additionally. it’s important for firms to be close to their supply and distribution channels in order to save money on any transportation costs that may be incurred. Korea and the UK. while the Southeast offers production of starches and sugars. diabetes and obesity have made it to the forefront of deadly diseases in recent years causing consumer tastes make a substantial change. followed by Mexico. The Great Lakes region is home to many grain and flour mills.25 Industry exports accumulate $863 million annually. Japan. however. servicing 80% to Canada.23 Alongside this. These locations are generally large cities where there are larger concentrations of consumers. diets of Americans have been poor. 21 Within the past decade. consumer tastes have made some dramatic changes.24 Exporting baked goods abroad both now. Alongside dietary changes. it is key that firms are in premium locations in order to reach their consumers. As a result. has been unfeasible.22 They have little time to spend on shopping let alone cooking and consequently consumers look for items that support their on-the-move lifestyles. and the Plains region is home to the largest corn farming. and throughout history. This factor is a leading influence for substantial growth that the frozen desserts segment of the market has seen in recent years. All are beneficial for their production of raw inputs. In recent years.
Manufacturing technology in recent years has slightly developed. This is true because suppliers have an uphill battle both ways in the supply chain. these products must be hard to find elsewhere or the consumer must be brand loyal to the firm based on other factors. usually settling on whichever is the lowest price for what they’re looking for. 10 | P a g e . we can better analyze the industry as a whole. sell more. In order for suppliers to leverage their bargaining power they need to differentiate themselves from the rest and create some sort of switching cost for the buyers. Baked good products typically require significant labor and these new technologies eliminate much of that need. and their costs per unit are much lower than otherwise. while on the other hand. yield more. The major players also have a great advantage . To do so they need to offer premium products or a particular combination of products that are easily accessible to consumers at low prices. The bargaining power of buyers is very high. they have volatile raw input prices which can cause fluctuation in costs and hinder proper planning. finding similar offerings among them all.27 Major competitors have the resources to invest in these technological manufacturing machines and save on their labor costs stemming from wages. labor opportunities within the industry have declined. with the exception of specialty niche products.they are able to invest in these technologies. consumers head to the bread aisle and can choose from a variety of brands. their customers come and go as they please because bread products are easily interchangeable and readily available. On one hand. Although profitability rises for enterprises investing more in technology and equipment. Goods like loaf breads from grocery stores are especially common. Suppliers generally have low bargaining power. Industry Environment Using Porter’s Five Forces model. Consumers can go nearly anywhere to get their bread products.
0%. and even fruit. it captures the on-the-go breakfast consumer. Especially in today’s society where consumers are becoming more aware and conscientious of what they eat.Threat of substitutes is at an extreme high. creating an increasingly 11 | P a g e .28 The threat of new entrants into the bread production industry is moderate.29 Furthermore. nuts. but they offer fresh brewed coffee as well. On the positive side of things. as many of their sandwiches are served with ingredients like egg whites and spinach. A major competitor that Krispy Kreme has is Dunkin’ Donuts. producers in the industry have a wide variety of segments they can enter making product differentiation easier. What new entrants have to face is the entrenchment of strong players within the industry who have the resources to maintain contracts with their suppliers for stable raw input prices. Because operating conditions have become increasingly unpredictable and industry growth over the past five years has been -1. substitutes are readily available and on the rise. looking at Krispy Kreme. it’s also easy to imitate one another within the industry. along with combining products from other industries. they offer not only fresh doughnuts. however. as well as the health-conscientious. they enjoy economies of scale because they are able to have lower per unit outputs. The competitive rivalry among firms is high. This extended menu appeals to a wider market than those shopping for doughnuts. These items include things like yogurt or fruit bars. the capital to invest in technologically advanced manufacturing equipment. as well as one-upping each other. Healthy alternatives to traditional bakery items can satisfy the hunger and are much more accessible. who recently began offering extended breakfast menu items like sandwiches. Barriers to entry are low because the capital required to successfully start a profitable business is fairly significant. Many have begun to scale back operations and the industry has seen increases in mergers. as well as acquisitions. and customer brand loyalty. many companies have had to make many changes. For example.
therefore there is no significant foreseen increases to concentration. Finally. Competitive Environment The bread production industry is house for a wide assortment of baked goods. While they are able to provide larger outputs at lower costs per unit.30 Furthermore. however. quality control and product differentiation. are quite differentiated at the same time – both in their focus as well as strategies. Quality control is difficult to capture for larger competitors. Because the industry houses everything from loaf whole grain breads down to gooey-sugary doughnuts. Each has similar product offerings. create switching costs for customers using brand loyalty. Starbucks Coffee. but also the violent fluctuations of raw inputs. it’s easier to narrow the competitor focus to the market segment in which Krispy Kreme competes. at lower prices to the consumer. There are many small to medium sized enterprises that are dispersed throughout the country. and Hostess. Inc. as well as their consumer base. therefore posing grave threat to those who aren’t conforming to customer demands.not only because of the highly fragmented nature of the industry.31 Substitute products are readily available and generally healthier. Staying innovative and differentiated is crucial in the success of the firm. 12 | P a g e .fragmented arena which leads to overall low industry concentration levels. The only way to sustain or grow market share is to first. and second. establish steady supply rates. quality products daily to a large area. price competition. businesses are unable to capture significant portions of the market for several reasons . Consumer preferences have made some dramatic changes recently and therefore firms who want to captivate larger market shares must to cater to these shifting needs. firms need to form relationships both with their supplier resources. The top three competitors that Krispy Kreme faces are Dunkin’ Donuts. smaller firms are able to provide a smaller quantity of fresher products. as growth within the industry is quite limited. as it is hard to deliver fresh..
snacks and coffee beverages. Dunkin’ Donuts began licensing itself to franchisers.300 in the United States and more than 2. In 1955. Brand Keys Customer Loyalty Engagement Index rated Dunkin’ Donuts number one for customer loyalty within the ―Doughnuts and Coffee‖ category 13 | P a g e . with the remaining forty percent in their bakery items.35 In 2008 they began marketing healthier menu items. and several others. other baked goods.36 By looking at their product offerings. Massachusetts with founder Bill Rosenberg behind the counter. Their DDSMART product line includes healthy breakfast sandwiches.400 international venues in 31 countries. They offer 52 varieties of doughnuts. yet healthy at the same time. which also owns BaskinRobbins. they also revamped their entire menu of over 50 items. adapting to the changing tastes of today’s health-conscious consumer. a multigrain bagel with reduced fat cream cheese.800 locations world-wide. their business level strategy is targeting the on-thego families and professionals who appreciate low cost breakfasts or lunches and coffee that are fast. Some menu items include the ―Egg White Turkey Sausage Flatbread Sandwich‖. they claim to be ―the world’s largest coffee and baked goods chain.34 In 2007. Dunkin’ Donuts had over 8. Today. Dunkin’ Donuts became the first major player to introduce a doughnut with zero grams of trans fat. multiple coffee beverages.Dunkin’ Donuts may be the largest competitor to Krispy Kreme in that they offer very similar products. Within four years. With the new health change. including over 6. the company had a total of five Dunkin’ Donuts shops and Mr. As of year-end 2008.33 Sixty percent of their sales are in coffee. and breakfast and deli sandwiches. The first Dunkin’ Donuts opened its doors in 1950 out of Quincy. the Coffee Coolatta® with skim milk. serving more than 3 million customers per day‖. Rosenberg was well known as a young local entrepreneur. Inc.32 Dunkin’ Donuts is also a subsidiary of Dunkin’ Brands.
as well as many non-caffeinated varieties.for 2007-2009. Starbucks wanted to change the perceptions people had about coffee. and targets middle to upper income individuals and professionals. In 2004 they did a study testing customer’s brand loyalty and challenged them to substitute another brand of coffee for one week. comfortable chairs. turning it into more of a relationship and lifestyle. This makes Starbucks a prime location for small professional meetings. The owners didn’t want the expansion and Schultz left to start his own coffee shop to pursue his dream. Howard Schultz. They also have a wide assortment of pastries. From the beginning. Originally. before Starbucks was what it is today. and eventually purchased the original stores. ambient lighting and free Wi-Fi.500 coffee shops. today’s CEO.37 They are a privately held company so finding financials for ratios for comparison is not feasible. breakfast sandwiches. Washington. instantly felt at home.40 Their competitiveness is mainly focused on the coffee market. walked into the small Starbucks store. The results of the study showed that regular consumers very much disliked living with the other brands. and preferred Dunkin’ Donuts coffee.38 They are present in over 50 countries with more than 15.39 Their venues specialize in serving freshly roasted and brewed coffees in all variations of coffee and espresso beverages. and one neighborhood at a time‖. After some time he was able to build his empire. Starbucks is everywhere and to date they are the number one retailer of specialty coffees in the world. study 14 | P a g e . They want people to have a connection with the coffee and be comfortable in the atmosphere by providing relaxing music. it was a small coffee bean and spice storefront in the heart of Pike Place Market in Seattle. and even oatmeal. Starbucks’ mission is to ―inspire and nurture the human spirit – one person. His inspiration took off when he visited Italy for a purchasing trip and returned to America with big changes. and joined the family. one cup.
Source: Yahoo® Finance Looking at Starbucks’ Yahoo® Finance chart provided above.41 This is most likely a similar situation as stated above. Another reason for brand loyalty is their constant devotion to eco-friendly products and practices. Some of the strengths that they hold are in their brand loyal market. discretionary items are often times what gets cut from consumers spending during times of difficulty – namely the recession. They recently began promotions for customized Frappuccino® Blended Beverages which allow consumers to choose their own 15 | P a g e . There are some consumers who don’t stray from their daily Starbucks and part of the reason is the employees who make everyone feel at home. Product enhancement and differentiation allows Starbucks to maintain competitive advantages by offering new and convenient products. NASDAQ and the DOW.spots and a place of relaxation. as compared to S&P 500. it’s evident that Starbucks took a massive hit with the recession. people go to Starbucks for the relationship and connections they make. their customer service and their constant product development and differentiation.
Hostess began in 1925 in Indianapolis. overall Starbucks still maintains strong holds over the specialty coffee industry and in the future. as well as continue to foster human connections. consumers are not confident in their spending just yet and people are still penny pinching. Indiana. this competition is slightly different than the other competitors. Furthermore. First. Although the economy is beginning to recover from the recent recession. therefore. however. trying to regain hold over their assets and eliminate debt. Initially Continental Baking Company purchased a small bakery that was selling Wonder® bread which was very popular within the customers shopping at the bakery. and consumer expectations changing. placing their products in convenience stores and places where consumers are grocery shopping. so Continental began selling it nationally. aiming for positive and uniting actions. Several weaknesses Starbucks faces include the overall economy and consumer spending. Added convenience can easily recruit customers. they still aren’t spending money on lavish coffees when they can brew at home to save $4 a day. they began offering breakfast sandwiches and instant breakfasts like oatmeal which attract on-the-go professionals who have time to stop for their morning coffee. However.42 Another competitor for Krispy Kreme is Hostess Brands. They also plan to continue growth throughout the world. Starbucks wants to maintain their name and reputation of quality products. milks. and other aspects. Hostess focuses on convenient snacks. Another major threat is that customer preferences and expectations are changing.flavors. They also do not focus on offering fresh products to the consumer because they are competing under convenience rather than quality or health snacks. meaning that customers are becoming used to specialty coffees – the excitement is wearing off and people are wondering if it’s worth the money. but not their breakfast as well. They knew they had 16 | P a g e .
. franchise stores in the U. Some weaknesses that Hostess does have are the quality of their products and health aspects.S. Looking at their quality. There are a lot of preservatives in their cakes and snack foods in order to decrease perishability and lengthen the shelf-life of their products. Internal Environment Analysis Krispy Kreme earns revenue from four main segments: Company stores. Hostess has produced various other products like Ho Ho’s®. they are able to target lower income consumers and families.44 They are a privately held company so finding financials for ratios for comparison is not feasible. as they survived the change from banana cream to vanilla during WWII.to integrate more baked goods into their company. In 1930. America’s favorite cakes. operated by the company itself where doughnuts. It soon became Hostess’ best-selling cake. They place their products in convenience and grocery stores where snack foods are readily consumed. Shortcake pans that were not being used at the time were reinvented to make shortcake with banana cream filling and thus. and other Krispy Kreme products are 17 | P a g e . The company stores segment is composed of all of the stores. they strive for low cost and that is exactly what you get – cheap food. Throughout the years. the recession made a need for inexpensive products. They suffered bankruptcy in 2004. international franchise stores. even so today. but were able to come out in 2009. Interstate Bakeries Corporation bought Continental. In 1995. They are lacking to offer healthy products to the now healthconscious consumer. coffee. Twinkies® were conceived. including both factory and satellite stores. and the Krispy Kreme supply chain. so they looked to cakes and the Hostess cake was born.43 Because Hostess continues to focus on low-cost snack foods. fruit pies and the popular doughnut product Donette®. as well as enough sugar to induce comas.
or discounted sales to organizations who sell the doughnuts for fundraisers.sold.S. to U. mass merchants. Off-premises sales consist of the doughnuts that are sold to retailers who resell the doughnuts in brand packaging. and more.48 Between these two channels Krispy Kreme is able to sell its product directly to consumers and retailers. Company stores typically sell both on and off-premises in order to maximize their manufacturing capabilities. grocery stores. just operated by franchisees instead. design including furniture. use of logos and trademarks. Next.47 The company manufactures all of its own products and sells them through two channels: on-premises sales and off-premises sales. international franchise stores use the same format as the company stores. consists of all of the doughnut shops in the country which are very similar to company stores. The supply chain sells packaging.S. ingredients. franchise stores in the U. packaging. Stores operate based on a standard set of guidelines created by Krispy Kreme.46 The last segment is the Krispy Kreme supply chain which produces the company’s doughnut mixes and manufactures the only equipment used to make the doughnuts in factory stores. sanitation. and various other supplies to company-owned and domestic franchise stores to ensure quality is standardized across all stores. etc.45 The second segment. Krispy Kreme owns and operates its own fleet of trucks to deliver the fresh goods to convenience stores. training protocols. stores. stores must follow specific rules set for product varieties and specifications. On-premises sales consist of people purchasing doughnuts at one of the company or franchise stores either by drive-thru.. Most of the international franchise stores stick to on-premises selling. marketing plans. but are operated by franchisees overseas and some are run in a kiosk style rather than a storefront. signage and advertising. 49 There are also standards set in place regarding employee behavior 18 | P a g e . inside the store.
Metro Atlanta Chamber of Commerce. Board member’s outside experience includes leadership in the quick-service industry. The sign helps the 19 | P a g e . Pike Electric Corporation. these leadership positions in such a wide array of industries is beneficial to Krispy Kreme because the board is diverse and can use their various experiences to make good decisions for the company. Senior VP. Senior VP of Company Store Operations – Cynthia A. a customer service hotline. & CEO – James H. Morgan. Lineberger. warm. Muir. Senior VP & President of U. and always fresh. and more. and KFC just to name a few51. Department of Justice. Stores – Steven A. Senior VP of Human Resources & Organizational Development – Kenneth J. Bay. financial industry. Along with that go the Hot Krispy Kreme Original Glazed Now® signs which light up when the doughnuts are fresh right out of the oven. community and civic organizations. U.S. or served on the boards of. Krispy Kreme is run by a top management team made up of 8 individuals: Chairman.50 In addition to the top management Krispy Kreme has a nine member Board of Directors in place which consists of members from both inside and outside of the company. This is a unique feature of Krispy Kreme’s marketing strategy that competitors haven’t attempted to use. public accounting. Marsch. United States Securities and Exchange Commission. & Assistant Secretary – Darryl R. & Treasurer – Douglas R. General Counsel. legal advising. and quality audits. Sonic. and Senior VP & President of International Stores – Jeffery B. President. such companies as McDonald’s. Executive VP. Bradley Wall. The company has a variety of core competencies working in their favor namely the brand reputation they have built up with their Original Glazed® doughnuts as being of high quality. Welch.and customer service which are monitored via mystery shoppers. Hudson. Senior VP of Supply Chain & Off-Premises Operations – M. CFO.S. Member’s have worked at. Wachovia Corporation.
though they are slowly beginning to turn things around under new management. but increases impulse purchases from consumers who may decide stop by simply because they know the doughnuts are currently hot and fresh. in other words.9 million. Morgan has taken over (Appendix A). Compared to the end of the second period last year they were able to increase net income from a loss of $157.52 Additionally. Performance Over the past three years Krispy Kreme has been performing very poorly.55 These figures. A second key resource the company possesses is the Krispy Kreme supply chain. shows solid growth in the company since the new CEO James H.000 to positive income of $2.1% to $2. your doughnut should taste the same as if you had purchased it from the original North Carolina store.54 Lastly the KK Supply Chain saw an 18. the vertical supply chain ensures that price increases won’t be fueled by rising supplier costs. This may be because of the new strategies being undertaken by Morgan and his new management team or 20 | P a g e .2 million. while international franchises were able to increase revenues by 5. along with the income statement for the past three years. At the end of the second quarter (July) 2010 they were able to show positive net income for the third quarter in a row.1 million. Additionally. Company stores brought in revenues of $60 million which appeared somewhat flat because despite increases in same store and off-premises sales. but rather other things such as rising energy costs and the agricultural industry that will affect competitors in the market as well. if you buy at Krispy Kreme in Washington.53 Franchisees in the United States increased revenues by 15.3% to $4 million. the company recognized growth in all four of their business segments.9% increase in revenues to $44. The company’s integrated supply chain is extremely beneficial because it ensures a standardized quality across all Krispy Kreme stores.company not only advertise its most famous product. some locations were closed or refranchised.
is performing well overall and Krispy Kreme should continue on its current track to remain competitive with them in order to survive. has been able to maintain relatively stable revenues and net incomes over the past three years (Appendix B). Inc.reuters. if you look at Krispy Kreme’s performance more recently we can see that they have been outperforming their sector and the S&P 500 since April of 2009. though competitor Starbucks saw little change in revenues due to the recession. while a much larger company. This shows that Starbucks. Because two of Krispy Kreme’s closest competitors are privately held. Krispy Kreme’s Efficiency It is very difficult to determine whether or not the company is being run efficiently today. while not seeing as much growth as Krispy Kreme. who. or P/E. ratio which shows how expensive a stock is compared 21 | P a g e . Financials .www.because the recession is slowly ending. Source: Krispy Kreme Doughnuts.com Another measure that is commonly used among investors to determine how a company is performing is the price to earnings. however. but since then it has not seen shares over $656. the company can only be compared to Starbucks. What we can say is that in 2003 Krispy Kreme traded at a high of about $11 per share.
and are struggling with underperforming stores because of poor expansion decisions? There are several possibilities.80 it can be concluded that they are not low risk. Overall. this high P/E ratio can mean only one of three things: their stock is low risk. they have high expected growth rates. but just as in the past this could change as a result of poor management decisions at any time. or the market is wrong and they are overpriced. Since Krispy Kreme has a beta of 1. but the likely conclusion is this: Krispy Kreme is at a turnaround point in their business. the market believes that Krispy Kreme is turning around as a company and will likely achieve exceptionally high growth in the near future. this indicates that the market has a great deal of faith in company’s current management. but it is important to understand what all of these ratios mean to the company as a whole. But if Krispy Kreme is being run efficiently today then why did we spend the last few pages talking about how Krispy Kreme has only posted positive earnings in two quarters out of the past five plus years. While they are beginning to implement responsible cost cutting strategies and are selling off underperforming stores. 22 | P a g e .58 This analysis has so far only provided an investor’s perspective.75 and the industry average beta is 0. they still have a long way to go. that they are not doing a good job of managing costs. in other words. First. it appears they are being run efficiently today. or in other words. since American capital markets tend to be efficient it is safe to assume that Krispy Kreme is a high growth stock which is supported by the fact that their projected growth rate being 50%. Also.to other stocks.2557. how much one has to pay for a dollar of earnings. based on the analysis.78 as compared to an industry average P/E ratio of 14. Currently Krispy Kreme’s TTM (trailing twelve month) P/E ratio is 83.
etc. On a smaller scale they face competition from local bakeries. their products have significantly shorter shelf lives than their competitor’s products as they aren’t filled with as many preservatives. A problem with this model is that customers are not willing to drive very far to go get donuts so with fewer. is a larger company that is expanding geographically into areas where Krispy Kreme is located. however. however.Risks Facing Krispy Kreme Competition The company’s biggest competitor is Dunkin’ Donuts who is very similar in that they sell donuts and coffee and they operate chain restaurants in much the same way as Krispy Kreme.59 Krispy Kreme also competes in the consumer packaged foods division of the retail grocery industry and as mentioned before their greatest competition in this market is Hostess. candy stores. Additionally. One problem that has led to high costs for Krispy Kreme is that they have focused too heavily on developing fewer large and costly factory store locations. larger locations Krispy Kreme is not able to reach as wide of a customer base. coffee shops. determining how well a company is controlling their costs is much more complicated than simply looking at operating profits. The company aims to maintain a reputation for fresh products and as such must deliver and ensure products are restocked at these places much more frequently than the competition which uses time and money.60 23 | P a g e . Krispy Kreme is far less experienced in the packaged foods industry as their historical focus has been mainly on their on-premise sales. Dunkin’ Donuts. Costs Krispy Kreme turned a profit in the second quarter (ended July) of 2010 for the first time in over five years.
If you refer to the provided table you will notice Krispy Kreme has the lowest gross margin of the comparables. but the fact of the matter is that high revenues do not always lead to high profits. Krispy Kreme has another problem that is driving costs far too high – they expanded too rapidly in the United States in the 1990’s and early 2000’s under poor management which has led to the company loosing focus on improving same store sales and profitability. however.79 15.8% 40. and much more than the restaurant industry as a whole. a competitor in the packaged bread goods market . they are spending more money on production than Starbucks. Currently management is taking steps to fix this problem. the higher the asset turnover ratio.47% 25. Inc. the better. so if Krispy Kreme is being run efficiently their low gross margin must be a result of high asset turnover. all other things being equal. This tells us that Krispy Kreme is having some trouble controlling costs because for each dollar of sales.19% 1. high gross margins are good.Additionally.63% 1.16 5.Einstein Noah. all other things being equal.85% 19.reuters.55% 2. (Note: Other key competitors Dunkin’ Donuts and Hostess are privately held so financial ratios are unavailable).www.3 38% Source: Krispy Kreme Doughnuts.gross margin is stated as a percentage and it measures how much money is left after all variable costs of production have been subtracted from sales. based off of these numbers one can conclude 24 | P a g e .04 2.com Many companies operate on very low gross margins yet they are extremely profitable because those firms have very high asset turnover ratios. First we can look at gross margin .61 There are several ways to track how well a company is controlling costs. Company: Krispy Kreme Restaurant Industry Average Starbucks Einstein Noah Gross Margin Asset Turnover Return on Asset 13.59% 2. In the business world asset turnover ratio and gross margin tend to be inversely related. Financials .
S.62 This. looking at return on assets it is clear that the company has by far the lowest percentage ROA. Morgan. the company followed suit by rapidly expanding until late 2003 when they realized that their high store sales were not sustainable and many stores began losing money. Expansion In the last section we briefly mentioned that Krispy Kreme engaged in a costly expansion strategy. According to financial theory return on asset is closely related to gross margin and asset turnover. If Krispy Kreme is unable to improve same store sales they will continue to underperform because their costs will be too high keeping their profits low. their asset turnover ratio is relatively high. while pursuing an aggressive overseas expansion program. so if Krispy Kreme were effectively controlling costs it would be expected for them to have a favorable return on assets.64 This shows why the company still owns underperforming stores in less than desirable locations today. coupled with the fraudulent accounting practices used to hide these losses in earnings. despite all of his efforts Krispy Kreme’s stock price continued to fall until 2008 when he resigned and was replaced with current CEO James H. As mentioned previously they became a publicly traded company in April 2000 which generated a lot of positive publicity and exposure causing investors became anxious for Krispy Kreme to expand their business. forced CEO Scott Livengood into early retirement in 2005 and replaced by Daryl Brewster. Lastly.63 Brewster settled the lawsuits facing Krispy Kreme and he began closing underperforming stores in the U.that Krispy Kreme is only doing ok at controlling costs because while their gross margin is low. at least within the United States. if we look at Krispy Kreme’s five year average ROA it is negative). 25 | P a g e . (Note: To keep things consistent trailing twelve month ROA was used. By looking at all three of these ratios it is clear that they are doing a poor job of controlling costs.
management thinks that international expansion is probably the most profitable expansion Krispy Kreme has engaged in. Domestic Company stores Franchise stores Total 83 141 224 International — 358 358 Total 83 499 582 Source: 2010 Krispy Kreme Annual 10K Report Though generally profitable. are performing well. as previously mentioned the company’s Australian stores are suffering and nearly half are being closed. Krispy Kreme’s international operations. This means that as the economy goes down Krispy Kreme may actually gain some customers who would have otherwise chosen to eat at a casual dining establishment. even this international expansion has met with some failures. However. but by October that same year all seven locations were closed down. Economic Risk Krispy Kreme is part of the quick service restaurant industry which provides the lowest cost restaurant experience to their customers. in fact.In the company’s 10K report they claim that international sales have been a very important component of Krispy Kreme’s growth as they currently operate more stores internationally than domestically.66 26 | P a g e . in August 2008 Krispy Kreme expanded into Hong Kong and opened a total of seven locations.65 In more recent news. Overall. For example. even if this is the case as economic conditions worsen consumer spending tends to decrease in all areas so it is likely that Krispy Kreme will experience a decrease in sales if economic conditions worsen. but there is always risk involved when entering foreign markets. despite a few setbacks.
but they fail to provide enough locations to reach a wide consumer base.67 Key Problem As mentioned before. None of the previously mentioned products are perceived as healthy by the average consumer so if more consumers begin to demand healthier menu choices this could mean a significant reduction in sales for Krispy Kreme. As a result many quick service restaurants have added salads to their menu or added menu items that are perceived as healthier choices by their customers. Krispy Kreme’s menu consists of donuts. In order to prevent the closure of more stores and ensure future survival Krispy Kreme must focus on more effectively managing costs and reaching a wider customer base. Even Dunkin Donuts offers a flat bread sandwich for their customers. coffee. 27 | P a g e . In fact. In addition. expensive factory stores which have not only been expensive to open and operate.Changing Consumer Preferences Recently many Americans are beginning to prefer healthier food products. Krispy Kreme is running into problems because they are unable to effectively control costs. and ice cream products. One of the biggest reasons that they are having trouble controlling costs is that historically they have focused too heavily on expansion and not enough on increasing same store sales. their expansion was based on large. at this point Krispy Kreme has made no attempt to add healthier choices to their menu. However. These large factory stores require a large amount of fixed costs causing the break-even points to be quite high.
setting up this type of store system is very expensive and there are a great deal of fixed costs associated with continuing operations. The first recommendation for Krispy Kreme is to begin a companywide analysis of all corporately owned stores to determine which ones are generating the greatest amount of sales and more importantly the highest return on investment. Selling those locations that are simply sucking revenue from the company will generate money that can be used to make more profitable investments. According to Krispy Kreme’s 10k reports one factory store can supply several outlet stores using a hub and spokes distribution system. Next. While a potentially effective idea. all of their factory store locations feature the ―Doughnut Theater‖. or a viewing window that allows customers to see the donut making process.Recommendations Recommendation One Since their initial public offering in 2000 Krispy Kreme has focused on aggressive expansion and it hasn’t been until more recently that the company’s management has realized that they need to focus on growing same store sales and rationalizing supply routes. selling off underperforming stores will allow Krispy Kreme to focus more attention on their operations in areas where they are profitable which will help focus management’s attention on same store sales and reducing costs. Recommendation Two Krispy Kreme’s business model emphasizes an enjoyable customer experience. The bottom line is that Krispy Kreme is still having trouble controlling their costs and one of the best ways for them to eliminate cost at this point could be to downsize. The main problem with large factory stores is that 28 | P a g e . For example. In the past this business model has required large factory store locations. management should find the locations that are consistently underperforming and sell them off. Additionally.
in contrast. but making it more convenient for consumers to reach stores.m.m. to 2:00 p. For example. The second recommendation is to simply implement a new store model based on smaller factory stores in all new business locations. Smaller stores require less real estate and lower fixed costs while providing the ability to serve a wider customer base with more locations. doughnuts are still not very healthy and are generally considered a snack food.m. the lowest percentage of their daily sales. One way they could improve their same store sales and appeal to a wider customer base would be to add a few healthier lunch items to their menu. occurs between 11:00 a. in today’s market more and more consumers are focusing on health conscious products. Despite the company’s previous attempt to alter products to be more health conscious by removing all trans fats. Recommendation Three The third recommendation involves changing Krispy Kreme’s menu a little bit to better meet the changing needs of consumers. at 35%. to 11 a. Right now the majority of their daily sales. occur during the period of 6 a.m. because they do not offer a diverse enough menu that includes lunch items. many people may not want to go to Krispy Kreme simply because they are looking for a meal and not just a doughnut. simply because doughnuts are typically consumed in the morning.customers are only willing to drive a short distance for doughnuts and developing a few large stores is much less effective at reaching customers. at 13%. Krispy Kreme’s current management has been experimenting with smaller factory store locations which still feature the ―Doughnut Theater‖. in this way they are preserving the same enjoyable customer experience that Krispy Kreme’s customers have come to depend on.68 Competitors have realized what Krispy Kreme clearly has not as Dunkin’ Donuts currently offers a flat bread sandwich among other things and Starbucks has added a few healthy lunch items to 29 | P a g e .
These lunch items need to be easy to prepare using the resources that are already available within the Krispy Kreme store as it would be far too costly to add additional kitchen space to all Krispy Kreme store locations. unhealthy views of Krispy Kreme will be more willing to purchase healthier lunch options perhaps while they buy a cup of coffee during their lunch break.their selection. Additionally. considering the alternatives this would be the cheapest option that would generate the most desperately needed revenue for the company. most customers that appreciate Krispy Kreme for their doughnuts will not even realize that the company has changed as it will still offer the same traditional products. however. 30 | P a g e . The company’s current management may have a couple problems with this suggestion. it’s about time for Krispy Kreme to adjust their menu to adapt to consumer needs before they get left behind by competitors who have already done so. those who had negative. First being that they may feel adding lunch menu items would fundamentally change Krispy Kreme’s business model. however. While they have already discussed altering the menu. They can easily add a few lunch menu items without changing the store front at all so it will not be very costly as long as they focus on adding menu items that complement their current store model. The most feasible items then would be sandwiches or similar products which are good because they do not require additional kitchen space and because they are generally perceived as healthy. Another problem management may have is that it would be too costly to change Krispy Kreme stores in order to accommodate a lunch menu. the extent to which they would be willing to do so is still unknown. Implementation Plan We feel that at this time the best recommendation for Krispy Kreme is to develop some healthy lunch options for their menu.
This strategy will be noticed by Krispy Kreme’s competitors. some coordination with new or existing suppliers will need to be made which may be difficult. Krispy Kreme will be able to implement this recommendation without incurring a great deal of additional expense or hassle. New menu items may call for Krispy Kreme stores to purchase additional refrigerators and new serving trays or containers as well require some research and development expense to find what items may attract consumers. since many of their competitors have already implemented similar strategies it will not make too many ripples in the pond. In order to avoid simply copying the competition though they will need to offer lunch menu items that are different. While this is something that will require a great deal of thought and planning by the management team. Additionally. it would be a good idea to make sure all store employees have the opportunity to try the new menu items so that they can make valid recommendations for their customers.Employees will probably not see many changes though it will be important to provide them with adequate training to prepare these new menu items properly. As Krispy Kreme’s own supply chain currently supplies most of the necessary ingredients to stores. The customers will be the ones who really benefit from this strategy because they will still enjoy the same great customer experience except now they will be able to choose from a wider variety of menu items. In addition. they will have to either contract with new suppliers or produce their own supplies for the new menu items as well. however. 31 | P a g e . It may be easier to have outside suppliers bake the bread and produce the meats necessary for the new menu items. Certainly this strategy will require some investment on the part of Krispy Kreme so the best way to implement this strategy without incurring large upfront cost is to experiment by adding the new menu items in only a few larger store locations at first.
685 418 575 (645) (157) ($157) 38.467 5.305 26.051) Source: Yahoo® Finance 32 | P a g e .847) (4.520 385.061) 49.558) 503 (4. 2008 346.316 47.191 11.146 7.143 18.587) (11.335 23. 2009 Feb 3.411) (54.727) 2.433 (42.679 (3.185 346.324 (67.796 (64.903 8.977 24.051) ($67.121 10.Appendix A Krispy Kreme Income Statement All numbers in thousands Period Ending Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares Jan 31.051) (67.545 380.959 548 8. 2010 Feb 1.931) 9.774 (183) 11.709 4.061) ($4.014 49.103 10.761 3.522 429.319 297.
400 512.383.000 36.449.373 3.364 383.939 2.500 144.700 390.300 39.300 549.500 $315.300 3.056.900 9.411.737.999. 2008 Sep 30.000 315.774.142.900 4.300 598.638 672.500 332.900 53.500 315. 2007 9.160 945.400 459.700 4.000 9.700 4.364 1.600 10.100 559.999.800 5.300 503.Appendix B Starbucks Income Statement All numbers in thousands Period Ending Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares Source: Yahoo® Finance Sep 27.700 562.497 4.531.500 5.124 5.200 153.419 1.638 33 | P a g e .400 534.412.274 467.200 168.638 $672. 2009 Sep 28.726 672.056.800 $390.000 512.324.645.
html. 38 Company Profile for Starbucks Corp (SBUX). 27.cnn. http://www. 31 Kopylovsky. 14. Joe. 24 Kopylovsky. 33 Dunkin’ Donuts Website. (accessed November 10. 2010).aspx?indid=261.html. http://ntserver1. 17. 13 Kopylovsky. 3 ―Company History.com/about-us/history.com/about-us/mission-and-vision. 16 Kopylovsky. (accessed November 12. (accessed November 9.com/aboutus/products/. 9. James. ―Krispy Kreme Doughnuts and Coffee. 7 2010. 22 Kopylovsky. (accessed November 9.html?cmpid=yhoo. 26 Kopylovsky. (accessed November 12. 25 Kopylovsky. 9 Dunkin’ Donuts. 17 Kopylovsky. 21.smartcompany. https://www.‖ http://krispykreme.html.hoovers. 12 Kopylovsky. 29 Kopylovsky. http://www. 21. Smart Company. (accessed November 11. http://www. 2010).com.com/2004/07/29/news/midcaps/krispykreme_sec/index. 34 Dunkin’ Donuts Press Kit. 12.wsulibs.dunkindonuts. (accessed November 11. 24. 4.dunkindonuts.wsu. 21 Kopylovsky. 36 Dunkin’ Donuts Website. http://news.: Company History. . 12. (accessed November 12.edu:2384/industryus/default. 20. 13-14. 21. 40 Starbucks Website.au/retail/20101108-poor-site-selection-caused kripsy-kremecrash-sumo-salad-founder-luke-baylis-says. 20 Kopylovsky.com/news/2010-11-10/krispy-kreme-shuts-24-australian stores-after-appointing-administrators. https://www. 2010).com/company-histories/Krispy Kreme-Doughnuts-Inc-Company-History. 27 Kopylovsky. 2010).Notes 1 2 http://finance. 2010).‖ http://www. 5 ―Krispy Kreme Doughnuts. (accessed November 09.yahoo.‖ CNN Money. Inc. 29-30. 2010).bloomberg. 23 Kopylovsky. 19. Dmitry.starbucks. 2010). http://www. 2010). ―IBISWorld Industry Report 31181 Bread Production in the US. Krispy Kreme 10K Annual Report 8 Schneider. Inc. (accessed November 4.dunkindonuts.com/q/pr?s=KKD+Profile.: Company History. 29 July 2004. 6 ―SEC probes Krispy Kreme.fundinguniverse.‖ IBISWorld. 9. 37 Dunkin’ Donuts Press Kit. 2010).fundinguniverse. (accessed November 10. 16. 2010).‖ http://www.com/menu/food. 4 ―Krispy Kreme Doughnuts. 2010). (accessed November 9. (accessed November 9. 14 Kopylovsky. 15 Kopylovsky.com. 10 Starbucks.cfm?presskit_id=2.com/company/Starbucks_Corporation/rhkchi1-1njg4g. http://money. Bloomberg. http://www. 35 Dunkin’ Donuts Press Kit. 18 Kopylovsky.starbucks. 24. (accessed November 11. 19 Kopylovsky. (September 2010): 4. 14. 28 Kopylovsky. 30 Kopylovsky.‖ Krispy Kreme Website. 2010).com/company-histories/Krispy Kreme-Doughnuts-Inc-Company-History. http://krispykreme.com. 2010).com/press_kits. 39 Starbucks Website. 2010) 11 Thomson. 32 Dunkin’ Donuts Website.htm.html.
2010).‖ Krispy Kreme Website.bloomberg.‖ Bloomberg.‖ http://www.‖ http://www.html. http://www.com. (accessed November 11. http://www. Krispy Kreme 10K Annual Report 48 2010.‖ Krispy Kreme Website. http://www.com/apps/news?pid=conewsstory&tkr=KKD:US&sid=aPinkbFjkmlg.‖ Bloomberg.‖ USA TODAY.hkdigit. (accessed November 11. (accessed November 13. 66 2010. http://www. http://investor. Inc. 45 2010.‖ Bloomberg.reuters.41 ―Starbucks Corp. http://www.com/money/economy/2008-01-07-2245825613_x.bloomberg. http://www.krispykreme. Ieva M. 42 Starbucks Website. Krispy Kreme 10K Annual Report 61 2010.com/directors. (accessed November 15.reuters.com/finance/stocks/financialHighlights?symbol=KKD.net/2008/10/krispy-kreme hong-kong-in-liquidation/. Finacials.bloomberg. Inc Company Description‖.htm.yahoo. Krispy Kreme 10K Annual Report 49 2010. 54 ―Krispy Kreme Reports Earnings per Share of $0.N (accessed November 12. 51 ―Board of Directors. http://www.com/finance/stocks/financialHighlights?symbol=KKD. Financials.‖ http://www.com/apps/news?pid=conewsstory&tkr=KKD:US&sid=aPinkbFjkmlg.hostesscakes.03 for the Second . http://www. 2010). 2010). 53 ―Krispy Kreme Reports Earnings per Share of $0. 2010). 64 Augstums.cfm.hoovers.03 for the Second .03 for the Second . ―Brewster Resigns as Krispy Kreme CEO.reuters. 7 January 2008.com/management.cfm. Krispy Kreme 10K Annual Report 50 ―Management.bloomberg.com/money/industries/food/2005-01-18-krispy-kreme-shakeup_x. Krispy Kreme 10K Annual Report . 56 ―Krispy Kreme Doughnuts. Inc. 44 ―Hostess Brands. Inc.com/apps/news?pid=conewsstory&tkr=KKD:US&sid=aPinkbFjkmlg.com/company/Hostess_Brands_Inc/rhytci-1 1njg4g.03 for the Second . Krispy Kreme 10K Annual Report 68 2010.com/apps/news?pid=conewsstory&tkr=KKD:US&sid=aPinkbFjkmlg. 65 ―Krispy Kreme Hong Kong in Liquidation. 52 ―Krispy Kreme Reports Earnings per Share of $0. Krispy Kreme 10K Annual Report 63 Krantz. Financials.com/q/bc?s=SBUX+Basic+Chart. (accessed November 15.usatoday. Matt. http://finance.usatoday. Yahoo Finace. (accessed November 9.N 59 2010. 2010).‖ Bloomberg. 2010). (accessed November 9. (accessed November 11.‖ 27 October 2008. 2010). 2010). Krispy Kreme 10K Annual Report 67 2010. Krispy Kreme 10K Annual Report 46 2010. 55 ―Krispy Kreme Reports Earnings per Share of $0.com/finance/stocks/financialHighlights?symbol=KKD. ―CEO Ousted as Krispy Kreme tries to Recover. Krispy Kreme 10K Annual Report 60 2010. (SBUX) Basic Chart‖. Krispy Kreme 10K Annual Report 62 2010. Krispy Kreme 10K Annual Report 47 2010. 43 Hostess Website. http://www. 2010). (accessed November 13.‖ USA TODAY. 18 January 2005.htm. 57 ―Krispy Kreme Doughnuts. http://investor.N 58 ―Krispy Kreme Doughnuts. 2010).krispykreme.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.